When it comes to auto loan rates, we have certain rate discounts that may apply based on an "Engagement Score" for each person. This is determined by our underwriting team and communicated to the dealer for the best rate available at the time the deal is happening so that the correct rate is listed on the contract. The problem is after 5pm when our underwriters go home, we are still getting deals since dealerships are open later. The next day we have a contract signed for the rate the customer qualified for but does not include any engagement score discount.
My question is:
After booking the loan at the rate listed on the contract, may we then adjust the rate down to include the engagement score discount the customer should have received without having to ask the member to sign anything? I assume we could adjust a rate like this so long as it benefits the customer and we document what we're doing and why, but I'm struggling to find a definitive answer in a Reg.
Can the bank charge a default rate on a single-close, construction-perm mortgage loan during the construction phase if construction is not completed on time? For example, a 9 month construction term with multiple draws has a fixed interest at 4.125%. If construction is not completed at 9 months when the construction phase is to mature a default rate of 4.625% would apply from the maturity of that phase. If it is permissible, does this make the loan an ARM or the increased rate a refi?
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?