Most Popular Lending Content
OK to collect extra cushion in escrow, “just in case” for anticipated tax increases?
06/25/2023
A construction mortgage lender is insisting that for escrowing, it is OK in the first year to estimate property taxes and collect more because regulators would rather we give a check back to a customer at the end of the first year, than to have sticker shock at year 2 when higher taxes kick in. Is she right?
Rate sheet content
06/25/2023
If we have a rate sheet that we give to real estate agents and our loan originators, but we know the true use will be for them to hand it to consumers or post it where consumers can readily access it, wouldn't we need to have the APR on it?
Is LIBOR to SOFR a MIRE?
06/18/2023
I have a loan secured by property in a flood zone. It was originated 10 years ago, and therefore the flood cert exceeds the 7-year threshold. I am documenting a modification to change the rate index from LIBOR to SOFR which is resulting in a rate increase. The loan amount/balance is not being increased, extended or renewed. It is my understanding the rate increase/index change does not trigger a MIRE event, and therefore, I have no further requirements under flood associated with this modification. I am being advised that a rate increase (and payment increase) is included as part of MIRE ("increase"). While the regulation does not clearly state this, it is understood in the industry that this was not intended under the definition of MIRE. Could you confirm my understanding, and confirm I am not obligated to perform any further responsibilities under flood relating to this specific transaction?
Fixing HELOC Disclosed Rate Error
06/18/2023
We have a home equity application disclosure that has a lower Annual Percentage Rate stated than it should be. The disclosures shows in error 4.0% in the minimum payment requirements paragraph where it should be 8.25%. Is this something that we can fix or is this a rate we must now live with?
Correcting ARM Loan Adjustments
06/18/2023
We recently discovered that we have a few ARM loans that were set up on our system incorrectly. The payment was not set to change when the rate changed. As a result, we have basically extended the amortization on these loans by not increasing the payment along with the corresponding rate increase. How would you suggest we rectify this error?