11/02/2009
When making a cash secured loan, is the bank able to hold the funds in the customer's checking account or MMA, or do the funds have to be held in a savings account or certificate of deposit? The question is posed for both consumer and business loans.
10/26/2009
A borrower obtains a loan so that she can purchase stock in a closely held business. This is not necessarily an ESOP. She would not be a majority owner. She would own less than 1% of the business, and the loan would be underwritten, based on her income and her personal credit history. While the stock would be pledged to the bank as security, it is essentially an unsecured loan or more accurately, not a loan secured by marginable stock. Business income is not used as a repayment source and her pay is salary, not an owner's distribution. If the individual obtained a home equity loan to accomplish the same purpose, the type of loan would be clearer. Would this loan be considered a commercial loan or a consumer loan?
10/19/2009
We have recently taken over residential properties that were owned by our borrower who sold them to third parties. I found that the property taxes are past due. Our borrower was not escrowing for the taxes. I have sent certified letters requesting that the borrowers bring the property taxes current. I now want to pay the property taxes and add the amount to the loan, can I change the P and I payments or do I add this amount to the back end of the loan and collect at maturity?
08/24/2009
If we require borrowers to maintain insurance on whatever security they pledge (real estate, livestock, machinery, etc.), but do not require that they use a specific provider to obtain the insurance, are we required to estimate how much the insurance will cost them and disclose that on the Good Faith Estimate?
06/22/2009
We have a consumer loan customer who doesn't qualify on his own, and his grandfather wants to guarantee the loan rather than co-sign for it. Since he would not be signing the Note Disclosure or Security Agreement, is there a compliance issue?
06/01/2009
Does rescission apply to a non-owner occupant? i.e., mother lives with daughter; daughter owns property; daughter is doing a cash-out refinance. We know rescission is given to daughter but what about mother?
05/11/2009
An individual is the trustee of his revocable living trust and signs the security document both as the individual and as the trustee. For HMDA LAR reporting purposes can we report this loan as an applicant only type of loan because only the individual's income, credit and assets were utilized to underwrite approve the loan?
04/27/2009
Should flood determinations be done for each property on a commercial loan where a blanket lien against a pool of residential properties will be taken as secondary collateral?
04/13/2009
Does a person have to sign the notice of right to receive copy of appraisal if he or she is signing the security deed pledging interest in the real estate, but is not a borrower or co-borrower?
04/13/2009
Does a person have to sign the notice of right to receive copy of appraisal if he or she is signing the security deed pledging interest in the real estate, but is not a borrower or co-borrower?