Truth in Lending: 41(d)(3) Past payment breakdown.
Editor’s Note803
Editor’s Note803
Editor’s Note805
1. Meaning.806 Transaction activity includes any transaction that credits or debits the amount currently due. This is the same amount that is required to be disclosed under § 1026.41(d)(1)(iii). Examples of such transactions include, without limitation:
i. Payments received and applied;
ii. Payments received and held in a suspense account;
Editor’s Note809
Editor’s Note832
Editor’s Note838
1. Timing. The exemption in § 1026.41(e)(5)(iv)(B) applies with respect to a single periodic statement or coupon book following an event listed in § 1026.41(e)(5)(iv)(A). For example, assume that a mortgage loan has a monthly billing cycle, each payment due date is on the first day of the month following its respective billing cycle, and each payment due date has a 15-day courtesy period. In this scenario:
Editor’s Note839
1. Change in ownership. If a charged-off mortgage loan is subsequently purchased, assigned, or transferred, § 1026.39(b) requires a covered person, as defined in § 1026.39(a)(1), to provide mortgage transfer disclosures. See § 1026.39.
Editor’s Note842
1. Pre-petition payments and post-petition payments.
Editor’s Note843
Editor’s Note845
Editor’s Note846
[78 Fed. Reg. 11,017 (Feb. 14, 2013); 78 Fed. Reg. 44,725 (July 24, 2013); 78 Fed. Reg. 60,442 (Oct. 1, 2013); 78 Fed. Reg. 63,006 (Oct. 23, 2013); 78 Fed. Reg. 65,300 (Nov. 3, 2014); 81 Fed. Reg. 49,869 (July 29, 2016); 81 Fed. Reg. 72,160 (Oct. 19, 2016); 81 Fed. Reg. 84,369 (Nov. 22, 2016); 82 Fed. Reg. 18,975 (Apr. 25, 2017); 83 Fed. Reg. 6364 (Feb. 13, 2018); 83 Fed. Reg. 10,553 (Mar. 12, 2018)]
1. Open- and closed-end credit. Section 1026.42 applies to both open-end and closed-end transactions secured by the consumer’s principal dwelling.
2. Consumer’s principal dwelling. Section 1026.42 applies only if the dwelling that will secure a consumer credit transaction is the principal dwelling of the consumer who obtains credit.
Paragraph 42(b)(1)
1. Examples of covered persons. “Covered persons” include creditors, mortgage brokers, appraisers, appraisal management companies, real estate agents, and other persons that provide “settlement services” as defined under the Real Estate Settlement Procedures Act and implementing regulations. See 12 U.S.C. 2602(3).
1. State law. The terms “coercion,” “extortion,” “inducement,” “bribery,” “intimidation,” “compensation,” “instruction,” and “collusion” have the meanings given to them by applicable state law or contract. See § 1026.2(b)(3).
1. Opinion of value. Section 1026.42(c)(2)(i) prohibits a person that performs valuations from misrepresenting the value of the consumer’s principal dwelling in a valuation. Such person misrepresents the value of the consumer’s principal dwelling by assigning a value to such dwelling that does not reflect the person’s opinion of the value of such dwelling.
1. Inducement. A covered person may not induce a person to materially misrepresent the value of the consumer’s principal dwelling in a valuation or to falsify or alter a valuation. For example, a loan originator may not coerce a loan underwriter to alter an appraisal report to increase the value assigned to the consumer’s principal dwelling.
1. Prohibited interest in the property. A person preparing a valuation or performing valuation management functions for a covered transaction has a prohibited interest in the property under paragraph (d)(1)(i) if the person has any ownership or reasonably foreseeable ownership interest in the property.
1. Employees and affiliates of creditors. In general, a creditor may use employees or affiliates to prepare a valuation or perform valuation management functions without violating paragraph (d)(1)(i). However, whether an employee or affiliate has a direct or indirect interest in the property or transaction that creates a prohibited conflict of interest under paragraph (d)(1)(i) depends on the facts and circumstances of a particular case, including the structure of the employment or affiliate relationship.