Forum Replies Created
-
Posts
-
Not misunderstanding at all and yes, the same fee is assessed to every account that is charged off. If we are able to coordinate with the consumer and implement an extended repayment plan, which will generally be paid in 4 or more installments, then a TILA disclosure will be utilized because we would be considered a creditor as mentioned above. Since we are considered a creditor and must abide by TILA, I was leaning towards it being an “origination” fee using the citation above rather than a “checking” fee. In looking at Truth in Savings again, I believe I could also garner an opinion that the charge off maintenance fee could apply to 1030.04(b)(4), specifically in the Commentary at (b)(4)(1)(iv). The fee is assessed to the checking account because our recourse is to charge it off according to regulatory guidance. I see similarities between this charge off maintenance fee and an overdraft fee because the fee was the result of an action by the consumer. As long as we are disclosing the fee accordingly, then I believe I may be able to keep it in the TIS bucket.
Thoughts?
Thanks for the follow up Robin. The part I struggle with as it relates to the business function test is this. The majority of our banking centers are open on Saturdays. We have lenders and an underwriter or two working, taking applications, underwriting the loan, closing the loan, and disbursing proceeds as needed but this only applies for consumer loans. For residential loans, while we may take an application on Saturday, uur disclosure and processing function for residential lending is not available on Saturday, or in the scenario above, we would have to issue on Friday. In short, we have available consumer lending staff to meet the demand but as it relates to our residential business function, we do not. Hence, my issue regarding this gray area.
For clarification to my above post, we currently go by the standard that we are open on Saturday, so if the three business day clock is going to hit on a Saturday, the loan processing department is to deliver the Loan Estimate the day before, on Friday.
Thanks for the update Robin. I was able to download the magazine. I am a few months behind on my reading so thanks for the push to read it. I am meeting with our marketing team in the morning so they can take me behind the scenes of Google ads so I can see all the bells and whistles they have access to. From the content we go through, I can then build on that and update related procedures. Additionally, I will inquire further once the examiners are on site.
