Most Popular Lending Content
Calculating HOEPA Loan Amount?
07/21/2003
When doing calculations to determine if a loan is subject to HOEPA's 3-day-prior-to-closing disclosure, how do we figure the loan amount? Do we use the amount financed, which includes the single-premium credit insurance?
Funding Institution or Originator: Who is required to record the transaction on the HMDA LAR?
07/21/2003
We are providing the financing on mobile homes and the originator serves the loan. Who is required to record the transaction on the HMDA LAR?
Who has compliance responsibility for CRA?
07/21/2003
As it pertains to responsibility for CRA for an institution, such as the CRA Officer, what dept. does this position usually fall under at most banks? We are $470 million and are reorganizing. Right now it's under our Lending area and they are considering to make it a part of marketing...I think it should be a part of our compliance dept.Of course marketing would provide updates to compliance on community outreach.
Disclosures: Construction & Permanent Financing
07/21/2003
My bank has a mortgage department (not a separate company) that closes loans in the bank's name, then sells the loan to the secondary market. It is very common for the bank to finance the construction of a personal residence that has been pre-approved for permanent financing through our mortgage department. Our compliance officer advises that since the mortgage department is not a separate company and they close their loans in the bank's name, this type of financing is considered permanent to the bank and we (the bank) should produce GFE's and Early TIL's. We have been disclosing as she advises, but have been disclosing the terms of the construction financing, not the permanent. Now for my question. Is this incorrect? If so, if we disclose permanent terms and the mortgage department discloses permanent terms, isn't this double disclosure? Another issue is that we (the bank) don't always know the terms of the permanent (rate, term, etc.) when the construction financing is processed. Can you offer any guidance on how to handle situations like this?
What department should be responsible for CRA?
07/14/2003
As it pertains to responsibility for CRA for an institution, such as the CRA Officer, what department does this position usually fall under at most banks? We are $470 million and are reorganizing. Right now it's under our lending area and they are considering to make it a part of marketing...I think it should be a part of our compliance department. Of course marketing would provide updates to compliance on community outreach.