Most Popular Lending Content
Private Flood Insurance Policy for 2 Buildings
04/05/2020
We have a marina loan for $1.2MM with two buildings to house boats. They have a private flood insurance policy for both buildings on one policy instead of one policy per building. Is that possible since its a private policy and not NFIP?
Borrower Passes Away: Charge-off Entire Balance?
04/05/2020
When we have a loan secured by real estate and the borrower has passes away, should the entire loan balance be charged-off, or just the amount above fair market value less cost to sell? Should the remaining balance be classified Substandard and moved to OREO?
Manual Exception Reporting vs. Automated
04/05/2020
Why automate the distribution of exception reports?
Lender's Title Policy Coverage
04/05/2020
If we have a loan for $7 million with collateral being commercial properties valued at $3 million, UCCs, and assignment of publication rights, what should our Lender's Title Policy coverage be? These commercial properties are in PA & NY. We have requested a Lender's Policy for $7 million, however, the attorney is stating that he can only insure up to the "fair market value" which I've never heard in my 20 years of banking. So what is the rule on how much of a Lender's Policy can we get?
Service Provider for Mortgage Loans-HELOC
04/05/2020
XYZ is our service provider for mortgage loans. They are telling us that there is no way to split out the daily interest to only calculate it based on the initial draw at closing. The system is going to calculate interest owed on the total available balance of the HELOC. Our core provider cannot charge prepaid interest on the full amount of a HELOC, just the total of the first advance. So they are both different and it does not seem permissible to charge a customer money on something they have not borrowed yet. Please let me know if XYZ can even accrue on the full amount?
