If the bank does a quarterly credit score review on both HELOC and credit line accounts and if the account score has declined significantly, we freeze the line. Since the score was the determining factor, would we need to include the score notice on the adverse action notice?
A borrower is asking to increase his Home Equity loan amount to cover a shortage on a payoff. The APR will not change as we have no prepaid, and no closing costs. Must I redisclose and cool off?
Due to the new regs in regards to "cooling off periods"- Does this apply to home equity loans as well? I guess my question is can a borrower apply for a HELOC, wait the 3 day rescission, and then receive the funds? (like regular mortgages where there is the 7 day rule)?
HELOC Question: The funds were 100% disbursed within the first 6 months of the 5 year draw period. The borrower wants to convert this to fixed P & I payment before the end of that 5 year period. What would be the appropriate course of action? Would we need to go thru full refinance or can we just use the modification agreement? His HELOC agreement is written for a 5 years draw period and 10 years fixed interest P & I re-payment period.
In this week's "Weekly Banker Brief," the following QandA appeared: <a href="http://www.bankersonline.com/lending/guru2011/gurus_ldng100311c.html">Cash Out Refi of Investment Property-HMDA?</a> <em>Question: A borrower is getting a cash out refi of investment property. The money is to reimburse their reserves after they bought a house with cash. Is this a HMDA loan? 1 Answer: No. This loan doesn't purchase or improve the dwelling. It also isn't a refinancing. It is a home equity loan that is not subject to HMDA. 2 Answer: I agree, not HMDA but I would contend this loan is subject to TIL and RESPA based on the information provided. It is not for the acquisition, improvement or maintenance of a non-owner occupied rental property and the purpose as stated appears to be for a personal, family or household purpose which would make it a consumer purpose loan.</em> I think that I need a little clarification. I thought that only HELOC loans that are refinancing are not subject to HMDA reporting. If this is a closed-end home equity refinance, wouldn't it be HMDA reportable?
What type of loan is available to payoff existing student loans? Is HELOC the only available option or can a fixed rate/fixed term equity loan be used for that purpose? Please respond with options and any articles supporting the options.
If a client has built his home with cash and non mortgage personal loans, can he take out a first mortgage HELOC to payoff his unsecured personal debt?
We are doing a primary residence construction loan on 102 acres of land. The borrower already owns the land the home is being constructed on and we are using it for collateral. We have committed to end financing already. Do we disclose ETIL at the time of consummation of the construction loan? It will be an open-end line of credit until home completion.
We have a HELOC open end that matured last month. The loan officer wants to set this up as a 30-year ARM with a 1-year maturity. What documents must we have? Does RESPA apply?
Are HELOC loans covered under the SAFE Act? When an application is accepted for a HELOC, does the MLO need to use their NMLS number as they would with a mortgage loan application?