In search for further guidance on compliance for delivery of a Closing Disclosure (CD) by way of email (with a borrower's E-Sign consent) we have varying differences in the interpretation of the word "Receipt". It has been our department's practice to deliver the CD within no less than 3-business days prior to closing. Documentation to evidence delivery has been by including a printed copy of 1) email showing our department's delivery of the CD to the borrower by way of email, and/or 2) a printout showing the "Arrival Date" of the email/attachments to the borrower. Some have interpreted the "Receipt" rule as evidence the email and attachment(s) was "OPENED". Are we in violation if a loan is scheduled to close on a Monday and the borrower did not “OPEN” the email until the 2nd business day (Thursday) prior to closing – even though we have evidence to show “ARRIVAL” of our CD on or before the 3rd business day prior to closing?
Our secondary mortgage department underwrote a loan for a property and ordered a flood determination/SFHD on the property from our vendor. The SFHD issued noted that the property was located in flood zone X. Based on this, the loan closed without flood coverage in place. Subsequent to closing it was determined that the loan would need to be retained in-house. The bank's credit department ordered another SFHD from a different vendor. This SFHD came back noting that the property was located in zone AE, requiring flood insurance coverage. When contacted the first vendor they reissued a SFHD and updated the flood zone to AE. Obviously, the property must now be insured and any recourse against the first vendor would depend on the terms of the contract with the vendor. The question from management is whether the bank can (with proper notice) now require the borrower to obtain flood insurance or will the bank have the responsibility to provide coverage? I believe that the responsibility lies with the borrower - it would be no different in the particular set of circumstances than if there was a map change placing the property in zone AE where it was previously in zone X. Whether management elects to provide none, all or part of the cost is a business decision. I would agree that the Bank (or original vendor) should pay for the insurance (force place) for the gap period.
Can we report adverse credit to the credit bureau on a commercial loan and the guarantor if we don't normally report our commercial loans to the credit bureau?
I have a question regarding modification fees on our construction-perm loans. If additional fees are incurred at modification (Appraisal fee, recording fees, title fees, etc.) and were not disclosed on the loan estimate or closing disclosure, are we able to collect and charge them or would this be a TRID tolerance issue?
For HMDA reporting purposes: An applicant's demographic information is obtained at time of application via an online application process and the data collected is the information input onto the HMDA LAR. But if the applicant changes the demographic info at consummation (at the title company) do we change the data on the LAR from the data collected at application to the data collected at consummation?