Most Popular Lending Content
Purchase Money Loan, HELOC, or Both
04/21/2003
A customer has requested Home Equity Line of Credit to be used partially as purchase money for new home. We would have 1st lien as remainder of purchase will be from customer cash. Do we treat this as a "Purchase Money Mortgage" with all appropriate RESPA and TIL disclosures, or will it qualify as HELOC with appropriate disclosures? The loan will not be closed until current home is sold, therefore, no bridge loan.
Exchanging Loan Collateral
04/21/2003
Frequently we have borrowers who wish to exchange the collateral on their loan, and leave all the terms the same. For example, a customer has a vehicle loan, trades in the vehicle and wants to exchange the collateral. The original loan was done using a combination note/disclosure and security agreement. Can we comply with the customer's request? If so, should we use a Change in Terms Agreement to document the collateral exchange or, does a new note and security agreement need to be completed?
Spousal Signatures On A Business Loan
04/21/2003
We are renewing a commercial loan secured by real estate owned 100% by the business. The business is owned 100% by Mr. Business Owner. In the past, the loan was individually (not jointly )guaranteed by Mr. Business Owner and his wife, Mrs. Business Owner. We have no financials due to the value of the property and loan/value ratio.We don't know what % ownership the wife has in any of Mr. Business Owner's assets. Do you think there is any value in keeping Mrs. Business Owner as a guarantor? How would I justify or explain to the loan review committee we really don't need her as a guarantor?
Lending Policies Using Credit Scoring
04/21/2003
Do you have suggestions for resources in developing bank lending policies which utilize credit scoring on consumer loans?
Flood Insurance Waiver
04/21/2003
I'm needing to know what the best way is to document the file for a waiver of flood insurance on agricultural land (with a barn on it). Is flood insurance really required?