09/03/2001
Recently I ran into the following situation regarding the 3 day Right of Recission: Borrower is a business, loan was to be secured with the business property and the owners residence was used more as an abundance of collateral (largely because we have always taken it on previous loans). Do I need to wait three days to dispurse because of taking the residence? Or because it is a business transaction the recission doesn't come into play here.
09/03/2001
Does an attorney fee affect the APR?
08/06/2001
What is the difference between a cosigner and a guarantor?
08/06/2001
I relatively recently took a position as CEO with a small community bank ($45 million). Formerly, I was President of a $450 million bank. Needless to say, at a smaller institution, we all wear many hats. One of mine is CRA Officer and, since I had a dedicated person before, I'm rusty. I just read your entire section on the CRA regs. I want to be sure I'm not missing anything. As a small bank, is it really true that our total evaluation will be based solely on loan to deposit ratio, having the majority of our lending within our assessment area, reasonable distribution to low to moderate income individuals/families, reasonabel geographic distribution within our assessment area and prompt corrective action to any complaints? Is that really all? And, if we were graded "satisfactory" on those 5 elements, we'd have a crack at an "outstanding"? Small banks may elect to be evaluated on the lending, investment, service tests. Why would a bank want to do this if, as a small bank, they can elect to only be graded on those five areas? Ditto for submitting a Strategic Plan? Is there any benefit to a small bank in electing to be graded on either of these other two options? If, as we do, have a significant level of "service" and "investment" activities, do these get evaluated at all if we ultimately elect to be evaluated as a small bank? Can you give me some concrete examples of "Investments"? We currently participate in a local CEDE (Center for Economic Development) organization and are also involved in several minority organizations (Washtenaw County Homebuyers, POWER) with board positions, loans, agreeing to accept IDA's, participating in financial education seminars . . . are all those activities considered "Investment" activitiesor are there others I'm not recognizing? Other than the five elements of evaluation for a small bank, am I missing any other significant difference between how we would be evaluated and how a bank over 250 million would be evaluated? There seemed to be some di!fferences in data collection . . .please elaborate. Also, our bank is an 80% owner in a mortgage sub servicing company located in the Upper Peninsula of Michigan (we are in Ann Arbor)and that subsidiary also engages in originations. What kind of reporting do we need to be concerned about with the sub, if any, since all loans are sold into the secondary market? I thank you in advance for guidance and elaboration on this so I can relaunch our compliance with the CRA correctly for our small bank.
08/06/2001
Are there any specific requirements as to the number of days a loan must be past due before a late charge can be charged?