"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.
The proper disclosure of fees on consumer loan transactions is more complicated than ever.
This program explains:
- Which fees are included in or excluded from the:
- Finance charge, per 1026.4
- Annual Percentage Rate (APR), per 1026.22
- Total Points and Fees, per 1026.32
- Military Annual Percentage Rate (MAPR), per the Department of Defense's 232
- The TRID Tolerance rules contained in 1026.19; and
- The proper disclosure of fees on the Loan Estimate and Closing Disclosure, per 1026.37 and .38.
Please note that the program materials include a list of examples of specific fees outlined in the regulation.
Violations of any of the requirements listed above may result in:
- Regulatory reimbursement;
- Consumer lawsuits;
- Regulatory cures;
- Higher liability from the failure to meet QM standards; and
- Civil monetary penalties.
This program provides the information needed to fully understand the rules and to avoid the liability-inducing problems.
Upon completion of the program, participants understand that improper fee disclosure may result in violations. In some cases a violation of one section may result in one or more violations of other sections. It is a tangled web. For example:
- 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;
- Inadvertently 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.
It was very informative and well presented - BelindaKraus
Very well documented - BANKPDS
It was a good refresher. - darcie1
Loan Fee Disclosures