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?

Likely Compliance Issues

10/01/2005

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

HMDA: Using HMDA Data

10/01/2005

The 2004 HMDA data is finally out and the numbers show what we expected and feared: Black Americans fare less well in the mortgage market than non-Hispanic whites. Now what?

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?

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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.

Limited English Proficiency

10/13/2019

Do we have to provide translators for loan applicants who do not speak English?

Flood Insurance for 2 Properties

10/13/2019

We have a loan with two properties. One is a flood zone and one not in. The value of the property in a flood zone is $50,000. Can we require flood insurance only on the amount of the property that is in the flood zone or do we have to get flood insurance to cover the entire $250,000.00 loan balance?

Initial Disclosures Before Underwriting?

10/13/2019

Are initial disclosures required to have the borrower(s) signatures prior to going to underwriting for initial review? I understand that the loan estimate and 1003 need signatures but what about the other initial disclosure documents i.e.: toolkit, counseling forms, servicing disclosure, AfBA, FACTA, Privacy, Patriot etc..

Docs to Verify Income or Tax Returns Required?

10/13/2019

We have a married couple wanting to fill out a home loan application. They state that they do not have any copies of their tax returns. Can we use the other documents to verify income or are the tax returns required?

Correction Method for ACH Refund Error

10/13/2019

A loan customer gave us permission to originate ACH transactions to pay his loan payments. I originated a payment on the 30th of the month and a payment was posted to his loan. He then paid the loan in full. In error, I originated an ACH to refund the loan payment. Then I received a return of the payment on the 30th from his bank for a closed account. But they did not return my refund origination for account closed. The bank confirmed to me on the phone that the account is closed so I asked why they didn't return the refund for account closed, I was told they could not discuss the transaction. What is the proper 'correction' method and wouldn't the bank have some sort of responsibility to return ALL transactions on a closed account?

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