02/11/2013
Can you define prepaid finance charges and what is included in that?
02/11/2013
We as a company have been doing a lot of streamlined refinances that require us to get the HUD-1 from the loan that the borrowers currently have. In reviewing these I have noticed that it is common practice for other lenders to reflect negative discount points, a/k/a the funds they (the lender) are crediting to the borrower for closing costs. We currently add our lender credit to the HUD just like you would an earnest deposit or seller paid closing costs, which means the credit to closing costs is not reflected in our GFE and the APR the borrower sees does not reflect the fact that they are in fact paying lower closing costs due to the credit we are giving them. I feel like this is putting us at a disadvantage when borrowers compare our GFE and TIL to other lenders they are considering.
02/04/2013
Should a USDA Rural Development Annual Guarantee Fee be included in the prepaid finance charge calculation when it is included in escrow, similar to property taxes and insurance? This is not to be confused with the upfront guarantee fee, which must be included in prepaid finance charges.
02/04/2013
Are trade finance - letters of credit covered by Regulation B?
01/21/2013
Have you heard of the obvious error rule? The FDIC has recently completed a compliance exam and mentioned the obvious error rule in relation to the APR calculation on open-end credit.
01/14/2013
Is the closing agents fee disclosed as a prepaid finance charge on a Commercial Loan or is it disclosed as other charges financed?
12/03/2012
When making a 1-4 family residential loan, if the customer is paying the closing costs out of pocket, is it necessary to disclose this on the the TIL and show the APR percentage as a higher figure than the note rate due to the prepaid finance charges?
10/22/2012
In charging for credit reports we do not charge unless the loan is closed. My understanding is for consumer loans you must include the fee in the finance charge. Should we also do this with real estate loans since we only charge at closing? We are only charging what we are billed.
10/08/2012
We have just had a compliance exam and they said that we have included the document preparation fee as a prepaid finance charge. We are listing it on the GFE in origination fees. Is this not right.? If not, where do you put it on the GFE?
08/27/2012
I'm currently preparing a commercial loan secured by a primary residence. I was advised that the documentation fee is considered a prepaid finance charge since the real estate collateral is secured by the Guaranty and not the Note. I was also advised that it is written in Reg Z but I'm having trouble finding it.