The proper disclosure of fees on consumer loan transactions is more complicated than ever before due the addition and revisions of rules for:
- Integrated Disclosures
- Ability to Repay/QMs
- High-Cost Mortgages
- HMDA/Regulation C
- Military lending rules
This program explains:
Which fees are included in or excluded from the:
- Finance charge - a critical component in the calculation of the APR.
- APR - easy to get wrong if your finance charge is not properly calculated.
- Total Points and Fees - perhaps "the most important number in the world of compliance." It is used to determine QM status, and it is also used to determine coverage for Section 32 rules, it is disclosed in a Section 32 disclosure and on the HMDA LAR. A single miscalculation can result in multiple violations.
Plus, we'll cover:
- Military APR - a calculation most lenders will need to make under the expanded DoD rules effective October, 2016.
- TRID fee disclosures - properly disclosing fees on the Loan Estimate and Closing Disclosure.
- TRID Tolerance rules - when you may, must, or can't issue a new Loan Estimate, and when you are required to make reimbursement.
- And more!
The program materials include a list of examples of specific fees outlined in the regulations!
"Oh what a tangled web we weave"... Walter Scott was referring to the web woven by people who intend to deceive others. The CFPB has created a "tangled web" while crafting regulations intended to prevent deception. This webinar will help you untangle the intricacies of numerous fee disclosure requirements.
Violations of fee-related requirements may result in reimbursements, lawsuits, regulatory cures, penalties, and more exposure under the QM standards.
This program provides the information needed to fully understand the rules and to avoid the liability inducing problems.
- A violation of the finance charge rules contained in 1026.4 may also cause a violation of the disclosure requirements in 1026.18 or 1026.38 since the finance charge is included in those disclosures;
- Improper categorization of fees on the TRID disclosures contained in 1026.37 and .38 may result in a violation of the tolerance rules contained in 1026.19;
- Failure to follow the APR calculation rules contained in 1026.22 may result in
- The incorrect APR appearing in the disclosures contained in 1026.18, 1026.32, 1026.37 or 1026.38;
- Improperly triggering coverage of 1026.32;
- An inaccurate calculation of the rate spread disclosed on the HMDA LAR and used to determine the applicability of the high-cost mortgage loan rules contained in 1026.32 and the higher-priced mortgage loan rules contained in 1026.35; or
- The incorrect disclosure of the HOEPA status disclosed on the HMDA LAR;
- An inaccurate determination of the higher-priced covered transaction status of a loan for purpose of determining which a transaction achieves safe harbor or presumption of compliance status for the ability to repay rules in Section 1026.43;
- Failure to properly calculate the total points and fees as prescribed by the high-cost mortgage loan rules contained in 1026.32 can;
- Inadvertently trigger 1026.32 coverage;
- Violate the disclosure rules contained in 1026.32;
- Result in an incorrect entry on the HMDA LAR; and
- Blow the Qualified Mortgage status for purposes of 1026. 43; or
- Failure to follow TRID rules contained in 1026.38 may result in the incorrect disclosure of the total of all itemized amounts that are designated borrower-paid at or before closing on HMDA LAR.
This program is designed for everyone involved in the origination and management of consumer credit (including mortgage loans), including lenders, the compliance staff and auditors.
Untangling the Web of Fee Disclosures
Questions and Answers