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.
We see quite often where lenders agree to pay for or credit back items such as the lenders title policy. This is often done when a lender wants to capture the business of a builder so they offer this as a "perk" to the referrals coming from that builder. I was wondering how other lenders manage to do it without violating any regulations. We wouldn't plan to do this across the board.
Under current HMDA rules, if a borrower submits an application for one amount and then requests an increase and a new loan estimate is issued, do we report the original amount requested or the increased amount?
I am auditing loan extensions, and I am coming across several loans where the payment the customer makes after the extension is not bumping the next payment due date. I have figured out that this is due to our loan staff not collecting enough accrued interest. So the customer's payment went to interest, not bumping the due date. My question is : When granting an extension, what interest amount should be collected? What is currently accrued and owed at the time of the extension? or like my Bank is doing taking the per diem X the number of days extending? What is the best practice?
I am preparing education training for Realtors. My topic: "How to Work With Lenders." I want to address the age old response I hear from Realtors when asking for referrals. Often they will say, "we have to give out three lender names." I can't find anything under RESPA that requires this. Is this a part of Section 8 or another regulation? Briefly, what can a Realtor do that won't get the mortgage lender in trouble which may be beneficial to everyone?
We have a commercial customer doing a construction draw down line of credit. The construction and collateral will be a single family residence. t's a three year term.The first two years the line is a draw down line of credit, with interestonly payments; the last year it will be P&I with a balloon payment. Is this line/loan HMDA-reportable?
We have an application for a 12-month interest-only loan to purchase a new primary residence. Our loan will be secured only by the new home. Can this be considered a bridge loan?
Regarding the 10% tolerance for recording fees, are the recording fees and fees charges by the settlement attorney all included in a cumulative 10% tolerance, or are recording fees in their own 10% tolerance category? For example, we have a settlement attorney that did not disclose they would be charging a $50.00 release fee on a refinance, however, we did over-disclose on the lenders title policy fee on the Loan Estimate, which will allow us to remain under the 10% tolerance if this is a cumulative tolerance.
I have always been told that if you have a bonefide discount fee (point) that the discount fee does not need to be included in the APR. It seems as if everyone is including in the APR (the discount fee). Is there a way to not include it in the APR?
When escrow provided a Master Settlement statement with fees for us, the lender to disclose to our buyer on a purchase, they had transfer
taxes and owners title being paid by the seller. They have now sent out an amendment changing those 2 fees to be paid by the buyer because that is how
the contract was drawn up. Is this a valid change of circumstance? Or a tolerance violation?
We made a loan to a non-profit for the purpose of acquiring and renovating 10 different properties. Loan is construction - perm. Eight of the properties are residential and the other two properties are commercial. The majority of the square footage (about 72%) of the total square footage of all ten properties is commercial. The two commercial properties are strictly commercial (not mixed use). The commercial properties comprise about 39% of the net collateral value, although the majority of the property values are lender's valuations, and not actual appraisals.
I've looked through the HMDA GIR and do not see where this situation is addressed, unless I've overlooked it. The closest situation I could find addressed mixed use properties. In those situations, it stated it was at the lender's discretion, citing use of square footage or value. So I have square footage leaning to commercial (exempt) and value to residential (reportable).
Would this be HMDA reportable?