We do lot loans to consumers. I was told I needed to furnish the consumer with a Good Faith and Truth in Lending on a lot loan. Is this correct? Do RESPA & TILA apply to lot loans?
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Does the floor and ceiling rate need to be on the actual note or a separate form of disclosure?
Our mortgage lending firm over-discloses the TIL on all loans so that we do not have a potential under-disclosure issue causing us to re-draw documents or refund the borrower. A buyer of our loans in the secondary market just told us that we couldn't do this as a practice. Are they right? Are we doing something wrong?
When modifing an ARM note, to lower the interest rate or lower the margin, what all should be done? Also, does the modification need to be recorded since an ARM deed of trust has rate and margin info on it? Do we also need a ARM Ryder. Do we need a new ARM Disclosure?
What is the time frame after a real estate loan closes to redisclose the annual percentage rate if a error was made at closing? What is the allowable tolerance percentage on the APR disclosure?
Our Loan processor has added the capability to print out the FACT Act Negative Notice Disclosure with the new loan paperwork. The Negative Notice is a separate document. My concern is the Notice would be considered being included in the initial disclosures. I understand that the Negative Notice could not be provided with the initial disclosures under the Truth in Lending Act.
What fees are included in the APR? We are currently charging a Documentaion fee of $100.00. Should this fee affect the APR if it is being financed?
During a recent examine we were found to have some Reg Z violations concerning a $50 doc fee we were charging. We are going to have to refund part of the $50. We are looking for an example of a possible letter we should send the customer explaining the refund. Do you have any examples or suggestion to find one?
Of all the settlement fees that can be found on a HUD and GFE, which ones should be marked as a prepaid finance charge? Or, if it's easier, what shouldn't be marked as a prepaid finance charge?