When disclosing the payoff of an existing lien on the collateral property, should the amount listed on page 3 of the Closing Disclosure just show the principal balance, or should it show the principal balance, plus the interest due? I do not believe the reg goes into detail on what the amounts listed should be. My thought is we would need to list the amount that would fully pay off that existing lien (principal, interest, late charges, etc. ). There have been discussions about not capitalizing off interest, but as long as we are not financing the interest due into the new loan amount, I do not see how we would be capitalizing off previous interest. In addition, if we list the full payoff amount, would we need to list just one payoff amount, or would we need to list separate lines for principal, interest and late charges on the Closing Disclosure? I believe either way would be okay, but my thoughts are we would just need to list one line item with the full amount.
Is a loan to a company buying stock from an ex-employee CRA reportable? It is secured by business assets.
A question has come up after we prepared a Note for a commercial loan. It was dated July 15,, but the customer did not return these documents until July 22. We funded this loan and effective dated our loan to the 15th to match the Note. Now management is saying we should not have effective dated the loan, only the date we actually funded it. Can we do this, not just for commercial but also residential loans? What is the correct way to handle loan docs returned after the Note date?
While auditing a mobile home loan I saw escrow statements. Isn’t this unnecessary since RESPA doesn’t apply when we don’t have real estate as our loan collateral?
Can a flood civil money penalty cost six figures or more?