10/10/2008
02/18/2008
Does a HELOC loan need ARM disclosures? Does a HELOC disclosure on a previous HELOC for the same customer suffice for a new HELOC or do you need a new disclosure? Does the ARM booklet go out with a HELOC loan?
07/02/2007
Are loans for small farms on which the borrower also maintains a primary residence considered agricultural loans or home loans subject to TIL (Reg Z) and if they are on less than 25 acres, RESPA? For instance, if a borrower with his residence and a walnut orchard on 30 acres applies for a refinance of his residence and orchard with an adjustable rate loan, would the loan require early ARM disclosures, interest rate disclosures and the right to rescind? Would the loan be exempt from Reg Z because of the agricultural nature of the property? In the same instance, if the property was 24 acres, would the loan also be exempt from the requirements of RESPA due to the agricultural nature of the property?
04/30/2007
During an internal audit, 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? What are all of the compliance ramifications such as TIL, restitution, etc.? We have an exam coming up and would like to show examiners that we have identified this error and corrected it.
03/05/2007
On an ARM loan, a rider is attached to the mortgage and both are recorded. Is it a requirement to disclose the interest rate on the rider? I can't locate any Reg stating the rate must be or does not have to be disclosed on rider. What Reg can you refer me to?
08/21/2006
All our applications are taken by telephone. For compliance, what would be the trigger date for the disclosures? Is it the date of the credit report, or would it be the date the borrower accepts the program and the application is considered completed and signed by the loan officer? An application could be taken today and credit pulled, but sometimes it takes more than 3 days to find a qualified program and/or before the borrower accepts the terms. Please advise.
01/16/2006
I've been constantly running into a "You are not in compliance" issue in the company where I started working recently. Let's say I sent the application package to my client dated 12/01/2004. The client send the signed and dated package back one month later. My processor is insisting that the client should've dated it within 3 days. Otherwise, it's not in compliance. I think it does not make sense. If I send the package by regular mail it can take 5 days to deliver it, not to mention that the client may not sign it right away, and then it will take another 5 days to get the package. Please explain this 3 days compliance thing. I don't think my processor is interpreting it correctly.
01/01/2006
The financial regulatory agencies have issued joint guidance on nontraditional mortgage products.
09/19/2005
I would like the formula used to manually calculate the APR for both fixed and ARM mortgages lending that meets Reg Z, TIL compliance.
09/19/2005
We are currently in the process of starting a loan servicing/credit administration division in our $237 million dollar community bank. What are the major issues that we need to ensure are covered? Our division is going to handle everything related to a loan in the post-closing stage to payoff.