Mixed Reviews on Wagner Bill to Scrap DOL Rule, Insurance News Net
Posted by on July 13, 2017

New legislation proposed by Rep. Ann Wagner, R-Mo., would create a new advisory standard somewhere between fiduciary and suitability, said Rep. David Scott, D-Ga.

Scott, who has worked with Wagner on various fiduciary rule alternatives, is not on board with the congresswoman's latest bill -- unveiled today during a House Financial Services subcommittee hearing.

“This bill is a very troubling bill," said Scott, adding that it “undermines the SEC’s rulemaking authority in this space. What if the market evolves? ... Why are we being so prescriptive in drafting this bill? Why don’t we allow the SEC to do their job.”

Wagner's bill would eliminate the controversial DOL fiduciary rule and its prohibited transaction exemptions.

It would also amend the Securities Exchange Act of 1934 to include a best interest standard of care for brokers advising investors in the retail market. Her bill would apply consistency to the financial services industry, Wagner noted, by covering all investment advice.

The DOL rule only covers anyone working with retirement accounts.

Under Wagner's proposal, an investment recommendation would satisfy the best interest standard if it reflected “reasonable diligence” on the part of the agent/advisor. Her definition of "reasonable diligence" would be modeled on FINRA's existing definition.

Likewise, agents/advisors would need to exercise reasonable “care, skill, and prudence,” based on a customer’s individual investment needs, a draft of the bill stated.

Unlike the DOL rule, the Wagner bill does not make proprietary products or more expensive products subject to a prohibited transaction. The bill also includes language that would render state-level fiduciary rule efforts null.

Wagner has said she will introduce her bill soon. It stands a decent chance of passing the GOP-controlled House, but would face serious opposition in the Senate.

'Accounts Will Shrink'

The Capitol Markets Subcommittee hearing included five guests, four of whom supported Wagner's bill and a representative from AARP who opposed.

Anti-DOL rule speakers stressed the loss of services for small savers, a happenstance that is already taking place. Phase one of the DOL rule took effect June 9 and holds anyone giving financial advice in retirement accounts to a fiduciary standard. More onerous disclosures and the threat of greater legal liability comes with phase two of the rule, slated to take effect Jan. 1, 2018.

David Knoch, president of 1st Global and a board member of the Financial Services Institute, said his company has seen a 20 percent decline in the number of small-employer retirement accounts, particularly Simple IRAs, since the beginning of 2016.

"(We) project that these accounts will shrink from the 2016 levels by 28 percent before the end of this year, and by 41 percent by the end of 2018," he added.

Douglas Holtz-Eakin, president of the American Action Forum, testified that "several major companies have already left part of the brokerage business or are drawing down their business and/or switching to a fee-based arrangement."

From these companies alone, reported compliance costs have already topped $100 million, affecting 92,000 investment advisors, $190 billion in assets, and at least 2.3 million consumers, he added.

Free Market Answer?

Rep. John Delaney, D-Md., argued that the free market, free enterprise system will fill that void for small savers.

“How long does that take?" Holtz-Eakin countered. "And in the interim what happens to everybody who had advice and is now without?”

If Wagner's bill were to become law, the Labor and Treasury departments would be unable to rely on the statutory authority under ERISA to promulgate new fiduciary requirements for brokers and insurance agents.

Several Republican committee members endorsed the Securities and Exchange Commission developing a fiduciary standard, a task assigned to the agency under the 2010 Dodd-Frank Act. Political infighting crippled the SEC in the years that followed, but new Chairman Jay Clayton recently endorsed efforts at creating a fiduciary standard.

The SEC solicited comments on a fiduciary standard last month. Delaney called the idea only one agency can produce a fiduciary rule "a false choice"

"I agree it would have been terrific if the SEC would have put forth this rule," he said. "They probably do have more expertise in this area. But they didn’t do it."

By John Hilton
Insurance News Net
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Marietta Daily Journal: Barry Loudermilk, David Scott urge Pentagon to sign multi-year deal for C-130s
Posted by on June 25, 2017

Members of Congress are asking the Department of Defense to sign a new long-term contract with Lockheed Martin for more than a hundred new C-130 aircraft, all of which would be built at the company’s Marietta plant.

U.S. Rep. Barry Loudermilk, R-Cassville, was one of the signatories of a letter to Secretary of Defense James Mattis last week encouraging the Pentagon to sign a five-year deal with Lockheed, which would run from fiscal 2019 to 2023.

“We’re trying to make sure that we can increase defense spending, but at the same time, trying to find all the cost savings that we can find,” Loudermilk said. “And this is a perfect fit because basically with a multi-year contract instead of just an annual contract, we save about 12 to 17 per aircraft because Lockheed can build them less expensively because they can plan, it’s easier to schedule out as well as buying the parts in bulk saves money.”

Loudermilk noted that the Department of Defense has need for more than 100 aircraft, all of which could be included in a new five-year deal. He said he hasn’t heard back from the Pentagon, but he knows Mattis has the letter from Congress.

“I assume that they’re going to be supportive of it, but we’ll wait until we hear directly from the Pentagon,” Loudermilk said, adding that he wants to get the deal in place before Congress is scheduled to pass a defense spending bill, which is expected to take place before the August recess.

The letter was signed by 61 members of Congress from both parties, including Rep. David Scott, D-Atlanta, whose district includes south Cobb, Austell and Powder Springs.

“The C-130 is the backbone of our military and our nation’s defense and helps us in terms of keeping our allies strong,” Scott said. “It is one of the most valuable piece of equipment that we produce in our arsenal for defense.”

Scott said the goal of the letter was to stress how serious Congress feels about the program and its importance.

“What we want to do in the letter is to just really stress to the Trump administration and to Gen. Mattis how important it is to maintain the request for these 100 C-130Js,” he said. “And we wanted, in the letter, to explain how important and what this means to our own defense stature.”

Scott said he has a personal connection to Lockheed: just after graduating from the Wharton School of Finance at the University of Pennsylvania in 1969, his first job was with Lockheed.

“So I have that familiarity and I have that, certainly, affection for Lockheed, but I also know how critical this is to the economic welfare of Marietta, of Georgia and this nation,” Scott said.

The C-130 program supports 32,000 jobs and 570 suppliers across 41 states, according to the letter sent to the Pentagon. This includes many of the 5,000 employees at Lockheed’s Marietta plant, which has produced more than 2,500 C-130s since production first began in the 1950s.

Published: Sunday, June 25, 2017
By: Ricky Leroux, Reporter, Marietta Daily Journal
Click here to view the article online.

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Douglas Neighbor Newspaper: Service to country bigger draw than baseball for Douglas academy appointee
Posted by on June 19, 2017

Tristan Capocci likely was looking at a chance to play professional or college baseball after his recent high school graduation — except for another opportunity he believed had a greater purpose.

Capocci, 18, accepted both an appointment to the U.S. Naval Academy and an offer to play baseball for the Annapolis, Maryland, military institution.

The Villa Rica resident also will be committed to a five-year stint in the Navy after graduation — something most high school athletes avoid because they would rather try to begin careers as a pro athlete after high school or college, Capocci said.

“Many people, especially athletes, are put off by the service part,” he said. “Even if I wasn’t playing, I would want to go there.”

Capocci is scheduled to leave late this month for Annapolis to begin the mandatory “Plebe Summer” training program required of all incoming freshmen. The rigorous program is designed to teach the incoming student to “appreciate the importance of mental, moral, and physical toughness,” according to the Naval Academy web site.

“It’s not demoralizing,” Capocci said. “It’s just part of the tradition. You make of it what you want.”

He said freshmen must go through the six-week program without a phone or watch.

“You have no concept of time,” he said.

A native of Bradenton, Florida, he is the son of Matt and Marisol Capocci and brother of Faith, 11, and Francesco, 13.

The recent Alexander High School graduate decided to travel this road toward a unique college education after a 2013 trip to Florida where he wore the country’s colors as a member of the USA Baseball National Development team.

“That was very special for me,” he said. “It was the opportunity to play for my country.”

He continued to feel that way throughout high school as he played in the famed East Cobb summer baseball leagues and starred for his high school teams at Alexander and The Heritage School in Newnan, Capocci said.

“The military is something that had always stuck out for me,” he said. “It was so perfect for me and my situation.”

The process of enrolling in any federal service academy begins with a nomination from a member of Congress. Capocci received that honor from District 13 U.S. Rep. David Scott, D-Jonesboro, whose district includes Douglas County.

Capocci then was among only eight out of 29 nominated by Scott in the six-county district to receive full offers of appointment to a service academy.

He said he learned of his appointment on an infamous naval anniversary — Dec. 7, 2016, which was the 75th anniversary of the 1941 Japanese attack on the American fleet in Hawaii that led the U.S. to enter World War II.

A major reason Capocci wanted to go to Annapolis was the chance to attend such a prestigious educational institution, which heavily considers a nominee’s academic record for admittance.

“It’s not an opportunity available to all,” Capocci said.

The academy has produced such graduates as former President Jimmy Carter and U.S. Sen. John McCain, R-Arizona; and athletes like pro basketball Hall of Famer David Robinson and NFL Hall of Famer Roger Staubach, who won the Heisman Trophy as a quarterback for Navy.

Another reason Capocci decided to commit to a military enlistment was his upbringing in a Christian home where he grew up learning to have “a servant heart,” he said.

“I feel it was a path I was being led to,” Capocci said. “Trust in the lord at all times.”

His work away from school and baseball also helped win over those who appointed him. He went on mission trips to Puerto Rico and was a member of a youth leadership team at his church. He also was a member of the Key Club and Outdoor Club in high school.

He also earned 28 hours of college credit at the University of West Georgia in the Move On When Ready dual enrollment program at Alexander, where he starred as an infielder on the school’s Region 5-6A championship baseball team which advanced to the quarterfinals of the state championship tournament.

Published by: Tom Spigolon
Douglas Neighbor Newspaper

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South Fulton Student Wins 2017 Thirteenth Congressional District Art Competition
Posted by on May 15, 2017

On Saturday, Congressman David Scott hosted his 15th Annual Congressional Art Competition and Awards Ceremony at the Douglas County Courthouse. With community leaders and members in attendance, Congressman Scott honored all participating students in the 2017 competition and announced the winners during the special presentation.                                    

Christian Alexander, from Langston Hughes High School, won first place for his work “Higher Vibrations.” As the top winner, Christian’s work will be displayed in the U.S. Capitol for one year along with the first place artwork from other congressional districts around the U.S.  He also won a $12,000 scholarship from the Savannah College of Art and Design (SCAD); $12,000 scholarship from the Art Institute of Atlanta; a $1,000 prize; and round-trip airfare for two from Southwest Airlines to attend the ribbon-cutting ceremony for the Capitol exhibit in Washington, D.C.

“Congratulations to our winner Christian Alexander and all of the students from the Thirteenth District who participated in our 15th Annual competition,” said Congressman Scott.  “Each year I am in awe of the student artwork of our participants. And this year we had such an impressive array of talent displayed by our students.  It is truly an honor to recognize our young people who are already so artistically gifted and committed to their craft, as well as their families and teachers who encourage and support them.”

The Art Institute of Atlanta awarded a $7,500 scholarship for Second Place winner Airason Heard, of Langston Hughes H.S., and a $3,500 scholarship for Third Place winner Emma Bell, of His Master’s Voice School.  The Savannah College of Art and Design also awarded a full summer seminar scholarship of $1,050 to Second Place winner Airason Heard and $500 summer seminar scholarship to Third Place winner Emma Bell. 

To date, Congressman David Scott has awarded over $500,000 in scholarships to student artists.  This year, AT&T, Chick-Fil-A, and GreyStone Power provided the following additional scholarships for the top winners: $1,000-first place, $700-second place, $400-third place, $200-fourth place and $200-fifth place. The High Museum of Art provided Fifth Place winner Bryce Landingham of McEachern High a one-year family membership pass. And Six Flags Over Georgia provided a pair of admission tickets to Honorable Mention winner Alexandra Gipson of Arlington Christian School.

The second place artwork will hang in Congressman Scott’s Washington Office for one year; third place will hang in the Hartsfield-Jackson Atlanta International Airport’s Youth Art Gallery for one year; and fourth and fifth places will hang respectively in Congressman Scott’s Jonesboro and Smyrna Offices.

The 2017 winners include:

First Place:  Christian Alexander, Langston Hughes High School, “Higher Vibrations”

Second Place:  Airason Heard, Langston Hughes High School, “Subsister”

Third Place:  Emma Bell, His Master’s Voice School, “Made From Scratch”   

Fourth Place:  Jaquasia McKee, North Clayton High School, “Aspirations”

Fifth Place:  Bryce Landingham, McEachern High School, “The Fro of Angela”

Honorable Mention: Alexandra Gipson, Arlington Christian School, “Stripes”

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April is Sexual Assault Awareness Month
Posted by on April 27, 2017
As the month of April comes to an end, let us never forget the importance of Sexual Assault Awareness Month (SAAM). Every 98 seconds, another American falls victim to a sexual assault, yet many perpetrators walk free.

It is imperative that we protect survivors while also finding ways to prevent these despicable attacks from happening in the future. We celebrate SAAM to show that we, like many others, will speak out against sexual assault and continue to do the work to fight such devastating crimes. 

In Congress I have been a longtime supporter of the Violence Against Women Act and continue to work to ensure adequate funding for programs that are successful in supporting survivors and preventing assaults. 

Additionally, I have signed on to legislation such as the Pet and Women Safety Act to protect those affected by sexual assault and domestic violence who might delay their departure from dangerous relationships out of concern for the fate of their pet. Earlier this month, I signed on to a letter to request funding for the Sexual Assault Kit Initiative to combat the high numbers of sexual assault kits not being tested. 

This April, I am reaffirming my commitment to be an advocate of sexual assault awareness and prevention as I continue to serve the constituents of Georgia’s 13th Congressional District.
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Congressmen Scott and Pittenger Introduce Bipartisan Legislation to Clarify Commercial Real Estate Lending Rules
Posted by on April 26, 2017

Today, Congressman David Scott (D-GA) and Congressman Robert Pittenger (R-NC) introduced bipartisan legislation to clarify and improve certain regulations which have created confusion and unnecessary costs in commercial real estate lending.

In January 2015, the Federal Reserve and Office of the Comptroller of the Currency adopted regulatory capital rules related to “high volatility commercial real estate” (HVCRE).  Despite repeated requests from community banks, other financial institutions, and real estate developers, federal regulators failed to clearly define the types of loans and projects to which the rules are meant to apply.  As a result, many banks have pulled back from commercial real estate lending, leading to fewer jobs and slower economic growth.

“There is no doubt that in my district, the state of Georgia, and our country as a whole we are just now getting back on our collective feet after the financial crisis,” said Congressman Scott (GA-13).  “As an original cosponsor of Dodd-Frank and avid supporter of keeping our banking system safe, I recognized, in the aftermath of the crisis, the need for dramatic changes to how regulations work in finance.  However, with any law or regulation, nothing is perfect and we now have years of real-world experience that shows us what’s working and what isn’t.  Mr. Pittenger’s bill is exactly the type of technical fix our economy is hungry for, but moreover, this bill is carefully crafted so we aren’t sending ourselves back to a time when financial regulation resembled the Wild West.”

“Regulation is necessary for an orderly economy, but when regulators fail to provide clarity or address the real-world problems created by their rules, then Congress must act,” said Congressman Pittenger.  “This is a highly-technical bill, but it directly impacts the local economy.   Without access to capital, entrepreneurs can’t create jobs or build housing or generate economic activity.  Thank you to Congressman Scott for working with me on this important reform.”

Congressman Scott and Congressman Pittenger’s bipartisan legislation, Clarifying High Volatility Commercial Real Estate Loans (H.R. 2148), better defines which types of loans must comply with the HVCRE regulations. 

  • Provides a specific, legal definition for “high value commercial real estate acquisition, development, or construction loan” (HVCRE ADC loan), correcting an overly broad definition which currently forces many stable loans to remain in the HVCRE category and unnecessarily increases costs. 

  • Restores common sense standards for the amount and type of equity required to include the appraised value of the land and not just the purchase price.

  • Eliminates the all-cash equity requirement which currently makes it difficult for small-to-medium sized developers and entrepreneurs to compete.

  • Clarifies when the loan on a completed development may exit the HVCRE requirements.

  • Adds an exemption from HVCRE requirements for refinancing or acquiring an existing, income-producing development.

H.R. 2148 is supported by more than a dozen trade associations, including the Independent Community Bankers Association, National Apartment Association, National Association of Home Builders, Mortgage Bankers Association, National Association of Realtors, The Real Estate Roundtable, National Multifamily Housing Council, National Association of Real Estate Investment Trusts, NAIOP Commercial Real Estate Development Association, International Council of Shopping Centers, Institute of Real Estate Management, Commercial Real Estate Finance Council, CCIM Institute, and Building Owners and Managers Association International.

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2017 Academy Day Registration
Posted by on March 27, 2017

Join the Office of Congressman David Scott, Senators Johnny Isakson and David Perdue, & the Members of Georgia’s Congressional Delegation to meet representatives of America’s Service Academies.

Saturday, April 29, 2017 | 10:00 am – 11:30 am
Dobbins Air Reserve Base, Hangar 5
Marietta, GA 30069


Each and every person in your party must complete a registration form online. The registration deadline is April 17, 2017 at 5:00 pm.

Persons who have not completely registered, including date of birth, will not be admitted onto the military base. This information is being used for background checks to preserve the safety of all guests.

You will receive a confirmation sheet within 10 days after registration via e-mail.  The confirmation sheet should be placed in your front window for entrance to the military base. You will be asked to provide identification at the guard gate at Dobbins ARB located on Cobb Parkway. And you will also be asked to pass through metal detectors before entering the event so please arrive between 8:45 am and 9:30 am to allow time for these safety measures.

For directions, a list of prohibited items and a map visit:

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Congressional Black Caucus Foundation Scholarships
Posted by Sheila Davis on March 24, 2017

Congressional Black Caucus Spouses Heineken USA Performing Arts Scholarship

Established in the year 2000 in honor of the late Curtis Mayfield, this scholarship was developed to ensure that students pursuing performing arts careers receive financial assistance to achieve their goals.  Applicants must have a minimum grade point average of 2.5 on a 4.0 scale. 

Scholarship applications and requirements are available online at www.cbcfinc.org/cbcf-scholarships.html.

ALL  completed applications and materials must be submitted by April 21, 2017.

Congressional Black Caucus Spouses Visual Arts Scholarship

This scholarship was established in 2006 for students who are pursuing a career in the visual arts.  Applicants must have a minimum grade point average of 2.5 on a 4.0 scale. 

Scholarship applications and requirements are available online at www.cbcfinc.org/cbcf-scholarships.html.

ALL  completed applications and materials must be submitted by April 21, 2017.

Congressional Black Caucus Spouses Education Scholarship

The CBC Spouses Educational Scholarship is a national program that awards scholarships to academically talented and highly motivated students who intend to pursue full-time undergraduate, graduate or doctoral degrees.  Established in 1988, the fund has experienced substantial growth and is operated through the district offices of the members of the Congressional Black Caucus (CBC).  Applicants must have a minimum grade point average of 2.5 on a 4.0 scale.    

Scholarship applications and requirements are available online at www.cbcfinc.org/cbcf-scholarships.html.

ALL  completed applications and materials must be submitted by May 19, 2017.

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Reps. Scott, Conyers, and Waters, and Sen. Warren Applaud Appointment of Raphael Bostic to Atlanta Federal Reserve Bank
Posted by on March 13, 2017

United States Representatives David Scott (D-GA), a senior member of the Financial Services Committee; John Conyers, Jr. (D-MI), Ranking Member on the Judiciary Committee; and Maxine Waters (D-CA), Ranking Member on the Financial Services Committee; and Senator Elizabeth Warren (D-MA), today released the following statements to recognize the historic appointment of Raphael Bostic to be the President of the Atlanta Federal Reserve Bank. Bostic will become the first African-American President of a Federal Reserve Bank in the Fed's 100 year history. The Members of Congress applauded today's announcement and encouraged the Fed to continue to diversify the leadership of banks across the country.

"I could not be more thrilled about today's announcement regarding Raphael Bostic being named the next Atlanta Regional Bank President," said Congressman Scott.  "This marks an historic event for our Federal Reserve System.  In over 100 years of its existence, never has there once been an African American as a Regional President. That all ends today."

 "The selection of President Raphael Bostic to lead the Atlanta Reserve break is a historic step on the long road to equality and justice for people of color in the United States," Congressman Conyers said. "I am pleased that Federal Reserve officials have taken this important step to fulfill Congress's call to diversify their leadership, both in terms of race and occupational background. Not only is he the first African-American regional bank president, but he is also a champion for families struggling in today's economy, and does not come from the corporate background that is already overrepresented at the Fed.  I greatly look forward to working with President Bostic to ensure that progress towards the full employment vision laid out by Dr. King and Coretta Scott King is fulfilled for all of America's people."

"Mr. Bostic is an outstanding choice," said Congresswoman Waters, Ranking Member of the House Committee on Financial Services. "His wealth of experience and research on wealth disparities and barriers to economic opportunity will play a critical role in shaping the economic policy decisions that affect all American families. Given the disparate economic experiences faced by key demographic groups, it is crucial that a broader cross-section of groups have a seat at the decision-making table. I congratulate Mr. Bostic on his appointment and encourage the Federal Reserve Bank of Richmond, working with the Board of Governors, to build on today's announcement by conducting the genuine and intentional efforts needed to build diversity at the Fed and ensure its senior leaders reflect the interests of America as a whole."
"Raphael Bostic is an excellent choice to head the Atlanta Fed. He has extensive experience researching how economic policy affects working families," Senator Warren said. "I am glad to see Raphael's appointment, and I encourage the Fed to further strengthen its leadership by bringing on additional people with diverse backgrounds to serve in key roles."

In May of 2016, Sen. Warren and Rep. Conyers led a letter to Fed Chair Janet Yellen calling for more diversity in the Federal Reserve's leadership; the letter was signed by 116 members of the House and 11 senators. In October 2016, Reps. Scott, Conyers, Waters, and John Lewis sent a letter to the Fed specifically calling for the Atlanta Federal Reserve Bank position to be filled by a diverse candidate. 

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Rep. David Scott joins Reps. Hultgreen and Messer to Reintroduce Transparency in Student Lending Act
Posted by on March 6, 2017

U.S. Representatives David Scott (D-GA-13), Randy Hultgren (R-IL-14),  and Luke Messer (R-IN-6) have reintroduced legislation to improve the information provided about federal student loans to students and families by requiring the annual percentage rate (APR) to be disclosed. The APR helps borrowers understand the true cost of a loan so they can make good financial decisions. Current law mandates that the APR must be disclosed upfront before someone borrowing from a bank signs on the dotted line. Borrowers of loans issued by the Department of Education are not provided this information up front.

“Every student should be able to make an informed decision about how to best finance their education,” said Congressman Scott. “This legislation is a good step toward increasing transparency and accessibility for students who take out federal loans to fund their higher education.”

“The federal government omits the annual percentage rate when presenting the cost of a loan to young borrowers and families, doing them a gross disservice as they make plans for future payments,” said Congressman Hultgren. “The Department of Education is the largest consumer lender in the United States, and should provide the most transparent and helpful information to borrowers. Helping borrowers understand their debt obligations is an important first step to ensuring they are able to make their payments, and also helps prevent taxpayers from being on the hook for delinquent borrowers.”


  • In 1969, the Truth in Lending Act passed Congress with the intention "to provide the American consumer with truth-in-lending and truth-in-advertising” when pursuing loans.
  • In 2008, Congress applied Truth in Lending Act disclosure requirements to private, but not federal, student loans.
  • Since then, federal student loans issued directly by the Department of Education—which have origination fees—have grown from a small segment of the market to more than 90 percent of originations each year.
  • The Transparency in Student Lending Act, H.R. 1283, aims to provide more information to consumers by requiring the disclosure of the annual percentage rate at the time of application for a federal student loan. APR is expressed as a single percentage number that represents the actual yearly costs of funds over the term of the loan and takes into account the stated interest rate of the loan and any fees or additional costs associated with the loan.

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