We locked a mortgage loan with an investor that denied the loan due to appraiser ineligibility with that particular investor. We would like to switch the loan to a different investor that will accept the appraisal. Rates have gone up since the initial lock with the initial investor. My question is, can we re-disclose the LE at the higher interest rate and consider this a changed circumstance due to the loan being denied with the initial investor and being re-locked with a new investor?? (instead of having to start a whole new application etc.)
If the interest rate is locked at application and the rate is still the same once the rate lock expires, does a new Loan Estimate need sent to the borrower?
Currently, our HELOC products feature a rate determined by an index plus a margin (we utilize Prime).
However, we'd like to lower the margin for the time being but not actually get rid of it. Basically, calculate the rate with a lower index for now but keep the existing margin in place for the future. This would seem to be a change in the interest of the borrower as it will allow a lower rate.
We are trying to create an ARM loan and it will be on a 15-year note with rate changes every 5 years, basically changing twice. Is there a maximum ceiling rate/floor rate we can charge?
Can I use a Debt Modification Agreement to raise a rate and extend the maturity (or decrease a rate) of a consumer residential owner occupied mortgage note?
We have a large credit that was past due and now the borrower is liquidating assets and working on dissolving their business. We did put the credit on non-accrual in September 2013. Their payments were past due but since we have put it on non-accrual the borrower has paid well above their annual payment since they are liquidating their cattle. Which are considered liquid assets. We are applying to principal only; therefore, the interest is still due in reality even though it is on non-accrual. We have the capability to make the next pmt date due next year, but should we do that? The way it is now, it shows up on our past due list. It is a very large credit so I was hoping that since the payment was made that we could consider it not past due. Not sure how examiners will look at this though?
A seller is paying closing costs to the buyer. Do these closing costs need to be identified since some are APR fees and others are not? Can the lender issue a credit toward a portion of discount fees on the HUD1? Since origination and discount fees are APR fees, does the APR need to be reduced by the amount of the credit? Can the APR be over-stated by more than .125 since this is the borrower's benefit?
Assuming your interest rate is locked at application and your initial APR is below HPML trigger, if loan fees change causing the closing APR to increase (no change in rate) what APOR index date do you use to determine if you have an HPML? I understood it to be the date the rate is locked or set, but now I'm hearing you also have to verify the closing APR to see if you have a HPML?
I have researched when a rate should be locked in. I say it is before loan closing but I am being told it can be after closing.
Is there anything in the regulation regarding a change in terms with an Escrow Account? The lender has approved to lower interest rate and extend maturity. The loan was originated on 08/11/2011.