Most Popular Lending Content
Signing the HUD-1?
06/20/2005
Is it required for the Closing Agent to sign the HUD? As a lender, we verify each line item including signatures, for accuracy, and I am running into a real problem with a couple of Title Agencies not signing the HUD. Needless to say they are not pleased when I request them to do so.
Cross-collateral clause and rescission
06/20/2005
On a commercial loan, we took the borrower's residence as collateral. The deed of trust included a cross-collateralization clause. Recently, we did an auto loan to the same customer. Are we in fact required to give a right of recission to this borrower even though the deed of trust was not actually referred to on the auto loan?
Does Line X on the GFE and HUD-1 Have to Match
06/20/2005
How important is it to match the line numbers on a HUD-1 and Good Faith Estimate? Is it a critical issue to have them synchronized as best as can be done in the application process?
Is this a consumer credit?
06/20/2005
I’m reviewing a loan, it is under a business name, but the loan purpose is strictly personal. We have a rental home as collateral. The term is 10 years. Do I treat this as a business loan or do I search for RESPA and Reg. Z disclosures?
RESPA and Fee for Services
06/20/2005
I ran across your answers to a question posed on bankersonline.com: <a href="http://www.bankersonline.com/compliance/gurus_cmp0507h.html ">http://www.bankersonline.com/compliance/gurus_cmp0507h.html </a>It appeared in that scenario, that the broker was asking what services he/she had to perform to receive compensation. My scenario is this. We have banks that are turning down mortgage customers because the customers don't "fit" into their product lines. As a broker, we have access to products that fit the customer profiles. We would like to develop a business agreement with the banks, where they would perform some of the items listed in the IBAA letter, and we would also perform some of the items (basically picking up where the bank arrived at the conclusion that they would turn down the borrower). We would pay them for the work that they have done (that we would have had to do if the customer came to us directly). The compensation we would provide the banks would be reasonably related to the value of the goods or facilities that were actually furnished or services that were actually performed. It would be commensurate with that amount normally charged for similar services, goods, or facilities, and would be of reasonable relationship to the market value of the goods, facilities, or services provided. <strong>Summary:</strong> We just want to pay the banks for the portion of the origination process that they actually performed. Is there a problem with this approach?