Most Popular Lending Content
Rescission on HELOCs
01/19/2004
We routinely cross-sell HELOCs to purchase money mortgage customers, and close them simultaneously with the purchase money first (although HELOC funds are not used for the purchase). Our review of Reg Z seems to indicate that these HELOCs are subject to the 3 day right to cancel, even though at the time of closing, the borrower does not live in the home being purchased. Are we interpreting this incorrectly?
RESPA Disclosures Given BEFORE Application
01/19/2004
With respect to a real estate loan, we have a Loan Officer who completed and mailed the RESPA Disclosures prior to application date. They think they should not have to mail out any additional RESPA disclosures after we received the application because they had already been given. I question how they knew what figures to use since there was no application giving them the needed information.
Disclosures of Fees on Commercial Loans
01/19/2004
Our sister bank was told by their examiners that they were in violation for not disclosing fees such as overnight fees on commercial loans. What fees are required to be disclosed in this instance? We typically list the loan fee and flood fee on the note under Additional Charges. What, when, where should we disclose on a commercial transaction (real estate and non-real estate related)?
Charging a Fee for Returned Loan Payments
01/19/2004
We would like to implement a $25 returned payment charge when a loan payment drawn on another institution is returned to us NSF. This charge would cover our costs of reversing the loan payment and sending the NSF check back to the customer. When customers have a deposit account with us, we don't reverse the loan payment if the check is NSF. Instead, we just overdraw their deposit account and the overdraft charge is handled on the deposit side. As we cannot do that with payments drawn on another institution, we would add the $25 returned payment charge to their loan balance(not to the principal). What are the Reg Z or other federal regulation considerations for this? I do not see this specific situation addressed in Reg Z, and did not see anything on the BOL website addressing this either.
Failure to Disclose Odd Days Interest
01/19/2004
If a lender fails to disclose 15 odd days of interest on the Good Faith Estimate (either 10 or none) is a new disclosure required?