Most Popular Lending Content
Application Defined for Early Disclosures
01/19/2004
When a borrower submits a request for a mortgage pre-approval (borrower intends to purchase, but has not identified a property), are we required to disclose with TIL/GFE? Also, I can not find a definition of Loan Application as determined by Reg Z. Where can I find this?
Payoff-Related Fees
01/19/2004
What fees are we allowed to charge for a payoff? We currently charge a fax fee and a fee to record the cancellation. Can we increase the recording fee to cover our cost of preparing the cancellation? Are we allowed to recover our payoff processing costs by charging payoff fees?
Additional Flood Insurance for Line of Credit
01/19/2004
If a customer has a residence located in the flood plain and they have insurance to cover their first mortgage, then they take out a Home Equity Line of Credit, do they have to have additional insurance to cover the credit limit of this line of credit?
Second loan based on appraisal of first loan
01/05/2004
A borrower is closing a loan for the purchase of property, The appraised value of the property is $45,000 more than the sales price. After the closing, the borrower wants a second loan for cash using the appraised value. Is that acceptable, and if not, why?
Counteroffers and Denials on Dealer Apps
01/05/2004
Counteroffers and the need for a denial, as concerns dealer applications, have us in a quandary and we're getting differing opinions from regulators. The question is: if we counteroffer (through the dealer) and then another financial instituion ultimately makes the loan, do we need to send the counteroffer/denial to that applicant? Section 202.9(g) states: When an application is made on behalf of an applicant to more than one creditor and the applicant expressly accepts or uses credit by one of the creditors, notification of action taken by any of the others is not required. That begs another question - what if you deny and other bank approves?