Mortgage Notices: Late Charges & Due Date

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Question:

Are we required to disclose on our monthly mortgage billing notices the amount of the late charge and the date the loan will be considered late?

Answer:

For open end loans, such as a home equity line of credit, there are specific requirements for information that must be in the monthly statement. These are clearly listed in the periodic statement requirements of 226.7 in Regulation Z.

If the loan is closed-end, such as a 15-year mortgage, there are no periodic payment requirements. Truth in Lending disclosures are limited to the disclosures you produce before closing.

First published on BankersOnline.com 07/21/03