We have recently received several inquires about how ConformX deals with interest credits for Countrywide loans. In an announcement published on August 8, 2006, Countrywide iterated that interest credits may not be used to reduce finance charges, as they should be credits toward the first payment.
In accordance with this policy, anytime there is an interest credit on line 901 for a Countrywide loan, the “APR yes/no” field will be set to “no.” This will ensure the negative borrower amount is not included in the finance charge, thus the amount financed will not be raised and the APR will not be lowered. You can download the Countrywide TIL Announcement HERE.