05/05/2008
The bank made a commercial loan that included a 1-4 family dwelling as an abundance of caution. The commercial customer is now refinancing the commercial loan and the 1-4 family dwelling will again be part of the collateral package. Should the loan be reported on HMDA as owner occupied? The owner of the property is occupying the dwelling, however, the vesting of the property is not in the borrower's name. If it is owner occupied would government monitoring be required?
04/14/2008
We are offering to lower the interest rates on existing mortgage loans for our good customers. Do we need a new disclosure signed by the customer?
09/17/2007
When we do an in-house renewal of a real estate loan secured by a dwelling we get a new note signed, issue a new loan number and do a modification to the original deed that we hold. We do not extinguish the deed and prepare a new one. Would this still be HMDA reportable as and considered a refinance?
08/20/2007
We are in the process of renewing a business loan that was originally done as a two year balloon note to purchase a 1-4 family investment property. There is no additional money being given to the customer. Would the renewal be considered a refinance and be subject to HMDA reporting?
07/16/2007
What would cause a commercial loan be HMDA reportable in 2004 or 2005 with a guarantor as a co-applicant?
07/02/2007
Are loans for small farms on which the borrower also maintains a primary residence considered agricultural loans or home loans subject to TIL (Reg Z) and if they are on less than 25 acres, RESPA? For instance, if a borrower with his residence and a walnut orchard on 30 acres applies for a refinance of his residence and orchard with an adjustable rate loan, would the loan require early ARM disclosures, interest rate disclosures and the right to rescind? Would the loan be exempt from Reg Z because of the agricultural nature of the property? In the same instance, if the property was 24 acres, would the loan also be exempt from the requirements of RESPA due to the agricultural nature of the property?
06/11/2007
For HMDA reporting purposes, if a bank knows that information submitted by a prospective borrower on a standard residential loan application is not correct, can the bank modify the application itself or just leave it as is, which means the HMDA reporting would not be accurate? I am a regulator asking this question on behalf of one our bankers. He explained that his bank has noted errors and/or discrepancies throughout the application form, including: <ol><li>The borrower refinancing a present residence marks on the declarations that he or she has had no ownership interest in a property in the last three years. <li>The borrower indicates he or she has not filed bankruptcy in the past seven years but a credit report and public records indicate there has been a filing. <li>The borrower indicates he or she is both a U.S. citizen and a permanent resident alien. <li>A borrower indicates he or she intends to occupy the property as a primary residence but elsewhere in the application it is evident the property is for investment purposes. </ol>Perhaps the question about what to do on a loan application when these instances are discovered needs to be answered separately for each instance. I will relay your response(s) to my banker.
05/28/2007
Our compliance officer maintains that it is a requirement that we update the customer's file with a current application (Form 1003) each time we do a modification or renewal of a real estate loan. My position is that this is not an application since we already have the loan. What if the customer refuses to complete and/or sign it, what can we do? It just seems like extra busy work to require the completion of a four-page application. What do you think?
05/14/2007
Our department recently attended a web seminar about HMDA and we had a recent issue that created a question. We had a loan that was a three month bridge loan of a RE property and it was not reported as HMDA because of it being short term and refinancing into permanent. It is now being refinanced for another term of three months with a higher interest rate. Does it now become HMDA reportable because it is refinanced, or not because it is still short term?
03/05/2007
We are refinancing a residential building that is an Assisted Living Facility and the owners do not live on the property. Is this HMDA reportable? We are thinking just CRA reportable.