05/17/2010
If an individual uses his personal residence as collateral for the purchase of a rental home, is this a business purpose under HMDA? If not, how do I show his approved application (loan not closed/funded) on the LAR?
04/26/2010
Do the borrowers have to sign the Notice to Home Loan Applicant? This is with regard to home improvement loans or second mortgages. If the bank regulators come in to audit the lender that originated the loan, will a signed copy have to be in the file?
04/19/2010
In 10/09, a customer refinanced a home equity loan, no cash out. Does that mean he cannot do another loan involving his primary residence for at least twelve months, due to “once a home equity, always a home equity”, or is the twelve month rule just on the original loan, not a no cash out refinance of the balance? Would he be eligible for a reverse mortgage or HELOC at this time, or does the original home equity status of the loan prevent those options?
03/22/2010
Our bank will be reporting Home Equity Lines of Credits for HMDA. Although we are not certain what the guidelines are for the loan amount, we understand we have to report only the amount intended for home improvements. For example, do we use the amount they draw at closing? Please clarify how to determine what amount to use.
03/22/2010
If we make a loan to consumers for the purchase of HVAC system (home improvement) and file a UCC-1 financing statement on the specific equipment and the real estate (include legal description and file in real estate records), I believe this loan would be subject to HMDA and RESPA. Am I correct?
03/01/2010
Are All Home Equity Loans HMDA Reportable?
08/10/2009
A customer recently purchased a second home, with the intentions of it becoming his primary residence after renovating. We did not finance the purchase money, but made the improvement loan. Upon the sale of their current primary residence, they will pay off the improvement loan. The term is one year. The loan officer treated the loan as investment property, stating "not homestead...not subject to RESPA." I find only one sentence in Sec. 3500.5 that would exempt this transaction from RESPA regarding "Any construction loan for new or rehabilitated 1- to 4-family residential property...is subject to this part if its term is for two years or more." Everything else I read indicates that this transaction is subject to RESPA. Am I correct? We are not a HMDA reportable bank, but it also looks like obtaining GMI applies. Can you please advise on both issues?
07/20/2009
A customer recently purchased a second home, with the intention of it becoming their primary residence after renovating. We did not finance the purchase money, but made the improvement loan. Upon the sale of their current primary residence, they will pay off the improvement loan. The term is one year. The loan officer treated the loan as investment property, stating "not homestead...not subject to RESPA." I find only one sentence in Sec. 3500.5 that would exempt this transaction from RESPA regarding "Any construction loan for new or rehabilitated 1- to 4-family residential property...is subject to this part if its term is for two years or more." Everything else I read indicates that this transaction is subject to RESPA. We are not a HMDA reportable bank, but it also looks like obtaining GMI applies. Can you please advise on both issues?
04/27/2009
What is HMDA reportable for commercial loans? Is a revolving line of credit secured by the principal's home reportable?
04/27/2009
I have a new commercial loan with the purpose of refinancing an existing loan (secured by mixed use property) and to purchase a Condo investment property. The mixed use property has a 1-4 dwelling on it, but also has commercial buildings on it as well (a catering business). The commercial buildings have more square footage than the 1-4 dwelling. Is this commercial loan HMDA reportable? The new loan is not a LOC, but is a one time disbursement with PandI monthly payments.