TILA violation, ARM max. monthly $ disclosure

[gump59]

First of all, thank all of you for providing so much information, I have been lurking on the board for awhile and greatly appreciate all of your efforts.

Sec. 1639. - Requirements for certain mortgages
(2) Annual percentage rate
(B)
in the case of any other credit transaction, the annual percentage
rate of the loan, the
amount of the regular monthly payment, a statement that the interest
rate and monthly payment
may increase, and the amount of the maximum monthly payment, based on
the maximum interest
rate allowed pursuant to section 3806 of title 12.

I have a purchase money 1st loan that is an ARM consumated 2 years ago. I reviewed all closing documents and they list "estimates" of possible payments, max. interest rate, but they do not disclose the maximum possible monthly payments. TILA violation?

I am wondering if one of you lawyer types think I am interpreting this correctly, and if so, I am looking for references for law firms that serve northern VA. I understand you can not provide legal counsel, any response will be considered to be general information only.

[Moe Bedard]

gump59,

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

You would need to call the attorney on the home page of the forum and ask your questions regarding the violations and see if they are able to help you or would need to refer you, or you can look on the bar association website of the state that you live in or try...........
www.naca.net

click on the link for the contact information.........
Safe Loan Modification Service | Home Mortgage Forum | Protect Your Home & Mortgage With Loan Safe

[Ledeen]

I have been asking the same questions and no one so far has answered me, (except for the referrals to attorneys, which of course they want a retainer to answer my question)


I have an Option ARM mortgage through Downey Savings. The broker who sold this loan to me lied both to me and the bank .

First he told me my interest only payment option would be 2,900. It was 4200!

On the Loan Documents ONLY the MINIMUM Payment option was listed. It listed the rate, what the rate was based off of (MTA) and the points . BUT NO WHERE did it make any mention of any of the other 3 optional payment amounts.

So unless I would have jumped online and searched for a mortgage calculator, which I did not. I had no way to know the Broker completely misled me.

The minimum payment was correct, although he promised me it was a NO Prepay, and the loan docs said "there MAY be a pre pay". When I asked about that, he stated "they are required to state it, but if there WAS a prepay, then the little box next to , THERE IS A PRE PAY, would be checked.

So that was also wrong.

I want to know if not listing the other 3 optional payments on these Option ARM Loans is legal.

Is it legal to simply document the interest rate, but not estimate or list what those payments are?

To me it seems ridiculous they would not have to list them since it would, and has led to allot of us homeowners being misled and put into loans we can never afford.

Also, he put me into a loan where the P&I payment was more than 70% of my gross. I think more like 75%.

Anyway, if anyone can answer this one question I would greatly appreciate it.

[Moe Bedard]

Ledeen,


It isn't a question that we are able to answer on this forum...........we are not attorneys............TILA violations are legal violations and therefore would need to be answered by an attorney.
If you go to your state's bar association website, most have legal aid referals that answer questions for free.