Most Popular Lending Content
Interest During Rescission
09/20/2004
On a Freddie Mac refinance of a primary residence where there is the right of rescission; if the loan closes near the end of the month, and the rescission period goes into the next month, (closes 4/28/04 and the rescission date is 5/2/04) is it correct that the customer can only be charged interest from the rescission date (5/2/04) and not the closing or note date? Therefore, the customer would be charged interim interest from 5/2/04 to 6/1/04 and the first payment date would be 7/1/04 due to the fact that all Freddie Mac loans have payments due on the first of the month. Is this correct?
Signing for Credit Ins When There Is No Credit Ins
09/20/2004
Do we have to have the customer sign the credit life portion of the loan document regardless if they choose to purchase credit life or not?
Disclosures to Non-Borrowing Owners
09/20/2004
When a home equity loan is made to only one spouse, exactly what documents should the other spouse be required to sign?
SCRA Rate on Student Loans
09/20/2004
I realize that, under the old SSCRA, Section 1078 of title 20 was interpreted to trump the interest rate cap on student loans. The newly enacted SCRA does not make any reference to this. Does this section still trump the interest rate cap?
HOEPA's Treasury Rate Calculation
09/20/2004
The FFIEC Guide to HMDA Reporting provides two clear examples of how to calculate the Treasury yield based on whether the interest rate was set prior to the 15th of the month or after the 15th of the month. On interest rates set prior to the 15th of the month you would use the Treasury yield for the prior month and on interest rates set after the 15th of the month you would use the Treasury yield from the same month as the lock. I would like to confirm that the Treasury yield used for HOEPA purposes (I realize the Treasury yield is triggered by the application for credit date and not the lock date) is calculated in the same manner. There seems to be some differing opinion in that no matter what date the application was taken, the Treasury Yield would be used from the previous month. Please clarify this for me.