understated finance charge and incorrect APR on my TILA

[demmy]

Maybe one for Moe or the others. Had a table audit and found a huge mistake on my TILA. Don't know how they arrived at the figure and wanted to check their calculations before I take this to my lawyer. Any help ???

[Moe Bedard]

Hi Demmy,

Welcome to the forum and thank you for joining..........

Can you please post the figures in question so that we can take a look at them and see what you mean?

Thank you,

[demmy]

In the Finance charge box, that figure is understated by 510,000, and the APR is understated by 2.3% for the total cost of the loan

[Moe Bedard]

If you already had this checked out and confirmed you should take it to an attorney..............
In order to confirm your suspicions and give you our opnion here on the forum, I would need the figures off all the boxes of the TIL along with the loan amount, interest rate, and type of loan that it is............

Annual Percentage Rate
Finance Charge
Amount Financed
Total of Payments

[demmy]

will e-mail them to you ASAP

Demmy

[demmy]

Did you receive my email *** ??

[Moe Bedard]

Demmy,

O.k. looked it over and wanted to explain to you how they arrive at the calculations.........I didn't see the same discrepancy based on all of the information put together, I am not an attorney and don't know the disclosure laws in your state, but if I were you I would definately have this looked over by an attorney to see what kind of case can be made for RESPA and TIL violations.....I do believe you have a case as you were charged very high predatory fees from the broker including the YSP and origination which drove up your final APR.......and the final total figure on the cover page didn't have the interest carried over to that column.........
We do offer Loan Doc Reviews on the forum........for a reasonable fee if you want to have that done you can call Marshall Rosenbach on the home page of the forum.........

I hope this helps you at least to understand how they get those numbers.....
I am so sorry that this has happened to you......but hopefully you will be able to do something about this.......

This is how they calculate the figures for your reference:


1) ANNUAL PERCENTAGE RATE:
The APR is not the same as your interest rate. Because the APR includes items in addition to interest, it is higher than the note rate. It is a combination of the amount of interest to be paid over the life of the loan, together with the prepaid finance charges computed as an annual rate.


2) FINANCE CHARGE:
Represents the total dollar amount you will have to pay over the life of the loan- i.e., the cost of the loan to you. It is a combination of the amount of interest paid over the life of the loan plus any/all mortgage insurance premiums, plus the prepaid finance charges.


3) AMOUNT FINANCED:
The amount financed is different and will always be different from what you borrowed. The amount financed represents your new mortgage amount minus points and certain closing fees as shown in your Good Faith Estimate of Closing Costs.


4) AMOUNT OF PAYMENTS:
This is the estimated dollar amount of your monthly payments.