03/28/2011
Under Reg O for executive officers, does the term "residence" refer only to the executive officer's personal residence; or can they borrow above the threshold for any residence they own (example rental property being a 1-4 family residence). If they are permitted to borrow for the purpose of rental property (1-4 family); is the bank allowed to loan for their personal residence and a second loan for rental property, or another example two separate loans each secured by separate residential rental properties (1-4 family)?
03/21/2011
Is a commercial revolving line of credit used to purchase and renovate residential properties for resale HMDA reportable? The collateral will be 1st lien on properties acquired.
02/14/2011
A local attorney has informed one of our bank officers that the SAFE Act would require a lender to be a registered mortgage loan originator in order to close loans for lot purchases (land only). I haven't heard that in any of the seminars I have attended. Is this true?
02/07/2011
In a first lien home equity loan against a dairy and primary residence where the funds are to pay commercial taxes, not for a consumer purpose, would the escrow requirements under the HPML come into play?
01/24/2011
We are trying to clarify an item from the Official Staff Commentary of Reg C - 2(g) Home Improvement loan. The commentary indicates “Classification requirement for loans not secured by a lien on a dwelling. An institution has “classified” a loan that is not secured by a lien on a dwelling as a home improvement loan if it has entered the loan on its books as a home improvement loan, or otherwise coded or identified the loan as a home improvement loan.” We have not reported any loans to our Call Report as home improvement nor are any identified as home improvement in our underwriting summaries or on our core system. However, in review of loan notes, the purpose is stated to be for a "new roof", but not specifically home improvement and it’s not "classified" as stated above as home improvement. The loan is for a condominium complex with assessments as collateral. Should this loan be included on the HMDA LAR as home improvement?
01/17/2011
Does the right of rescission apply on a HELOC if it will be a first mortgage?
11/22/2010
If the purpose of HMDA is home improvement, should this only be if it’s home improvement, or should this apply any time the loan is not secured, but still has a HMDA purpose?
11/01/2010
Reg. Z defines an HPML as "a consumer credit transaction secured by the consumer's principal dwelling with an annual percentage rate that exceeds the average prime offer rate for a comparable transaction as of the date the interest rate is set by 1.5 or more percentage points for loans secured by a first lien on a dwelling, or by 3.5 or more percentage points for loans secured by a subordinate lien on a dwelling". Can a loan with an APR equal to the APOR plus 1.5 or 3.5 (as appropriate) be considered to be an HPML, or must the rate exceed the APOR plus 1.5 or 3.5? Am I over-thinking this?
10/04/2010
Manufactured housing loans where the MH is permanently attached to real estate per FHA guidelines and where the MH titles have been vacated - these loans clearly are subject to RESPA. The lender is secured by a real estate mortgage as the MH is considered as being a part of the real property and is no longer personal property. Here is where some confusion lies: RESPA appears to be clear that MH loans are exempt unless the MH has been permanently affixed to the real estate, so what is the definition of permanently affixed? It used to be that for a MH to be considered as being permanently affixed to real estate, the MH had to be set up per FHA’s foundation requirements, tong, axles, etc., removed and titles vacated by the state. However, there is confusion in cases where a lender finances a manufactured home that has titles, is not affixed to the real estate per FHA permanent foundation requirements, but is simply set up per local requirements and where the lender takes a mortgage on the land where the MH is placed. A MH with land does not mean that the MH is permanently attached to the real estate, so the heart of the question is simple: if a lender takes a lien on a MH and also takes a mortgage (as additional collateral) on real estate where the MH is located, but not permanently affixed, is this covered by RESPA or not?
09/13/2010
I need to know where can I locate the regulation that instructs me on the specific disclosures that I need to gather in order to compile a disclsoure checklist for a compliance review. This would pertain to first lien residential mortgages for purchase and refinance transactions.