Fundamentals of Open-End Credit – Compliance.ai

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Item No: AI-OEC
Price: $105/$90

DESCRIPTION:

Consumer lending has undergone many changes within the past few years. Although the emphasis of most of these revisions were on closed-end consumer transactions, especially mortgage loans, financial institutions also originate open-end transactions, also known as lines of credit, including Home Equity Lines of Credit (HELOCs). Like closed-end mortgage loans, HELOCs are subject to a number of newer rules (including rules normally found under the closed-end requirements!). Financial institutions must be aware of those requirements that have existed for a while, as well as the newer obligations. This manual will review the open-end requirements and issues under various laws (e.g., What is the “outstanding principal balance” for flood insurance determinations?), but focusing on the Truth-in-Lending Act/Regulation Z. The manual will provide detailed analysis of the rules and serves as a valuable reference tool.

The manual includes discussions of:

Traditional open-end rules, including periodic statements and billing error rights:

• Account opening statements
• Periodic statements
• Billing error rights and resolution
• Change in terms
• ECOA

Credit cards – an overview of the complicated requirements, including:

• Application and solicitation disclosures
• When and how an interest rate can be increased
• Ability-to-repay
• Limitations on over-the-limit fees

HELOCs

• All TILA/Regulation Z requirements, Flood, RESPA, ECOA
• Limitations
• How HELOCs are similar to, but also different from, non-dwelling open-end transactions
• At application disclosures
• Change in terms
• Closed-end rules that apply to HELOCs

In addition to compliance requirements, various agency guidance