Most Popular Lending Content
Requiring Credit Life Insurance
03/11/2002
We have always required borrowers of unsecured credit to purchase credit life insurance from a company we have always done business with. While reading some information on "Consumer Protections for Depository Institution Sales of Insurance" I ran across some information that suggested we can not "require" a borrower to purchase credit life insurance. Is this true? Also, customers request credit life insurance on other types of loans, do we still have to give the insurance disclosures on these types of loans? Can these disclosures be added to the bottom of a loan application?
RESPA: How do you provide full disclosure of third party fees when the amount is unknown?
03/11/2002
For consumer construction loans that are RESPA related, how do we complete the HUD 1 regarding full disclosure of third party fees, for example inspectors, if we close prior to knowing who will be performing the inspections?
Using Average Costs For Loan Fees
03/11/2002
When we close a loan on the mortgage side we charge a $30 credit report fee. The actual fees are between $16.50 and $50. We averaged our actual costs and came up with $30; therefore, we are charging more for some customers and lessfor others.My question is - is this practice permissible or do we have to charge actual costs? Can you point me in the right direction on this issue?
Using An Outdated Appraisal
03/04/2002
My question pertains to an outdated appraisal prepared for another financial institution. I have an appraisal for residential property that is over 4 years old and was prepared for another bank. The customer adamantly opposes paying to update the appraisal. This customer is financially strong enough to find another lender/bank to commit to the request without updating the appraisal. I have a few thoughts on how to circumvent updating the appraisal. However, I would like to see what other lenders/banks do in the same situation. This is not the first time I've encountered this situation and I'm sure it won't be the last time.
Loan To A Living Trust: Required Documentation
03/04/2002
When making a mortgage loan to a living trust, what documentation is usually required of the Trustees as part of the application process? There seems to be a reluctance to disclose sufficient information for proper underwriting of the loan request.