Most Popular Lending Content
Prescreened borrower now unemployed
06/20/2005
We sent out a preapproval offer for a Home Equity Line of Credit, including the FCRA prescreen offer disclosures. The consumer calls and lets us know that he is now unemployed. He still meets the credit criteria we used to prescreeen him for the offer (his credit score is still good). Do we have to give him the HELOC? Or can we deny him because he no longer has the ability to repay the debt?
Titling a loan to a sole proprietorship - Mary Beth Guard and John Burnett
06/13/2005
Titling a loan to a sole proprietorship
Answer by Mary Beth Guard and John Burnett, BOL Gurus
Guru BIOS
Actions when Balloon Note Matures
06/06/2005
We have numerous mortgage loans that were originally set-up for 3 years at 6.75% fixed with a balloon payment due at the end of the 3 years. When the balloon matures, can we modify these loans to a 3/1 ARM? Would this transaction be considered a refinance? Do RESPA early/final disclosures apply?
TIL Retention
06/06/2005
The preliminary TIL disclosed an APR of 5.770%. The loan file is missing our copy of the final TIL that would have disclosed an APR of 5.600%. Is this retention error a regulatory exception because the final APR, although lower, exceeds the preliminary APR by more than 1/8 of 1%?
Flood again, with a different wrinkle
06/06/2005
I have a flood certification that indicates "preliminary determination: the property is partially in SFHA. A map detailing location of the improvements is required to make final determination." The county is NOT in a participating community....what are the requirements in this scenario? Do we have to provide the information to the flood determination company, or can the bank determine whether or not the improvements are in flood area and continue on with the loan?