11/06/2022
In 2018, as part of an FHA HAMP partial claim, a spouse was added as a borrower on an FHA loan where the original borrower was single when the loan was originated in 2014. The spouse’s income was needed to qualify for the HAMP partial claim, so a loan modification was signed by both spouses to extend the term, reduce the interest rate, and reduce the payment of the original mortgage. A subordinate note and mortgage were also signed by both spouses for the unpaid payments and interest. The spouse that was added did not receive any regulatory disclosures as part of this workout even though, the spouse assumed the loan debt when the modification was signed.
Should this have been treated as an assumption and disclosures provided to the second spouse? If so, what disclosure should have been provided?
The loan is currently in a COVID deferral. The loan delinquency is being reported to the credit bureau however the second spouse has never received the Negative Information disclosure. Should that be provided now?
02/10/2019
I am auditing loan extensions, and I am coming across several loans where the payment the customer makes after the extension is not bumping the next payment due date. I have figured out that this is due to our loan staff not collecting enough accrued interest. So the customer's payment went to interest, not bumping the due date. My question is : When granting an extension, what interest amount should be collected? What is currently accrued and owed at the time of the extension? or like my Bank is doing taking the per diem X the number of days extending? What is the best practice?
12/02/2018
Our lenders are wondering if any expenses on a loan after the note is closed can be charged to the principal balance? For example, a slow pay customer
can't pay property taxes and the bank pays them for him. Can that be charged to the principal balance as an advance?
I said no, due to the fact that would trigger a payment difference, needing new disclosures. The other example was the loan is in default and the process of foreclosure has started. There are attorney fees that are accessed during that process. Can those be charge to the principal balance and claimed in the debt owed at the time of foreclosure/charge off?
10/28/2018
Is the Housing Counseling Notice required for mobile home loans when the loan is only secured by the mobile home itself, not the land it will be situated on?
10/21/2018
We have a real estate loan (1st lien) that was past due by 90 days. The bank requested a title search on the property during the time the loan was past due. The customer has since brought in a check to pay the loan current so they are no longer past due at this time. Are we able to charge the customer the fee for the title search?
10/07/2018
What regulations address ceasing communication with a borrower if requested, or if we receive notification that they are represented by an attorney? We are reviewing our Loss Mitigation process.
09/02/2018
A customer I know has been running past due about 30 days... They recently paid current owing a 1/2 payment for May and Junes full payment. But, somehow had over $400.00 in late fees, when the late fee per month is only around $47.00 per their promissory note and payment stub? Can a lender hold late fee's like that and charge interest on them? With only owing May and June there should have been only 2 late fees?
11/26/2017
Once the principal is paid on a charged off loan, is it best practice to collect the interest first or any fees associated with the charge off?
06/18/2017
Can Interest applied to principal on a loan that was formerly on non-accrual ever be accreted back into income?
06/04/2017
I am auditing loan extensions, and I am coming across several loans where the payment the customer makes after the extension is not bumping the next payment due date. I have figured out that this is due to our loan staff not collecting enough accrued interest. So the customer's payment went to interest, not bumping the due date. My question is : When granting an extension, what interest amount should be collected? What is currently accrued and owed at the time of the extension? or like my Bank is doing taking the per diem X the number of days extending? What is the best practice?