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.

WHY?
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.

PROGRAM CONTENT

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