08/01/2002
Question: For construction loans, we engage an outside party to perform inspections as construction progresses. Usually the customer pays the outside party directly.
08/01/2002
HUD has published a proposal to make significant changes to the Good Faith Estimate that lenders issue within three days of taking an application. HUD calls this a "simplification" of the GFE.
08/01/2002
HUD's proposal to revise the Good Faith Estimate is a significant turning in the regulatory process.
07/15/2002
I have a question regarding loans that we purchase and service: Our Lending Compliance person was reviewing loans purchased and noticed that a loan was missing a GFE. From a compliance standpoint, are we required to follow-up to obtain the GFE and any other missing documentation? How does missing documentation on purchased loans sit with the examiners?
07/15/2002
The FDIC recently completed a compliance examination at our bank. TheCompliance Report of Examination identified significant violations ofRESPA. In the first violation the bank was cited for not detailing thenames, addresses, and telephone numbers of each lender-designatedservice, [Section 3500.7(e)(1)(iii)] and for not describing the natureof any relationship between each and the bank [Section3500.7(e)(1)(ii). In the second violation, the bank was cited forproviding mortgage servicing disclosure statements that did notdisplay the bank's servicing transfer record for the most recent threecalendar years [Section 3500.21(b)(3)(ii)]. Finally, in the thirdviolation, the bank was cited for having five mortgages that containedGood Faith Estimates and HUD-1 or HUD-1A statements that did notreflect an estimate for hazard insurance.I am new to the compliance arena and I have been assigned the task ofcorrecting these violations. Since these mortgage loans are already onthe books, should the bank issue "correct" Good Faith Estimates,Servicing Disclosure Statements, and HUD-1 or HUD-1A's that reflectestimates for hazard insurance? Or should the bank take note of theviolations and not make any corrections because this problem is akinto "closing the barn door after the horse has already left"? Anyrecommendations that you can offer to correct these violations iswelcomed!
07/15/2002
Is there a matrix out there (Mary Beth probably has one!) that charts APR issues like if a fee falls into what category: fee, finance charge, and prepaid finance charge, or exempt/excluded? I tried to sit down with Reg Z and make one for our bankneedless to say, I am now emailing you.
07/01/2002
No matter how you count or measure compliance risk, Truth in Lending has led the list for decades. The number of errors that translate into violations is always high.
07/01/2002
Is there a simplified summary of the current, pending HOEPA changes/regulations, pertinent to a mortgage nondepository lender?
06/17/2002
I have a question regarding loans that we purchase and service: Our Lending Compliance person was reviewing loans purchased and noticed that a loan was missing a GFE. From a compliance standpoint, are we required to follow-up to obtain the GFE and any other missing documentation? How does missing documentation on purchased loans sit with the examiners?
05/06/2002
I have read the article by Mary Beth Guard on <a href="http://www.bankersonline.com/operations/cissoffsets.html">"Offsets Against Social Security Payments"</a>. At the end she asked two important questions, which have triggered questions I have. 1) Aren't Overdraft privileges and outstanding overdraft fees, extensions of credit? and therefore, 2) What about Reg B a) cannot discriminate on basis of Age (over 62), most SS recipients are over 62; and b) part or all of income derives from public assistance (both SS and SSI are public assistance)? Can you clarify these issues?