Most Popular Lending Content
Using a Portion of a Town as your CRA Assessment Area
03/24/2003
We recently opened a new branch and must add the area to our defined lending area (assessment area). We live in a rural area and deal with BNA's. Can we use the BNA #'s to define this new area or must we use a whole town? Presently our CRA policy has towns and the BNA's listed. The new area borders on a very large town with various BNA #'s. We do not really want to include the whole town because we know we can not be competitive since most of the town is over banked. We are hoping to just list the surrounding BNA's.
Documentation: Revocable Trusts & Real Estate
03/17/2003
We are beginning to see number of our customers forming revocable trusts. What documents do we need for a real estate loan secured by the primary residence of the Trustees when the title to the real estate is held in the trust name? Do RESPA and TIL apply?
What are Life of the Loan requirements for flood insurance?
03/17/2003
What are Life of the Loan requirements for flood insurance? Our understanding is that a bank must determine if a property is in a flood area and then at the time the bank has committed to make, increase, extend, or renew a loan the bank must require the proper insurance, if it has determined that the property is in a flood area. Also, the bank must monitor that this proper insurance is in place for the life of the loan. Force-placed insurance may be required if a policy lapses or the bank has knowledge of a change in flood status. Life of the loan tracking for properties which were determined not in flood areas, is not required because there is no duty on the part of the lender to monitor any changes in the flood maps or perform any type of portfolio review when flood maps are revised. Is our understanding of the flood insurance requirements correct?
Securing A Loan With A Modular Home As Collateral
03/17/2003
I am taking a modular home for loan collateral. This modular home is located in a manufactured home community. What do I need to do to secure this loan?
Business Loans, Oral Denials, and Notice Requirements
03/17/2003
A customer requested a loan to purchase commercial real estate. He has had problems with getting a clear title to the property. We offered verbally to make the loan but with a different piece of real estate as collateral. The customer refuses to counter our offer verbally. Must we send the customer a notice of action taken on the counter offer and on our denial of the original application?