Reg O states that increases to existing indebtedness are not considered extensions of credit so long as "the additional funds are advanced by the bank for its own protection for accrued interest or taxes, insurance, or other expenses incidental to the existing indebtedness." Is a loan fee that was included in the amount financed included in this exception? Example: Executive Officer A has a loan for $100,000.00 with a $500 loan fee and an appraisal fee of $300 for a total amount financed of $100,800.00. Would this be a Reg O violation?
Are we required to disclose on the GFE and Final HUD an appraisal fee for an appraisal ordered by another lender? The fee was paid by the borrower prior to applying for our loan. We are using this prior appraisal for our loan.
Does a customer need to sign the appraisal notice for a Lot Loan?
I'm new to BankersOnline.com and also to compliance. I am trying to find some training materials relating to the USA Patriot Act that I could potentially use as a model for staff training at our bank. Can you point me in the right direction?
We have the opportunity to refinance a commercial real estate loan from a competitor. The subject property was appraised by an approved appraiser within the last 12 months. The appraisal was ordered by the competitor. The competitor bank won't release the appraisal directly to us, but the borrower has a copy. Our compliance officer says that we must order a new appraisal because accepting the copy from the borrower would violate the latest interagency appraisal guidance. Any options available besides a new appraisal?
I am taking a mortgage on agricultural real estate and according to the appraisal an old shed is located on the land. It also states that the building has no value. Does a flood determination need to be done since the appraisal states the structure has no value?
An up front collected Appraisal Fee is more than the invoice. A lender credit is to be shown on the HUD. What amount is shown in the 800 series of the HUD as the POC amount and the Comparison Page? The actual cost of the appraisal or the amount collected from the borrower?
My job has been to work on residential compliance. My boss has just taken over the servicing side for commercial loans.I have never worked with commercial loans before now. Where would I start? I understand that some of the Reg's encompass residential and commercial. What fees are allowed? Where would those do's and don'ts be found?
When figuring out possible reimbursement for differences between the GFE and HUD 1, is the total reimbursement based on the total difference in charges (10% tolerance items) or is it on an individual basis? As an example, the appraisal fee is over 10% greater than GFE; however, the title insurance is 25% under the GFE. Can these be netted together or do we just need to consider the appraisal fee variance.
Relative to the Dodd-Frank Mortgage Reform Act, Sec 1471 Property Appraisal Requirements: the Property Appraisal Requirements have an Interim Final Rule date of Oct 21, 2010. Is this a mandatory compliance date, i.e., for the two appraisal notices: [new] Consumer Notification Sec 129(H)(d) and [revised] Sec 701(e)(5) Right to Copy? I'm getting frustrated. No one can answer this question and I can't figure it out. I can't instruct to have these disclosures in place by Oct 21st if that is not the case. Relative to Second Appraisal Sec 129(H)(b)(2)(A): the lender needs to order two appraisals, correct? One to determine appraised value for the new higher-risk mortgage being processed and a second one to determine why this new sales price is higher than the sales price within the last six months... correct? See Pages 810 and 811 of BOL's online MRAPLA: http://www.bankersonline.com/df_titlexiv.pdf. I have listened to the archive version of BOL's August 31st webinar on "MRAPLA" three times and I can't hear the answer to my questions.