05/20/2018
On construction/permanent loans with one closing-upon completion, a modification is done and the 30 year rate is set at that time. There are times we have to extend the construction period of 12 months . Usually the rate remains the same but at present the rates are changing. The construction period we base the rate on is the WSJ prime +1% fixed for 12 months. I have to extend one now and the rate will increase from 5% to 5.75%. What if any disclosures are required at time of extension?
05/13/2018
I have been told on refi transactions to disclose the property taxes on the LE in the prepaid section, if we anticipate the taxes being due within the next 60 days. If we get to closing and tax bills are still not out, do we still show them POC on the closing disclosure like we are currently doing with hazard insurance, or do we leave them off?
05/06/2018
Borrower completes an application stating that the collateral for a purchase
Lot Loan is – Lot 4 Lake Anna Drive, Louisa VA 23093.
Loan Estimate is delivered with the Collateral listed as – Lot 4 Lake Anna
Drive, Louisa VA 23093 (No property card is pulled or reviewed at this time)
No Due Diligence is done, because you assume the Borrower knows what they
are purchasing.
Closing Disclosure is delivered with the Collateral listed as – Lot 4, Both
Waters Estates, Bumpass VA 23024 (Title Work and Appraisal is reviewed and
at this time the collateral address is updated)
Question – How closely should we be paying attention to the real property
address that is listed on the Preliminary Loan Estimate? Does it matter if
the information is incorrect?
In this example the City and Zip Code were incorrect. So when I am asked is
the Real Property Information Correct on the Loan Estimate - at this point I
am unsure? Yes - if we go by what the Borrower stated on the application,
but No, if you were to pull the Property Card and review the Legal
Description or compare it to the CD.
04/22/2018
May a home improvement loan be treated as a single transaction construction-to-perm loan?
If so, is the draw period/construction period exempt from RESPA servicing rules or do they apply because it is not initial construction of the property?
Here is the scenario: the borrower already owns a house and is taking it down to the studs and will have all new finishes at the completion of construction. He is also paying off two existing loans. Following the construction phase, the borrower will obtain permanent financing through our bank.
02/11/2018
On a loan for a home purchase, does the value come from the appraisal amount or the purchase price.
01/28/2018
If we disclose a general lender credit on the Loan Estimate sent to the borrower, can we remove the lump sum lender credit and make it a specific lender credit? Or are we bound to give the lump sum credit because that was disclosed and not itemized to a specific fee up front?
01/21/2018
Does TRID apply to HELOC's? Do I need to have LE's out within 3 days of an application?
12/31/2017
My question is regarding earnest money deposits on a residential mortgage real estate transaction. The file contained a copy of cancelled check from borrower to realtor dated 2/23. The application was after that date and intent of notice to proceed has not yet been obtained. Internal mortgage compliance audit cited violation of 1026.19(e)(2) stating check to realtor should have been dated after ITP. I think they are wrong - since that independent transaction happened outside of the control of the financial institution. I don't believe the EMD date preceding the ITP argument has any merit. Am I wrong? Do you have some advice on how to write some fun (but respectful) rebuttal language?
12/10/2017
Are Home Equity Lines of Credit included in the new loan originator compensation rules? If so, can an employer incent a loan originator based on the amount drawn versus the line amount?
11/19/2017
Where on a Loan Estimate would I put the fee for e-filing a mortgage?
