08/25/2024
We are in the process of implementing an insurance agency subsidiary owned 100% by the bank. We will not be quoting the agency’s rates on LEs or listing the insurance agency on the Services You Can Shop for Disclosure. However, our lenders will be referring mortgage loan customers to the insurance agency, so my understanding is the referral is what triggers the Affiliated Business Arrangement Disclosure requirement. So we are trying to figure that out. My question is, how should we provide an estimated range of charges for insurance? That could be vastly different depending on the home, location, etc. Any guidance would be greatly appreciated!
06/04/2007
Our Chairman of the Board owns a real estate company, our bank and the mortgage company. The realtor at the subdivision wants to put out a brochure to customers that provides a discount on construction costs if the customer uses the bank for the construction loan and the mortgage company for the permanent. There will be a stated discount to customers that use other bank/mortgage companies, but the amount will be less. Is there a RESPA violation lurking here somewhere? Also, the realtor (and/or the bank) is going to have to provide the affiliated business arrangement notice when the referral is made, is that correct?
10/09/2006
I recently was assigned the task of reviewing all our bank's loans for documentation and compliance errors. My question is on a 2nd mortgage home equity loan do we need the affiliated business arrangement when we make the referral to our title company that is owned by a board member? We do the ABA on the refi and purchase side but I have not seen the ABA in any home equity files that I have reviewed.
10/03/2005
I am an attorney in Florida. I own a mortgage company and a law firm that provides title insurance and closing services. The mortgage company refers title work to the law firm. Does this situation fall within the purview of disclosure, and if, so, exactly what charges for services have to be disclosed?
08/29/2005
I'm trying to confirm that if our affiliated mortgage company refers a customer to the bank for a HELOC, that we need to do the Affiliated Business Arrangement form? I know it is required for a Home Equity "Loan" referral, but want confirmation on lines of credit.
02/01/2005
Question: I need some guidance on an affiliated business arrangement. We have an employee who is a SVP and Chief Credit Officer and is also over our Mortgage Lending Department.
11/15/2004
I am an attorney in Florida. I own a mortgage company and a law firm that provides title insurance and closing services. The mortgage company refers title work to the law firm. Does this situation fall within the purview of disclosure, and if, so, exactly what charges for services have to be disclosed?
11/18/2002
We were recently advised at the bank, where I am employed, that we must use the Affiliated Business Disclosure on every residential mortgage that we do. We are located in a small town where the majority of the customers we have choose to use the local attorney. I specify choose. Upon an examine we were told that it looked like we were making the customers use this particular attorney and that we had to give the Affiliated Disclosure on each an every mortgage because one of the attorneys is a board of director for our Holding company. Now, since we are doing this and a customer has chosen another attorney, it looks like we are soliciting for the local attorney. Do we indeed have to give this to every mortgage customer?
08/01/2002
HUD has published a proposal to make significant changes to the Good Faith Estimate that lenders issue within three days of taking an application. HUD calls this a "simplification" of the GFE.
03/01/2002