One year ago one of your customers disappeared leaving a large balance due on an unsecured loan. Yesterday you saw him in a local café and asked him about his debt. He laughed and said he had moved out of state and after the waiting period had run filed bankruptcy. He got his discharge last week and was moving back home. You never received notice of the bankruptcy, is the discharge effective against your loan?
According to the NFIA, a previous flood determination may not be reused when making a new loan. However, if it is not new (i.e., involves increasing, extending, renewing, etc.) the original flood determination can be used if it is >7 years old, etc. Also, for home equity/second mortgage loans where the lender has a first mortgage and can provide evidence that adequate flood insurance is in place, the lender can rely on the original flood determination. The NFIA does not address whether a lender can rely on a previous determination, specifically, for home equity loans where the lender has the first mortgage and the security property is not in a flood zone and no coverage is in place. My question: Can a lender rely on a previous flood determination for home equity loans, where the lender has the first position, and when the security property is not in a flood zone?
Define predatory lending.
I am reviewing an Adjustable Rate Mortgage initial disclosure and I do not find a statement that the interest rate will be discounted or a statement that the loan contains a demand feature (the Note does contain a demand feature). I am wondering if both of these disclosures are required on every initial ARM disclosure or only loans that have an interest rate discount and a demand feature.
Where would I find the statute stating the legal age to be able in enter into a binding contract (loan)? Also, if you made a loan to a 17 year old and his father as a co-signer, would the fact the son isunderage prevent you from collecting from the father on the loan if it should go into default?