Most Popular Lending Content
RESPA Referral Fees
10/18/2004
Our Internet branch has proposed a new idea, but I am worried about violating RESPA’s "referral fee" and "splitting fee" regulations. They want to recruit tax preparers (during their off season) to "team up" with our loan officers. The tax preparers would call their tax clients and offer to assist them with their mortgage needs (purchase loans, refinance loans, etc). The tax preparer would then take down personal information (i.e. income, assets, debt, etc) and give the information to their loan officer teammate. The loan officer would then do the rest of the work (i.e. final application, processing, etc). Once the loan funds, it is proposed that the tax preparer would receive 20% of the loan officer’s commission. Is this a violation of RESPA?
Proper Completion of the HUD-1
10/18/2004
It was mentioned at a webinar that the property taxes collected at closing need to go on line 1003 of the HUD-1 Settlement Statement but also on a line in the 800 section. Could you further explain what is supposed to be put in the 800 section?
HMDA MSA Boundaries - Mary Beth Guard
10/11/2004
HMDA MSA Boundaries
Answer by Mary Beth Guard, BOL Guru
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Discussing Credit Report Information
10/04/2004
How much information can a bank representative discuss with a loan applicant regarding their credit report without any lending regulations? I've heard everything from "nothing" to all but providing a copy to the applicant.
Late Fee Begets Late Fee
10/04/2004
If a customer makes a payment from his scheduled payment book, but it arrives late, the bank charges a late fee. The bank now deducts a late fee from the next scheduled payment, and this continues to roll every time the customer is late, which forces the account to go delinquent each month. This customer went through a bankruptcy 4 years earlier, so the bank has not communicated with them in the form of an annual statement of account, annual terms and agreements, or privacy notice, even though the customer did not include this loan in the bankruptcy and never missed a payment. Now their account is reporting 7-8 months of 30 days late. Has a violation occurred?