02/14/2011
Can I do a personal loan using a vehicle title and a Deed of Trust to a primary residence without having all the mortgage disclosures?
08/02/2010
On Oct 5, 2009, Dan Persfull responded to a question regarding the new seven business day waiting period under TILA. He responded by stating that the seven days start the day after the disclosures are delivered or placed in the mail. However, commentary to Reg Z states that the seven business days start the day disclosures are placed in the mail. Please clarify.
03/29/2010
We have a mortgage preapproval program as defined by 203.2 - a preapproval program as a request for preapproval for a home purchase loan is an application under paragraph b(1) of this section if the request is reviewed under a program in which the financial institution, after a comprehensive analysis of the creditworthiness of the applicant, issues a written commitment to the applicant valid for the designated period of time to extend a home purchase loan up to a specified amount. Section 3500.2 defines an application as the submission of a borrower's financial information in anticipation of credit decision relating to a federally related mortgage loan, which shall include the borrower's name, the borrower's monthly income, the borrower's social security number to obtain a credit report, the property address; an estimate of the value of the property, the mortgage loan amount sought, and any other info deemed necessary by the loan originator. The six items to trigger a GFE requirement are property address, loan amount, monthly income, estimated value, borrower name, and social security. Since a property address is not known on a preapproval, is a GFE required? What if we request verification of income? Does that not trigger a GFE on a preapproval even if the property address is unknown?
01/31/2010
The Q&As below are those that were added by HUD January 28, 2010
11/10/2009
This is a compilation of links to some of the liveliest recent threads relating to the lending compliance challenges bankers are dealing with at this time.
03/09/2009
I have heard that a new truth in lending pre-disclosure will be required next year, but I don't see anything about it in the regulation. Will this be required and if so, where is it stated?
01/12/2009
The interest basis on a consumer loan (under $25,000, non-real estate secured) is documented incorrectly at 30/365 when it is supposed to be 365/365. Would a modification to the note suffice or would this require redisclosure? Should it be redrafted as a new loan?
11/10/2008
When is an early TILA disclosure required? I was just told only on a purchase. When did that change?
06/23/2008
Is it permissible to list a lender credit on page 1 of the HUD-1 when the lender credit is designed to offset the closing costs? If so, what are the limitations or risks that one should consider? My concern is that a lender credit on page 1 of the HUD-1 creates the potential for noncompliance with TILA and RESPA, specifically in regards to overstating the APR on the final TIL and not fully disclose the details of the transaction on the HUD-1. My current position is that if a lender credit is proposed, then the closing costs (specifically 800 and 1100 series fees on the HUD) should be paid by Lender, up to the amount of the proposed lender credit, eliminating the need for a lender credit on page 1 of the HUD-1. That approach gives me comfort that the APR and transaction details are accurately stated on the TIL and HUD. I am getting a lot of push back from business partners and title companies, especially in connection with FHA streamlines. Any guidance on the permissibility of, limitations on and risks associated with a lender credit and my current position would be greatly appreciated.
03/10/2008
Should a non-borrowing spouse ever need to sign a Truth In Lending for an interim construction loan for a secondary residence or for a home purchase for that matter?