Most Popular Lending Content
ROR Required on Streamlined Refinance?
12/09/2018
Is a Right of Rescission required on a streamlined refinance when only closing costs are being added to the loan? There is no cash out to the borrower.
Adding Co-Borrower After Closing Disclosure
12/09/2018
If an early Closing Disclosure has been issued and the borrower now wants to add a co-borrower, what are the compliance issues that need to be reviewed? Under Reg Z, is there a new 7 day waiting period to close due to a 'new' application' with the co borrower? Do we go off of the date of application of the 'co borrower' or the original primary borrower application? This is not technically a changed circumstance, but if no fees are increased that break tolerances, nor a program change, is there an issue?
Executive Officer-Modifying Loan Contracts
12/09/2018
In the first quarter 2018 I was added as an executive officer for our bank. I currently have a home loan, a HELOC and a vehicle installment loan with our bank which were all originated prior to my becoming an executive officer. The aggregate amount owed is under $100,000. The home loan and HELOC will balloon in the coming year. Am I correct that the Reg O demand clause is not required to be added to my loan documents until the loans are renewed, extended or modified or should my loan contracts have been modified when I became an executive officer?
Child Support/Income-Reporting on HMDA LAR
12/09/2018
We have a loan application in which the borrower told us they earn $8,000 and receive $1,350 in child support. We have the divorce decree to verify the child support but nothing to verify the $8,000 of income. The borrower withdrew their application. What income should be reported on the HMDA LAR?
TILA-RESPA Integrated Disclosure-CloD
12/09/2018
While researching the May 2018 TILA-RESPA Integrated Disclosure rule Small Entity Compliance Guide, I found this in section 10.8: "Seller-paid loan costs and other costs are required to be disclosed on the consumer's CloD, regardless of whether a separate CloD is provided to the seller. Seller-paid real estate commissions are one example of seller-paid costs that may not be omitted from and must be included on the consumer's CloD. 1026.38(g)(4); Comment 38(g)(4)-4. Additionally, non-commissioned real estate brokerage or agent charges for services to the seller or consumer are required to be itemized separately, with a description of the service and an identification of the person ultimately receiving the payment. Comment 38(g)(4)-1 and - 4; 1026.2(a)(11) and (a)(22)." In the May 2018 TILA-RESPA Integrated Disclosure Guide to the Loan Estimate and CloD forms I found in section 3.4.3 on page 91: "A separate CloD can be provided to the consumer and the seller to do not reflect the other party's costs and credits by omitting certain disclosures on each separate CloD (1026.38(t)(5)(v), (vi), (ix)." This appears to contradict the compliance guide. Does the seller’s information need to be on the CloD and is this new? We thought that if you disclosed on separately disclosures and we had both, the borrower’s and the seller’s, in the loan file we were in compliance.
