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#514101 - 03/14/06 04:44 PM Affiliated Business Arrangement Disclosure
Denny Offline
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Denny
Joined: Jun 2002
Posts: 79
Pa
How do you complete the ABAD when the provider you're referring someone to is a Mortgage Lender and the service they will be providing is underwriting and funding the loan? Also, how do you estimate the charge or range of charges for such a service?

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Lending Compliance
#514102 - 03/14/06 04:53 PM Re: Affiliated Business Arrangement Disclosure
Kathleen O. Blanchard Offline

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Kathleen O. Blanchard
Joined: Dec 2000
Posts: 21,293
You should state that the services rendered are underwriting and funding. It sounds silly, especially with the sentence about other vendors being available (not if you want a loan from this lender!) but it is the way it must be completed. If the affiliate is also documented and closing you would state that as well.

I have to check my old info from when I was involved with a similar situation to see how we handled fees. I believe we stated the lenders application and origination fees here, whatever fee the lender was keeping (not turning over to a third party).

Perhaps someone else can jump in and add to this.
_________________________
Kathleen O. Blanchard, CRCM "Kaybee"
HMDA/CRA Training/Consulting/Mapping
The HMDA Academy
www.kaybeescomplianceinsights.com

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