Appendix D is used for reference in calculating an APR for construction loans. However, it states "Using the 365 payment line, the closest to $251.73 is $253.93 which corresponds to an APR of 11.25%"
What payment line is this referring to and how is this converting to a 11.25 rate; are there books that this is referring to and if so, where can you obtain it?
Where can I find a HOEPA Worksheet?
When 1026.2 defines the six pieces of information that makes a complete application (and therefore starts the clock on the 30 day loan decision time frame), specifically the applicants income - are they referring to the income notated on the application only? Lenders are wanting to know if substantiating documentation of income is considered part of the application. I can't find anything concrete in the Regs saying that "income" is defined by what is on the application only.
I'm the internal auditor and reviewing compliance with SAFE Act and Reg Z for including unique identifier on loan documents. We originate our reverse mortgages through two investors. The documents are produced through the investor website. Does the NMLS # have to be on the GFE? I'm not seeing it on the GFE for either of our investors. What disclosure documents exactly is it required? (they have on the note, mortgage, application)
We made a loan in 2011 to a customer to purchase a property. The property had a residence and a commercial mechanics
garage with living quarters in it. At the time he bought this, he rented the house to his aunt and lived in the garage when he was in Missouri. He didn't reside here full time at that point. So we did this loan on our commercial side. We just found out his aunt has passed and he has been living full time in Mo. in the house. So knowing this, due to HOEPA or HPML etc ,are we required to move it to consumer side? Also where can I get further training on HOEPA and HMPL please?
We deal mostly with foreign national borrowers. We understand RESPA and TILA do not apply, however we disclose to these
borrowers. In the event we stop disclosing, what documents do we still need to provide the borrowers with --application, ARM
disclosure, LE and CD? Please clarify.
I have a RESPA violation that I am trying to clear up or at least cure and I am having issues finding guidance on this matter. The loan was a Idaho DPA, the loan program changed mid-way and there was a credit that the borrower should have received with that change and did not. The credit was never disclosed to the borrower and we are now 60 days past the closing date.
I read that the CFPB staff said that under “Other Costs” on page two of the Closing Disclosure, general lender credits not associated with any particular item must be listed at the bottom of the page as a negative number. The lender credit must be listed along with a narrative description if any refund is being provided by the creditor pursuant to the good faith analysis of charges. Notably, the CFPB staff said that lender credits associated with specific closing costs must be disclosed as paid by others and have an “L” for lender designation. This makes it seem like we would put the increase in appraisal cost on line 1 under Other costs. “variation due to an increase of appraisal cost above legal limit to ABC Appraisal” and put it as a cost paid by others column (L) $xxx UNLESS there is more than 1 item out of tolerance. Is this correct.
I have an appendix Q/ATR question. If a borrower is retired and has pension income from their previous employer and receives Social Security income, but has significant assets in IRA’s that he is not taking distributions from, would it be reasonable to assume an amortization of those funds? For example, an IRA in the amount of $800,000, if he averages earning 3% per year, he
could draw $3,373 per month for 30 years. Would this be okay under QM guidelines? With only the pension & Social
Security income, the DTI is greater than 43%, but assuming an amortization of the IRA funds would put the DTI below 43%.
Do we need to show the insurance premium on the Closing Disclosure as being collected at closing on a Purchase of a second home?