Most Popular Lending Content
Calculating Interim or Prepaid Interest
02/16/2004
My loan department and doc prep vendor are arguing about the proper calculation for interim (prepaid) interest on a first mortgage transaction. My loan depatment wants to charge interest for the day of closing. For example, for a loan closing January 15th, they would collect 17 days interim interest. The doc prep firm says none of their other clients do this, so they want a regulatory citation showing that it's okay. I can't find anything in any requlation that covers calculating interim or prepaid interest. Any ideas?
Determining Loan Purpose for HMDA
02/16/2004
Under HMDA, if the borrower is refinancing - cash out but using the proceeds to buy another home, is the loan purpose a refinance or a home purchase?
Term to use on HMDA Rate Calculation
02/16/2004
When using the HMDA rate calculator, which term would we use on our loans? On most of our real estate loans, we lock the interest rate in for 2-4 years, but set the payments up on a 10 year payoff. Would we use the 2-4 years or the 10 year term that it will take to pay the loan off? We want to use the correct term.
Industry Standard for Documenting Joint Apps
02/09/2004
Reg B and Intent to Apply for Joint Credit Question. Thank you for the wonderful clarification with the article on Reg B Roundup. Our team and attorneys have discussed at length the best way to establish a person's intent to become jointly liable for a credit obligation at the time of application. This regulation change impacts products differently based on the product process but I’m particularly interested in understanding what other lenders are planning to do to satisfy this change when taking applications over the phone or internet. We are checking with other industry contacts. Do you have any more specific guidance on phone applications for consumer finance (Auto, unsecured)?
What is the definition of a manufactured home?
02/09/2004
What is the definition of a manufactured home?