Vendor Guru Q&A - Lending

Latest Lending - Refinancing Topics

Code for Automobile Loan Renewal

12/08/2019

How should an automobile loan originally used to purchase an auto be coded when the loan is renewed?

Converting Fixed Mortgage to ARM-Refi?

06/23/2019

Can a 30 year fixed mortgage be converted to a 5/1 ARM mortgage? What information needs to be provided to the consumer to have this done and can it be a modification or must it be a refinance?

Modifying Real Estate ARM Loan-Disclosures

02/03/2019

On a consumer real estate ARM loan, the loan just adjusted. The officer is requesting to modify the loan and change the index, margin, and adjustment period. The request is primarily due to competitive reasons. Can we change the index, margin, and adjustment period without having to do disclosures?

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..

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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.

Rescission Rules for Multi-Purpose Loan

Question: We have a borrower who owns an existing apartment which is the borrower's primary residence.

Disclosure Exceptions

07/18/2021

How can a bank track disclosure exceptions?

Mortgage Apps Chart for HMDA LAR

07/18/2021

Do you know of a chart that illustrates which mortgage loans/applications that are to be reported on the HMDA LAR?

Collateral Address- Real Estate Secured (TRID)

07/18/2021

When populating the collateral address for consumer closed-end, real estate secured loans (TRID), is there an industry best standard for WHERE we obtain this address from? I know that it must always include the zip code, and a location (if an address via US Postal Service is not available), but I'm curious if there is an unspoken standard of what document this is best obtained from, such as the counties property record card, the written evaluation provided to us from a certified appraiser, borrower attested to, etc.

Call Report Code 1A2

07/18/2021

Our bank is currently scrubbing our loans in Call Report Code 1A2 - Other construction loans and all land development and other land loans. The following are questions to decide whether some loans are in the right bucket: - What classifies as farmland vs raw land? - Are loans secured by timber tracts considered farmland? - What call report code do trailer parks belong in? - Are they considered "other" land and belong in 1A2 or can it be classified as a 1E2 since it is an income producing property?

"Board-approved" Estimate- Evaluation Requirements

07/11/2021

Can a Bank use a "Board-approved" Estimate (number only) to satisfy the evaluation requirements if an appraisal is allowed to be waived due to the transaction amount being less than $500,000?

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