Most Popular Lending Content
Release/Return of Loan Documents
02/16/2004
Is there any requirement to return paid notes and canceled mortgages or other such documents to the borrower when the loan is paid off? Our management is trying to save time and postage.
Calculating Interim or Prepaid Interest
02/16/2004
My loan department and doc prep vendor are arguing about the proper calculation for interim (prepaid) interest on a first mortgage transaction. My loan depatment wants to charge interest for the day of closing. For example, for a loan closing January 15th, they would collect 17 days interim interest. The doc prep firm says none of their other clients do this, so they want a regulatory citation showing that it's okay. I can't find anything in any requlation that covers calculating interim or prepaid interest. Any ideas?
Determining Loan Purpose for HMDA
02/16/2004
Under HMDA, if the borrower is refinancing - cash out but using the proceeds to buy another home, is the loan purpose a refinance or a home purchase?
Term to use on HMDA Rate Calculation
02/16/2004
When using the HMDA rate calculator, which term would we use on our loans? On most of our real estate loans, we lock the interest rate in for 2-4 years, but set the payments up on a 10 year payoff. Would we use the 2-4 years or the 10 year term that it will take to pay the loan off? We want to use the correct term.
Decline Reasons and the FCRA Notice
02/16/2004
If I have a customer that applied for a loan and I declined it based on employment history and not the customer's credit, do I have to check the FCRA box if I pulled a credit report? Can the customer still receive a free copy of their credit report if I didn't decline them for derogatory credit?