[Lexegay]

If the final balloon payment on the note is different on the GFE than that of the note is this a violation?

Topic

[rcooper]

What caused the balloon payment to change?

[Lexegay]

I am not sure, I have checked the APR on the early and the final and have reviewed all charges but cannot seem to find the answer. The application date is March 8, 2014 and the loan date is April 29, 2014, could this be the reason? Can you tell me what can cause the balloon payment to change so I will know going forward? Many Thanks

[jholzknecht]

There are a number of things that can cause the balloon payment on the note to differ from the balloon payment on the TIL disclosure:
* Different loan terms;
* Different interest rates;
* Rounding amounts in one case but not the other;
* Using different calculation calendars (360/360 versus 365/360); and
* Others.

You need to determine the cause of the difference in your case. The difference could be a truth-in-lending violation or a UDAAP violation.

[Author]

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