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Latest Compliance - RESPA Topics

120 Day Single Pay Loan Under RESPA?

05/02/2011

A 120 day single pay loan has the purpose of home improvement and to sell. Would the loan be subject to RESPA or is it exempt because it falls under temporary financing?

Customer Signature on RESPA Forms

04/25/2011

Do the Preliminary Truth in Lending and Good Faith Estimate (RESPA) forms need to be signed by the consumer and returned to the financial institution?

Assumption of Note Upon Divorce

04/04/2011

We have a borrower who has in recent months divorced from his wife, and had deeded the property entirely to her several months ago. The deed was originally in both names and the mortgage was therefore signed by both borrowers, but the husband was the only borrower on the note. At this point the wife would like to assume the note, as she's been making the mortgage payments herself since long before the property was transferred solely into her name. Neither borrower qualifies for a regular refinance, so an assumption seems to be the only way out of the note for the husband. What disclosures need we present to the wife along with the assumption agreement in order to complete this transaction? Do ROR, TIL, RESPA, and HOEPA apply?

RESPA Disclosures on Construction Loans

03/14/2011

Our bank has chosen to give early RESPA disclosures on all construction loans in an effort to minimize any slipping through that were not exempt. Can we be cited for errors that may be on these documents even though the documents were not required by the Reg and we have made this our policy?

Disclosures Requirements Short Term Loan

02/21/2011

We are making a loan to a consumer to purchase a residence and to do some renovations. The loan will be for one year until the improvements have been made and then it will be financed on the secondary market. Is this considered a RESPA loan and will need all the early disclosures.

Secured Real Estate Loan to Estate

02/21/2011

We are making a secured real estate loan to an estate to pay property taxes. The trust owns the property that will secure the loan and the son of the deceased lives in the property and pays rent albeit below market. The house is for sale and the proceeds will pay the note off. There is plenty of equity. The term is for one year and they would like to have the interest and principal due upon sale or 12 months. Is this covered by compliance regulations? Would you disclose?

When to Provide a Credit Score Disclosure

02/14/2011

With regard to the risk-based pricing regulation, when our mortgage department does a mortgage prequalification, a credit report is pulled, but an application has not been made. Since an application has not been made, I am assuming a credit score disclosure (this is the method we choose to use) does not have to be provided. Is this correct?

RESPA and Purchase for Rental Purposes

01/24/2011

Does RESPA apply to a loan that is made to a customer who is purchasing a lot and mobile home used for rental purposes? The primary source of income is from other employment, not from the rental income.

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Cash Transaction More Than 10K For a Joint Account

01/21/2024

I have a CTR question I have yet to see posted anywhere. Any cash transaction(s) more than 10K to a joint account by any conductor is a CTR. However, what if there are multiple (3) joint accounts. EX: $5,000 cash deposit by Suzy to account A; $5,000 cash deposit by Suzy to account B; $1,000 cash deposit by John Doe to account C. All 3 accounts are jointly held by the conductors. Would this be considered a CTR because Suzy and John can benefit from the $11K, via separate accounts or exempt because not more than one person conducted to a single (one) joint account?

How should a check "for" another read?

01/14/2024

Is a check payable "FOR" someone the same as a Representatives Payee? I've seen checks that do not have "Representative Payee for..." just "For..." John Doe FOR Sally Doe Is this sufficient, or what should it read?

Timing Required on Check Exceptions

01/14/2024

I am working with a new core system and we are discussing our exceptions process for items presented that cannot post for various reasons i.e. NSF, closed account, account restriction, etc. This system will not backdate the item to the date of presentment in cases where we choose to pay it. Is there anything that states the item must be "paid" on the date of presentment? Every other core I have ever used in my 28+ years has always backdated the item to the presentment date.

Advertising CD specials on social media

01/14/2024

We are promoting a CD special on social media. The Reg DD advertising disclosures are a drag. Must we include them? Can’t we say something like “call us for details”?

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