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COMPLIANCE CALENDAR
11/01/2005
NOVEMBER
Shopping Dealer Paper under the FCRA By BOL Guru John S. Burnett
10/26/2005
Shopping Dealer Paper under the FCRA
By BOL Guru John S. Burnett
Why 'Replacement Value" Flood Coverage?
10/17/2005
Why are some lenders now requiring flood insurance coverage for the "replacement value" of the home rather than just the loan amount?
Spin the Prize Wheel
10/17/2005
At a grand opening or moving project, we would like to use a prize wheel. The prize wheel would only have items that range in value from $1.00 to $25.00. The $25 items obviously being the single panel on the wheel. If anyone who spins the wheel is guaranteed some specialty object or prize, can we use it at an event? In other words, there would be no “Lose Turn” or “Bankrupt” as seen on TV. Prize wheel gifts will be changed on a regular basis. And, in order to be able to spin the wheel you have to bring in the direct mail piece. No account existing or new account is necessary in order to participate. Is this a problem?
Rescission and Purchase in One Loan
10/17/2005
When closing a new loan using the existing residence as collateral to purchase additional acreage, the right of rescission applies. When do you have the sellers sign their documents, since we will only have one loan, but it has the new property as collateral as well? The same day as borrowers' initial signing, or when the loan comes out of rescission? The concern I have is that if the customers sign a mortgage on a property they do not own, what happens if the seller decides not to sell when we are in the rescission period? Other instititutions have waited until it is out of rescission, and then have the seller sign a separate HUD along with the borrowers, showing the date it came out of rescission. Our compliance officer states the seller must sign the same day as the initial docs are signed.