02/22/2010
Can maturing balloon loans secured by a primary residence be modified to change the rate and maturity date, with no fee charged to avoid a higher priced mortgage loan category? There would not be a new contract for a renewal or refinance. Do new TIL disclosures have to be given if the rate and maturity date change? On the same type of loan, can we simply extend the due date for another 36 or 60 month balloon, and change nothing else on the note to avoid HPML status?
02/01/2010
We offer a real estate loan that is a three year balloon. When it matures, it is usually renewed and the mortgage is not satisfied. It is not considered a RESPA or Reg Z loan, but disclosures will need to be given if certain changes are made. I have been told that if the renewal is done before the maturity date, new disclosures are not needed, but if we wait until after the maturity, new disclosures are needed. Is this correct?
01/25/2010
We have loans in the Special Flood Hazard Area that were made prior to our becoming a participating county. Now that we do participate, do we need to require flood insurance or may we wait until one of the triggering events, i.e. renewal, extension, etc?
01/25/2010
We currently have a first money purchase mortgage that matured in September, fixed rate, interest payments only. Now we are going to renew the note and extend for another year. What will change on the note will be P and I payments with amortization of twenty-five years, maturing in one year, no new money, rate stays the same. Is this loan now considered a new loan and what if any new disclosures do I need?
11/30/2009
On a consumer loan that has a balloon payment, and you are re-doing the loan, but the rate changes, and dollar amount lower, is this a refinance or a renewal, secured by primary residence. The initial loan was one with balloon payments, so the application is a year old. Do we need a new one?
09/21/2009
What are the reporting requirements for loans exceeding the Supervisory Loan to Value limits relative to the recent decline in real estate market values? Does a bank need to report a loan as a loan to value exception based upon the following scenarios? <ol><li>Loan to value was originally conforming at origination of loan; however, at renewal a new appraisal or evaluation reports a lower value which causes the LTV to be in excess of the Supervisory limits. Should the loan now be report as an exception or should loans only be reported if they are an exception at origination?<li>If during the term of a loan a new appraisal or evaluation is received that reports a lower value that would result in a LTV exception, should the loan be reported as an exception to the Supervisory limits?</ol>
07/20/2009
HELOC Agreements reflect a floor of 3% APR. Due to economic conditions, management wishes to increase the floor to 5% APR and notify the consumers. I believe this is not permissible pursuant to Regulation Z 226.5b f (3), am I correct?
06/01/2009
What is the time frame for recertifications? Are they required to be completed prior to the renewal, at the same time or within a certain time frame?
05/04/2009
When renewing a note loan, is it necessary to collect the interest due at maturity or can it be added back to the principal balance of the loan?
04/20/2009
How would we best handle a request for a wife be added to an open-end HELOC that is in the husband's name only? This transaction involves no new money and no extension of the original maturity date so should we prepare a renewal note and provide new disclosures?