In the HUD settlement for a purchase of a 1-4 family dwelling for rental purposes, the title company included a broker fee in addition to the commissions earned by the real estate company as part of the settlement to be paid at closing by the buyer/borrower. Should we accept this as part of our settlement without proof that the fee was earned by the real estate agent? Assuming it is a legitimate fee, should this be disclosed as a finance charge for APR calculation?
Our compliance officer has indicated taxes and insurance should be listed as a POC on the HUD and Good Faith Estimate. Since property taxes in our area are paid in arrears and verification is obtained that taxes for previous periods have been paid prior to closing, why then list as a POC? If this is the case, why wouldn't we list taxes for all previous years since they are also required to be paid as a condition of the loan?
Is homeownership counseling still required and if so, what is the effective date?
Should we be collecting applicant information (race, ethnicity, sex) on non-reportable real estate loans? Some examples would be loans against a borrower's home for the purpose of financing college tuition, taking a vacation, purchasing stock, etc. I know we would not include this on our LARs or on the information we send to HUD. I am simply wondering about gathering it for the file. The reason I am wondering if should we have it collected is in case we ever go through a fair lending audit.
Our marketing person would like to offer $100 off loan closing costs on mortgages until the end of June with a cutout coupon in the newspaper. Would we have to show this as a POC on the HUD and does it affect the APR?
What constitutes the application date in regards to RESPA disclosures? The day the applicant applies or the credit report date? If I do not pull credit for 3,4 or 5 days do I need to re-disclose?
Is a HUD Settlement Statement mandatory as part of the Home Equity Loan Closing Package?
I understand that costs associated with no fee loans are to be shown as POC on the HUD. It is our practice to include the cost of the title, escrow and recording fees to the escrow company with our funding wire (over fund the loan). I have an escrow officer that refuses to show the fees as POC unless we send her a separate check and she won't even accept a separate wire for these fees. Her belief is that the items are not truly POC and this would constitute a RESPA violation. Therefore, she will only show it as a lender credit. I cannot find any information that suggests that over funding a loan constitutes a RESPA violation. Is this a RESPA violation, and if so, can you please guide me to the appropriate Reg?
When ordering credit reports for applicants, we have a range of prices from our vendor depending on what is on the report. To simplify collection of this fee, could we charge a flat rate to all applicants? Will this trigger any additional requirements since we may be charging more than the actual cost?