Two years ago we granted a new loan and took a first mortgage on a piece of vacant land as collateral. The loan is now going through a renewal. While completing the evaluation, we learned that the borrower; using his own cash, built a home on the property that’s encumbered. The way our mortgage reads, we have interest in ... all existing or subsequently erected or affixed buildings, improvements, and fixtures... When we complete the valuation report, should the value of the home be included in the report and furthermore, if so, should the report be mailed to the borrower under Regulation B?
Should homeowner’s/builder’s risk/flood go on the shoppers list?
What's the best way to streamline credit and account exception tracking?
On construction/permanent loans with one closing-upon completion, a modification is done and the 30 year rate is set at that time. There are times we have to extend the construction period of 12 months . Usually the rate remains the same but at present the rates are changing. The construction period we base the rate on is the WSJ prime +1% fixed for 12 months. I have to extend one now and the rate will increase from 5% to 5.75%. What if any disclosures are required at time of extension?
How Portable Is Our Loan Imaging System?