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.
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.
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.
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?
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?
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?
We have a customer who wants to finance the construction of a barn on his homestead property. The loan officer says this is business purpose because the customer will have a horse operation in the barn and earn additional income (he has a full time job). I disagree and believe TRID applies. Which do you think it would be and why?
I have a 2 year time note, with interest paid quarterly and a final balloon payment of principal plus last quarters interest. I'm looking for guidance on how to run this through APR WIN.
Currently, our HELOC products feature a rate determined by an index plus a margin (we utilize Prime).
However, we'd like to lower the margin for the time being but not actually get rid of it. Basically, calculate the rate with a lower index for now but keep the existing margin in place for the future. This would seem to be a change in the interest of the borrower as it will allow a lower rate.
When you receive Notice Of Trustee's Intent To Pay Claims after a customers Chapter 13 has been finalized with a repayment plan, should the servicer change the loan terms and billing to match the repayment plan?
Is a purchased loan HMDA reportable when the selling or originating bank sells off 100% of the loan and does not hold any interest at all except for servicing?