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Lending Compliance
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We just had this exact scenario; consumer purpose TRID loan to an individual to purchase his primary residence. Collateral was residence being purchased AND an investment property owned by an LLC that he (and another partner) is a member of; reason was to get LTV at/below our guidelines. Our LOS had no issues with investment property being held as collateral.
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Flood Compliance
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Does the compliance aid statement have to be verbatim to the statement included in the rule? I recall attending a webinar in which it was stated that it did have to read exactly as stated in the rule but of course cannot locate anything now that I need it. We have received a policy that is not word for word:
"This flood coverage endorsement meets the private flood insurance requirements specified in 42 USC s. 4012a(b) and does not contain any provision that is not in compliance with 42 USC s. 4012a(b)."
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Deposits and Payments
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That's right.
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Flood Compliance
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Is an NFIP policy required to put the NFIP policy # on the binder? We have one that we aren't sure if it's NFIP or private and the agent isn't giving us a straight yes or no.
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Chat! - BOL Watercooler
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Never Gonna Give You Up - Rick Astley
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Lending Compliance
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I agree with the above, If I signed my name to anything that has repayments with it and I come into the bank to see if the payments are being made or even the balance, I want to have access to all information.
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FCRA
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I’m hoping for some guidance on whether or not an Ag or Business purpose loan in the name of an individual should be reported to the borrower’s consumer credit report. Does the fact that the individual is liable for the debt make it reportable to the consumer bureaus? Or does the loan purpose dictate whether or not the debt is reported?
I've reached out to CDIA for feedback but am hoping to get the thoughts from others as well.
Thanks
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Flood Compliance
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I am being told that private insurance companies cannot write deductibles below $2,000, which in some cases is above the amount of the structure.
Is anyone else having this issue, if so how are you handling?
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CRA
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They haven't completed the 2019 demographic file yet, which includes tract income class. There appears to have been about 80 MSA's and 30 or more statewide non-MSA's that were changed effective January 1, 2019. So a good number of tracts need to have their computations redone to determine their income class. This may be the cause of the delay.
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Need to Remain Anonymous
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We are state nonmember bank regulated by the FDIC and our fully owned Mortgage Company subsidiary, is planning a name change.
My question pertains to their advertising and § 338.3(a)(1). Their new logo incorporates the new name (which includes the word "Mortgage") and in much smaller print underneath states "subsidiary of Our Bank's Name". Should this new logo include the EHL logo by default? It certainly appears to promote mortgage loans. Unlike the Official Advertising Statement on the deposit side, I'm finding no specific exclusions other than "in a manner appropriate to the advertising medium and format utilized." I'm concerned about signage and letterhead.
Can anyone please clarify?
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Flood Compliance
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Hmmm - very interesting concept.
It is going to make a lot of lenders under insured if that is the case. Because that means that every 1-4 family house they have as collateral that is used for VRBO or Airbnb is going to be underinsured if their loan amount is over $250,000 and they only have a dwelling policy.
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CRA
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For CRA public file purposes (§ 345.43)
"(2) Banks required to report Home Mortgage Disclosure Act (HMDA) data."
"A bank required to report home mortgage loan data pursuant part 1003 of this title shall include in its public file a written notice that the institution's HMDA Disclosure Statement may be obtained on the Consumer Financial Protection Bureau's (Bureau's) Web site at www. consumerfinance.gov/hmda. In addition, a bank that elected to have the FDIC consider the mortgage lending of an affiliate shall include in its public file the name of the affiliate and a written notice that the affiliate's HMDA Disclosure statement may be obtained at the Bureau's Web site. The bank shall place the written notice(s) in the public file within three business days after receiving notification from the Federal Financial Institutions Examination Council of the availability of the disclosure statement(s)."
The requirement covers the previous two calendar years. So beginning in 2019 the disclosure data for 2017 and 2018 would be required and the statement in your public file should state that it is available at the CFPB website if you are a HMDA reporter.
I haven't bothered checking the CFPB website, but I know there has been a very high number of refilings of the HMDA data due to abnormally large numbers of reporting errors (largely related to the vastly expanded HMDA LAR). I haven't checked to see if they have posted the Disclosure data or delayed it because of the large volume of reporting errors.
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S.A.F.E. Act Forum
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I don't believe the Reg Z requirements apply to HELOCS.
1026.36(b) - This section does not apply to a home equity line of credit subject to § 1026.40, except that paragraphs (h) and (i) of this section apply to such credit when secured by the consumer's principal dwelling and paragraph (c)(3) applies to such credit when secured by a dwelling.
(NMLS requirements are paragraph (g))
Just SAFE Act (before acting as MLO, first communication, upon request)
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Ability to Repay/Qualified Mortgage Rule
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We are a small creditor. Borrower would like to purchase second home. Owns primary residence and several other properties debt free, some of which are being marketed for sale. Have verified ownership of properties and that they're being marketed. Borrower has 30% down with additional cash reserves. Challenge is that cash flow/DTI is high due to one borrower being self-employed and taking advantage of all available deductions (and then some if you know what I mean)...other borrower is W2. Having to base repayment on 2017 tax return as 2018 has not been filed and only income information provided is self-prepared. Credit is great. Liquidation of those assets (not taking as collateral) will retire the new loan debt. Considering a one year, interest only loan pending sale of assets.
Question 1: This cannot be a QM due to being interest only. Correct?
Question 2: Can we meet ATR requirement baseline on structure I've described?
Thanks in advance for any feedback.
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Interagency (Reg Z) and CFPB Reg B Appraisal Rules
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Do you have a link to the document that quote came from?
I got it from IBAT's website - see below link to the guide. It's under "What is a dwelling?" section.
https://www.ibat.org/PDFs/2016/08/2...dit-opportunity-act-ecoa-valuations-rule
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FCRA
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Exactly Carolina Blue! It doesn't make any sense! We've been instructing them in that direction, but I started second guessing myself because of exactly what you said but there's no other appropriate category that makes any better sense.
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Lending Compliance
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I found the following 2 comments in other threads:
1) On ARMs, if we raise the rate upon cancellation of automatic payments, we are going to have to meet the ARM rate change notice provisions before we can raise the rate and we have to address it in the early ARM disclosure as a separate variable rate feature.
2) The initial notice is generated 210 to 240 days prior to the first payment at the adjusted rate. The subsequent notice(s) is/are provided 60-120 days prior to the first payment at the next adjusted rate.
Does this mean on a 10/1 ARM (for example), if the borrower terminates auto debit payments in year #6, we have to send the rate change notice 210 days before we can actually increase the rate on the loan? (Our Auto Debit Authorization form that is signed states that we will increase the rate "immediately" upon termination.)
Thank you!
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TRID - TILA/RESPA Integrated Disclosures Rule
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I think you're trying too hard on this.
The only time a fee should come in higher is if the borrower goes with a provider not on your list.
If the provider is not on your list there are no tolerances to worry about.
Section C = no tolerance to worry about.
Fee comes in lower than what's shown on the LE = nothing to worry about
There's no place you're telling the system to figure out that $400 is more than half of the $700 you quoted on the LE.
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TRID - TILA/RESPA Integrated Disclosures Rule
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We made a large construction loan with the funds wired to a title company. The wired funds should have been reflected on page 3 of the Closing Disclosure under "Payoffs and Payments." The CD signed at closing did not have that figure there. Thus, the "Calculating Cash to Close" section showed the "Cash to Close" as being a very large amount to the borrower. A corrected CD with the wire reflected on page 3 was sent to the borrowers 37 days after the loan consummation date. The correction reduced the "Cash to Close" figure significantly. The "Loan Calculations" figures on page 5 of both CDs are the same. Do we have a TRID violation because the corrected CD was not sent within 30 days? Thank you.
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Need to Remain Anonymous
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Would it be considered a violation if not dated?
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TRID - TILA/RESPA Integrated Disclosures Rule
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You should not collect GMI.
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eBanking / Technology
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Thanks Brian
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TRID - TILA/RESPA Integrated Disclosures Rule
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APRs are only tested during the CD disclosure phase.
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TRID - TILA/RESPA Integrated Disclosures Rule
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Closing disclosure sent eSign on 8/14. We received customer's eSign consent acknowledgment on 8/14 and customer went back into document and 'signed' it on 8/15. File is noted that 'closing clock' started on 8/15. Wouldn't clock have started on 8/14, the date we received eSign consent acknowledgment?
Thanks.
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TRID - TILA/RESPA Integrated Disclosures Rule
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I'm with Inherent, we routinely provide courtesy copies via email but never use that to show compliance. We always deliver through another method...usually USPS. I have had many discussions regarding this with investors and all have accepted the practice as long as you document delivery and either of the following is true:
1) the customer either physically signs the disclosures and returns them or
2) their electronic acknowledgement is at least next day
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