On construction/permanent loans with one closing-upon completion, a modification is done and the 30 year rate is set at that time. There are times we have to extend the construction period of 12 months . Usually the rate remains the same but at present the rates are changing. The construction period we base the rate on is the WSJ prime +1% fixed for 12 months. I have to extend one now and the rate will increase from 5% to 5.75%. What if any disclosures are required at time of extension?
I have been told on refi transactions to disclose the property taxes on the LE in the prepaid section, if we anticipate the taxes being due within the next 60 days. If we get to closing and tax bills are still not out, do we still show them POC on the closing disclosure like we are currently doing with hazard insurance, or do we leave them off?
Borrower completes an application stating that the collateral for a purchase
Lot Loan is – Lot 4 Lake Anna Drive, Louisa VA 23093.
Loan Estimate is delivered with the Collateral listed as – Lot 4 Lake Anna
Drive, Louisa VA 23093 (No property card is pulled or reviewed at this time)
No Due Diligence is done, because you assume the Borrower knows what they
Closing Disclosure is delivered with the Collateral listed as – Lot 4, Both
Waters Estates, Bumpass VA 23024 (Title Work and Appraisal is reviewed and
at this time the collateral address is updated)
Question – How closely should we be paying attention to the real property
address that is listed on the Preliminary Loan Estimate? Does it matter if
the information is incorrect?
In this example the City and Zip Code were incorrect. So when I am asked is
the Real Property Information Correct on the Loan Estimate - at this point I
am unsure? Yes - if we go by what the Borrower stated on the application,
but No, if you were to pull the Property Card and review the Legal
Description or compare it to the CD.
We have a construction loan maturing in the next 3 weeks. The dwelling is not complete due to weather, and other circumstances, and the customer would like to extend the loan. Can we do a loan modification to extend the maturity date? There would be no other change in terms, so I'm thinking that would not trigger new disclosures.
If we are still delivering disclosures and statements in paper form, do we have to be concerned with E-SIGN or UETA?
A borrower signs the Note and receives the rescission disclosure and all the other disclosures on the Note date. After the rescission period passes and the funds are disbursed, can the effective date of the loan that interest begins accruing be the Note date or the date the funds were actually disbursed?
Can we as a servicer place all of our customers with escrow on the same account computation year?
Are Construction Only Loans subject to TRID? For example a 12 month, interest only, open end, consumer purpose construction loan. At this time they are not doing permanent financing with us. From CFPB January 2016 article "Know Before You Owe Mortgage Disclosures and Construction Loans" "A construction loan that is an open-end transaction or a loan for a commercial purpose is not covered". All I keep reading about is construction perm loans and the option of disclosing as two separate transactions or one combined.
How must we consider student loan debt that is based on the borrower's income and therefore deferred when it comes to the borrower's Ability to Repay?
When forcing escrows due to delinquent taxes, are we required to collect a 2month cushion upfront? We typically do on new loans that require it, but are not sure if we need to on existing loans where escrows are forced.