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?
I recently attended a Harland Laser Pro Regional Conference. It was indicated that the SAFE ACT states that mortgage lenders must register for a NMLSR. Does this include loan officers that just take Home Equity Loan and HELOC applications?
Would RESPA apply in this scenario? A customer walks into a bank and has a title to land and asks for a $500,000 interim construction loan. The customer has a perm takeout of $450,000 (with another institution) and wants to have the bank do a HELOC (2nd) for the remaining $50,000 when the perm takeout is closed. Since the Bank is doing a HELOC to cover part of the payoff of the construction loan, would this make the interim construction loan a RESPA loan?
We regularly renew/extend HELOCs as they mature, usually keeping the same terms except for updating to the current market rate. We use the same Note/Agreement as when we processed the original loan, showing on it the changed rate or terms. Everything I've read says that a Change of Terms or Modification form should be used. Are we using the wrong document? Also, if the borrower signs the day after maturity, since we actually provide again a note (rather than a Modification) with the changes spelled out, does this keep us from having to refinance the HELOC and provide new note, application disclosures and right of recission?