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Application Date on the HUD 1003

06/24/2018

What should the application date on the HUD 1003 be based on, the applications definitions for Reg B, HMDA, RESPA & TRID?

Disclosures for Mortgage Application Online

06/10/2018

We are trying to set up mortgage application online. We are having debates on what disclosures we need and how to provide the disclosures. Is it something as simple as sending a PDF or does it require us to follow E-SIGN? If the mortgage is submitted online, do the disclosures need to be sent online?

Adverse Act. Notice of Denial/Counteroffer Denial

05/06/2018

What are the requirements if a written adverse action notice of denial is provided to the applicant with a counteroffer and then the counteroffer is denied later on during the process of the application? Is the creditor required to send another adverse action notice denying the counteroffer?

"Credit Approved" Definition for HMDA

03/11/2018

I have an incomplete application (no property) that is expressly withdrawn by the applicant 3 days after submission because they now want a 30 year fixed rate loan where we only have balloon loans with an amortization up to 30 years. The lender had "approved" them to go forward, prior to verifying their credit with paystubs, tax returns, etc. I know you cannot have a "withdrawn" application unless it is prior to credit approval. Please define "credit approved" when it comes to HMDA. Would this be underwritten and verified credit? Or would I submit this as "approved but not accepted"?

“We Intend to Apply for Joint Credit" Verbiage

10/22/2017

I just want to confirm that the “we intend to apply for joint credit" verbiage must be on the applications to comply with Reg B? Our applications state "What type of credit are you requesting?" then the applicant(s) initial if they check the joint credit box. The information I have read on Reg B says a person's intent to be a joint applicant must be evidenced at the time of application. Signatures on a promissory note may not be used to show intent to apply for joint credit. On the other hand, signatures or initials on a credit application affirming applicants' intent to apply for joint credit may be used to establish intent to apply for joint credit. The method used to establish intent must be distinct from the means used by individuals to affirm the accuracy of information. For example, signatures on a joint financial statement affirming the veracity of information are not sufficient to establish intent to apply for joint credit.

Providing Adverse Action Notice on Spot

10/01/2017

Adverse Action Webinar - June 21, 2017 - David Dickinson I wanted to confirm​. ​​David Dickinson said ​in a recent webinar ​that if a consumer comes into the​ bank to inquire about a loan and we know from the initial conversation they​ will not qualify and after explaining our basic underwriting guidelines we​ can provide them with an adverse action notice on the spot. We would no have​ pulled credit. We would not have discouraged them from applying. Would we use form C-1​ to provide the notice?​ We would of course keep any documentation with the notice for retention and Fair Lending audits and risk assessments. We would also provide training to our LO's and provide them basic scripts. Am I on the right track?

Denial Reason-GUS Refer Findings or Underwritten?

09/24/2017

Pre-qualification application received Refer/Eligible Findings from GUS - Rural Development for a purchase of a primary residence loan. The loan could potentially be manually underwritten for approval if the borrower were to provide the documentation. Borrower chooses to not go manual underwrite and says cancel my file. Is the loan Denied based on the GUS refer findings or is it approved/not accepted on the hypothetical possibility that it may have been able to be manually underwritten?

Title Insurance Enforcement Fund Fee or TIEFF

05/21/2017

In 1026.37(f)(5) we know that creditors are required to use terminology that is reasonably understood by consumers. We lend in Indiana in which the Title Company will charge a $5 TIEFF fee. This is an acronym for Title Insurance Enforcement Fund Fee, but it is recognized as TIEFF in the industry and is searchable on the web as TIEFF. We have an investor who is requiring the full name be placed on the CD for all IN loans versus the TIEFF acronym. We feel that the acronym is reasonably understood. The problem with using the full fee name is that it would always require an addendum due to the character limitations on the CD. Has anyone else run up against this scenario and have overcome the investors' concerns?

Effective Date of MLA: "Check" DOD Database

03/12/2017

Our bank has several home improvement applications that have been approved prior to 10-3-16 but they have not funded yet because we do not ​disburse the funds until all the improvements are completed. In cases like these, must we run an "MLA check" against the DOD database?

Online Application- Signature to Pull Credit

03/05/2017

My bank is currently looking into accepting application online. One of the requirements is that the application would need to be e signed so we have a completed application and a signature to pull credit. I am not sure where to start on if we need a new policy for this or what disclosure we would need to provide to our customers.

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Disclosing title fees on the loan estimate

03/30/2025

For our portfolio mortgage loans we disclose title fees in the section of the loan estimate marked "borrower allowed to shop for" since we do not usually have a detailed fee quote before the loan estimate is required. A closing fee or settlement fee usually charged by the title company is a prepaid finance charge. Should we disclose a Title Closing fee and mark it PPF on the loan estimate even without an exact quote so that we do not have to do a new loan estimate for a changed circumstance due to a change in APR exceeding .125 when fees do come in prior to sending the closing disclosure?

TRID Purpose for placing manufactured home on land

03/23/2025

What is the correct TRID purpose for placing a manufactured (double-wide) home on land that is owned free and clear? The loan was closed with the purpose of combining the value of a new factory built manufactured home and the value of the land on which it was located immediately after closing. In order to assure the manufactured home dealer would deliver and set up the home on the land timely, the dealer was paid in three disbursements from the borrower’s proceeds which were held until a final inspection was completed. The loan was not closed as temporary financing, but to purchase the home and place it on land. We used “Home Equity” on the Closing Disclosure, but we are being questioned as to why we did not use “Construction” since we made three disbursements from the proceeds. They were not true “advances” from the principal of the loan, but rather three disbursements from the borrower’s proceeds. We close two separate loans for true construction loans for homes built from the ground up; one being 12 months interest only and the other being a refinance of the construction loan for permanent financing. We have offered combination manufactured home and land loans for many years and have not been cited for our handling of the TRID purpose until now. I think the auditor was triggered by the use of the terms “advance” and “undisbursed loan funds” on the Closing Disclosure to show the amount paid to the dealer at closing and the amount we were holding. We have since changed our terminology to use “payment” and “funds held.”

Keeping '1071' small business lending data secure

03/23/2025

I am working on a process to comply with 1071 small business data collection. We have an automated system that will collect and keep the demographic information behind the fire wall. My question is what about the customers who don't use email or technology? Any ideas on how we can collect and keep this information secure? Have you heard what other FIs are doing in this situation?

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