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COMMERCIAL LENDING 101 - Part I
03/18/2002
Commercial Lending 101 - Part 1
by Bob G. Hayes
Here's a loan scenario. When would the right of rescission begin?
03/11/2002
When would the Right of Rescission begin in the following scenario? This involves closing of a home improvement loan. The situation is out of the norm, where documents were taken out of the attorney's office for additional signatures. Customer comes in November 15th to sign papers. However, in this case, a second signature is required on the deed of trust only, not the note, which also must be notarized and the right of rescission notice must also be disclosed to this individual. All documents in question were taken for signature. If upon return of documents, the Rescission notice was dated showing receipt as of the 15th but the D/T was signed and notarized 2 days later, for example on Saturday Nov. 17th, would your rescission period begin the Friday Nov. 16th or Monday Nov. 18th. I believe ROR should begin the latter to occur of consummation of loan documents (signing the loan documents), delivery of ROR notice or delivery of material disclosures. In this case, applicant's signing)
Reg O: Annual Board Approval For Executive Lines Of Credit?
03/11/2002
I am looking for some help interpreting the need for Board approval of executive officer's lines of credit under Regulation O. Must the lines of credit be approved by the Board annually?
Requiring Credit Life Insurance
03/11/2002
We have always required borrowers of unsecured credit to purchase credit life insurance from a company we have always done business with. While reading some information on "Consumer Protections for Depository Institution Sales of Insurance" I ran across some information that suggested we can not "require" a borrower to purchase credit life insurance. Is this true? Also, customers request credit life insurance on other types of loans, do we still have to give the insurance disclosures on these types of loans? Can these disclosures be added to the bottom of a loan application?
RESPA: How do you provide full disclosure of third party fees when the amount is unknown?
03/11/2002
For consumer construction loans that are RESPA related, how do we complete the HUD 1 regarding full disclosure of third party fees, for example inspectors, if we close prior to knowing who will be performing the inspections?