Vendor Guru Q&A - Lending

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Latest Lending - Commercial Lending Topics

Is loan to buy stock from ex-employee CRA reportable?

09/22/2019

Is a loan to a company buying stock from an ex-employee CRA reportable? It is secured by business assets.

Minimum Age to be a Member of LLC

09/15/2019

What is the minimum age a person can be to be a member of an LLC and if it is less that 18, does it impact that persons ability to borrow on behalf of the LLC?

Regulatory Disclosure for Refi Commercial Mortgage

08/04/2019

What regulatory disclosure is required for refinancing a commercial mortgage loan?

Lending to Start-up Business for Processing Hemp

07/28/2019

What should be a financial institution's main considerations/conditions for lending to a start-up business for processing hemp? How does an institution perfect a security interest in the raw material/and or crude? If the institution has to take possession for some reason, what would be the recourse? Can the financial institution sell the inventory to another hemp processor?

Loan to New Entity-Short Term Line of Credit

07/14/2019

We are trying to make a loan to a new entity and provide a short term line of credit to help fund the costs of there first contract as a company. We are wanting to take an assignment of the contract and have their customer issue joint checks for their payouts. I have been unable to find any document that works on our compliance software. Any ideas of how I would perfect this transaction?

Referral Fee for Construction Loan from Business

07/07/2019

We received a referral for a commercial construction loan from a small business that specializes in providing information to those who are building homes. The construction loan does not meet any of the triggers for RESPA coverage. The referring source is requesting a 1% referral fee. The bank would pass this fee onto the borrower. My questions are: (1) Are there any regulatory or legal prohibitions on the bank paying this fee and passing it onto the borrower, and (2) if the fee is permissible, how should it be listed on the loan documentation?

Intent to Proceed on Commercial Purpose Loans?

06/09/2019

Are we required to have an intent to proceed on commercial purpose loans?

Notice to Commercial Real Estate Purchasers"

02/17/2019

What, if any, is the regulatory cite requiring the lender to provide the borrower a "Notice to Commercial Real Estate Purchasers?" It is related to CERCLA.

Stating Draw Feature-Promissory Note

01/27/2019

If we have a Promissory Note that does not state a draw feature, but the Business Loan Agreement does state the draw feature, are we in Compliance? Or would we need to add the verbiage in the Note to be in compliance?

Loan Modification/Extension More Than Once?

01/27/2019

On a business purpose loan, can you do a loan modification/extension agreement more than one time? We have a business purpose loan that we did an extension agreement for, going an additional 12 months. We are wondering if it can be done a second time for an additional 12 months? There is no change in terms, etc., just extension of maturity date.

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Action Training: Updated Real Estate Valuation Thresholds

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RESPA: How to Violate Section 8

It doesn't matter how strong you think your compliance program is. Someone in the organization may be busy figuring out a way to violate RESPA's Section 8.

Scope of Fair Lending Cases

10/20/2019

Fair lending is a mortgage lending issue. Correct?

No Loan Amount Obtained – How to Report

10/20/2019

What do we report for Loan Amount if an application is taken, under our financial institution’s definition of HMDA Application which does not include a loan amount, and the applicant withdraws or the lender denies before we have a loan amount?

Flood Insurance for 2 Properties

10/13/2019

We have a loan with two properties. One is a flood zone and one not in. The value of the property in a flood zone is $50,000. Can we require flood insurance only on the amount of the property that is in the flood zone or do we have to get flood insurance to cover the entire $250,000.00 loan balance?

Initial Disclosures Before Underwriting?

10/13/2019

Are initial disclosures required to have the borrower(s) signatures prior to going to underwriting for initial review? I understand that the loan estimate and 1003 need signatures but what about the other initial disclosure documents i.e.: toolkit, counseling forms, servicing disclosure, AfBA, FACTA, Privacy, Patriot etc..

Docs to Verify Income or Tax Returns Required?

10/13/2019

We have a married couple wanting to fill out a home loan application. They state that they do not have any copies of their tax returns. Can we use the other documents to verify income or are the tax returns required?

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