Carleton, Inc.
Consumer Lending Software

Carleton Archive for 2011

The following articles and posts have been archived, so they may contain outdated information. For the most recent information, please view our latest news articles and blog posts by choosing an option to the left.

Why One Size Doesn't Fit All

Fighting the perception that the credit industry is operated and regulated on a standardized basis isn’t easy.

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Posted on Nov 28, 2011

The Rule of 78ths

Almost everyone in the industry is familiar with the term “Rule of 78ths.” Ever think about how much you really know about this widely-used term?

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Posted on Oct 20, 2011

Navigating the Pendulum Swing

What do the following have in common? HMDA, Fair Lending, Suitability, Arbitration, CRA, Ability to Repay, Interchange Fees, Credit Freeze, Risk Retention, Appraiser Independence, FCRA, ECOA. The answer is, they all have been regulatory and compliance hot topics in the last 60 months or so.

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Posted on Sep 21, 2011

The Match Game

An interesting discussion I have often with members from both the industry and the regulators is the proper way to decide if a computed number is “right”. Generally, we see two schools of thought on this subject: one that seeks to “re-originate” the transaction in question and match the disclosed results, and the other which seeks to validate computed numbers by a predetermined set of rules.

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Posted on Aug 26, 2011

A Fee by Any Other Name....

A particularly key compliance component of our project definition process for new clients is the analysis of the properties associated with any fees paid by a consumer as part of a prospective credit transaction. Unlike mortgage lending, fees associated with personal loans, small loans, and retail sales aren’t always transparent based solely on the fee name.

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Posted on Aug 12, 2011

The Deception of Dates

There are days when I absolutely hate the month of February. And not just during that month with its sub-zero temps, dark days and endless snow, but when the fact that it has only 28 days wreaks havoc on system lending calculations.

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Posted on Jul 28, 2011

Every Fee "Affects" the APR

When gathering information to define software, one of the critical areas for accurate disclosure is determining the nature of any fees that will be charged by the lender. A really popular industry description of specific fees is that “this fee affects the APR”.

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Posted on Jul 13, 2011

Single Payment Transactions and Mixed Fruit Results

n the last few months we have had a number of inquiries from clients about how to pass our calculation engine the right information for single advance, single payment transactions. There seems to be a degree of uncertainty when dealing with these types of loans.

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Posted on Jun 13, 2011

It's All in the Payment

The thought for the day centers around the seemingly ubiquitous client request of “why is my payment different when I use your software”? The specifics of the answer to that question permeates the core of what makes consumer credit math a more intimidating subject than at first glance. Bottom line: there is no such thing as a single universal payment amount for a given set of loan data.

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Posted on May 09, 2011

The Interest Rate and the APR

One question we field on a weekly, some weeks daily, basis revolves around the Truth-in-Lending APR disclosure in the “fedbox” being a different value than the originating interest rate. A different value meaning the interest rate was 10.00% but the disclosed TILA APR is 9.98%.

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Posted on Apr 25, 2011