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
03/21/2005
According to "A Guide to HMDA Reporting: Getting It Right!" effective 1/1/04, the definition of a reportable refinancing is "any dwelling-secured loan that replaces and satisfies another dwelling-secured loan to the same borrower." Please define "satisfies and replaces." Does this require cancellation of the current loan promissory note and recording of a satisfaction of lien for the current security instrument/mortgage, followed by a new note and execution of a new lien/mortgage? Or does cancellation of the existing note followed by a new note qualify as "refinance" (existing lien instrument/mortgage stays intact)?
03/21/2005
Is a flood certification required for all mortgage loans in any area?
03/21/2005
The rate lock-in fee payable to us and collected up-front by our affiliate bank is shown as POC on the HUD-1 at the construction perm closing. Do we need to show it as POC again on the HUD-1 at modification, since this is when the borrower will receive a refund of this fee in a check?
03/21/2005
Could you address the issue of seller-paid closing costs and TIL disclosure? I believe you have to disclose the costs to the buyer (borrower) on the TIL regardless of who pays the costs. There is some discussion that you can net them from the TIL disclosure. I cannot find any commentary with regard to "seller-paid costs."
03/07/2005
Can you tell me the regulation regarding changing the loan amount on a note? Example: The loan closed in 2003 for $250,000, and now the client wants to increase it to $350,000 without refinancing.
03/07/2005
I am processing a loan in which we are taking a purchase money security interest in a wedding ring. Does this fall under Reg AA for household goods and will a UCC-1 actually perfect the lien?
03/07/2005
Is a rate cap applicable to a 10-year consumer mortgage, when we approve it as a fixed-rate for the first five years, and then a floating-rate for the next five years? An extreme example would be like a 10% jump in prime after the first five years. Could the rate jump the 10% at one shot? Currently our commitment indicates a floor only. Are we as a lender required to indicate a rate cap and a max rate, when it is to an individual for the purpose of purchasing an investment property?
03/07/2005
What criterion do you use in determining the maturity date of HELOC loans? Is it the closing date, or is the disbursement date the official standard?
03/07/2005
I would like to modify my client's defaulted loans with the lender, perhaps by getting the lender to add the arrears amount and assessed fees to the back of the mortgage contract. Is there certain documentation needed for this request, or how can I competently make this request?
03/07/2005
What is the formula that needs to be used when figuring the APR for a consumer construction loan?
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