Bio:
Dan is Vice President and Compliance Officer for The Peoples State Bank with its main office located in Ellettsville, IN and supporting nine branches in surrounding communities. The bank is a privately owned bank that began its existence in 1904.
Dan entered the financial services arena in 1974 when he went to work for Commercial Credit Corporation. He worked eighteen years with Bank One and three years with the Indiana University Employees Federal Credit Union. In addition to serving as a Compliance Officer, he has served as a Collection Officer, Consumer Loan Officer, Commercial Loan Officer and Loan Operations Officer. His primary duties falls within lending compliance, training and consumer loan reviews.
He attended Three Rivers Junior College in Poplar Bluff, MO and Arkansas State University in Jonesboro, AR. He is also a graduate of the ABA Bank Card School, ABA Commercial Lending School and ABA National Truth-in-Lending Compliance School.
Questions Answered
07/02/2023
Our customer is requesting a closed-end draw down loan secured by stock for college expenses for a grandchild. Our Loan Origination System does not have the capabilitry of calculating repayment term disclosures for draw down lines of credit.
Can we even proceed with this Private Education Loan as requested by the customer? There is no exception for draw-down loans, but disclosure requirements cannot be met.
06/18/2023
We recently discovered that we have a few ARM loans that were set up on our system incorrectly. The payment was not set to change when the rate changed. As a result, we have basically extended the amortization on these loans by not increasing the payment along with the corresponding rate increase. How would you suggest we rectify this error?
06/18/2023
I have a loan secured by property in a flood zone. It was originated 10 years ago, and therefore the flood cert exceeds the 7-year threshold.
I am documenting a modification to change the rate index from LIBOR to SOFR which is resulting in a rate increase. The loan amount/balance is not being increased, extended or renewed.
It is my understanding the rate increase/index change does not trigger a MIRE event, and therefore, I have no further requirements under flood associated with this modification. I am being advised that a rate increase (and payment increase) is included as part of MIRE ("increase").
While the regulation does not clearly state this, it is understood in the industry that this was not intended under the definition of MIRE. Could you confirm my understanding, and confirm I am not obligated to perform any further responsibilities under flood relating to this specific transaction?
03/19/2023
On the loan estimate, I input it as a balloon rather than installment which drastically increased the payment. Do I need to redisclose theis with a revised LE or do I make the correction in the closing disclosure?
01/15/2023
Under TRID rules the bank must send a copy of the appraisal three days prior to closing the mortgage loan. If the appraisal is sent electronically but the customer has not opened the email, has the bank met the regulatory requirements?
12/25/2022
Regarding (possible) ARM loan disclosures and terms, we effectively give employees a lower rate on their loan while they are employed here. What we do is disclose the fixed contract rate and they pay those scheduled payments. The system however, is programmed with the lower discounted employee rate and the loan just prepays and when paid long enough, pays off early.
If the borrower leaves our bank, we remove the discount from the system and revert to the contractual rate. The payment never changes except for the final payment which may then be less than scheduled.
Would this be considered an adjustable rate mortgage? Is this an acceptable way to handle employee loans?
12/18/2022
If we know a borrower's taxes will be much higher in the second year, are we allowed to use the higher tax amount when we establish an escrow account.........OR..........are we required to estimate the tax payment based on the amount the taxes will likely be the first year and depend on the borrower to VOLUNTARILY add escrow monies to the escrow account to prevent payment shock the following year?
12/18/2022
We have a purchase mortgage application that was approved with all underwriting conditions met. In review of the title run it was discovered the seller could not convey a clear title to the property. We did send the borrower a Notice of Action for Incomplete Application giving 10 days for clear title to be received. For HMDA purposes would the Action Taken be Approved Not Accepted or Denial?
12/04/2022
We have a HELOC that is going to pay off a tax lien on a dwelling. Should the purpose be reported as "Refinance" or "Other" for HMDA purposes?
12/04/2022
Does flood insurance need to be in effect the day before a loan closes or the day of is sufficient?
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