Most Popular Lending Content
Modifying a Construction Loan
12/18/2022
We have an existing construction loan that we would like to increase. Will this have to follow TRID rules or can we do a modification to increase the loan amount, charge a 1% loan fee on the new proceeds, add filing fees, title fees and any other fees that may be associated with the modification?
Consumer Loan Exception to Business Customer
12/18/2022
Can an individual loan accommodation for a personal, family or household purpose to an existing borrower with other business loans be considered non-consumer?
What's our decision for HMDA?
12/18/2022
We have a purchase mortgage application that was approved with all underwriting conditions met. In review of the title run it was discovered the seller could not convey a clear title to the property. We did send the borrower a Notice of Action for Incomplete Application giving 10 days for clear title to be received. For HMDA purposes would the Action Taken be Approved Not Accepted or Denial?
Curing Escrow Payment Shock
12/11/2022
We analyze our escrow accounts in December of each year with the payment change effective February. Our taxes are billed based on the owner as of December 31 of the previous year. Taxes are due in October. So this year the estimated taxes due in October would be $260, based on the seller who owned the property as of last year end. The estimated taxes per the county for our borrower are based on the sales price will now be $5,600 based in part on this being our borrower's second home and having no tax exemptions available. We collect a tax escrows at closing and based accrual payments on the $260 we estimated would be owed. My question is, to prevent payment shock to our borrower in the next year, do regulations allow us to change the estimated tax amount to $5,600 AFTER we pay the taxes this year, but BEFORE we perform the escrow analysis in December, or should we only collect taxes based on the $260 for the entire year of 2023 and depend on the borrower to voluntarily deposit extra escrow monies into his escrow account to make up the difference?
Renew vs Modify, Disclose or No
12/11/2022
We have a consumer construction loan with a fixed rate which we want to extend the maturity with a rate increase. Do we need to re-disclose?