From: Bill Cassity [mailto:bcassity@rsb.net]
Sent: Monday, April 19, 2004 10:57 AM
To: Comments
Subject: EGRPRA Review of Consumer Protection Lending Related Rules
Bill Cassity
201 Valley St.
Rushville, MO 64484
April 19, 2004
Dear FDIC:
Thank you for giving me the opportunity to contact on the consumer
lending
regulatory burden. My biggest compliant in consumer lending is the
trend
towards more and more disclosure forms for consumers, especially
related
to real estate lending. The large number of pages for consumers to
review and often sign are watering down the effectiveness of the
disclosures. Most consumers (if not all) are simply asking where
to sign
and do not want to hear all of the details of each disclosure. I
would
strongly urge you to reduce the disclosure required to one page of
material emphasizing the highlights of consumer lending as protects
the
consumer. This could be supplemented with an expanded "Your
guide to
settlement costs" booklet for 1-4 family residential loans only.
I would
envision a reg Z disclosure page with comments about loan servicing,
appraisal rights, flood requirements, etc.
My second comment is concerning the Right of Rescission. One of
the most
burdensome requirements is the three-day right of rescission under
Regulation Z. Our bank has NEVER had a consumer exercise the right.
Consumers always resent having to wait three additional days to receive
loan proceeds after the loan is closed, and they often blame the
bank for
"
withholding" their funds. Even though this is a statutory requirement,
inflexibility in the regulation making it difficult to waive the
right of
rescission aggravates the problem. If not outright repealed, Lenders
should be given the option to notify the consumer of the right to
rescind
at the time of application. The three day period should start at
that
time. This would allow most consumers to receive the proceeds on
the
date of closing. Not after three days which in many cases, (especially
when a loan is closed on a Friday) is nearly a week later. Moving
to the
application time still allows the consumer to think about the transaction
and make sure they are aware they are obligating their home.
Thank you for the opportunity to comment on this critical issue.
