Most Popular Lending Content
Advancing Loan Disclosures
04/19/2004
We use future advance deeds of trust for our real estate loans. How are the disclosures under RESPA and Reg. Z affected when the borrower comes at a later date for a loan secured by this deed of trust?
OCC Required Information, Mortgage Loans
04/19/2004
I'm in the process of completing an audit of the Fair Housing Act for a national bank. The OCC requires that "each bank shall attempt to obtain all of the information below." It then goes on to require a considerable amount of information in excess of the traditional government monitoring information (race, ethnicity, sex, marital status, and age). Is all of this information required to be on the application? Will the information (such as amount requested, interest rate requested, # of months to maturity, and proposed monthly payment) being in the loan file on some other document suffice? Also, does the fact that the application is partially completed suffice for compliance with the regulation for "attempting to obtain" the information?
Balloon Renewal Disclosures
04/19/2004
When we renew a ballooned mortgage loan, we charge an application fee and interest at this time.Are new HUD-1A, GFEs and TILs required? Sometimes there is additional new money given but most the time there is no new money.
ARM Disclosure Results
04/19/2004
The program we have for loan documentation can assume that the rate will adjust up over time or adjust down over time. If we select the adjust-down assumption, the APR disclosed is lower than the actual note rate. This doesn't seem correct although I've seen other companies do it. Would this be a proper disclosure?
Interim Construction Inspections
04/19/2004
As part of our controls for a new interim construction product, we require a minimum of three inspections during the construction. Are there any guidelines as to who is allowed to perform these inspections, whether they must be certified, or can employees independent from the loan periodically complete the inspections?