04/24/2006
Our loan officers frequently do not get a signed loan application on commercial loans. Do you know of any risk involved in not having one?
04/24/2006
The SCRA defines active duty and who is covered under the act. Would you be able to clarify scenarios in which documentation requesting the rate discount protection is supplied by a someone who lists their employer as the military, yet provides copies of orders? Is someone employed by the military always considered active? How does the act define servicemembers under this scenario?
04/17/2006
Currently, the appraisal fee for customers is paid by the bank, and disclosed as POC on the GFE. We will possibly be charging the fee for multi-family appraisals to the customer. How should the GFE be updated? Currently the GFE indicates Appraisal Fee #803 (POC). The fee will only be charged on multi-family/<WBR>investment properties. Also, in what time frame must the GFE be updated?
04/17/2006
We are a mortgage bank with a somewhat significant manufactured housing division. A question that continues to arise deals with whether a manufactured home is a purchase or a refinance if the borrower owns the land before purchasing the manufactured home. For our secondary market investors, we show the transaction as a refinance of the land loan with improvements. For compliance purposes, I view this transaction as a purchase or a residential mortgage transaction. As the land owner did not live on the land before purchasing the manufactured home and attaching that home to the land, the loan transaction to fund the purchase of a manufactured home to attach to the land should be a residential mortgage transaction, correct? Or is it a refinance and we are stuck with Reg Z's ROR and HOEPA requirements? Also, the manufactured homes have significant discount points to lower the rate which hurts for HOEPA if the loan is a refinance.
04/17/2006
What constitutes a bona fide personal financial emergency that would allow a borrower to waive the right to rescind? Also if a borrower elects to rescind, has not paid for the appraisal, but has received a copy of the appraisal, can the lender or appraiser collect for the appraisal? Can the lender retain any fees for services actually rendered such as document preparation?
04/17/2006
Are there limits on the amount a bank can charge a borrower for force-placed flood insurance? The Reg seems to leave it open, in that it says banks may charge the cost of premiums and fees incurred in purchasing the insurance.
04/17/2006
After the 3 day rescission period has passed on a HELOC, can we fund the line or do we have to wait for the "non-cancellation" section of the form to be signed, dated and returned to us? My understanding has always been that we can disburse after the three days as long as we have not received a "Wish to Cancel" back from the borrower.
04/10/2006
The Bankers Online webinar I attended a couple of days ago stated that flood insurance is required on construction loans prior to funding the loan. However, the insurance companies will not write the policy until the slab is poured. Can I have clarification on this?
04/10/2006
On a no cash-out refinance on a Home Equity Line of Credit, is a Notice of Right to Cancel required?
04/10/2006
I'm looking for some clarification on the Settlement date on the HUD-1, the closing date on the Note and Mortgage Deed, and the Rescission/Disbursement date. I'm thinking that the settlement date, the Note date, the Mortgage date, and the closing date are all one in the same. One of my co-workers is thinking that the settlement date should be the date the funds are disbursed which would be the date of the rescission. Is this correct?