04/15/2013
Regulation O-we have an executive officer who has a first lien mortgage on his primary residence. He thought this residence was sold, and purchased another property which he mortgaged with us. The first property sale fell through so currently both properties are on the bank's books. I assume we are in violation but would like some verification.
02/11/2013
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?
10/29/2012
Can a person take a default judgment (not appealed) that is technically a lien?
10/01/2012
Would a 3 day Right of Rescission apply on a second lien Owelty Deed for a Divorce situation?
09/03/2012
A question was previously posted in regards to HMDA Reporting for Property Purchased with Cash. Specifically, the question states: "We have a business customer that purchases property for cash, then applies for a mortgage loan using the property as collateral. Is this a HMDA reportable loan or not; if so, what is the purpose? He is not improving the properties. Should we consider this a refinance?" The answer provided states that it is not a refinance. However, it does not specify if its considered a purchase or if it is not HMDA reportable at all. Please let me know if this is HMDA reportable and if so, if it considered a purchase.
07/30/2012
HMDA - Reg C In the HMDA GIR it is very clear that on loans that are declined or withdrawn, you report the loan amount based on what the terms the borrower originally applied for. For counter offers, it is very clear if the counter offer is not accepted, to report the original loan amount. I cannot find any reference on Approved Not Accepted. My example: Borrower applied for a refinance of $100,000 (no cash out). Later that day, I discovered that pay-off on existing lien is less than $100,000 and I requested that the loan amount be changed to $98,000. The loan was fully approved by the lender. The borrower decided not to refinance. We reported the loan as approved not accepted. What loan amount is reported? We did not approve the $100,000 and this loan amount would have created a cash-out with different guidelines. We fully approved the $98,000.
06/18/2012
We have an existing unsecured loan that we are going to take "abundance of caution" liens on 2 improved properties (which also secure other debt with us and we are in the priority lien positions). One house is located in a flood zone. There is NO new money involved. Are we required to obtain a flood policy?
05/07/2012
We have a customer with two home equity loans secured by a third and 4th lien. We want to consolidate these into one loan with a small principal payment instead of the current interest only payments. There is no new money. What Disclosures (TIL, RESPA) are required?
03/12/2012
I read online a Right to Receive a Copy of an Appraisal notice is not required on a renewal note when pulling forward an existing appraisal/evaluation. Is this correct?
02/06/2012
We have a client who currently owns their primary residence and they are wanting to do a major renovation to the property The bank is looking at extending them a future advance – non-revolving loan for 12 months. The loan will be used to pay-out the 1st lien holder and provide funding for the renovations. We have a conditional permanent take out for the loan upon completion and/or the maturity of the loan. Monthly payments will be interest only during the 12 months- renovation phase. The regulation states a Higher Cost loan is: a closed end loan, secured by a consumer’s principal dwelling, for consumer purpose and has an APR exceeding the average of prime offer rate by 1.5% for a 1st lien or 3.5% for a subordinate lien. It excludes: HELOC’s, reverse mortgages, construction only loan and bridge loans with a term of no more than 12 months. Due to some of the variables of our scenario, we are unsure how to treat it. This isn’t a construction from the ground up, it’s not a revolving credit and the permanent take out that we have is conditional. We have conflicting opinions on how this particular situation fits in with the reg. The biggest difference is in how we treat it, on whether or not we have to have the taxes and insurance escrowed during that 12 month period. Our bank does not escrow for any other loans other than Higher Cost Loans which we are required to. Any insight you can offer will be greatly appreciated.
