Most Popular Lending Content
A workout loan is subject to ATR underwriting!?
01/08/2023
We have a delinquent mortgage loan we are taking through a workout plan, and will likely refinance it with a balloon. I’m in a panic because I don’t see workouts as an exemption to the ATR / QM rule. What did I miss!? The borrowers are in a bad place and we are trying to help them out, but there is no way they can pass the Ability to Repay standard! Help!
Is email receipt for the LE sufficient?
01/01/2023
We mailed the borrower’s Loan Estimate and they emailed us that it was received, and they want to proceed with the loan. Can we act on this emailed notice?
Correctly Itemizing and Disclosing the CD
01/01/2023
TRID Closing Disclosure confusion on Seller-Paid H, Other, and J, Total Closing Costs Subtotals (D+I) – Should we disclose all fee/costs listed on our Title(Seller) CD? According to 1026.38(h)(2), it appears that we should list ALL loan costs on page 2 of the closing CD under section H. Also, 1026.38(k) discusses Summary of seller’s transaction. For example, we had a Judgement Payoff to a Law Firm ($987.97) in section H of Seller-Paid on our Title CD. This was not disclosed on our Buyer’s CD and does not carry over to section Seller-Paid – Section J. Total Closing Costs Subtotals. My concern is that the totals do not match the Title-CD bottom line “J-Closing Costs Subtotals.” What is the correct way to itemize and disclose these?
Exclusion from Points and Fees
12/25/2022
We have a builder in one of our markets who is the seller on one of our transactions. He wants to pay to buydown for the borrowers interest rate. This would cause us to go over the points and fees threshold. My question is, would a seller paid amount to take the rate down be exempt from the points and fees calculation?
Are Employee Loans ARMs?
12/25/2022
Regarding (possible) ARM loan disclosures and terms, we effectively give employees a lower rate on their loan while they are employed here. What we do is disclose the fixed contract rate and they pay those scheduled payments. The system however, is programmed with the lower discounted employee rate and the loan just prepays and when paid long enough, pays off early. If the borrower leaves our bank, we remove the discount from the system and revert to the contractual rate. The payment never changes except for the final payment which may then be less than scheduled. Would this be considered an adjustable rate mortgage? Is this an acceptable way to handle employee loans?
