While researching the May 2018 TILA-RESPA Integrated Disclosure rule Small Entity Compliance Guide, I found this in section 10.8: "Seller-paid loan costs and other costs are required to be disclosed on the consumer's CloD, regardless of whether a separate CloD is provided to the seller. Seller-paid real estate commissions are one example of seller-paid costs that may not be omitted from and must be included on the consumer's CloD. 1026.38(g)(4); Comment 38(g)(4)-4. Additionally, non-commissioned real estate brokerage or agent charges for services to the seller or consumer are required to be itemized separately, with a description of the service and an identification of the person ultimately receiving the payment. Comment 38(g)(4)-1 and - 4; 1026.2(a)(11) and (a)(22)." In the May 2018 TILA-RESPA Integrated Disclosure Guide to the Loan Estimate and CloD forms I found in section 3.4.3 on page 91: "A separate CloD can be provided to the consumer and the seller to do not reflect the other party's costs and credits by omitting certain disclosures on each separate CloD (1026.38(t)(5)(v), (vi), (ix)." This appears to contradict the compliance guide. Does the seller’s information need to be on the CloD and is this new? We thought that if you disclosed on separately disclosures and we had both, the borrower’s and the seller’s, in the loan file we were in compliance.
Is a Right of Rescission required on a streamlined refinance when only closing costs are being added to the loan? There is no cash out to the borrower.
I am new to the bank that I am at now. I have been reviewing some of the TRID loans and have found that on the closing disclosures if the bank closed the loans they have left the settlement agent and file # blank. What can be done to fix those loans? The only disclosures that have those filled out are the ones that the title company did the closing.
Bank policy is to require any principal of the business with 20% or more interest to guarantee a loan. If you have a 5% interest owner decide to guarantee the loan which is not a requirement of the Bank, would a joint intent as the guarantor confirmation be required, or is that only if they are not a principal of the business?
Our lenders are wondering if any expenses on a loan after the note is closed can be charged to the principal balance? For example, a slow pay customer can't pay property taxes and the bank pays them for him. Can that be charged to the principal balance as an advance? I said no, due to the fact that would trigger a payment difference, needing new disclosures. The other example was the loan is in default and the process of foreclosure has started. There are attorney fees that are accessed during that process. Can those be charge to the principal balance and claimed in the debt owed at the time of foreclosure/charge off?