Vendor Guru Q&A - Lending

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Latest Lending - Refinancing Topics

Modifying Home Mortgage-Principal Reduction

09/23/2018

What are the rules for modifying a home mortgage loan to only lower a payment because the borrower made a significant principal reduction? He is not in foreclosure. Before TRID, we did modifications all of the time. Can you still do that? The rate and terms will stay the same.

Loan to Pay Off Partners Per HUD- True Refinance?

06/24/2018

An entity is refinancing a loan .....the purpose of the loan is to provide funds to refinance the existing debt on a SFR. The proceeds are not being used to pay off another financial institution but to pay off the partners per the HUD. Is this a true refinance?

Finance Unpaid Interest Accrued- Renewal loan

02/11/2018

On a renewal loan (a loan that has matured that is already on the books),. can you finance the unpaid interest that has accrued on the loan you are renewing? What is the answer if you change the loan number and if you don't if there is a difference. I have received conflicting answers on this and would like to know if it is a violation if you roll the unpaid interest in on a note that you are renewing.

Modify ARM and Payment Increases-Refinance?

10/29/2017

If we are doing a modification for an ARM Loan and the payment increases, some of our staff believe this is a "refinance", some do not. Thoughts? If so, -What do we need to provide to the consumer? There would be no costs associated - just the new terms with the new (current rate)? It doesn't seem like a CD would be appropriate - If not - then we would use our normal modification agreement.

Primary Loan Refi + Construction Perm-ROR Apply?

07/23/2017

Does this scenario require a three day right of rescission? Borrower currently has a mortgage elsewhere on their primary dwelling. They want to refinance that loan while simultaneously securing a construction-perm loan with us for an addition to the home. Is it subject due to the cash out, refi component or exempt due to the construction component?

Unsecured Loan

10/30/2016

Our bank extended an unsecured loan to a borrower to purchase a home. The unsecured loan was temporary until the mortgage file was ready to close. I'm thinking that the permanent mortgage file should be reported as a home purchase even though we are treating like a refinance. I'm following the same philosophy as the construction to permanent loan files. Is this correct thinking?

Workout loan and disclosures

07/24/2016

We had a 30 year fixed loan modified to a 5 - year balloon due to collection issues. The balloon is now past due and we want to do a workout/refi back to the original terms of the original 30 - year note. Would we have to disclose? Our main concern is this is a workout/refi of an expired balloon modification..

Modified Bridge Loan-Converting Into Mini Perm

07/05/2015

We currently have a bridge loan on the books that has been modified many times. We are now converting it to a mini perm for 5 years. I do not want to close out the original loan due to the deed of trust. If I modify it again will I have to treat it as a permanent mortgage loan and will it fall under RESPA?

Does Note/Deed of Trust Need to be Satisfied/Replaced?

06/28/2015

For a refinance, does the note and/or deed of trust need to be satisfied and replaced? We have a loan that was paid off with new money added. The loan was assigned a new loan number. However, a modification to the deed of trust was recorded instead of releasing and recording a new lien instrument.

R of R Required On Refi Of Existing HELOC?

04/20/2015

Is right of rescission required on a refinance of an existing HELOC if there is no new money and renewing loan to extend the maturity date?

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Rescission Rules for Multi-Purpose Loan

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Loan Created in Signers Name-Company Debt

10/14/2018

A customer is signing for a company and owns 25% of the company, if a loan is created in the signers name would the companies debt need to be included in aggregate debt?

HMDA GIR Mixed Use Properties

10/14/2018

We made a loan to a non-profit for the purpose of acquiring and renovating 10 different properties. Loan is construction - perm. Eight of the properties are residential and the other two properties are commercial. The majority of the square footage (about 72%) of the total square footage of all ten properties is commercial. The two commercial properties are strictly commercial (not mixed use). The commercial properties comprise about 39% of the net collateral value, although the majority of the property values are lender's valuations, and not actual appraisals. I've looked through the HMDA GIR and do not see where this situation is addressed, unless I've overlooked it. The closest situation I could find addressed mixed use properties. In those situations, it stated it was at the lender's discretion, citing use of square footage or value. So I have square footage leaning to commercial (exempt) and value to residential (reportable). Would this be HMDA reportable?

Home Equity Loan: Improvement or Cash Out Refi?

10/14/2018

We are brand new to HMDA due to purchasing a branch in an MSA. We will start inputting in 2019. Our question is, if we have a home equity loan (we do not do LOC'S on home loans), it is to refinance existing mortgage and other funds are used for improvements to the property. Would that be a refi, home improvement or cash out refi?

Closed-End Threshold Test: Count Purchased Loans?

10/14/2018

Do we count purchased loans for the closed-end threshold test to determine if we are a small filer under HMDA? 1003.3(c)(4) states that the purchase of an interest in a pool of loans is an exempted transaction under HMDA, however I do not think that this includes mortgage loans purchased as a pool of loans. Thank you!

Getting Escrow Statements in Sync

10/14/2018

Doing annual statements is a real pain every month. What can we do to make these easier?

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