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Including Taxes/Insurance as Expenses for HELOC

07/28/2019

We know that HELOCs are exempt from 12 CFR 1026.43. Our borrower is applying for a HELOC. He has four residential properties which he owns and is paying the taxes and insurance on these. None of these are his primary residence nor are they investment properties. The taxes and insurance are not on the borrower’s filed tax return . Do we need to include the taxes and insurance for these other non-primary residence real estate properties as expenses when qualifying the borrower for a HELOC?

Info on Notice of Right to Cancel for New HELOC

03/03/2019

The previous Commentary to Reg Z at 1026.5b contained the following statement regarding a matured HELOC: "...A new plan results; however, if the plan is renewed (with or without changes to the terms) after the scheduled expiration. The new plan is subject to all open-end credit rules, including sections 226.5b, 226.6 and 226.15." I have not found any comparable interpretations by the CFPB since the CFPB took over responsibility for Regulation Z. I'm looking for any information that will support the need, or lack thereof, to require a Notice of Right to Cancel when a new HELOC note is executed after the existing HELOC has matured.

HELOC Increase-Rewrite As A New Loan?

12/23/2018

If a customer has an existing Home Equity Line of Credit and then approaches to increase the HELOC by an additional amount of money, can a Change in Terms Credit Agreement and Disclosure be used for that or do we have to rewrite the loan as a new loan request? Obviously, if we are able to use the Change in Terms agreement, a Modification of Mortgage would need to be prepared and filed of record. What about Rescission on the new money? Do we have to give them an actual Notice of Right to Cancel form or can we just wait 3 business days from the date of the Change in Terms before we fund the new money?

Providing Periodic Statements After HELOC Matures

09/23/2018

I have been researching an issue for my bank in regards to providing periodic statements after a HELOC matures. Are FIs required to provide periodic statements post maturity on HELOCs? The Promissory Notes clearly states that the entire loan balance (principal and interest) is due and payable at maturity. I don't see it necessary to continue to send monthly periodic statements and this has also added confusion to the client. I do not see that this is addressed within Reg Z. Am I looking in the wrong place?

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Military Status and Foreclosure

01/26/2020

If our borrower hasn’t requested SCRA protection and is past due on her mortgage, can we start foreclosure as we normally would?

CC Dispute- Purchase for Cancelled Trip

01/26/2020

We received a complaint from an account holder who used their credit card to purchase a trip on 7/3/18 for over $2,600 from a travel company. He provided evidence to us on 8/11/18 that the travel company had closed and the trip would not be offered and there would be no refund for what he had paid. The information he was provided from the travel company said the purchase was non-refundable and he had not purchased trip cancellation protection. He filed a dispute with us on 8/11/18 asking for credit for the cost of the trip. He did not make any payments on the account between 7/3/18 and 8/11/18, so it seems to me he would have a valid claim under both Reg. Z 1026.12 and 1026.13 (since he didn't/isn't going to receive the services he paid for and he filed his dispute within 60 days of the date of the statement the charge appeared on and he had not paid for the charge before he filed his dispute. Our bank's disputes department declined his claim, so he filed subsequent disputes, but was told each time that he was not entitled to a credit. I work in Complaints, which is where this claim has now landed, and I believe we need to credit him for the purchase. Is my thinking correct?

Collection Method Questions for HMDA

01/26/2020

This question has come up before but I have not seen a clear answer. If the application is NOT taken face to face, how should the collection method questions be answered for HMDA? Code 3 (NA) is only supposed to be for applications where the requirement to report the data does not apply to the covered loan. We would use code 3 on applications where it is an entity. Code 2 (not based on visual observation) would be the only choice that would make sense. What are your thoughts?

Is email receipt of the LE sufficient

01/19/2020

We mailed the borrower’s Loan Estimate and they emailed us that it was received, and they want to proceed with the loan. Can we act on this emailed notice?

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