Thread Options
#1735502 - 08/27/12 07:31 PM Construction Loan Additional Funds
Love Cruising Offline
100 Club
Joined: Mar 2009
Posts: 248
WE have current customer for which we alrady have a construction to permanent loan, the customer will need additonal funds for the completion. The loan will be amended to increase by the funds needed. the construction is for their primary residence and the loan is fixed. Just to clarify, HMDA reportable as a purchase for the amount of the new funds, GFE for the newamount and what ever fees applicable.

Return to Top
Lending Compliance
#1735508 - 08/27/12 07:37 PM Re: Construction Loan Additional Funds Love Cruising
Dan Persfull Offline
10K Club
Dan Persfull
Joined: Aug 2002
Posts: 46,765
Bloomington, IN
An amended (modified) loan is not reportable.
_________________________
The opinions expressed are mine and they are not to be taken as legal advice.

Return to Top
#1735520 - 08/27/12 07:44 PM Re: Construction Loan Additional Funds Love Cruising
swiggles Offline
Power Poster
swiggles
Joined: Aug 2001
Posts: 7,333
Our legal counsel stated that a loan cannot be "amended" for the purpose of adding new money.....that a new promissory note must be prepared for the new money. THAT side note WOULD be reportable.
_________________________
The more you sweat in training, the less you bleed in battle.......

Return to Top
#1735695 - 08/28/12 02:01 PM Re: Construction Loan Additional Funds swiggles
Love Cruising Offline
100 Club
Joined: Mar 2009
Posts: 248
The GFE & TruthInLending disclosure would be for the new funds. correct?

Return to Top
#1735765 - 08/28/12 03:05 PM Re: Construction Loan Additional Funds Love Cruising
Dan Persfull Offline
10K Club
Dan Persfull
Joined: Aug 2002
Posts: 46,765
Bloomington, IN
That would depend if you are making a separate loan for the additional money or if you are refinancing the existing loan and advancing new money.
_________________________
The opinions expressed are mine and they are not to be taken as legal advice.

Return to Top
#1735854 - 08/28/12 05:26 PM Re: Construction Loan Additional Funds Dan Persfull
Love Cruising Offline
100 Club
Joined: Mar 2009
Posts: 248
The loan will not mature until 3 years from now. We were thinking of a new loan and even a home improvement since it will be for the finishing touch and sound system being installed. He carries the escrow on the construction/perm loanthis loan would be for a shorter period of time as well. So would ROR apply ? and HMDA?

Return to Top

Moderator:  Andy_Z