04/04/2011
I have the following loan example: Construction/Permanent for primary residence. If the loan is approved with an 18 mo construction variable rate AND a Fixed rate(Undetermined) permanent rate for 7 yr/ 25 yr amortization. With the "new" guidelines how does the Early Truth In Lending calculate for the payment schedules in the TIL box. The first 18 mos are Interest Only and I have no way of knowing the interest rate during the permanent phase. Which term (Construction or permanent)am I disclosing?
04/04/2011
I want to do a reduction of principal balance and a recast of payments keeping the same interest rate on a 1-4 sf residence. Is a modification appropriate and will it trigger RESPA?
03/21/2011
What loans are disclosable and require the Interest Rate and Payment Summary Table?
03/07/2011
If we were to modify a residential real estate loan for the sole purpose of reducing the interest rate and we were to charge a fee for doing so, say $100, would this trigger a truth-in-lending disclosure?
02/28/2011
If a customer chooses to float their interest rate and it is set 7 days prior to closing, if it increases from application do we need to prepare a revised GFE? I know if the APR is over/under tolerance of .125% we would redisclose that.
12/06/2010
Can a claw back provision be included in a workout document? For example: can we collect a low interest rate to match cash flow, but when the property sells, claw back the market rate difference so that there is no loss to the bank?
11/08/2010
On the GFE, the lender discloses an origination charge that the borrower will have to pay. However, before closing, the bank decides to cover this fee for the borrower. Would this credit from the lender go in the 200 series on page one of the HUD, or would it be shown as a credit for the specific interest rate chosen on line 802? My concern is that we are not giving the credit based on the interest rate chosen, simply as a courtesy to the customer.
10/25/2010
Our bank will occasionally give a lender credit to offset Origination Fees/Discount Points. In this case, would that lender credit be calculated into the APR, thus ultimately lowering the APR?
09/20/2010
For a construction loan with construction phase terms of 6.19% for eight months interest only, with balloon payment at maturity with a final take out of a 3/3 thirty year ARM, what should be on the initial GFE, construction HUD-1, and at take out closing? Should these now be treated as two separate and distinct loans to insure tranparency, or can the GFE include the construction terms and the take out terms that will occur eight monthes later?
09/06/2010
If a loan amount changes after the initial GFE is issued and the interest rate remains the same, so that the redisclosed APR is within the tolerance, is there a need to redisclose the TIL and is there a waiting period for the revised TIL?