Can a lender “back out” the existing portion of payments representing long-term amortization of costs and fees, before adding in the figure calculated for recoupment over 3 years?
• Yes, if the lenders can accurately determine the amount of the monthly payment representing payment of costs and fees amortized over the full term of the loan, that amount may be deducted before the figure representing 3-year recoupment is added to the payment for purposes of the tangible net benefit form. What is the appropriate restitution to the borrower and the appropriate adjustment to the loan under the law if a lender wishes to avoid the penalties for failing to comply with the provisions of the law applicable to high rate, high fee mortgages and residential mortgage loans, in cases in which a creditor acted in good faith? • Appropriate restitution is restitution that would place the borrower back in the position they would have been in but for the violation. Appropriate adjustment to the loan means the adjustment made to the loan so that its terms no longer violate the statute.
Related Questions
- Can a lender "back out" the existing portion of payments representing long-term amortization of costs and fees, before adding in the figure calculated for recoupment over 3 years?
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