Can the bank charge a default rate on a single-close, construction-perm mortgage loan during the construction phase if construction is not completed on time? For example, a 9 month construction term with multiple draws has a fixed interest at 4.125%. If construction is not completed at 9 months when the construction phase is to mature a default rate of 4.625% would apply from the maturity of that phase. If it is permissible, does this make the loan an ARM or the increased rate a refi?
A customer I know has been running past due about 30 days... They recently paid current owing a 1/2 payment for May and Junes full payment. But, somehow had over $400.00 in late fees, when the late fee per month is only around $47.00 per their promissory note and payment stub? Can a lender hold late fee's like that and charge interest on them? With only owing May and June there should have been only 2 late fees?
At what point can a late fee be assessed on consumer loans?
My institution is launching a new product in the upcoming months, HELOC's. We are currently building the policy and disclosures. It was asked of me if we were required to provide a grace period on payments for the HELOC. I was researching but could not find anything particular.
We offer a Christmas extension where the customer pays the month's interest to defer the payment. Can we charge a fee in addition to the interest to defer the payment?
Can you renew a loan without collecting late charges that are due? We want to renew the loan and leave the late charges in the fee balance field to collect at another time.
I know that SCRA applies to all installment loans (i.e. not just mortgages, but auto loans as well), but I am wondering about the past due notices.
The model form/language is a HUD form (HUD-92070) that I understand should be sent with all past due mortgage notices, but what about other installment contracts?
Are we required to send it with all past due notices regardless of type of loan? Regardless of consumer vs. commercial?
The Q&As below are those that were added by HUD January 28, 2010
The Q&As below are those that were added by HUD December 30, 2009
GFE - Written list of providers - Page 12
This is a compilation of links to some of the liveliest recent threads relating to the lending compliance challenges bankers are dealing with at this time.