04/30/2007
Does a bank need to require the commercial level flood insurance amount of $500,000 for projects that are residential in character (condos or apartments) when the borrower/owner is an LLC/business, or is the residential amount of $250,000 coverage sufficient?
04/09/2007
A loan is taken to purchase a single family home that will be owner occupied. The loan is in the name of the borrower's business, a corporation. Is this loan subject to the Regs such as Reg B, Reg Z and RESPA?
03/12/2007
I am looking for help in developing a performance based compensation plan, especially for senior loan officers. What should and should not be considered? Obviously considering the new loan production and rates charged are good for the bank, but could lead to problems in discriminatory lending. What issues should be addressed and how do other banks balance these?
02/19/2007
Are title updates considered a pre-paid item on a construction loan? We collect X number of dollars at construction closing to do title updates during construction to ensure no liens have been placed.
02/19/2007
I am doing a real estate loan and only taking the land as collateral. The land has a mobile home on it so is it necessary for me to do a flood determination? If yes, why?
01/29/2007
Are servicers required to have their borrowers sign a new SFHD (Standard Flood Hazard Determination) form for remapped properties that have moved into a special flood hazard area? Note: The SFHD form was signed by the borrower at loan closing.
01/08/2007
Let's say we are making a $300,000 loan for the conversion of apartments into condos. Three apartment buildings on the property are being converted and all are in a flood zone. The value of each structure is $200,000 (total value of $600,000). For the sake of simplicity, let's assume the replacement cost equals the value. What is the flood insurance requirement on each structure?
01/08/2007
We had a loan officer pull a third party flood determination on a property and it came back in a flood zone. The property involved acreage to where the improvements technically were not in the flood zone but the bare ground was. The officer decided to pull a flood determination from another third party company that we were set up with and apparently they were willing to indicate that it was not in a flood zone. I know that examiners can get reports from the flood determination companies to see what positive determinations have been issued. I have been told that you could be criticized by an examiner for doing this. I want to know if that is the case and on what basis they support their criticism. Is it something from the flood regulation they refer to or what? I want to know as a Compliance Officer how to handle this. Does the flood determination company that issued the one showing it was not in a flood zone have any liability in the event the property does flood? And finally, should we have still disclose that we initially got a positive determination to our customer even though based on the second determination he isn't required to get flood insurance? Does the bank have liability regarding that?
12/04/2006
Do we have to disclose the annual estimated real estate taxes on the GFE and HUD-1? If so, what line should it be listed on?
12/04/2006
I recently read an article in our state compliance magazine that stated we are required to obtain and retain the borrower's signature to acknowledge receipt of the Standard Flood Hazard Determination, regardless of whether the property is located in a flood plain zone or participating community. Is this correct? I thought we were required to make the determination but not obtain borrower signature unless flood insurance was required/available.