No, for purposes of Certification the CDFI Fund does not require that an Applicant calculate, disclose, or report the MAPR of each of its consumer loan products, unless otherwise required by statute or regulation to do so. Applicants only must attest as to whether any of its consumer loan products “allow for” a MAPR in excess of 36%.
Applicants that do not wish to calculate the MAPR for their consumer loans and still attest that none of their consumer loan products allow for a MAPR in excess of 36% may pursue one of two options: 1) Applicants can set internal policies to ensure no consumer loan exceeds a 36% MAPR and avoid any costs that could cause a loan to exceed that rate; or 2) if an Applicant determines that it does not charge any of the fees included in the MAPR methodology that are not a part of TILA, it may rely on the standard TILA APR calculation in 12 CFR Part 1026 (Regulation Z). Such MAPR fees that are not a part of TILA include:
- Any credit insurance premium or fee, any charge for single premium credit insurance, any fee for a debt cancellation contract, or any fee for a debt suspension agreement;
- Any fee for a credit-related ancillary product sold in connection with the credit transaction for closed-end credit or an account for open-end credit; and
- Except for a bona fide fee (other than a periodic rate) charged to a credit card account, which may be excluded if the bona fide fee is reasonable for that type of fee:
- Finance charges associated with the consumer credit;
- Any application fee charged to a covered borrower who applies for consumer credit, other than an application fee charged by a federal credit union when making a short-term, small amount loan provided that the application fee is charged to the covered borrower not more than once in any rolling 12-month period; and
- Any fee imposed for participation in any plan or arrangement for consumer credit other than as permitted under §232.4(c)(2)(ii)(B).