Vendor Guru Q&A - Lending

Latest Lending - Interest Topics

Reserve Fall Under Definition of Points&Fees?

03/18/2013

If a bank sets aside monies as a reserve for future loan payments involving a loan secured with borrower's principal dwelling, does that reserve fall under the definition of points and fees; i.e. finance charges?

Certificate of Deposit for Collateral-Wrong #

03/04/2013

We have taken a certificate of deposit for collateral on a loan. The officer printed the assignment of deposit with the collateral description reading all existing and future accounts instead of the CD and number we actually took. Are we covered if the loan defaults?

When Should A Rate Be Locked In

03/04/2013

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.

Regulation Regarding Change In Terms Escrow

02/25/2013

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.

Comply w/ Reg Z (ROR) On Business Loan?

02/18/2013

Are you required to comply with Reg Z (ROR) on a business loan that takes an interest in a borrowers residence as additional collateral? In the past because it was a business loan you were not required to comply with Reg Z is that still correct?

Change In Terms for Consumer Variable Interest

02/18/2013

Can we do a change in terms for a consumer variable rate interest only home equity line of credit product that has NOT matured (matures 2016)and change it to a closed end fixed rate P&I payment product for 5 years to mature in 2017?

Can Interest Rate Be Below Actual Floor?

02/11/2013

Can your interest rate be below the actual floor? Ex. Note rate is 2.375% and the Floor is 2.75%

Practice of Reflecting Negative Discount Points

02/11/2013

We as a company have been doing a lot of streamlined refinances that require us to get the HUD-1 from the loan that the borrowers currently have. In reviewing these I have noticed that it is common practice for other lenders to reflect negative discount points, a/k/a the funds they (the lender) are crediting to the borrower for closing costs. We currently add our lender credit to the HUD just like you would an earnest deposit or seller paid closing costs, which means the credit to closing costs is not reflected in our GFE and the APR the borrower sees does not reflect the fact that they are in fact paying lower closing costs due to the credit we are giving them. I feel like this is putting us at a disadvantage when borrowers compare our GFE and TIL to other lenders they are considering.

Temp Finance if Repayment From Secondary Market?

02/04/2013

A borrower would like to add on an addition and a garage to his existing house. We will finance the addition as a closed-end mutliple disbursement loan for 9 months with interest only payments. Then after the addition and garage are complete, we will sell on the secondary market and we have a pre-approval. Is this considered temporary financing since repayment will come from take out on the secondary market?

VIN # Required for A Car Loan?

01/28/2013

The Fed box on a note. For a car loan, can you only put the year of the car and maybe the make. Do you have to have the vin # there as well?

Premium Content View All

Why Are We Confused?

If you are feeling confused, you are in good company. Almost anyone who deals with mortgage lending compliance is struggling with the changes. Questions are flying. We are surrounded by chaos.

ECOA: Who and What are Creditors

In most regulations, the definition of creditor is pretty clear. The creditor is the entity that makes the loan, who advances the funds, and/or to whom the obligation is initially payable.

IR Pricing Exception for Competitive Disadvantage

03/29/2020

On commercial loan requests we will sometimes deviate from the interest rates listed on our rate sheet (those rates offered to the general public) for reason of matching the rate being offered by a competing lender. We will report this as an interest rate pricing exception for reason of competitive disadvantage. My question is, does this same interest rate pricing exception constitute a Reg O violation when granted to a bank director?

Rewrite Require New App or Reg B Form?

03/29/2020

When a consumer comes in and rewrites a loan, with no new money advanced, are you required do to a new application or Reg B form?

Collecting PMI w/o PMI Insurance Company

03/23/2020

If the bank charges PMI and doesn't have a PMI insurance company that it has to pay can the bank truly collect the PMI? For example, if the bank had loans that didn't sell on the secondary market, and the insurance gets cancelled, can the bank still collect for the PMI?

Duplicate Customer Records in Imaging System

03/22/2020

How often should we check for duplicates in our imaging system?

Auto Loan Rates Discounts- "Engagement Score"

03/22/2020

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.

Latest Lending - Interest Topics

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