Most Popular Lending Content
Mixed Use Property, Reg. Z Exempted?
12/06/2004
We have a loan request for an owner-occupied mixed-use property (consists of 1 unit, residential dwelling that is 40% of total square footage). The borrower uses the residential portion as their primary residence. The commercial portion is also used by the borrower (not rented). We do not believe this loan is subject to Reg Z because the purpose is primarily business. Do you have a contrary opinion?
Should the HUD-1 Show Fees Not Passed On
12/06/2004
If a bank does not pass a fee to the customer and does not include the amount in the prepaid finance charge, must the amount and provider be shown on the HUD statement? For example, if a bank does not charge the customer for a flood determination, must the bank notify the borrower that a determination was pulled and provide the name of the vendor?
Insurance Disclosures on Ag/Business Loans
12/06/2004
Are banks required to give the Federal Credit Application Insurance Disclosure and the Federal Sale of Insurance Disclosure on business/agribusiness loans?
Frequency of a Rate Spread "Hit"
12/06/2004
How common is it to get a reportable rate spread when calculating the rate spread under the new HMDA rules? In our institution we are getting a reportable rate spread on probably 3 of 5 transactions.
Rescission on Renewed & Increased Amount
12/06/2004
I have asked several people this question and have not received the same answer, nor a clearly defined answer. If we lend a customer $60,000 for a home purchase, and five years and $10,000 in principal reductions later, they want to refinance and borrow $60,000 again and use the $10,000 for improvements, does rescission apply on the $10,000 since it is cash out, or does it not apply since they are borrowing the original amount? There is some confusion over refinancing and paid down amounts with rescission.