Should an Operating Agreement be required for all loans made to an LLC?
We have a borrower who has a Guidance Line of Credit that is used to purchase Single Family Residences for investment purposes. He doesn't rent them out but merely flips them. Are these loans HMDA reportable?
We have a loan to an LLC that is up for renewal. It was originally a construction loan secured by a spec home. The builder could not sell the home and is now living there as his primary residence. Can we renew the loan in the name of the LLC as a business purpose loan or do we have to change it to consumer purpose and fall under Reg Z and RESPA?
We want to put hold message on our phone system discussing a lending product. If the on hold message mentions any trigger terms, do we have to comply with disclosure requirements in the message?
During a recent audit, I came across a consumer loan file where the application date and disclosures were not matching up. After questioning the lender, it turns out thethat customer initially applied for a HELOC, but then about a week later changed his mind about the product type, and went with a HE closed loan. I told the lender we should have kept the initial documentation for the HELOC in the file and noted that there was a product change on xx/xx/10, so that there would not be any questions on if the appropriate disclosures were provided to the customer. The lender stated that the application for the HELOC was withdrawn, so that documentation was not necessary to keep in the file. I didn't feel this was indeed a true withdrawn application on the initial product request. What do you think?