Recently I ran into the following situation regarding the 3 day Right of Recission: Borrower is a business, loan was to be secured with the business property and the owners residence was used more as an abundance of collateral (largely because we have always taken it on previous loans). Do I need to wait three days to dispurse because of taking the residence? Or because it is a business transaction the recission doesn't come into play here.
In a recent article on flood insurance, you mentioned that Uncle Sam is tired of handing out disaster aid. In a discussion here at our bank, someone interpreted that to mean that you can only make one claim against flood insurance coverage. In re-reading the article, I am wondering if we are getting disaster aid confused with insurance coverage. It doesn't seem logical to me that you could insist that someone purchase flood insurance coverage if, in fact, they could never make a claim because therehad been a prior incident. Please clarify the meaning of that portion of the article.
Here is our situation, borrowers signed acknowledgment on Reg Z disclosure wishing for life insurance on settlement dated 6-26-01. Loan account entered on computer system 7-2-01.(bank considers this entry as "booking the loan". On 7-23-01 the life insurance application form is filled in/signed by borrowers and mailed to company for approval. Question, according to 3500.17 (g), when does the clock begin counting for the 45 day window? the TIL date 6-26-01, the computer input date 7-2-01, or will it begin on the date the bank receives notice of the approval for the application for insurance coverage? Could you possibly elaborate on the specifics, "when the servicer establishes the escrow account"? Understanding this terminology will help in the future.
Does an attorney fee affect the APR?
Rules on the sale of insurance to consumers take effect next month. Schedule training on all non-deposit products for staff this month.