Most Popular Lending Content
1-8 range loan grading system -- John M. Floyd & Associates
01/05/2004
We currently grade our loans on a 1-7 range system. At a recent conference I was introduced to a 1-8 range grading system. I would like to get a copy of the spreadsheet of this system if you have one. Also, are examiners now looking for an 8-grade system instead of a 7-grade system?
Customer Credit Report Disputes
01/05/2004
What is the best way to handle a customer dispute regarding information we have reported to the credit bureaus? Should we handle the dispute or refer the customer to the bureaus and work with them? Why?
Can Bank Stock Be Collateral? -- John M. Floyd & Associates
01/05/2004
Can a national bank make loans for which the collateral is outstanding shares of the bank's stock?
Distinguishing Between Renewal and Refinancing
01/05/2004
We have some confusion distinguishing a renewal note from a refinanced note. At our bank we very seldom "refinance" debt secured by a dwelling. We "renew" the loan, retain original note, mortgage and all other documents, obtain a new promissory note (keep the same loan number) and modify the mortgage to reflet the new terms (i.e. new interest rate and new maturity date.) We refinance when we add new funds. Or, when a construction loan is financed into a permanent loan. We consider our renewal note as an Extension Agreement. How does this relate to the new definition of "refinance"? The word "renew" is no longer in the definition. This becomes important especially for commercial loans secured by a dwelling.
Signed TIL Disclosure Required?
01/05/2004
Are loan officers in retail mortgage required to have a Truth in Lending disclosure signed?