“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 has always been complicated, take for example the multi-page calculation of a finance charge in §1026.4. Fee disclosure has become more complicated over the past few years with the addition and revisions of rules for High-Cost Mortgages, Truth in Lending Act/Real Estate Settlement Procedures Act Integrated Disclosures (TRID), Ability to Repay/Qualified Mortgage Rules, Home Mortgage Disclosure Act/Regulation C, and The Military Annual Percentage Rate.
- 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.
Who Should Attend
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.