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#1877095 - 12/09/13 05:26 PM CD Secured Loan w/ multiple collateral - House
MSMITH10 Offline
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Joined: Sep 2010
Posts: 160
We have a cd secured loan where we took the customer's home as an abundance of caution. Our cd loan of course are variable rate loans, therefore our disclosures do not reflect APR or rate spread. This loan is a refinance and will be HMDA reportable based off purpose and the house as collateral. Would I report NA for rate spread since this is a CD secured loan? Not sure how I should treat this one.

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#1877119 - 12/09/13 06:04 PM Re: CD Secured Loan w/ multiple collateral - House MSMITH10
Dan Persfull Offline
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Dan Persfull
Joined: Aug 2002
Posts: 46,710
Bloomington, IN
We have a cd secured loan where we took the customer's home as an abundance of caution. Our cd loan of course are variable rate loans,

If this is a consumer purpose loan do you realize you have an ARM loan subject to 1026.19(a)&(b), 1026.18(s), 1026.20(c), 1026.23 if the primary residence, IOWs Reg. Z in general, RESPA, Flood, HMDA and its rate spread, etc?
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The opinions expressed are mine and they are not to be taken as legal advice.

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#1877144 - 12/09/13 06:55 PM Re: CD Secured Loan w/ multiple collateral - House MSMITH10
MSMITH10 Offline
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Joined: Sep 2010
Posts: 160
Dan-
Could we not code this a CD secured loan instead of RE? The rate is moving with the cd product. We say we do not offer ARM loans!

We did do early disclosures,flood,but this loan was finally brought to my attn at hmda time bc the APR and rate spread are not reflecting since this is a cd secured loan product.

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#1877164 - 12/09/13 07:57 PM Re: CD Secured Loan w/ multiple collateral - House MSMITH10
Dan Persfull Offline
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Dan Persfull
Joined: Aug 2002
Posts: 46,710
Bloomington, IN
It doesn't matter how you code it. It's secured by a consumer's dwelling therefore all consumer dwelling secured loan regulations apply. The only thing the "abundance of caution" gets you out of is the appraisal requirements.

The rate spread will have to be reported and the lien status will reflect either a code 1 or 2.
_________________________
The opinions expressed are mine and they are not to be taken as legal advice.

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