[Annmichele]

I recently reviewed a HELOC that included a Wire Fee on our Credit Agreement and Disclosure under additional finance charges. We do not have this fee stated in our Home Equity Application Disclosure.

1026.40(d)(7)
Fees imposed by the creditor. An itemization of nay fees imposed by the creditor to open, use, or maintain the plan, stated as a dollar amount or percentage, and when such fees are payable.

1. Applicability. The fees referred to in § 1026.40(d)(7) include items such as application fees, points, annual fees, transaction fees, fees to obtain checks to access the plan, and fees imposed for converting to a repayment phase that is provided for in the original agreement. This disclosure includes any fees that are imposed by the creditor to use or maintain the plan, whether the fees are kept by the creditor or a third party. For example, if a creditor requires an annual credit report on the consumer and requires the consumer to pay this fee to the creditor or directly to the third party, the fee must be specifically stated. Third party fees to open the plan that are initially paid by the consumer to the creditor may be included in this disclosure or in the disclosure under § 1026.40(d)(8).

Do we need to refund the customer and put this on our home equity application disclosure going forward?

Topic

[Kimberly Boatwright, CAMS, CRCM]

1. Yes, update your applications to accurately state what your fees are.
2. Did you charge them a wire fee? If you did then yes, I would be refunding that fee to everyone who was charged for it. Not just for the one loan you identified it on.

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