02/11/2002
Our bank charges a non-refundable $350 mortgage application fee to all customers. If the loan is made, the settlement sheet reflects amounts paid outside of closing from this fee for the appraisal, flood report, and credit report. Recently, in a refinance situation, the borrower exercised his right of rescission and requested the return of his application fee. <a href="http://www.bankersonline.com/regs/226/226-15.html">226.15</a> and its <a href="http://www.bankersonline.com/regs/226/regzcomm.txt">commentary</a> indicates to me that we must return the whole fee. Is this correct? If so, are we ok in retaining the fee in a purchase application where the request is declined?
01/07/2002
We're having a difference of opinion at the office! When a loan has Right of Rescission, is the Date Finance Charge Begins the funding date (after Rescission) or the note date? In other words, if the customer does not rescind, can you charge interest from the date of the note or the date you disburse?
09/03/2001
Recently I ran into the following situation regarding the 3 day Right of Recission: Borrower is a business, loan was to be secured with the business property and the owners residence was used more as an abundance of collateral (largely because we have always taken it on previous loans). Do I need to wait three days to dispurse because of taking the residence? Or because it is a business transaction the recission doesn't come into play here.
08/06/2001
What compliance regulations apply to a loan to purchase a primary residence secured by vacant land titled in a business name?
03/05/2001
Is a loan for personal debt consolidation which is secured by rental property covered by RESPA?