Most Popular Lending Content
Can we avoid Reg O by making a CD-Secured loan?
03/03/2024
To avoid Reg O conflicts, we are thinking of granting a loan to an executive officer that is secured by a CD at our bank. Does this type of collateral eliminate any Reg O concerns?
Security Agreements and Loan Renewals
03/03/2024
When a renew a loan with collateral should a new Security Agreement be completed as well?
Multiple steps to resolve exceptions
03/03/2024
Why does resolving an exception usually involve multiple steps?
Mobile Homes – Learn what is exempt and what is not exempt from Flood requirements
03/03/2024
We made a loan to a borrower for the purchase of 2 mobile homes located in a mobile home park in Florida. The homes are “strapped down” to meet state/local requirements and have electricity and plumbing. However, we feel the home can be disconnected and moved and would not require us to perform a flood determination. Are we correct?
Advertising, IRS tax forms, Privacy, RESPA
02/25/2024
Our marketing department brought up the idea of handing out $50 coupons to our customers to entice them to refer folks to get a mortgage loan with the bank. The idea is that if a customer refers someone for a mortgage loan and it closes, the customer can redeem the $50 coupon for cash. I reviewed 1026.36 but it only seems to cover MLO compensation. RESPA's 1024.14(b) seems most applicable but i'm not sure if that just pertains to the parties involved in the transaction. This would be a referral for our customer who told someone to get a mortgage with us. Are there any regulations on a $50 referral ‘bonus/compensation’ to our customer for referring someone to one of our MLO’s to close a mortgage? It seems similar to what the big banks do with something like a $200 bonus to open an account with them.