Is proof needed for flood of a razed building?
10/23/2022
An appraisal shows a delapidated building with no value as it is to be razed pre-loan closing. Do we have to have proof in file for flood purposes that the building was torn down?
Dan Persfull
Bio:
Dan is Vice President and Compliance Officer for The Peoples State Bank with its main office located in Ellettsville, IN and supporting nine branches in surrounding communities. The bank is a privately owned bank that began its existence in 1904.
Dan entered the financial services arena in 1974 when he went to work for Commercial Credit Corporation. He worked eighteen years with Bank One and three years with the Indiana University Employees Federal Credit Union. In addition to serving as a Compliance Officer, he has served as a Collection Officer, Consumer Loan Officer, Commercial Loan Officer and Loan Operations Officer. His primary duties falls within lending compliance, training and consumer loan reviews.
He attended Three Rivers Junior College in Poplar Bluff, MO and Arkansas State University in Jonesboro, AR. He is also a graduate of the ABA Bank Card School, ABA Commercial Lending School and ABA National Truth-in-Lending Compliance School.
Questions Answered
Denied after Withdrawn
10/02/2022
If we accidentally deny a loan that has already been withdrawn by the borrower, prior to our credit decision, how should we handle the reporting of the HMDA data on the LAR? Should we report it as withdrawn per Reg C regardless of the existance of the denial letter, or should we report it as denied because there was a credit decision and letter issued and that's the action taken by the bank?
Dirt and a Mobile Home - HMDA?
09/25/2022
Is a loan to purchase land with a free and clear mobile home as additional collateral considered HMDA reportable? There is no equity being utilized from the mobile home.
LAR Variable Rate Reporting and Prepayment Penalties
09/25/2022
Our HELOCs are variable rate, but don’t have an “introductory rate." The rate is just subject to change on the first business day of every month. Is that reported on the LAR or do we just put NA since we don’t technically have an introductory rate? Additionally, if we require in the loan contract that the borrower reimburse fees we as the lender paid if the loan is paid off in the first 36 months, does that number need to go under Prepayment Penalty term if we aren’t technically charging a “prepayment penalty”?
Reporting Multiple Property Loans
09/18/2022
For HMDA purposes, when you have multiple properties as collateral, are all properties included in the value even though only one address is required?
Flood Ins. on Parking Garage
08/28/2022
We are making a new loan to a company with property in flood zone. The property has 4 buildings on it that are due to be demolished soon with new construction of a above ground parking garage. Where can we find information on whether flood insurance is required on the above ground parking garage? We are not sure yet whether it will be completely walled in. We are going to require flood insurance on the buildings that will be demolished.
Force-Placed Notice Contents
08/28/2022
When the first notice is sent to the borrower in regards to force-placed insurance, does the premium amount that may be charged to the loan after the 45 days have to be disclosed on the first notice to remain in compliance? What are the notice content requirements?
Loans Requiring Transfer Notices
08/21/2022
What loan types must be provided a Notice of Servicing Transfer?
Finance Charges and Fuzzy Math
08/07/2022
Our bank has an indirect lending department where we finance autos, RVs, etc. We have always required that the dealer disclose any protection products that are financed, such as an extended service contract or GAP insurance, as a line item on the loan contract as per Reg Z. We are getting pushback from some of our dealers concerning the disclosure of some of these products. They claim that any non-refundable product, such as paint protection, is a "front-end" product that Reg Z excludes from disclosure on the contract. We can find no such distinction in Reg Z between refundable and non-refundable products. Does such a distinction exist or should all financed protection products be disclosed?
Insurance Disclosure Required?
07/17/2022
We do not offer credit life insurance on the consumer real estate loans. Are we required to have the customer sign the Federal Sale of Insurance Disclosure at application for these?