Vendor Guru Q&A - Lending

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Latest Lending - Predatory Lending Topics

Proposed Limitations on Terms of Credit to Service Members and Dependents

04/10/2007

by Mary Beth Guard and John Burnett

10% Fee on Every Draw from a HELOC

10/30/2006

If a lender has disclosed that they will charge a 10% fee on every draw made from a HELOC, can the 10% be subtracted from the actual draw amount (only 90% given to borrower, 10% forwarded to lender as fee payment) or does the 10% have to be opened as a separate receivable?

Not So Fair Lending?

03/20/2006

I am a finance broker for several financial institutions, and have agreements in place to do business with them. We currently do financing and refinancing on chattel loans with several investors. My contract with one of the institutions states that I will not solicit any of their customers for refinancing. My question is as follows: Would it be breaking the Fair Lending or Fair credit Laws to deny someone the opportunity to refinance through my organization because they, who came to me direct, are financed with a company I do business with currently? I have a lender that is asking me to do this to my customer, and I feel like this is wrong and do not want to participate in this activity. Is this against the law? Where could I find information on this to prove to the lender that this is an improper activity, and is not treating the customer fairly and equally?

Nontraditional Mortgage Products: New Guidance

01/01/2006

The financial regulatory agencies have issued joint guidance on nontraditional mortgage products.

Managing Pricing

01/01/2006

At PCi's 2005 CRA Colloquium, there was much discussion on pricing in the context of fairness and predatory lending. The regulators' position was clear.

Lending Practices: Fair and Unfair

12/01/2005

Failures in lending compliance can cost as much as $14,000,000. That's the amount one lender will have to pay for unfair lending practices and compliance failures.

Updating Loan Policy to Reflect FACTA Changes

11/07/2005

I am in the process of updating my loan policy to reflect recent changes to FACTA and predatory lending. I was going to just add a general statement to the policy stating that we comply with the changes in the FACT Act. Should I elaborate more in my policy and do I need to outline the entire Act in my procedures? What recent changes that I may have missed that need to be added to adjusted to my policy?

Source of Appraisals and Reg B

10/01/2005

Question: I know that we have to provide copies of a full appraisal, but what if we only use a tax appraisal?

HMDA: Finding and Managing Risk

10/01/2005

Now that the 2004 data is out, our concerns about HMDA and the related risk have a little more focus.

Likely Compliance Issues

10/01/2005

Release of the HMDA data puts fair lending and CRA front and center.

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Appraisal Requirements and Higher-Priced Mortgage Loans

Many things went wrong in the mortgage lending process before the meltdown. Among the contributing causes were inflated property values and inaccurate property valuations.

Why Are We Confused?

If you are feeling confused, you are in good company. Almost anyone who deals with mortgage lending compliance is struggling with the changes. Questions are flying. We are surrounded by chaos.

Determining Minimum Required Flood Insurance

06/09/2019

We have a loan in the pipeline and received notice that the building is in a special flood zone area. The building is a multiple unit apartment building consisting of a basement and 4 floors. There was an elevation certificate done which showed that only the basement is in the flood area. There is nothing in the basement, and no contents stored there. I realize that in determining the minimum required flood insurance we have to take into consideration: 1-Replacement cost of the building / appraised value; 2- MAX limits of coverage: $500,000.00 limit for structure / $500,000 for contents (since this is a multiple unit apartment building), and the 3- loan amount. Our question is, once we assign a value, and because the flood area is only in the basement, as determined by the elevation certificate, since the building is 4 floors and a basement, can use 1/5 of the value as a factor in determining minimum required flood insurance?

Excess Funds-Lender Credit on Refinance

06/09/2019

If we give a lender credit on a refinance transaction and the credit exceeds the cost on the refinance, where do the excess funds (credit) go? Can the lender just reduce the credit, or does it have to be applied to a principal reduction?

Intent to Proceed on Commercial Purpose Loans?

06/09/2019

Are we required to have an intent to proceed on commercial purpose loans?

Reg C Date to Calculate Intro Rate Period

06/09/2019

For Reg C, which date do you use as the beginning date to calculate the intro rate period, the origination date of the loan or the first payment date?

Maturity Date on HELOC-Regulated Maximum Maturity?

06/09/2019

In Indiana, I know that if a maturity date is not listed on the filed mortgage that the maximum term is 20 years. But if a maturity date is stated on a HELOC, is there a state/federal/regulated maximum maturity and what is it? Obviously, you have to look at the draw period and calculate a projected repayment, but can the maturity date be the actual date of repayment or would it have to balloon so as to keep with the state or federal regulation of maximum maturity date?

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