[Kimberly Boatwright, CAMS, CRCM]

Good afternoon:

I think I might have an answer, but if you could provide more detail that would be helpful to ensure we provide you the best answer.

Thank you

[Kimberly Boatwright, CAMS, CRCM]

Good afternoon:

The answer to both questions is yes. In June 2021, The CFPB clarified, defined, and explained that the terms and requirements of the EFTA including:

1. Which consumers are protected,
2. Which transfer circumstances are covered, and
3. Who is obligated to follow the Act.

Additionally, the CFPB clarified whether a P2P payment app qualifies as a financial institution and whether P2P transfers are covered by the EFTA.

The Bureau’s statement confirmed that:

1. P2P payment app companies fall into the official definition of a financial institution under the EFTA, and
2. P2P payments are specifically included as covered transactions under the Act.

I hope this helps,
Kimberly

• This reply was modified 1 year, 10 months ago by Brent V.

[Kimberly Boatwright, CAMS, CRCM]

Based on what you are describing the answer is yes. Even if a borrower is paying for the appraisal, it had to be on the initial CD. Since the fee is in the zero-tolerance category it needed to be disclosed and shouldn’t have been left off. Without having it on the initial CD the borrower didn’t have an accurate understanding of total loan costs/fees even though they wanted to pay it. Based on what you described it sounds like it was handled appropriately.

Best,
Kimberly

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