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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