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?
Our Home Equity Lines of Credit currently have a five year draw period. The bank would like to institute a fee to the customer if he wishes to extend the draw period. What disclosures would this create?
One of our customers has requested reducing a HELOC before maturity. Is this a new plan (new disclosures) even if we do not issue a new note?
I had a borrower wanting money to purchase and renovate some rental property using his home equity loan on his personal residence. He wants to finance the rental property and pay the money down on his home equity line to a zero balance, but we are not closing out the home equity line. We do not report home equities on HMDA. Would this be reportable?
A HELOC borrower's debts were discharged under bankruptcy without a reaffirmation of our debt being filed. The borrower has agreed to repay our HELOC at a fixed rate and fixed payment. Do I modify the existing HELOC or redocument the loan?