We have a home equity line of credit at renewal. We do not assign a new loan number, but we do prepare a new promissory note. The intended purpose of the renewal is for school tuition. Is this renewal considered a refinance and HMDA reportable?
I understand from reading the OCC's Real Estate Lending and Appraisals Part 34 that renewals without the advancement of new monies are excluded from supervisory LTV limits. Does this mean that the original transaction is to be removed from the supervisory LTV report upon renewal or does it mean the original transaction remains on the report, but the subsequent renewal is not added additionally? What stops a bank from processing the original transaction on a short term basis knowing that they will be able to simply drop the entire transaction/property from the SLTV limit exception report upon renewal if indeed these transactions (original closing and renewal) are to be dropped from the SLTV report?
We do a lot of term lending (usually 6 months to a year) to small businesses and farmers. We collect the interest at maturity, but can we charge an additional fee to renew the loan? Would we have to change our renewal agreement to reflect a charge?
What is legally required when renewing notes or extending/<wbr>modifying loans tied to a mortgage? We currently use a note renewal form that contains a new Fedbox with new interest rates that the customer signs. We also have a loan modification form that we use if a mortgage is involved if the loan is extended or modified. However, what if all parties liable on the original note or on the mortgage do not sign the new modification agreement? Rarely do all parties come in to renew and/or modify a note. Could you please give me some advice on what to do?
We have a revolving line of credit that is being renewed to a term loan with a balloon payment and the loan amount is being decreased to what is outstanding now which is only about a $200 decrease in the loan amount. I have done a renewal note, but my question is the mortgage. I would need to do a mortgage modification to reflect the term note and new loan amount, correct? Also, am I charging the document stamps over again and intangibles if the mortgage is modified?
Is a demand clause needed for an executive officer's loan taken out prior to that employee becoming an executive officer?
When is it required to charge GRMA? Is it on all residential (1-4) property or just when recording DSD on a principal dwelling?
When relying on a previous flood certification on a loan that has been renewed, are financial institutions required to give the notice to borrower when the property is located in a flood zone? (Keep in mind we gave and retained a copy of the initial notice in the file.)
We originated a loan to a couple and their son to buy unimproved land. We took the couple's owner occupied residence and the land as collateral. We provided a right of rescission to the couple. The loan has matured and we are in the process of renewing it and find out that the son has moved a mobile home onto the unimproved land which is his primary residence. We are not advancing any new money with the renewal. Are we correct in thinking that we do not need to provide the right of rescission to the son since it became his primary residence after the loan was funded?
Is the following loan subject to rescission?A loan was renewed without a flood policy renewal and when the flood policy was received there was a gap in coverage of 2 weeks. The flood coverage is now in place, so can we back date the force place for the gap? Since flood coverage is in place does this cancel out the violation?