02/23/2020
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?
01/05/2020
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?
06/23/2019
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?
05/27/2019
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?
05/12/2019
Our HELOCs are tied to prime. We disclose that. If prime increases do we need to send rate change notices?
02/17/2019
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.
02/03/2019
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?
12/30/2018
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?
10/07/2018
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.
09/30/2018
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?