01/28/2013
Our bank recently decided to purchase Mortgage Blanket Insurance to use in event borrowers lapse on their hazard insurance on a mortgage the bank has secured as collateral so that the bank will have coverage for the ownership interest of the real estate. This insurance is obtained through an insurance agency which is a subsidiary of the bank. The borrowers of course will not be incurred a charge for this. Are we required to provide an Affiliated Business Arrangement? Is there any other requirement that we must do for this?
01/07/2013
Are appraisal reviews required on all new real estate loans that require an appraisal?
12/10/2012
If an individual uses their CD for collateral for someone else and is not a guarantor or co-signer, can we tell this person if the customer is delinquent or give any loan information on this loan? I was not sure how the privacy laws would work if they only pledged the collateral.
11/26/2012
We are doing a modification to a commercial loan with collateral in a Special Flood Hazard Zone. Our determination will be 7 years old in 2013. The maturity date of the loan is 2016. There are no new funds, the loan is not being extended just a rate change. Do we need a new determination? Also, if not, does a new determination have to be done upon the 7 year anniversary of the determination? Or, only if we extend, renew or add funds? The determination is life of loan.
09/03/2012
A question was previously posted in regards to HMDA Reporting for Property Purchased with Cash. Specifically, the question states: "We have a business customer that purchases property for cash, then applies for a mortgage loan using the property as collateral. Is this a HMDA reportable loan or not; if so, what is the purpose? He is not improving the properties. Should we consider this a refinance?" The answer provided states that it is not a refinance. However, it does not specify if its considered a purchase or if it is not HMDA reportable at all. Please let me know if this is HMDA reportable and if so, if it considered a purchase.
08/06/2012
A customer wants to pledge Certificates of Deposits from other banks as collateral for a loan at our bank. Where do I find forms and what are disclosures? $100,000 10years monthly payments set up like a mortgage payment.
07/23/2012
The purpose of the loan is to provide funds to place a down payment on a primary residence. The collateral is a second on a residential property that they rent out. They plan to sell their current primary residence. Term is a 36/180 balloon. Do early disclosures apply?
06/18/2012
I need the legal definition of owner occupied. I processed a loan recently for a business and our collateral was vacant land. I was told this would be considered owner occupied because the borrower owns the property. After 15 years as a loan processor, I have NEVER heard it explained this way before. I was told owner occupied is not related to whether the owner lives there, or not.
06/11/2012
We are making a loan to a person to build a new home, but the collateral is their daycare business. Since it is a consumer purpose, does Reg Z apply?
05/28/2012
Where can I find information on the use of IRA as collateral for a commercial business loan?