Most Popular Lending Content
Does A Townhome Require A Survey?
06/17/2013
Does a townhome require a survey?
Must Loan Officer Sign App Filed As Incomplete?
06/17/2013
Must a loan officer sign an application that has been submitted on line and is filed as incomplete?
Flood Insurance for Condo Under FNMA PERS Approval
06/17/2013
Question on Flood Insurance Requirement for a Condo with over 25% commercial space and under FNMA 1028 PERS approval:If a Condo project has over 25% commercial space, the condo will be consider as a Commercial Condo or Non-residential Condo, as per FEMA, and the said Condo is no longer qualified under the basic RCBAP coverage which I understand.Here is a condo in NYC and Lender stated the Flood Insurance is not sufficient and borrower must obtain their own Flood Coverage via NFIP.The condo has:<ol><li>Standard NFIP $500,000.00 Max Commercial Policy with $5,000.00 deductible;<li>Excess Flood Policy $160,000,000.00;<li>The Project has 453 Units and $250,000.00 min Flood Policy needed which is min Flood Requirement of $113,250,000.00;<li>Since Standard NFIP Max Coverage is $500,000.00 for Commercial or Non-Residential Condo, the Condo purchased additional $160,000,000.00 under Excess Flood Policy.</ol>Is the Flood Insurance of $500K with NFIP w/ $5k deductible + Excess Policy of $160 million enough and sufficient to fulfill the FEMA and FNMA Requirement or does the individual have to obtain their own flood via NFIP of max $250K?
Disclosing Seller Closing Costs to Buyer
06/17/2013
A seller is paying closing costs to the buyer. Do these closing costs need to be identified since some are APR fees and others are not? Can the lender issue a credit toward a portion of discount fees on the HUD1? Since origination and discount fees are APR fees, does the APR need to be reduced by the amount of the credit? Can the APR be over-stated by more than .125 since this is the borrower's benefit?
Sellers Prepaid Finance Charges for APR on TIL
06/17/2013
Should the costs the seller is paying show as prepaid finance charges for APR purposes on the TIL?