We are thinking about offering a "bump-up" rate CD product. If we do, I know we need to include in the original TISA disclosure the terms of and conditions of the product to the customer, but at the time the customer exercises his right to "bump" the interest rate on the CD, do we need to provide him/her with a new TISA disclosure reflecting the new rate/APY or does the original TISA disclosure suffice, even though the rate/APY will not be the same?
Do we redisclose the truth in lending if the locked interest rate is lower than the rate used for the initial disclosure at application? Do we redisclose the truth in lending when going from a "to be determined" property to an actual property?
Our bank routinely pulls credit bureau reports for all new loan requests. Although credit scores are only one of the criteria used to make a decision on a loan request, a poor score would weigh heavily on a credit decision. With regard to the FACTA provision of providing Credit Score Disclosures to residential mortgage loan applicants, a question arises about those applicants whose credit bureau we request and the report is returned without a credit score. The lack of a score is sometimes a factor in determining the decisioning of an application, the need for a co-signer, or even the interest rate that may be charged. Should a customer with a credit bureau history, but no score, be supplied with the notice?
We currently send out full new account disclosures with our certificate of deposit maturity notices. Is this required? If not, is a disclosure required at any point during the renewal process or are we just required to disclose changes in the term?
During a recent audit it was noted that for CD rate oral inquiries some staff members were disclosing the interest rate before the annual percentage yield. I can't find anywhere in Reg DD that says you must quote the APY first. Is there something I am missing?
When a CD is renewed for the same term, interest frequency and interest payment method and only the interest rate is changing, are we required to send a separate disclosure that includes all of this information? Since the only change is the interest rate is that all the information we have to provide?
Currently we mail out a CD maturity notice about a month prior to the maturity date. Once the certificate matures (we have automatic renewal) after the grace period of 10 days, we mail out a renewal notice. If we include the interest rate on the renewal notice, can we also include the APY and are there any specific requirements regarding this? I have read Reg DD and can't seem to understand its specific application to this situation.
Are loans for small farms on which the borrower also maintains a primary residence considered agricultural loans or home loans subject to TIL (Reg Z) and if they are on less than 25 acres, RESPA? For instance, if a borrower with his residence and a walnut orchard on 30 acres applies for a refinance of his residence and orchard with an adjustable rate loan, would the loan require early ARM disclosures, interest rate disclosures and the right to rescind? Would the loan be exempt from Reg Z because of the agricultural nature of the property? In the same instance, if the property was 24 acres, would the loan also be exempt from the requirements of RESPA due to the agricultural nature of the property?
Our department recently attended a web seminar about HMDA and we had a recent issue that created a question. We had a loan that was a three month bridge loan of a RE property and it was not reported as HMDA because of it being short term and refinancing into permanent. It is now being refinanced for another term of three months with a higher interest rate. Does it now become HMDA reportable because it is refinanced, or not because it is still short term?
On an ARM loan, a rider is attached to the mortgage and both are recorded. Is it a requirement to disclose the interest rate on the rider? I can't locate any Reg stating the rate must be or does not have to be disclosed on rider. What Reg can you refer me to?