Most Popular Lending Content
Construction and End Loan and RESPA Query
07/04/2005
A mortgage lender faciliates a construction loan for a borrower and charges an origination fee to do so. The fee is shown on the HUD-1 if the mortgage lender closes the end loan. If an end loan is not closed the fee is never disclosed on a HUD-1. The construction lender allows the borrower to take a draw on the construction loan to pay the mortgage lender but pays the draw direct to the borrower who then pays the mortgage lender. Is this a violation of REPSA.
Disclosing the Flood Certification Fee
07/04/2005
I read briefly somewhere that the flood determination fee that we charge should be broken down. If our fee is $25.00 and the actual determination costs $15.00, we should list the $10.00 fee we make under pre-paid finance and the other $15.00 down under other finance charges. Is this the case?
POC Insurance on GFE for Home Equity Loan?
07/04/2005
Can you show insurance as "POC" on your GFE for a Home Equity Loan?
Does HOEPA apply to this situation?
07/04/2005
An installment loan was approved, closed and disbursed to purchase a mobile home as a primary residence--a HMDA reportable loan. A bank error has been discovered (in the customer's favor) and the lender wants to rewrite the note to correct the error. The interest rate will trigger HOEPA which was not an issue for the purchase money. Would HEOPA apply for the rewrite, or would the second loan still be considered purchase money since no new funds would be disbursed?
HMDA Preapproval Question
07/04/2005
Now that a request for a preapproval is an application under HMDA, what date do we report? The date the customer first contacts us? The date we pull a credit report? The date we send a written preapproval? Or should we just pick one and be consistent?