09/20/2010
We estimated fees incorrectly on our original GFE because we inadvertently left out a charge. This put us outside the 10% tolerance, so at closing, the HUD-1 was prepared so that the bank paid the entire fee that was in question, thinking that this cured the tolerance violation. Do we still have to refund money to the borrower, and if so, how much? If we still must refund something, is it the total fee that was missed, or is it only the amount that put us over the 10% tolerance level? If we have to refund money and issue a revised HUD-1 to show this penalty amount, where do we show this on the revised HUD-1?
09/20/2010
Real estate taxes are not required to be on the new GFE, but what if the loan is a refinance, and because of the timing of the closing I anticipate that those taxes need to be paid at the time of closing?
09/20/2010
For a construction loan with construction phase terms of 6.19% for eight months interest only, with balloon payment at maturity with a final take out of a 3/3 thirty year ARM, what should be on the initial GFE, construction HUD-1, and at take out closing? Should these now be treated as two separate and distinct loans to insure tranparency, or can the GFE include the construction terms and the take out terms that will occur eight monthes later?
08/30/2010
There was a technical error on the initial disclosure. The amount of insurance and taxes were understated and the total amount was incorrect. Is this a RESPA violation? If so, is there a cure provision?
08/23/2010
Settlement/closing fees are calculated in the APR. If the borrower chooses his own settlement company, which is not on our list, and they have a flat rate closing fee that kicks the APR into HPML status, and we don't do HPML, can we require the borrower to use another settlement company?
08/16/2010
When doing a one-to-four family construction loan, with a permanent and a one-time closing, when do we collect the escrow cushion - at closing or in twelve months when construction is complete?
08/16/2010
What real estate tax figure should be used when completing the initial escrow statement, last year's paid amount or the estimated tax amount? Last year's paid taxes were based on unimproved land; the estimated taxes for the current year are based on the improvements made.
08/09/2010
If Home Equity Lines of Credit are exempt from RESPA, are we required to provide an Affiliated Business Arrangement?
07/26/2010
We have a couple of tech-savvy lending officers who regularly post to personal blogs. We have a policy requirement that their blogging must include disclaimers that they are expressing personal opinions only and not writing on behalf of the bank.However, occasionally they may mention a bank product or service ("My bank offers a 35-year fixed rate loan" appeared in one of the blogs last week). Can their blogs be considered advertisements with trigger terms and compliance issues for the bank? Do we have to control what they post?
07/05/2010
Our bank is brand new to escrow. We will use Oct. 31 for our aggregate analysis date. For loans closed on all other dates besides Oct. 31, what is the rule for issuing short year statements to get all loans on the same computation year schedule? If we close a loan in August, can we wait until the following October to do analysis?