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
04/16/2017
I was asked the following questions by a member of my bank's Senior Management Team. "In the event a consumer loan applicant does not own a residence, and he/she claims to not be responsible for any rent. Can a minimum housing provision (say $400) be used when calculating DTI for this customer? I have done lots of research, but so far I have not been able to
find an answer one way or the other.
I personally feel that it could be considered a violation, but I need to be able to reference what that violation would be?
04/02/2017
A borrower is purchasing a new home. They wish to use temporary financing of a short term interest only loan secured by the old home, to purchase the new home, until the old home is sold and the loan is paid off.Is this a transaction subject to a right to rescind?
03/19/2017
If escrowed, are taxes and insurance included in the mortgage payment amount when calculating the debt-to-income DTI ratio on a new consumer loan?
01/29/2017
We have a no cashout refinance where property is in a flood zone. The way I read the flood rules, we still need a declaration page evidencing coverage and then during our ongoing monitoring of the property, we can then accept a notice of insurance coverage at that point. Is this correct?
01/01/2017
We have a loan with two applicants. Only the primary is being considered the borrower and would sign the note. The second person is only for income purposes. For HMDA, do I report the combined income since that is what we used to evaluate the loan or only the primary's? The applicants have since withdrawn the application.
12/04/2016
With a slant toward commercial lending.....I’m trying to find the FDIC guidance on what makes a credit transaction secured versus unsecured. Does it have to be a 1st Trust Deed within the established supervisory guidelines? Can it be a 2nd Trust Deed, but the Combined Loan to Value is still within the guidelines? What if the same bank is already in 1st position and it takes a 2nd on a new loan, but it’s within LTV guidelines, is that secured?
I'm trying to find some clarification and/or where I might find the guidance on the FDIC website.
11/13/2016
Are mortgage lenders required to issue a credit decision (conditional approval or Pre-approval or notice of incompleteness or denial) on purchases and a commitment letter on refi's within 30 days of application? We have a purchase of new construction file that sat for 4 months while construction finished with no credit decision.
10/30/2016
Our bank extended an unsecured loan to a borrower to purchase a home. The unsecured loan was temporary until the mortgage file was ready to close. I'm thinking that the permanent mortgage file should be reported as a home purchase even though we are treating like a refinance. I'm following the same philosophy as the construction to permanent loan files. Is this correct thinking?
10/30/2016
I keep getting requests from lenders wanting to do an unsecured business loan taking real estate as an abundance of caution. I am fairly new to the bank and I have told them on several occasions that we should not be doing this, but I am getting resistance and the lenders are trying to tell me that the bank has always done this. Can you tell me if there are any situations where it is acceptable to do this?
10/09/2016
What approach do other lenders take when a property is not in a mandatory purchase flood zone, but "maps-in" during the origination of the loan? In some institutions, we've had a process to verify the flood zone prior to close, but others have allowed loans to close and immediately put the loan into the 45-day flood letter cycle?
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