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.
If a fee that is normally charged on a TRID transaction is inadvertently omitted from the LE but added to the CLoD, would that be subject to a cure of the entire amount? Example, the fees for lender's title insurance, the settlement/closing fee, recording fees were completely omitted from the LE that was delivered to the applicant. Even though these fees are normally subject to a 10% tolerance, shouldn't they be totally cured since they were not disclosed on the LE?
Pre-qualification application received Refer/Eligible Findings from GUS - Rural Development for a purchase of a primary residence loan. The loan could potentially be manually underwritten for approval if the borrower were to provide the documentation. Borrower chooses to not go manual underwrite and says cancel my file. Is the loan Denied based on the GUS refer findings or is it approved/not accepted on the hypothetical possibility that it may have been able to be manually underwritten?
Are we correct that we do not have to send an adverse action notice in the event we freeze a HELOC for “inactivity, default, or delinquency” of the account? Do we need to send a notice to restrict credit? If so, is there sample language? We have not been able to find an example of this notice.
(c)Change in terms -
(1)Rules affecting home-equity plans -
(i)Written notice required. For home-equity plans subject to the requirements of § 1026.40, whenever any term required to be disclosed under § 1026.6(a) is changed or the required minimum periodic payment is increased, the
creditor shall mail or deliver written notice of the change to each consumer who may be affected. The notice shall be mailed or delivered at least 15 days prior to the effective date of the change. The 15-day timing requirement does not apply if the change has been agreed to by the consumer; the notice shall be given, however, before the effective date of the change.
(ii)Notice not required. For home-equity plans subject to the requirements of § 1026.40, a creditor is not required to provide notice under this section when the change involves a reduction of any component of a finance or other charge or when the change results from an agreement involving a court proceeding.
(iii)Notice to restrict credit. For home-equity plans subject to the requirements of § 1026.40, if the creditor prohibits additional extensions of credit or reduces the credit limit pursuant to § 1026.40(f)(3)(i) or (f)(3)(vi), the creditor shall mail or deliver written notice of the action to each consumer who will be affected. The notice must be provided not later than three business days after the action is taken and shall contain specific reasons for the action. If the creditor requires the consumer to request reinstatement of credit privileges, the notice also shall state that fact.
Does this scenario require a three day right of rescission?
Borrower currently has a mortgage elsewhere on their primary dwelling. They want to refinance that loan while simultaneously securing a construction-perm loan with us for an addition to the home. Is it subject due to the cash out, refi component or exempt due to the construction component?
The consumer has an initial advance of $1,000 from their HELOC and it is deposited in their checking account. Is this practice acceptable in that the loan fee that is subsequently paid from the checking account is clearly paid from the advanced proceeds and it is not identified as a finance charge on their initial billing statement?
A borrower is waiting on a divorce settlement (half equity in the existing marital residence). We are willing to loan the funds until this money comes in on a 9 month, interest only note. Is this a bridge, since the funds are from the marital residence sale or temporary? And the fees/costs exceed 3% of the loan amount which raises the question of how to treat this as an HPML or not, and is it subject to HPML requirements for appraisals?
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?
In 1026.37(f)(5) we know that creditors are required to use terminology that is reasonably understood by consumers. We lend in Indiana in which the Title Company will charge a $5 TIEFF fee. This is an acronym for Title Insurance Enforcement Fund Fee, but it is recognized as TIEFF in the industry and is searchable on the web as TIEFF.
We have an investor who is requiring the full name be placed on the CD for all IN loans versus the TIEFF acronym. We feel that the acronym is reasonably understood. The problem with using the full fee name is that it would always require an addendum due to the character limitations on the CD.
Has anyone else run up against this scenario and have overcome the investors' concerns?
In 2015 we reported this commercial loan as a Home Improvement loan on the LAR. The loan was commercial non-revolving line of credit for $50,000 that matures on 11/1/2016.
On 5/15/2016 the borrower came back for an additional $30,000 to be added to this loan as the improvements are not complete. The additional funds paid off a non-dwelling secured loan, a small advance to the borrower, and the rest remains available on the non-revolving line of credit. None of the new funds satisfied any dwelling secured loans.
In most cases when a borrower requests additional funds, we pay off the existing loan and book a new loan for the total of the old loan + the new amount request. Thus, it is always reported for HMDA as a home improvement as loans that are for both refi + home improvement = home improvement.
In this case, being this is a commercial loan, the lender did not pay off the existing dwelling secure loan. We just added an additional $30,000 to the line of credit. Because we didn’t “satisfy” any dwelling secured loans, am I correct that this is not reportable for HDMA and is technically considered a Commercial Modification. Is this the correct interpretation of this loan?
If any of the additional funds paid off/satisfied another dwelling secured loan, would this be considered HMDA reportable as either a refinance or home improvement loan? If so, is the entire loan amount reportable or just the increase?
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?