I know that providing a builder a discounted rate on their personal loan in exchange for the builder referring buyers on new construction is a RESPA violation. However, is it also a violation if the bank provides the builder a deal on the commercial loan that was provided to construct the new homes? That loan is a commercial deal and the discount predates the "hoped" for referrals. There is no agreement, more of a hope the builder provides referrals. It's likely a tightrope but appreciate the insight.
Are we allowed to include the Negative Information Disclosure language in the promissory Note form for all applicable loans? We currently provide a separate one page document with just the Negative Information Disclosure language on it for the customers to sign. I was hoping to eliminate one document by including this in the Note.
Do we need to send an Appraisal Notice on a new request if we are using an existing appraisal we already have for a separate loan?
Other than the specific fees listed in 232.4(c)(1)(i)-(iii), do we have to add fees into the MAPR calculation that would otherwise be excluded from the finance charge? For instance, for a vehicle title loan fees excluded under 1026.4(e)(1) or for a land only loan fees excluded under 1026.4(c)(7)?
We have a customer that because of force-placed insurance being added back to their principal balance, they are getting no principal reduction. We want to lower the rate, keep the payment amount the same and switch to a different variable rate index. The current index is no longer used. Can we do this with a modification, or will the loan require a refinance?