Can you renew a loan without collecting late charges that are due? We want to renew the loan and leave the late charges in the fee balance field to collect at another time.
For owner-occupied loans that are up for balloon renewal (mostly 5 year balloons), are they grandfathered into the Dodd-Frank regs? We are a small creditor and are coming up against some of our renewals not meeting our internal d/i limits since we do not have to meet the 43% rule. Are we still able to make these renewals, or should we have the borrowers move the loan?
If loan has a maturing 5 year balloon feature, is going to be given 5 more years and we are past the maturity date, if we print new documents but keep same loan number is this considered a renewal or refinance?
Our CD (Bankers System copyright) has the language: <i>We may change any term of this agreement. Rules governing changes in interest rates have been provided. For other changes we will give you reasonable notice in writing or by any other method permitted by law. If any notice is necessary, you all agree that the notice will be sufficient if we mail it to the address listed on page one of this form. You must notify us of any change.</i> Does this allow us to change our early withdrawal penalty by a mass mailing to all of our CD customers with a 30-day notice of the change? Also, do we need to be specific by account or can we just provide a chart that shows all of the new penalties?
Is it acceptable to provide a mass mailing to all CD customers prior to renewal to increase the early withdrawal penalty and how can this be accomplished?
I am renewing a loan that was originally a HELOC. The loan matured and I collected an updated "consumer HELOC" application and obtained a new credit report. The loan was approved for renewal but for a lower amount and shorter term. I was told that I should not have collected a new loan application (purpose on application was stated a renewal of HELOC) because this is not a new loan request. No new disclosures were required and only a simple form modification agreement was needed to renew the loan. Can you please advise as to what documentation would be need for this type of transaction?
When you have a CD set up as automatic renewal, the customer doesn't come in at renewal. When does this CD become dormant?
Is there a regulation regarding waiving the penalty for a customer for a early withdrawal from a certificate of deposit?
I know there are certain instances in which we can exempt an account from the early withdrawal penalties as required by regulation. 1. Can we waive the early withdrawal penalty of a CD that was opened from the proceeds of a loan exclusively to pay taxes on the property securing that loan? 2. Can we waive the penalty of a CD opened by an employee of ours if that employee wants to apply those funds as a partial payment to a loan he has with our financial institution?
Our FI is considering increasing the withdrawal penalties for CDs and we understand that we are required to notify customers of the increase. Most information states to notify them at approaching renewal (20 days before end of grace period). Instead of then, am I able to send a mass mailing to all CD holders now instead of waiting until each CD is about to renewal?