We are making a 1st deed of trust loan to purchase a primary residence and a second deed of trust loan for renovations on a 12 month interest only loan (to be refinanced on permanent financing with same lender at maturity by adding 1st & 2nd together). Does RESPA & REG Z both apply...and if so, can you make a 12 month interest only loan if it is a HOEPA loan?
The purpose of the loan is to provide funds to place a down payment on a primary residence. The collateral is a second on a residential property that they rent out. They plan to sell their current primary residence. Term is a 36/180 balloon. Do early disclosures apply?
I have a commercial loan secured by 2/13 interest (first mortgage) on a house. When this loan was originated, it was an open end line of credit and now has been renewed (new loan number) into a single payment loan due in one year. Is this a HMDA reportable loan? The source of repayment for the loan is business income.
Do you need an initial TIL and GFE on a stand alone construction loan to a consumer that owns his own lot?
I have a loan that is a multiple advanced (but one way draws) home improvement for six months. Is this HDMA reportable?
I need some clarification on RESPA exemptions. We are making a consumer construction loan. The borrower already owns the lot but has it financed at another bank. Our construction loan will be refinancing the lot and constructing the dwelling. There is a permanent take out. It qualifies as temporary financing but the second part of the vacant lot exemption is confusing me. Exemption: A loan secured by vacant or unimproved property where no proceeds of the loan will be used to construct a 1- 4 family residential structure. However, if the proceeds will be used to locate a manufactured home or construct a structure within two years from the date of settlement, the loan is covered. Would this loan be subject to RESPA because within 2 years, the proceeds will be used to finance the construction of 1-4 family dwelling or is it exempt because of the "temporary financing"?
For HMDA purposes, how is the following loan to be reported? The bank made a construction-only loan with a 12-month maturity. The home was completed as of the maturity date, but the borrower needed time to sell the home. In the interim, the bank makes a loan for 12 more months that we consider temporary financing. At the end of this term, we make another loan to convert the initial construction to permanent financing and report it on our LAR as a home purchase loan. Is this correct? Is there a rule that says the “permanent financing” has to immediately follow the construction loan?
Should construction permanent loans that were denied after temporary financing be report for HMDA?
We are making a loan to a consumer to purchase a residence and to do some renovations. The loan will be for one year until the improvements have been made and then it will be financed on the secondary market. Is this considered a RESPA loan and will need all the early disclosures.
We are making a twelve month construction loan to fund a fairly extensive renovation to a primary residence. The first draw will be to pay off their first mortgage. We will not be providing permanent financing. Our loan will be taken out by a new first mortgage. Is this considered temporary financing or a refinance for disclosure purposes?