Private lenders run the borrower-statement framework on two primary frameworks under the Regulation Z framework — the periodic-statement framework and the coupon-book framework. The choice runs against the lender’s loan-product framework, the lender’s delinquency framework, and the lender’s borrower-communication framework. This article walks the side-by-side framework against each.

Periodic-statement framework

The periodic-statement framework runs the Regulation Z framework under 12 CFR §1026.41 against each closed-end consumer-credit transaction secured by a dwelling. The framework runs the periodic-statement framework against each billing cycle on the standard. The framework runs the required-content framework against the amount-due framework, the explanation-of-amount-due framework, the past-payment-breakdown framework, the transaction-activity framework, the partial-payment-information framework, the contact-information framework, the account-information framework, and the delinquency-information framework.

Coupon-book framework

The coupon-book framework runs the periodic-statement exception framework under the Regulation Z framework on the fixed-rate residential-mortgage framework. The framework runs the coupon-book delivery framework against the borrower at the loan-origination cycle on the fixed-rate framework. The framework runs the coupon-book content framework on the amount-due framework, the due-date framework, and the contact-information framework against the borrower framework.

Loan-product framework

The periodic-statement framework runs against the fixed-rate framework, the adjustable-rate framework, the interest-only framework, and the balloon-payment framework on the residential-mortgage framework. The coupon-book framework runs against the fixed-rate framework on the Regulation Z exception framework — the coupon-book framework runs no adjustable-rate framework, no interest-only framework, and no balloon-payment framework on the standard.

Delinquency framework

The periodic-statement framework runs the delinquency-disclosure framework against the delinquent-borrower framework on each billing cycle. The coupon-book framework runs no delinquency-disclosure framework against the delinquent-borrower framework — the framework runs the periodic-statement framework against the delinquent-borrower framework on the standard. The lender that runs the coupon-book framework runs the periodic-statement framework against the delinquent-borrower framework on the standard.

Borrower-request framework

The periodic-statement framework runs against the borrower on the recurring billing cycle without a borrower-request framework on the standard. The coupon-book framework runs the borrower-request framework against the periodic-statement framework — the borrower-request framework runs the lender into the periodic-statement framework against the standard. The lender runs the borrower-request framework against the periodic-statement framework on the standard.

Choosing the framework

The lender that runs the fixed-rate framework against the residential-mortgage framework runs the coupon-book framework on the Regulation Z exception framework — the framework runs the periodic-statement framework against the delinquent-borrower framework on the standard. The lender that runs the adjustable-rate framework, the interest-only framework, or the balloon-payment framework runs the periodic-statement framework on each billing cycle on the standard. The lender that runs the business-purpose-loan framework runs no Regulation Z periodic-statement framework against the borrower on the standard.

Related Topics

• Borrower Statements That Pass Compliance Review
• Identity Verification at Loan Boarding
• Five Wire Fraud Defenses for Private Lenders
• Impound and Escrow Accounts for Private Lenders
• Mortgage Fund Subservicing Done Right

This article is educational and does not constitute legal or regulatory advice. The borrower-statement framework runs against the Regulation Z framework under 12 CFR §1026.41. The framework runs against the small-servicer-exemption framework on the CFPB framework. The framework runs against the business-purpose-loan-exemption framework under 12 CFR §1026.3(a) on the recurring compliance cycle. Consult qualified legal counsel on the specific borrower-statement framework against any private-lending operation.

Sources

• 12 CFR §1026.41 — Periodic Statements for Residential Mortgage Loans. Electronic Code of Federal Regulations.
• 12 CFR §1026.3 — Exempt Transactions. Electronic Code of Federal Regulations.
• Consumer Financial Protection Bureau — Mortgage Servicing Rules. Consumer Financial Protection Bureau.
• Electronic Signatures in Global and National Commerce Act. U.S. Congress.
• CFPB Supervisory Highlights — Mortgage Servicing. Consumer Financial Protection Bureau.