RESPA - GFE and HUD. We have a secondary mortgage department. We do one time closing construction perm loans with them (occasionally). We currently have one pending that I am afraid has been disclosed incorrectly on the GFE. We are disclosing it as one transaction but the processor failed to disclose any of the construction phase charges such as inspection fees, etc. Does this mean that we have to reimburse the customer for any fees that we normally charge for a construction loan?
Currently, during loan closing our Originations Dept only collects 2 months cushion and 1 month of P & I. Example: loan Closed in April and first P & I and T & I payment due 6/1. PMI company wants April and May PMI paid upfront. When I collect customer's payment in June that is for the June PMI Premium we get billed for around June 25th and must be paid by end of July to PMI Company because it's in arrears. Origination says they can't collect 2 months cushion and 2 months needed upfront because it's against the law (this coming from their ORIG System software update that occurred around 2006). It makes the customer short and during escrow analysis their payment goes up because it's missing. What are we doing wrong upfront? Can they really collect this and put it on POC Line? Before that software update in 2006, they collected 4 months now they only collect 3.
Recently, an LO with poor judgment ran a credit report on a woman after an application from a man who claimed to be her husband, but key here is he was not going to be a co-borrower, he said his credit and income were bad, only his "wife" would be on the loan. Statement of Credit Denial went out, Risk Based Pricing Notices went out, woman is very upset. We ran her credit and says she is not married. Obviously, we goofed and there is peril here. What about joint applications where we speak to only one party and ask permission for pulling credit? Do we have to ask both parties if it is OK to pull credit?
We currently do not require escrow. We do, however, use a negative escrow situation for forced placed insurance and will be using it for payment of delinquent property taxes. (We previously added the amount to the principal). Is there any model/sample language that needs to be used in notifying these customers that their delinquent taxes will be due payable in 1/12 increments over the year with their mortgage payment?
Do the annual statement notice disclosures referenced in Regulation Z Section 226.20 apply to interest only loans and loans that the rate changes daily?
What are the 5 steps to receive an origination fee if we are selling our mortgage loans?
We have a loan to refinance a 1-4 family primary residence and purchase a 1-4 family non-owner occupied rental dwelling. The loan will be a high-priced mortgage loan. Will I escrow only for the insurance and taxes on the primary residence? Also, will this be considered a commercial loan to purchase a rental or a consumer loan to refinance a primary residence? Will I need a settlement statement for each property?
Is it still a requirement that all executive officer loans contain a "due on demand" clause as well as other normal terms?
We have an owner who will not be signing the note and just the mortgage. Should they sign the TIL along with the Right of Rescission?
What is the difference between a pre-approval and a pre-qualify for a home loan?