Bio:
Dan is Vice President and Compliance Officer for The Peoples State Bank with its main office located in Ellettsville, IN and supporting nine branches in surrounding communities. The bank is a privately owned bank that began its existence in 1904.
Dan entered the financial services arena in 1974 when he went to work for Commercial Credit Corporation. He worked eighteen years with Bank One and three years with the Indiana University Employees Federal Credit Union. In addition to serving as a Compliance Officer, he has served as a Collection Officer, Consumer Loan Officer, Commercial Loan Officer and Loan Operations Officer. His primary duties falls within lending compliance, training and consumer loan reviews.
He attended Three Rivers Junior College in Poplar Bluff, MO and Arkansas State University in Jonesboro, AR. He is also a graduate of the ABA Bank Card School, ABA Commercial Lending School and ABA National Truth-in-Lending Compliance School.
Questions Answered
06/20/2005
I’m reviewing a loan, it is under a business name, but the loan purpose is strictly personal. We have a rental home as collateral. The term is 10 years. Do I treat this as a business loan or do I search for RESPA and Reg. Z disclosures?
06/20/2005
On a commercial loan, we took the borrower's residence as collateral. The deed of trust included a cross-collateralization clause. Recently, we did an auto loan to the same customer. Are we in fact required to give a right of recission to this borrower even though the deed of trust was not actually referred to on the auto loan?
06/20/2005
We sent out a preapproval offer for a Home Equity Line of Credit, including the FCRA prescreen offer disclosures. The consumer calls and lets us know that he is now unemployed. He still meets the credit criteria we used to prescreeen him for the offer (his credit score is still good). Do we have to give him the HELOC? Or can we deny him because he no longer has the ability to repay the debt?
06/20/2005
Can banks reduce or freeze a Home Equity Line of Credit's credit limit upon borrower's written request. After maturity date of a Home Equity Line of Credit can a Change In Terms be backdated to the maturity and therefore no disclosures or rights of rescission need to be given?
06/20/2005
I ran across your answers to a question posed on bankersonline.com: <a href="http://www.bankersonline.com/compliance/gurus_cmp0507h.html ">http://www.bankersonline.com/compliance/gurus_cmp0507h.html </a>It appeared in that scenario, that the broker was asking what services he/she had to perform to receive compensation. My scenario is this. We have banks that are turning down mortgage customers because the customers don't "fit" into their product lines. As a broker, we have access to products that fit the customer profiles. We would like to develop a business agreement with the banks, where they would perform some of the items listed in the IBAA letter, and we would also perform some of the items (basically picking up where the bank arrived at the conclusion that they would turn down the borrower). We would pay them for the work that they have done (that we would have had to do if the customer came to us directly). The compensation we would provide the banks would be reasonably related to the value of the goods or facilities that were actually furnished or services that were actually performed. It would be commensurate with that amount normally charged for similar services, goods, or facilities, and would be of reasonable relationship to the market value of the goods, facilities, or services provided. <strong>Summary:</strong> We just want to pay the banks for the portion of the origination process that they actually performed. Is there a problem with this approach?
06/20/2005
How important is it to match the line numbers on a HUD-1 and Good Faith Estimate? Is it a critical issue to have them synchronized as best as can be done in the application process?
06/20/2005
Is it required for the Closing Agent to sign the HUD? As a lender, we verify each line item including signatures, for accuracy, and I am running into a real problem with a couple of Title Agencies not signing the HUD. Needless to say they are not pleased when I request them to do so.
06/06/2005
The Uniform Residential Loan Application should be used only on residences (construction and homes already built) and not on lot loans where building will not be going on for some time, right?
06/06/2005
I have an interest only construction loan with interest charged on the amount disbursed where 92% of the loan proceeds are disbursed at closing. The usual construction loan APR calculation makes the APR come out very high. Is there an alternative method for calculating the APR? I am having difficulty understanding the actuarial method in Appendix J of reg Z.
06/06/2005
We have an existing construction loan that was originally done for a one year term at a fixed rate. Our credit officer wishes to extend the existing loan for additional one year but change the rate to a variable rate. The borrowers have moved into the home as their principal dwelling. Would this be considered an ARM loan?
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