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Truth in Lending: 36(b) Scope.
Editor’s Note594
Truth in Lending: 36(c) Servicing Practices.
Paragraph 36(c)(1)(i)
Truth in Lending: 36(d) Prohibited Payments to Loan Originators.
1. Persons covered.607 Section 1026.36(d) prohibits any person (including a creditor) from paying compensation to a loan originator in connection with a covered credit transaction, if the amount of the payment is based on a term of a transaction. For example, a person that purchases an extension of credit from the creditor after consummation may not compensate the loan originator in a manner that violates § 1026.36(d).
Truth in Lending: 36(d)(2)(i) Dual Compensation.
Editor’s Note618
Truth in Lending: 36(d)(3) Affiliates.
1. For purposes of § 1026.36(d), affiliates are treated as a single “person.” The term “affiliate” is defined in § 1026.32(b)(2). For example, assume a parent company has two mortgage lending subsidiaries. Under § 1026.36(d)(1), subsidiary “A” could not pay a loan originator greater compensation for a loan with an interest rate of 8 percent than it would pay for a loan with an interest rate of 7 percent. If the loan originator may deliver loans to both subsidiaries, they must compensate the loan originator in the same manner.
Truth in Lending: 36(e) Prohibition on Steering.
1. Compensation. See comment 36(d)(1)-1 for guidance on compensation that is subject to § 1026.36(e).
Truth in Lending: 36(e)(1) General.
1. Steering. For purposes of § 1026.36(e), directing or “steering” a consumer to consummate a particular credit transaction means advising, counseling, or otherwise influencing a consumer to accept that transaction. For such actions to constitute steering, the consumer must actually consummate the transaction in question. Thus, § 1026.36(e)(1) does not address the actions of a loan originator if the consumer does not actually obtain a loan through that loan originator.
Truth in Lending: 36(e)(2) Permissible Transactions.
1. Safe harbors. A loan originator that satisfies § 1026.36(e)(2) is deemed to comply with § 1026.36(e)(1). A loan originator that does not satisfy § 1026.36(e)(2) is not subject to any presumption regarding the originator’s compliance or noncompliance with § 1026.36(e)(1).
Truth in Lending: 36(e)(3) Loan Options Presented.
1. Significant number of creditors. A significant number of the creditors with which a loan originator regularly does business is three or more of those creditors. If the loan originator regularly does business with fewer than three creditors, the originator is deemed to comply by obtaining loan options from all the creditors with which it regularly does business.
Truth in Lending: 36(f) Loan Originator Qualification Requirements.
Editor’s Note622
1. Scope.623 Section 1026.36(f) sets forth qualification requirements that a loan originator must meet. As provided in § 1026.36(a)(1) and accompanying commentary, the term “loan originator” includes natural persons and organizations and does not exclude creditors for purposes of the qualification requirements in § 1026.36(f).
Truth in Lending: Amendment History
[66 Fed. Reg. 17,341 (Mar. 30, 2001); 72 Fed. Reg. 63,476 (Nov. 9, 2007); 73 Fed. Reg. 44,613 (July 30, 2008); 75 Fed. Reg. 58,535 (Sept. 24, 2010) (EFFECTIVE DATE NOTE: Effective Apr. 1, 2011); 75 Fed. Reg. 66,583 (Oct. 28, 2010) (EFFECTIVE DATE NOTE: Effective Apr. 1, 2011); 76 Fed. Reg. 43,112 (July 20, 2011); 76 Fed. Reg. 79,772 (Dec. 22, 2011); 78 Fed. Reg. 6967 (Jan. 31, 2013); 78 Fed. Reg. 11,017 (Feb. 14, 2013); 78 Fed. Reg. 11,413 (Feb. 15, 2013); 78 Fed. Reg. 32547 (May 31, 2013); 78 Fed. Reg. 60,442 (Oct. 1, 2013); 80 Fed. Reg. 59,944 (Oct. 2, 2015); 81 Fed.
Truth in Lending: Paragraphs 1 and 2
1. Disclosures not applicable.661 The disclosures required by § 1026.37 are required to reflect the terms of the legal obligation between the parties, and if any information necessary for an accurate disclosure is unknown to the creditor, the creditor shall make the disclosure in good faith, based on the best information reasonably available to the creditor pursuant to §§ 1026.17(c) and 1026.19(e). See comments 17(c)(1)-1, 17(c)(2)(i)-1 and -2, and 19(e)(1)(i)-1.
Truth in Lending: 37(a)(3) Creditor.
1. Multiple creditors. For transactions with multiple creditors, see § 1026.17(d) and comment 17(d)-1 for further guidance. The creditor making the disclosures, however, must be identified as the creditor for purposes of § 1026.37(a)(3).
Truth in Lending: 37(a)(4) Date issued.
1. Applicable date. Section 1026.37(a)(4) requires disclosure of the date the creditor mails or delivers the Loan Estimate to the consumer. The creditor’s method of delivery does not affect the date issued. For example, if the creditor hand delivers the Loan Estimate to the consumer on August 14, or if the creditor places the Loan Estimate in the mail on August 14, the date disclosed under § 1026.37(a)(4) is August 14.
Truth in Lending: 37(a)(5) Applicants.
1. Multiple consumers. If there is more than one consumer applying for the credit, § 1026.37(a)(5) requires disclosure of the name and the mailing address of each consumer to whom the Loan Estimate will be delivered. If the names and mailing addresses of all consumers applying for the credit do not fit in the space allocated on the Loan Estimate, an additional page with that information may be appended to the end of the form. For additional information on permissible changes, see § 1026.37(o)(5) and its commentary.
Truth in Lending: 37(a)(6) Property.
1. Alternate property address. Section 1026.37(a)(6) requires disclosure of the address including the zip code of the property that secures or will secure the transaction. A creditor complies with § 1026.37(a)(6) by disclosing a complete address for purposes of the U.S. Postal Service. If the address is unavailable, a creditor complies with § 1026.37(a)(6) by disclosing the location of such property including a zip code, which is required in all instances. Location of the property under § 1026.37(a)(6) includes location information, such as a lot number.
Truth in Lending: 37(a)(7) Sale price.
Editor’s Note662