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Untangling the Web of Fee Disclosures - Webinar

Untangling the Web of Fee Disclosures - Webinar

by Deb Rondeau -
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Center for Financial Training
Webinar - Live and Recorded Options Available

Untangling the Web of Fee Disclosures

Wednesday, July 31, 2019
11:00 AM - 1:00 PM (Eastern Time)

 

CFT Webinars are purely educational. Instructors are not permitted to sell any products or services during the presentation.

Program Content:

WHAT?

“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

This program explains:

Which fees are included in, or excluded from, the:

  • Finance charge, per §1026.4 – The finance charge is a critical component in the calculation of the APR. Regulation Z provides a list of fees that are included in the finance charge and a list of fees that may be excluded, if certain conditions are met. Violations often occur when a fee is excluded from the finance charge but all of the conditions for the exclusion have not been met.
  • Annual Percentage Rate (APR), per §1026.22 – The APR is based on the finance charge. Violations frequently occur when the finance charge is not properly calculated.
  • Total Points and Fees, per §1026.32 – Jack has declared this number as “the most important number in the world of compliance.” It is used to determine coverage for Section 32 rules, it is disclosed in a Section 32 disclosure and on the HMDA LAR, and it is used to determine QM status under Section 43. A single miscalculation can result in multiple violations.
  • Military Annual Percentage Rate (MAPR), per the Department of Defense’s §232 – Disclosure of the MAPR has been required since October 2007, but as a result of the limited scope of the rule most lenders have not needed to disclose the number. As a result of revisions to Part 232, effective October 3, 2016, the scope of the rule is dramatically expanded and most lenders will need to disclose the number. Although the calculation of the MAPR is similar to the calculation of an APR, differences generally result in a much higher number.

The TRID Tolerance rules contained in §1026.19

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

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. Please forward email to appropriate person(s).

Instructor:

Jack Holzknecht is the CEO of Compliance Resource, LLC. He has been delivering the word on lending compliance for 43 years. In 38 years as a trainer over 145,000 bankers (and many examiners) have participated in Jack’s live seminars and webinars. Jack’s career began in 1976 as a federal bank examiner. He later headed the product and education divisions of a regional consulting company. There he developed loan and deposit form systems and software. He also developed and presented training programs to bankers in 43 states. Jack has been an instructor at compliance schools presented by a number of state bankers associations. As a contractor he developed and delivered compliance training for the FDIC for ten years. He is a Certified Regulatory Compliance Manager and a member of the National Speakers Association.

What Is A Webinar?:

A webinar combines the clarity of an audio teleconference with the interactivity and visual presentation of the internet. All you need to participate is a telephone and an internet connection. Even if you don't have an internet connection, you can still participate in the audio session. Listening to the program over the telephone and following the written materials is an effective alternative!

Unable To Attend?:

No problem. You can purchase a recording of the webinar for future use. You can choose from either an On-Demand Web Link (Good for 6 months from the webinar date, unlimited use) or a CD-ROM (includes a paper copy of the PowerPoint slides).

Viewing Options (all options include applicable handouts):

All options include applicable handouts. You can choose to pay by credit card or be billed. Additional Live Webinar connections are $75 each.

Option 1: Live Webinar and 7 Days OnDemand Video Playback - $265

Option 2: OnDemand Video (six months access) - $295

Option 3: Live and 6 Months of OnDemand Video - $365

Option 4: CD-ROM Video (Includes OnDemand Video) - $345

Option 5: Entire Package (all of the above) - $395

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Recommended for 2.5 CE Credit Hours. Each attendee will receive a Certificate of Attendance for self-reporting of CE Credits.

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Questions?

Please contact Scott Briggs at
800-795-5242 X1180 or scott@cfteducation.org

 

Looking for more in depth compliance training? Check out the 2019 Federal Compliance School!: Click Here