I have a note that references a Security Agreement but there is no Security Agreement attached. Instead there is a UCC that is being use as a Security Agreement. Is this okay, or should there also be a Security Agreement that references the UCC?
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?
What constitutes consideration when lending to an entity, if a co-borrower is not a part of the entity and receives no proceeds or use of the funds?
A director of a bank has a related interest. An employee of the related interest guarantees a loan for an entity that will provide services for the related interest. In addition, the related interest deducts the loan payments from the service providers check and sends it to the bank. The loan would not have been made without the guarantee of the related interest's employee. Would this loan be attributable to the Director through the Tangible Economic Benefit Rule of Reg O.
FEMA's forced-placement requirements states that the lender shall purchase the insurance on the behalf of the borrower but does that mean to include that the borrower is to be a named insured on a forced-placed policy? Many independently purchased insurance coverages are provided for the banks interest only.
I've been asked to offer options to the Loan Operations Manager for a situation related to escrow. This started with the bank's purchase of a smaller institution a little over a year ago. This smaller institution was apparently not properly calculating escrow requirements. To add to the problem, last year they gave huge refunds to borrowers in error. Now, we have borrowers whose escrow accounts are deficient and they cannot make the new calculated loan payments. What is the best plan of action to get these borrowers back on track?
Is a TIL required on a 0% rate, no payment, due on sale $2,000.00 second mortgage given for closing cost assistance on the first mortgage closing?
Can a home equity line of credit be calculated on a 360/360?
Does the pre paid interest due from the buyer for a loan sold on the secondary market need to be included in the APR calculation?