I recently had a debate with a former colleague regarding the Mortgage Loan Originator (MLO) e-signature on the initial 1003 sent to the borrower for initial disclosure purposes. This colleague stated that the MLO had given consent/permission to the processor to complete the MLO's e-signature due to the expeditious nature of the loan in question as the MLO would not be able to get to it for a few days. Keep in mind that it was only the e-signature of the MLO on the initial 1003, not the borrower. This individual was not being fired or resigning as they would be returning within 2-3 days but the loan needed to be moved into underwriting. I was not to sure about this. Does this constitute a violation, or is it considered fraud?
We do validations at our bank but have been told that we should not change the value when doing a validation. Will you be discussing how to validate prior appraisal or evaluations?
Is the Notice of Right to Receive Appraisal Copies required on 2nd liens?
Our bank escrows and when the loan is a Higher Priced Mortgage Loan (HPML) we do escrow for taxes and insurance including flood insurance if in place. When a loan is not an HPML and the customer does want to escrow, is it acceptable to escrow just for taxes? Our borrower requested this as they do not want to escrow for their homeowner's insurance. I have reviewed 1024.17 - the escrow will be added to the loan documents and disclosures provided - so it will not be under the borrower's total control. I just wanted to verify that we should escrow for both taxes and insurance in this situation, even if escrow is not required.
If a mortgage loan is refinanced, are we required to report points on the 1098?