Quoting Loan Rates by Phone

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Question:

Can we quote loan rates for auto, mortgage, and commercial loans over the phone? Do they have to be the APR or can the rates we quote be the note rate? Can we quote rate and terms over the phone without long disclosures? The regs are pretty clear on advertising, but I am interested in call-in customers....

Answer:

226.26 is clear that the APR must be quoted. If the loan is not subject to Reg. Z, such as a commercial loan, look to state laws, if any.

As to doing this without "long disclosures," this all depends on what is "long" and if your response is an advertisement. Sometimes the details are what is required.

First published on BankersOnline.com 11/3/03