I have a customer that is going to purchase a primary residence for himself but he is wanting to put the loan in his LLC's name. Because of this, I am stuck trying to determine if this loan would be Consumer (based on purpose to purchase primary residence) or Commercial (if it is allowable for a Consumer purpose loan to be put in an LLC name). If it can be processed as a Commercial loan, are there additional disclosures they need to sign?
Is a loan secured by a note receivable, which is subsequently secured by real estate with structures on it a designated loan for FDPA? We have had some debate about the fact that the banks collateral assignment has been recorded in the real property records which puts us in the chain of title and therefore the loan should be designated. And is it a flood violation if the borrower has proof of flood insurance but the bank is not listed as loss payee?
If you deny an application because the applicant cannot get clear title on the property what reason would you use on the denial notice (would you create an “Other” reason)?
Is use of the new rules mandatory?
When are the new rules for private flood insurance effective?