An employee of the loan department received her real estate license without consultation or approval from Management. The licensing status is currently active. We understand there are implications regarding conflicts of interest, HR policy issues, and independence issues related to any duties associated with real estate lending. However, there are two questions related RESPA and Reg Z.
Question 1.- Does sharing an employee with a real estate agency now constitute an affiliated business relationship requiring the Affiliated Business Disclosure?
Question 2. How does this impact calculations of points and fees for HOEPA loans? Do we include commissions into the point and fee calculations based on them being paid to a third party?
For the Written List of Providers as required by RESPA, do the fees or range of fees have to be disclosed on this document? Also, does the document have to be exactly like the model form in Appendix D?
Is it permissible to pay bank employees for mortgage loan referrals to a mortgage affiliate of the bank? The referral would be paid by the bank to bank employees for generating the businesses. We would like to establish an incentive program based on the loan amount for closed mortgage business only. The payment would be calculated based on the loan amount and would consist of two tiers. Is this in compliance with RESPA? Would we need to complete an Affiliated Business Arrangement Disclosure Statement?
We have a Required Service Provider that is a director and this data is properly disclosed on the GFE. Would an Affiliated Business Arrangement Disclosure also be required? My "gut" says yes but the language in our AFBD document tells me no because the AFBD document specifically states "You are NOT required to use the listed provider...".
I recently was assigned the task of reviewing all our bank's loans for documentation and compliance errors. My question is on a 2nd mortgage home equity loan do we need the affiliated business arrangement when we make the referral to our title company that is owned by a board member? We do the ABA on the refi and purchase side but I have not seen the ABA in any home equity files that I have reviewed.
I am a Mortgage Broker. I was referred to this web site from the Department of Real Estate. I needed to know what forms are included in the "RESPA" Disclosures to keep us in compliance.
Question: Could you clarify a RESPA issue?
Question: I need some guidance on an affiliated business arrangement. We have an employee who is a SVP and Chief Credit Officer and is also over our Mortgage Lending Department.
In this grid, we lay out risks associated with providing the notices and disclosures that are triggered by mortgage applications. First, we look at the frequency with which the situation occurs.
Question: Is it a violation of RESPA to recommend mortgage applicants only those service providers who have deposit relationships with us?