12/11/2006
On HELOCs and fixed HEs, if the property is in a flood zone, are there any special exemptions from tracking flood insurance for these customers? Do you assume the first mortgage holder will monitor and escrow for insurance coverage? Since we do not escrow for second mortgage loans, how can I effectively guarantee that the customer or first mortgage holder is keeping insurance in force?
11/20/2006
We are trying to comply with the FDIC SCANS bulletin # Chiro-04-2001 however we are having difficulty finding clarification as to exactly what is required. The FDIC is citing violations for the lack of disclosure of hazard insurance and taxes on GFEs and HUD-1 in a second lien and/or refinance transactions where adequate coverage is already in place and the bank does not require additional coverage or escrow for these items. The bulletin states that if the bank requires these items to be in place, they must be disclosed on both the GFE and the HUD-1 as paid outside of closing (POC). My first question is does the requirement apply to both hazard insurance and taxes? And secondly how are these items disclosed on the GFE and HUD-1, (i.e., are estimates based on current year totals divided by 12 months acceptable)?
10/23/2006
Besides the annual privacy disclosure are there any other disclosures required to be provided to customers annually?
10/16/2006
If taxes or insurance are due within 90 days of closing (example: a loan closes in August and taxes/insurance are due October 1st and assuming the borrower establishes an escrow account), is the lender responsible for paying these items at closing or can the escrow account be set up collecting 13 months and the investor can pay these items?
04/24/2006
I need to find information regarding each U.S. state's regulations regarding real estate loans. RESPA gives guidelines regarding escrow accounts and fees, but gives each state the ability to overrule the rules if they favor the borrower. What is the best/easiest way to research what rules each state abides by?
04/03/2006
We have a customer with a mortgage loan who did not want to have the bank escrow for taxes and insurance when the loan was originated. The customer now wants the bank to escrow these items. Can the bank provide the customer with an initial escrow disclosure, and a HUD-1 indicating the cushioned amount without having to provide any other additional disclosures, and still be in compliance with all of the other regulatory disclosures (i.e. Reg Z)?
02/27/2006
RESPA - in the answer by Dan Persfull to a question about RESPA forms, he mentions a short form Servicing Disclosure statement. I am aware that several years ago this was proposed, but I did not see a final rule come through the Federal Register. Could Mr. Persfull please provide the cite for the use of the short form disclosure?
02/06/2006
Is it necessary to disclose ad valorem/real property taxes on non-purchase loans? We never escrow this because the customer is required to keep taxes and insurance current. If it is a good practice to disclose this (POC) as we do hazard insurance, then how exactly is it disclosed? Is the tax amount that was paid for the previous year what is disclosed?
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.
09/01/2005
Several years ago, HUD published a proposal to revise the Good Faith Estimate required by RESPA. The proposed changes were significant.