All of our TRID loans are on a variable rate that changes monthly. I thought the required rate cap was an increase or decrease of 2% each time it changes. Now I cannot find any documentation regarding this issue. I know we have to disclose the ceiling but is the adjustment under our discretion?
On ARM loans, is the first interest rate change calculated from the loan date or in the case of recission, the disbursement date?
Can a broker provide the borrower a copy of the CHARM booklet? If so, does the lender have any responsibility to ensure it was provided timely?
Our bank is looking into offering mortgages with an initial fixed rate, short term loan (5-7yrs) with a balloon payment, then financing the balloon
balance into a longer term (20yr) ARM. Can we do this without determining Ability to Repay for the initial short term portion? Also, would this be
dependent on if the bank is considered a small creditor and serves only rural or underserved areas?
Can a 30 year fixed mortgage be converted to a 5/1 ARM mortgage? What information needs to be provided to the consumer to have this done and can
it be a modification or must it be a refinance?
Can the bank charge a default rate on a single-close, construction-perm mortgage loan during the construction phase if construction is not completed on time? For example, a 9 month construction term with multiple draws has a fixed interest at 4.125%. If construction is not completed at 9 months when the construction phase is to mature a default rate of 4.625% would apply from the maturity of that phase. If it is permissible, does this make the loan an ARM or the increased rate a refi?
Our HELOCs are tied to prime. We disclose that. If prime increases do we need to send rate change notices?
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?