We offer a discounted rate with some of our ARM products. We use the index at the time the rate was set to calculate the fully indexed rate throughout the entire loan and that is what is disclosed on the LE and CD.
Under what circumstance would we locate an updated index from a the date of closing or within 45 days of closing and disclose a blended APR. Would this be a 2 time construction closing? We disclose based on once the rate/index is locked that is the rate/index we use when we close. Unless of course the loan is re-locked for any reason.
On a consumer real estate ARM loan, the loan just adjusted. The officer is requesting to modify the loan and change the index, margin, and adjustment period. The request is primarily due to competitive reasons. Can we change the index, margin, and adjustment period without having to do disclosures?
We have a consumer real estate ARM loan that was originally set as a 5 year ARM with a 10 year term. The loan was booked. Two months into the loan the borrower wants to make the term of his loan to 15 years instead of 10. We did not change the rate and the payments went down because the term was extended. We made the changes on a change in terms/modification document. Is this a change that should have required new TRID disclosures, or is this considered a subsequent change an no new disclosures are required?
How can we verify a Closing Disclosure APR for an adjustable rate consumer purpose loan that is secured by residential real estate? The terms in question are a 30 year mortgage with a 10/1 ARM.
1) If we are modifying a consumer land only real estate loan, can we convert from a fixed rate to a variable rate without providing disclosures? The term of the modification period is 6 months.
2) Can we originate a consumer purpose real estate loan with a variable interest rate and a term of less than 12 months, such as for construction, without providing a CHARM booklet and ARM disclosures?
If we are doing a modification for an ARM Loan and the payment increases, some of our staff believe this is a "refinance", some do not. Thoughts? If so, -What do we need to provide to the consumer? There would be no costs associated - just the new terms with the new (current rate)? It doesn't seem like a CD would be appropriate - If not - then we would use our normal modification agreement.
We are trying to create an ARM loan and it will be on a 15-year note with rate changes every 5 years, basically changing twice. Is there a maximum ceiling rate/floor rate we can charge?
My loan officers are questioning the maturity date that should go on a mortgage when the loan is a balloon loan. Should we be putting the date of the balloon or the date in which the loan is amortized over? (10/30 would have a maturity out 30 years) If we do not use a date the mortgage is only good for 15 years. If we use the amortized date (30 years) does this imply that we will renew the balloon each time it is due?
A borrower receives a GFE and TIL within 3 days - it's a 5 year ARM with a floor of 3. Initial TIL based on index at time. Final TIL is updated with new index and is not within tolerance of initial. Do we need to redisclose and wait 3 days before closing?
If the initial ARM disclosure given at application has a floor rate different than the floor rate on the note, is there a violation? Do I have to redisclose? Do I have to change the note to match the disclosure?