Posted by S_LPVA on 10/18/05 6:26am
Msg #71015

TIL Missing from Package

Hi All:

I did a closing late last night. The package was sent to borrower, so I was not aware of what was in the package and what was not until I got there. This was a just a credit line DOT (debtors were doing a debt consolidation).

I noticed there was no Truth in Lending in package. It was too late to call the lender and I sent an e-mail about it when I got home. Has anyone ever had a TIL document missing? I have never seen a package without a Mortgage/DOT, RTC and TIL.

Any feedback would be great.

Thanks in advance.

Reply by Bob_Chicago on 10/18/05 7:03am
Msg #71016

Probably ok

This sounds like a HELOC (home equity line of credit)
variable rate usually based on prime
revolving line much like credit card with a lower rate becuse debt is sevured by equity in house (value less first mortgage)
there will not be a TIL in these pkgs because not reqd by Fed Law
If Paul/FL is in a good mood , he will even cite the # of the regualation

Reply by PAW_Fl on 10/18/05 7:16am
Msg #71017

I disagree ... maybe

Under Title 12 (that's the regulation covering the RTC and disclosures), even a HELOC would require a right of rescission in most cases. As part of that right, certain disclosures must be provided, some which are: the method of determining the finance charge and the balance upon which a finance charge will be imposed and the annual percentage rate. These items are found on the TIL. Many HELOC package do not have the "normal" TIL that one is used to seeing with refinances, but the information must be given to the borrower, if the loan qualifies under Title 12 for a rescission period. Often, this information is included in the program disclosures and may not be title as "Truth in Lending".

Reply by S_LPVA on 10/18/05 8:20am
Msg #71019

Re: I disagree ... maybe

Thanks for the information you 2 and THANK YOU PAW. You are so knowledgable in your posts.

When I hear back from the TC, I'll posts what thier response was to the TIL.


Thanks again!

Reply by Bob_Chicago on 10/18/05 9:48am
Msg #71020

Re: I disagree ... maybe

I don't recall ever seeing a document entitled Truth
In Lending Disclosure in a HELOC pkg
I agree that the info needs to be provided in order to make the RTC viable
Usually that info is in the Loan Agreement and related docs
The original poster was concerned about the lack of a docs entitled Truth In Lending Disclusure
These discussions are far more appropriate to a board than the breast feeding bit on GMN last weekend.
Go White Sox

Reply by S_LPVA on 10/18/05 9:56am
Msg #71021

Thanks Bob_Chicago!

Reply by sharon powers on 10/18/05 10:28pm
Msg #71121

Re: I disagree ... maybe

bob, i'm jumping in because i am new to the chicago area and just saw that you are from this area. could you please give me input as to what i need to do to become an independant notaryl i am from philadelphia area andd am not familar to the illinois laws as of yet. any input would be much appreciated.

Reply by B__CA on 10/18/05 1:55pm
Msg #71057

Helocs, generally do not have them.

Reply by PAW_Fl on 10/18/05 4:33pm
Msg #71080

B_CA, I hate to disagree. I would say that over 90% of the HELOCs that I've done have had a TIL in them. As I said before, it may not be in same form that you're used to seeing with standard loan refinancing. The following information is provided by the FTC in their discussion about Home Equity Loans (for the primary residence):

"One of the best protections you have is the Federal Truth in Lending Act, which requires lenders to inform you about the terms and costs of the plan at the time you are given an application. Lenders must disclose the APR and payment terms and must inform you of charges to open or use the account, such as an appraisal, a credit report, or attorneys' fees. Lenders also must tell you about any variable-rate feature and give you a brochure describing the general features of home equity plans.

"The Truth in Lending Act also protects you from changes in the terms of the account (other than a variable-rate feature) before the plan is opened. If you decide not to enter into the plan because of a change in terms, all fees you paid earlier must be returned to you."

So, you may not see the "Truth In Lending" typical form, but if you look you will find the TILA compliance information being provided in almost every HELOC, because it is required to be provided in a form in which the borrowers can keep, read and understand.