Most Popular Lending Content
How do I explain the calculations for GFE, TIL, Itemization of Amount Financed, and Loan Amount?
04/07/2003
I am a loan officer with 16 years lending experience who is new to mortgage lending. I am having trouble following the calculations used for tying together the GFE, the TIL, the Itemization of Amount Financed and the Loan Amount. What explanation can I use for my borrowers which does not rely solely on their trust in me or uses the "blame the confusion on the government" gambit?
Refinancing: When does the interest accrual stop on the original loan?
04/07/2003
Reg Z "Cash Out" refinance of existing residential first mortgage loan issue. A loan is closed on March 3, ROR expires on March 6 and loan is funded on March 7. Interest accrual on new loan begins on March 3. Question: Does the interest clock on the original (refinanced) loan stop on March 3 when the new loan was closed OR does it stop on March 7 when the loan was funded to pay off the old loan?
Solicitation Letter, APR, and Disclosures
04/07/2003
We are planning a solicitation for an open ended lending product. We are planning on sending a letter for cross sell purposes that will state an initial APR. Will I need additional disclosures in the letter due to the APR being stated in the letter?
Adding MBI And GAP To An Existing Loan
04/07/2003
Our customer wants to add MBI and GAP to his existing loan. What would it take to subsequently add mechanical breakdown insurance or GAP insurance to a closed-end indirect loan that was purchased from a dealer? After the costs of this insurance is added to his loan balance, is it possible to reamortize his loan so his payment remains the same and his maturity date is extended?
Is it acceptable to use community property income to qualify an applicant if the applicant is applying for separate credit?
04/07/2003
Is it acceptable to use community property income to qualify an applicant if the applicant is applying for separate credit? Our applicant (Mrs. X) works for her husband's business and is requesting a $100M unsecured line of credit for herself and a small business she operates. Her husband, who earns the majority of income of the household, is not a co-borrower or co-signer. Based on Mrs. X salary' alone she would not qualify for this loan under our underwriting requirements. But, if we use the combined income of Mr. and Mrs. X and use their combined annual expenses (included the proposed loan), she would qualify. The argument is community property income can be used to qualify an applicant because she lives in a community property state (California).