CFPB TRID Sec. 16.7 - What information must be included in the Partial Payment Policy Disclosure and what must the disclosure look like?

Compliance > Regulation Z - TILA / TRID Specific > General Info
Q:  What information must be included in the Partial Payment Policy Disclosure and what must the disclosure look like?
 
A:  The Partial Payment Policy Disclosure must include:
 
  • The heading “Partial Payment” over all of the following, additional information:
     
    • If periodic payments that are less than the full amount due are accepted, a statement that the covered person, using the term “lender,” may accept partial payments and apply such payments to the consumer’s loan;
    • If periodic payments that are less than the full amount due are accepted but not applied to a consumer’s loan until the consumer pays the remainder of the full amount due, a statement that the covered person, using the term “lender,” may hold partial payments in a separate account until the consumer pays the remainder of the payment and then apply the full periodic payment to the consumer’s loan;
    • If periodic payments that are less than the full amount due are not accepted, a statement that the covered person, using the term “lender,” does not accept any partial payments; and
    • A statement that, if the loan is sold, the new covered person, using the term “lender,” may have a different policy.
       
       
The creditor may use the format of the Partial Payment Policy Disclosure illustrated by form H-25 of appendix H to Regulation Z. The text illustrating the disclosure in form H-25 may be modified by the creditor to suit the format of the mortgage transfer notice. (See Comment
39(d)(5)-1)
 
 
This information can be found in the CFPB's TILA-RESPA Integrated Disclosure rule compliance guide - http://www.consumerfinance.gov/regulatory-implementation/tila-respa/
 

Add Feedback