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#209323 - 07/09/04 04:22 PM Construction Snafu!
SouthoftheBorder Offline
Gold Star
Joined: Feb 2002
Posts: 335
The South
Here's the problem (s)
- we obtain a HUD Settlement statement on all of our construction (only) loans; even ones where the land is already owned and on loans to developers..which I guess is a good thing because we have discovered several things
- some borrowers were charged twice for title bring downs (one fee was in the 800 series payable to the bank & the other fee was payable to the settlement agent and listed in the 1100 series)
-for consumer loans the settlement agent fee was not listed on the HUD, but we still used "a settlement agent fee' in calculating the finance charge.
- we collected 'lenders inspection fees', but did not include in the finance charge
So, now that I know all of this because of seeing a HUD that was not necessary what do I do....get rid of the HUD?

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Lending Compliance
#209324 - 07/09/04 04:29 PM Re: Construction Snafu!
Anonymous
Unregistered

What does your compliance officer say?

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#209325 - 07/09/04 04:32 PM Re: Construction Snafu!
David Dickinson Offline
10K Club
David Dickinson
Joined: Nov 2000
Posts: 18,762
Central City, NE
Quote:

So, now that I know all of this because of seeing a HUD that was not necessary what do I do....get rid of the HUD?



Let me ask about your loan first. You say it is a "construction only" loan. Where is the payoff coming from?
_________________________
David Dickinson
http://www.bankerscompliance.com

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#209326 - 07/09/04 04:43 PM Re: Construction Snafu!
SouthoftheBorder Offline
Gold Star
Joined: Feb 2002
Posts: 335
The South
Either financing from us (re-apply) or from another lender.

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#209327 - 07/09/04 06:40 PM Re: Construction Snafu!
JMB Offline
Member
JMB
Joined: Mar 2002
Posts: 59
Michigan
Sorry, you gave the HUD, I think that now you are stuck with what it says and with what you disclosed.

How many do you have? Construction reimbursemenets are ugly!

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#209328 - 07/09/04 06:43 PM Re: Construction Snafu!
David Dickinson Offline
10K Club
David Dickinson
Joined: Nov 2000
Posts: 18,762
Central City, NE
Quote:

Either financing from us (re-apply) or from another lender.



In this case, you MUST provide a HUD-1/1A for this loan as this loan IS subject to RESPA. The "temporary financing" exemption in RESPA is lost if the bank MAY provide permanent financing. Therefore, you needed to provide this HUD disclosure. Don't throw it away.
_________________________
David Dickinson
http://www.bankerscompliance.com

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#209329 - 07/09/04 07:07 PM Re: Construction Snafu!
SouthoftheBorder Offline
Gold Star
Joined: Feb 2002
Posts: 335
The South
oh my - I thought we would have had to commit to the perm financing; which we have not.

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#209330 - 07/09/04 07:35 PM Re: Construction Snafu!
David Dickinson Offline
10K Club
David Dickinson
Joined: Nov 2000
Posts: 18,762
Central City, NE
Unfortunately not. HUD wrote this pretty loosely for a situation like yours.
_________________________
David Dickinson
http://www.bankerscompliance.com

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