Most Popular Lending Content
If a broker changes lending companies, are new RESPA disclosures required?
05/20/2002
If at any time during the loan process the broker changes lending companies, do new RESPA disclosures need to be re-signed by the borrower or will the initial disclosures be suffice as long as the fees on the GFE are similar and generic?
Selling Repossessed Vehicles To Employees
05/20/2002
We have a couple reposessed vehicles and a couple of employees are interested in buying them from the bank. Is there any certain procedures or regs that we need to be aware of? They will be paying the price we are offering the vehicles to the public.
Homeowner Counseling Clarification
05/13/2002
Application vs. Prequalification
05/06/2002
We are confused as to what is considered a prequalification and what is an application. According to your definition it's a prequalification if a specific property is not identified. We have a situation where a borrower came in and got prequalified without a specific property in mind. At this point we are classifying the file as a prequalification. Several days later he calls and says he has found a property and is signing the purchase agreement that day. Our loan officer does not send out disclosures until a week later when she gets the purchase agreement. Should her three days have started when he told her he had found a property and was signing the purchase agreement? Our loan officer is saying that the borrower did not state the specific address (the loan officer did not ask for it either). Therefore our loan officer said it was still a prequalification until she received the purchase agreement. Is the loan officer correct? If it is not considered an application until we have the specific address what obligation do we have to ask for the address? This loan officer also stated that she never does the disclosures until she has a purchase agreement. Any information you have on a prequalification versus application and when we are required to send disclosures would be great. We argue about this all the time!
Collection: Behavioral Scorecard For Delinquent Accounts
05/06/2002
Our institution wants to develop a behavioral scorecard for delinquent accounts for collection purposes. The only information I can find regarding scorecards and fair lending deals with evaluating creditworthiness in making the initial loan decision. Is there any information about reevaluating credit once it has gone bad? They want to use age as an attribute. Do I need to be concerned?