Most Popular Lending Content
Is This an Illegal Kickback?
02/07/2005
Our bank is considering offering the following promotion to homebuilders that work with us. The program would work as follows: We make a "spec" loan to the builder and charge a $500 origination fee to the builder. Our promotion would state that if we get the permanent loan to the buyer (consumer) of that home, we would refund to the builder $250 of the $500 fee the builder paid to the bank. Is that an illegal kickback?
Rescission on 3rd Deed of Trust?
02/07/2005
We are providing a consumer loan to purchase a vacant improved lot (primary collateral). We will also be taking a 2nd deed of trust on the consumer's secondary residence and a 3rd deed of trust on the consumer's primary residence as additional collateral. Is a disclosure of the right to rescind mandatory for filing a 3rd deed of trust on a primary residence taken as additional collateral?
APR Tolerance/Redisclosure
02/07/2005
What is the percentage of tolerance for the APR on the initial TIL and the final TIL, assuming the final APR is greater?
Lending against Holding Company Stock
02/07/2005
A bank holding company owns 100% of the bank's stock. Under the Texas Finance Code 34.102, a bank is prohibited from acquiring a lien on its own shares except on an antecedent debt to limit the loss or with approval of the banking commissioner. A bank is allowed to lend against shares of an affiliate per this section. May the bank lend to a shareholder of the holding company stock with the stock as collateral?
Can We Give Customer Copy of Credit Report?
02/07/2005
A customer requested a copy of his credit report and we told him he had to call the credit bureau to request a copy. He said another area bank gave him a copy. Are we allowed to give consumers a copy of their credit reports now? Did something change that I didn't catch?