Following the old advice of something old, something new, the OCC has issued guidelines on establishing standards for national banks on mortgage lending.
Question: We are a little confused after talking with our examiner about the differences between a purchase money loan and a refinancing when the refinancing is of the purchase mon
This is specifically for David Dickinson, please. Your "Distinguishing Between Renewal and Refinancing" article published on BOL 1/5/04 answers a specific question that we have been attempting to get a clarification on from FDIC (with no luck yet). However, discussions previously in BOL have indicated differently - stating that various FRB seminars have indicated "new note - reportable"; Mary Beth's article in June, 2003 indicated if there is a new note, it is HMDA reportable; your posting "HMDA - refinance vs renewal" 6/13/01 you indicated that the renewal of a HMDA loan with a new note is reportable; and Jack Holzknecht in his November seminar was explicit in his response to this question, indicating that "if there is a new note, it is HMDA reportable". Our situation is EXACTLY the same as the questions in the 1/5/04 "Distinguishing" article and you are saying it is not reportable. So, is the key "if we consider our renewal note as an extension agreement"what makes it non-reportable, or something else? I am really confused and we want to get it right, but we do a tremendous number of "renewals" of HMDA-covered loans and would like to not have to report them if we don't have to. Can you help clarify, please?
Under HMDA, I understand vacation homes and rental/investment homes are HMDA reportable if they fall under the categories of home purchase, home improvement or refinancing. However, what if a rental agency, or even an individual, purchases a home at a vacation destination such as the beach solely for the purpose of renting it out to the public? Is it HMDA reportable? The purpose here is clearly rental income, so it would appear to be business-related and therefore not HMDA reportable. On the other hand, the collateral involved is a 1-4 family-type dwelling. Please end the confusion. </strong>
Regarding HMDA reporting: I have a loan for $29,250. It will be used for paying off an existing home loan ($9637.24) and buying a truck ($16,936.33). I think this would be classified as a refinance. Does the new loan have to pay off the existing home loan with at least 50% of the new loan in order to classify a refi? </strong>
I have a matured real estate loan that I am going to modify the payment amount and the maturity date. I intend to leave the accrued interest as is, as well as the late charges that have accrued on the loan. Do I need to give the customer a right of recission, since this is their primary residence?
A current HELOC customer would like to change his authorized credit limit. He is still in his draw period. Do we have to accomplish a new note and right of rescission? Any other docs? Or could we just accomplish a Modification Agreement?
It is old news that HUD wants to make major changes to the real estate settlement process.
Question: Does Regulation B require us to collect monitoring data on home equity lines of credit if we do not report HELOCs on HMDA?
We are seeing a great deal of discussion about the evils of many kind of lending, and the evils of many financial industry practices.