Most Popular Lending Content
HOEPA Rate Spread Selection
08/02/2004
If we are making a closed-end home equity loan and this will be a first lien on the property, do we consider this a first lien and base the APR test on 8% or would this fall under the 10% for second liens? This is unclear to me as our rates and terms are different for refinance vs. home equity loans.
HMDA Race & Visual Observation
08/02/2004
It is clear under the new rules that both the race and ethnicity sections must be completed when required. However, in my part of the country (Texas), the vast majority of Hispanics are of Mexican descent. Based upon the OMB racial definitions, there does not appear to be a single race category that applies to most Hispanics. And, most of the time, from what I am seeing, Hispanics will not check the race category, leaving loan officers with the responsibility of using the OMB definitions (per the FFIEC's instructions), which provide no help. What do you suggest a bank should do in selecting the race for Hispanic applicants?
HMDA Borrower is a Trust
08/02/2004
HMDA loan-applicant is a is a living trust (husband and wife). Is the correct monitoring data answer "NA" or should the husband and wife complete the form as individuals?
ARMs & Rate Spreads
08/02/2004
What term should we use on an ARM loan in the Rate Spread Calculator? For example, does a 5/1 ARM with a 30-year amortization use the 5-year Treasury?
When to Disclose a Right to Appraisal Notice
08/02/2004
I believe that the practice of providing the "Right to receive a copy of Appraisal" at closing is acceptable and represents the "notice of action" in an approved loan. Others feel that we should provide a separate mailing sometime between the application date and closing date when the decision to approve the loan is made. I think this is more cumbersome than it needs to be. What do you think?