We have a refinance of a new construction note (no seller) where the sod and sprinklers were unable to be completed prior to closing the permanent loan. The title company is holding the funds in an escrow account to complete the sod and sprinkler work after the loan closes. The sod and sprinkler escrowed funds are apart of the original construction loan amount and not a settlement service in my opinion. Where do we put the funds that are held in the escrow account at the title company on the settlement statement? Do we put them in the 1300 section? Do we leave it off the settlement statement all together since it is not a settlement charge?
We are completing a mortgage Loan that is a HPML and we are escrowing taxes. Can the customer opt out of escrowing after one year of payments?
Are creditors allowed to deduct escrow balance from the principal when the loan pays off? The outside auditors we use for Compliance review is saying it is acceptable but when I went to Bankers online I get a different response. Which is correct?
Reg Z - I have a borrower who is using his mother's primary residence as collateral for consumer purpose. The mother is not going to be on the note itself. She is just pledging the collateral. Would the Higher Price Mortgage requirements apply and is an Escrow required?
Do we need to escrow taxes and insurance during a mortgage construction phase of 1 year?
We do not escrow insurance at our bank. We have several customers and businesses who continually neglect to pay for their hazard or wind insurance on time. Is it permissible to require these customers to submit proof of 12 months paid insurance as a requirement of not force-placing insurance on their loans?
I am working on a new loan transaction. The borrower is purchasing a primary residence and the loan will be sold in the secondary market. The 20% down payment will be borrowed against his home that is currently his primary residence that he owns free and clear. After the purchase is finalized, he will be living in the new home as his primary residence and the home he owns now that will be securing the equity loan will be used as an investment property. Does RESPA apply to the equity loan? Do early disclosures have to be issued? Also, does rescission apply to the equity loan since it is in fact his primary residence at this time. Also, since the equity loan will be kept in-house on a balloon rate, will this be considered a HPML where escrow will have to be collected?
Does an initial escrow disclosure have to be mailed out with the early disclosures for residential property?
On a consumer loan secured by a certificate of deposit, is it required for the "Required Deposit" box to be checked in the Fed box disclosures?
I'm wondering if we can use the escrow analysis spreadsheet spreadsheet on this website for 2011 even though it says it was created in Jan 2010.