Reporting of purchased loans on HMDA. We have started purchasing loans and now need to report them on HMDA. For the section on Loan Amt - it specifies if it is a home purchase loan that we purchased 0 we enter the unpaid principal balance of the loan at time of purchase but it does not reference specifically what we use as the balance Original or unpaid prin balance)if the purchased loan is a home improvement or a refi. We have a consultant tells us that we report them all (purchase, refi or h/i) with the unpaid principle balance but in reading the HMDA guidelines and regs I am not sure if that is correct. Can you help clarify this for me?
Do high price mortgage regs apply to construction line of credit loans?
We are beginning to escrow more RE Taxes on commercial loans. Where do I go for state regulations?
Our VP of Lending wants me to draft an agreement for our clients stating that we will charge a $500 fee to "reprice" their mortgage loan if the rates go lower during the processing of the loan (before the loan closes). For example, they have a 4% rate and now rates dropped to 3.5%, we will charge them a $500 fee to lower the rate from the 4% to the 3.5%. The rationale is that we might lose them as a client if we don't lower the rate, but need to charge the fee for our costs. I am not comfortable with this from a Fair Lending perspective and am not sure if this violates other regs.
Can you tell us which regs apply on renewals secured with a primary residence? Here is the scenario: A loan (on our books) secured with a home matures. No new funds are advanced. We renew the existing loan for an additional three years. Which disclosures are we required to provide?
Due to the new regs in regards to "cooling off periods"- Does this apply to home equity loans as well? I guess my question is can a borrower apply for a HELOC, wait the 3 day rescission, and then receive the funds? (like regular mortgages where there is the 7 day rule)?
We are thinking about adding loan notices (i.e. pmt notices/past due notices/ maturity notices/ rate adjustments/ etc.) to our list of items that a customer can sign up to get electronically. We already do it for deposit products (stmts and such). I realize I need to consult the applicable lending regs, most of which I believe defer to the esign act and allow for electronic delivery, but I'm just wondering if I'm missing something. I guess I'm a little nervous about sending someone's past due notice electronically even if they have to elect to receive it and confirm that they can (call me cautious). Is there anything else I need to watch out for? I am happy to do my own research but if you know of any prohibitions or can point me to something I'm missing, I would appreciate it.
I have read that if a loan is not HMDA reportable that you should not collect GMI. Is this the case. I know there is a difference between the Regs (B) and (C) and just want to be sure I am passing on accurate information.
On the GFE, we charge a point to buy down the rate: this gets disclosed in Block 2 Box 3 (i.e., $1000 point to buy down the rate). We pay the appraisal fee (i.e., $400) which is listed in Block 3. The credit for this charge (the appraisal fee) is supposed to go in Block 2, Box 2. According to the regs, we can only choose one box in Block 2, but we have a charge and a credit (if we combine the two amounts, this would result in a net charge of $600). It renders the APR and Amount Financed incorrect on the automated system we are using. How do we disclose the credit for the $500 application fee, or do we not have to disclose the charge? Even though this is not a “no cost” loan, everything that we are reading seems to state that we have to disclose all fees associated with the loan no matter who pays. If the bank pays, it has to be listed as a charge and credited.
On our consumer notes we have the credit insurance clause that the customer signs when signing the note, and on the note is also the Federal Sale of Insurance Disclosure that the customer signs if he/she decides to get the Credit Life or Disability Insurance. When printing the documents, it prints the Federal Credit Application Insurance Disclosure. All this is in our software from Arta Lending. If all this information is on the Arta Note, do we have to print and have the customer sign the disclosure also?