When making a construction/perm loan, on a primary dwelling, should the high priced mortgage be dealt with at the time the loan is made or when it rolls to permanent financing. We will prepare one note that covers both the construction financing and the permanent financing. The construction period is interest only. We have been told that we should deal with the high priced-mortgage when the loan rolls to permanent. Is this correct?
I have a six month draw down line of credit to repair a 1-4 personal residence. The loan is to be termed out at maturity. The homeowners have builders risk only on the house right now and are living in a motor home on the property. Is this a HPML and if so, how do I escrow a six month loan?
A customer comes in to the bank and wants to borrow $27,000 to wipe out his credit card debt and wants to use his home for collateral. There will be a separate note done with a 6 yr. amort. The existing real estate loan will not be refinanced. The note will be a consumer note with a consumer application. What in the world do I need for disclosures? Everything that I would do for a regular real estate loan? New experience for us. We would normally refinance his home loan.
I have a balloon note that has matured. It had credit life. The loan will be renewed with credit life. Is it considered a HPML because we are financing the premiums?
We have a borrower who currently escrows their insurance only. Our borrower wants to know if he can stop escrowing the insurance. This loan is dated in 2003 and at that time was not considered an HPML. He would like to explore his options on this loan with out re-writing the note. He also asked, if he wanted to voluntary escrow the taxes could he? Can either one of these transactions be completed by a loan modification?
I have a customer who wants to purchase a 4 acre tract of land with a mobile home and shop building on it. We will not have a lien on the mobile home, just the acreage and shop. I am under the assumption that RESPA does not apply since there is no lien on the dwelling. However I know it will be a HPML... so I have to escrow for property taxes, right? When do I have to send out TIL disclosures?
Which loan terms can be changed on an existing loan in order to be considered a modification? With regard to an HPML at maturity, can a loan modification be completed in order to avoid escrowing the loan?
How long is escrow required on an HPML? I believe I read once that it is twelve months.
I have a construction to permanent one time closing. This is an HPML. When do I do the Initial Escrow Disclosure and collect for escrows? When do I begin the escrow payment?
Am I correct that a loan does not have to be RESPA covered to fall into the HPML requirements and require escrow (principal dwelling on thirty-two acres)?