Currently the Credit Union requires a member to sign an authorization for payoff when we are posting insurance settlement checks for cars that are considered a total loss. (checks sent by insurance company)
Is there any regulation that states we have to have the authorization signed or as lienholder can we make the business decision to
accept those checks and post them the same day?
Can a Certificate of Deposit be purchased with loan proceeds and that CD be pledged as the collateral?
I have a borrower who is using a CD as security for a loan to purchase a vacation home. What if any disclosures are needed?
We have taken a certificate of deposit for collateral on a loan. The officer printed the assignment of deposit with the collateral description reading all existing and future accounts instead of the CD and number we actually took. Are we covered if the loan defaults?
What rate is used to calculate the interest rate on a loan that is secured by a Certificate of Deposit account? The interest rate on the Certificate of Deposit or the APY on the Certificate of Deposit?
I have a loan request for the purchase of residential real estate by a child of a good bank customer. The bank customer will secure the loan with a certificate of deposit, but also wants the bank to execute a mortgage on the real estate. The bank customer will also guarantee the debt. The child is just starting a job and will not qualify for a traditional mortgage at this time. The loan term will be for one year, interest only payments. The goal is that the child will be able to refinance to a traditional mortgage at the end of the loan term. I know this loan is HMDA reportable, but is RESPA applicable, (because we are also executing a mortgage)?
Is a Banking Institution allowed to use an IRA certificate of deposit as collateral on a loan?
Can we take a custodial certificate of deposit for collateral?
If the purpose of a Certificate of Deposit secured loan is to purchase a residential property is it HMDA Reportable? The loan amount is $25,000.00.
I'm new to the compliance area for a small community bank. I came from a larger national bank where compliance was handled from a compliance deptartment. My question is the following:In reviewing several loans recently where we granted a loan for the purchase of land with a one year term with P and I due at maturity, I found no GFE, preliminary disclosure, or SDS. Are they needed on this type of loan? We also took as additional security a certificate of deposit. The note is a promissory note and does not have a security clause in it. We have an assignment of deposit account in file but no separate security agreement for the CD. I say we need one the lender says no. Who is right?