Most Popular Lending Content
Must We Have a Rate "Cap" on This Loan?
03/07/2005
Is a rate cap applicable to a 10-year consumer mortgage, when we approve it as a fixed-rate for the first five years, and then a floating-rate for the next five years? An extreme example would be like a 10% jump in prime after the first five years. Could the rate jump the 10% at one shot? Currently our commitment indicates a floor only. Are we as a lender required to indicate a rate cap and a max rate, when it is to an individual for the purpose of purchasing an investment property?
Limits on Lending to Affiliates
03/07/2005
Can you tell me what the limitations are for lending to Affiliates?
Purchase Money Loan for Wedding Ring
03/07/2005
I am processing a loan in which we are taking a purchase money security interest in a wedding ring. Does this fall under Reg AA for household goods and will a UCC-1 actually perfect the lien?
Inspection Fee a Prepaid FC?
03/07/2005
We are reviewing a loan called a One-Time Close Construction loan. The construction loan and long-term financing are closed at the same time. I am wondering if the lender’s inspection fee can be included as a prepaid finance charge when calculating the APR. From what I read in Staff Commentary for Reg Z (Section 226.4(a)(1), this fee should be a finance charge. In our case, the inspection fee is paid to a third party. Does that make any difference? I just need clarification.
Is a Modification of This Loan Possible?
03/07/2005
Can you tell me the regulation regarding changing the loan amount on a note? Example: The loan closed in 2003 for $250,000, and now the client wants to increase it to $350,000 without refinancing.