On the HUD-1, where are we supposed to put the property taxes? We require the customer to pay his taxes and also homeowner's insurance. I am a little confused as to where to list this on the HUD. We were told not to put it on the GFE, so I want to make sure we are listing it on the HUD-1. If the title company put taxes on the front to show taxes paid in full for sale, do we also have to list this on the back of the HUD-1?
Is a lender required to have its borrower increase the flood insurance coverage he has, if at the time of renewal of the flood insurance policy, the replacement cost/value of the building(s) has increased (assuming the lesser of the three criteria was and remains the replacement value)?
An audit said our 5/1 ARM TIL had a payment stream for a 30 year fixed. It disclosed: 359 payments @x and 1@y. I tend to agree. Our 5/1 arm is fixed for 5, adjusts annually thereafter withh a 2% annual cap and a 10% lifetime cap; it also has a floor rate. Our TIL vendor claims that because the index plus margin is so low, (it is below the floor rate and may even remain below the floor rate for the first ARM adjustment even when factoring the 2% annual cap), the TIL is based on the floor rate. I'm no expert on calculating payment streams, but I don't buy this argument. Any advice on what the proper payment stream should look like?
We have a third-party insurance agency housed at a couple of our branches. We would like to refer mortgage loan customers to them for their homeowner's insurance. If the insurance company pays a referral fee to the mortgage lender, will that be a Section 8 violation of RESPA? What if the bank pays the referral fee?
Regarding the new GFE form, section 3: required services that we select: Q 1. How should the services be shown on this form? 1- Appraisal only, or 2-Appraisal along with the Servicer's Name or only the Servicer's name? Q.2 On the Settlement Services Provider Statement, under Services, exactly which services should be listed here, and under company information, should this be the Company Name? Q.3 Where can I go to print a fully completed form for both of the above that will show how services must be shown?