RESPA/TIL question: We have a residential purchase loan where the attorney who closed the loan did not (also) provide the title insurance policy. FDIC states we have a TIL violation b/c we did not disclose the attorney's fee as a prepaid finance charge. We are not familiar with this being a part of TIL. Your thoughts please.
Has the escrow calculator been updated and is this available?
Scenario: Consumer purpose balloon loan that was originally the borrower's primary residence and fell into the HPML category. The borrower no longer resides in the property and it is now a rental. Since the purpose has changed from consumer to business, do HPML rules still apply? Can we cancel the escrow account? FYI-we are still within 12 months of origination.
I understand that Reg Z requires us to set up an escrow account for loans that qualify for HPML. If the security is made up of separate tracts of land and only one of the tracts includes the first lien on a principal dwelling are we required to escrow for taxes and insurance on the other tracts of land?
If we change the escrow rate for our escrow accounts, do we have to send the customers a notification of the rate change like we do when, for example, the rate on an adjustable rate mortgage changes? If so, how long do I have to send it to the customers?
Are there any available cures if an HPML is closed without escrow?
I have a customer whose escrow payment for taxes was estimated at time of closing because his purchase was a new construction. The tax bill was not actually what we thought and we sent back a check for roughly $2500. His bill this past year went up and now the escrow account is short about $3600 compared with where it needs to be. We have just started escrowing in the last two years on all loans. Do we have to give the customer the option to pay in a lump sum or make it up through his payments or can we require a lump sum payment now?
If a loan is more than 30 days delinquent, can we withdraw funds from their escrow account to make their payment? Are we also obligated to pay their property taxes if there are no escrow funds available to do so? Also, please let me know where I can find the answer in the regs. I've searched RESPA with no luck so I'd like to know how to be better at researching.
We have a mortgage servicing company as a customer at our bank. The company collects monthly payments on the loans they service and deposits the funds at our bank. These funds represent principal, interest, tax and insurance payments. The funds are held at our bank until it is time to make an escrow payment or make a payment to the mortgage investor(s). Our question is whether or not we can pay interest on these deposits since our client is not the owner of the funds but more like a custodian. We understand we can now pay interest on business DDAs but we are uncertain if paying an entity interest on funds that don't ultimately belong to them would be a violation of any type of regulation or contract law.
What if an HPML calculation was done incorrectly, later discovered to be an HMPL, and the first-mortgage loan closed without escrow? Is there a remedy?