$305.00 – $705.00
Recorded: May 19, 2022
Presented by Ms. Anetria Cohen, Vice President and Senior Consultant, FORVIS
A three-hour remote seminar that delves into the complexities of consumer construction loans,
including construction-permanent loans, focusing on the basic rules and structure of consumer construction loans and construction-permanent loans, as well as the importance of Appendix D.
Construction loans are odd. Often, the institution holds back a certain amount of the loan at closing from which the consumer makes draws during the construction phase to pay for the costs of construction; the consumer makes interest-only payments on the amounts actually drawn; and, an institution may enter into loans where the consumer is obligated on the construction phase only, or may enter into loans where the consumer is obligated on both the construction and the permanent phases. This structure can make understanding and disclosing construction loans difficult.
This remote seminar will focus on the Truth-in-Lending/Regulation Z rules regarding construction loans: the fundamental rules on how an institution may disclose such transactions; the assumptions that Appendix D gives us in determining how to make disclosures; and issues regarding the finance charge and APR.
We’ll also discuss in depth how construction loans and construction-permanent loans are disclosed on the Loan Estimate and Closing Disclosure, the clarifications that the Consumer Financial Protection Bureau provided, and the continuing questions that we have.
Finally, the session will include a review of how construction loans may be treated or exempted under other federal lending compliance requirements, including the Home Mortgage Disclosure Act.
This webinar will be of value to anyone involved with the origination of consumer construction loans, including compliance officers, lenders, and loan processors.
Program Level: Basic to Intermediate
Prerequisite/Advanced Preparation: Basic Knowledge of Lending Regulations
Field of Study: Specialized Knowledge
Any recording, transmission, retransmission, or republishing of any portion of this webinar is prohibited.