11/17/2003
Is there a specific cure when it is discovered that the initial escrow account disclosure was not provided at closing or within 45 days?
09/15/2003
On a mortgage TruthInLending disclosure, there are two boxes to check that i am not sure about. One is the "REQUIRED DEPOSIT: The APR does not take into account your required deposit." The other box is "DEMAND FEATURE: This loan has a demand feature." Does the "required deposit" refer to the items deposited with the lenderthe escrow account. or does it refer to the downpayment on a purchase transaction? Does the "demand feature" refer to a balloon loan?
09/08/2003
At our bank we open Escrow Trust Accounts. Our customer is the Escrow Company and they are opening accounts under their client's name and social security number as a trust. We are only obtaining the name and social security number of these individuals. Are we obligated to ask the escrow companies for more information on their clients, such as their address and date of birth and identification?
07/21/2003
I am currently performing an audit on escrow analysis. I am having difficulty in one area and would appreciate any assistance you may provide. Section 3500.17(d)(1)(B) states "...add to the first monthly balance an amount just sufficient to bring the lowest monthly trial blanche to zero, and adjust all other monthly balances accordingly." When I view Appendix E for an example, I am confused because the balances they end with under aggregate analysis is not zero, which I feel would be appropriate. However, they end with a balance of $780 (NOTE: we do not apply a cushion). How does this affect the surplus refund of $50 or more at the end of the computation year? Is this surplus on top of this adjusted balance to eliminate any negative balances or is the surplus referencing the ending balance?
07/01/2003
Each year the Federal Reserve Board updates the Official Staff Commentary to Regulation Z, Truth in Lending.
01/20/2003
Our Bank is investigating the possibility of no longer tracking insurance on improved real property under a Blanket Mortgage Security Policy we currently have in place. Provided that the Bank: 1) verifies insurance coverage at closing by obtaining a copy of the Declaration Page (i.e., Evidence of Property Coverage); 2) notifies the mortgagor once a year of the requirement for insurance and; 3) force places coverage for those properties known to be lacking coverage , we feel we do not need to track insurance for improved real property and equipment and inventory residing at the real property location once initial evidence is obtained.My question is by doing this, would we meet all Regulatory Compliance standards as far as flood insurance is concerned? Also, how common is this practice of 'not tracking insurance'?
12/01/2002
The Federal Reserve Board staff has held constant and issued a proposed update to Regulation Z's Official Staff Commentary in time for the holiday mail.
10/01/2002
The new rules on HOEPA, or high-cost loans, took effect on October 1, 2002.
09/16/2002
I have been reviewing the area of what is included as finance charge. I discovered that I may have the incorrect interpretation regarding premiums for private mortgage insurance. There is no indication as to the number of premiums to include as part of the finance charge. We have always used the premiums collected at closing, which would be included as part of the escrow. I have received information that it should be the premiums for the whole term, however one year would be accepted by the examiners. Can you help clarify this?
06/09/2002
By Howard A. Lax, Esq.
Lipson, Neilson, Cole, Seltzer & Garin, P.C.
Troy, MI