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Max Interest for Unsecured Home Improvement

09/17/2012

We are getting ready to do some unsecured loans for Home improvement. What is the maximum interest by Missouri Law that the bank can charge? And what about fees?

Implementation of Retail Loan-Day Count Convention

09/03/2012

I have questions about the implementation of retail loans and the use of day-count conventions. For purposes of illustration consider a loan with the following terms:<ul> <li>Capital : $5000 <li>Interest : 9% per annual period <li>Term: 12 months </ul>Using Excel I can determine that: <ul><li>Monthly repayment : $437.26 <li>Total repaid : $5247.09 <li>Total interest : $247.09</ul> From my understanding these calculations are based on a day count convention of 30/360. The assumption here is that there are 12 equal periods each equally long and earning the same interest. Question 1: What is the daily interest that accrues? From what I understand the 30/360 convention would imply that 0.09/360% interest accrues per day. However if the period between the start of the loan (say 1st Feb) and the first payment (say 28th Feb) does not equal 30 days exactly then the accrued interest will be incorrect. Question 2: If I wanted to use a different day count convention, say actual/actual, how would I calculate the proposed payments for the above loan in advance for quote purposes? Because I am taking the actual number of days into account and because the number of days between payments would vary the standard pmt calculation will not calculate an accurate payment value. My calculations end up with a (small) underpaid amount at the end of the loan.

Changed Payment at Maturity-New TIL Disclosure?

08/27/2012

We did a purchase money primary residence for 6 months paying interest monthly. At closing, customer changed payment at maturity. Do we need to give a new TIL disclosure? The APR went from 4.983% to 4.991%. Lender says we do not because it is less that 1/8 of 1%. I think we do because she changed the payment schedule.

How Far In Advance to Send HELOC Statements

08/06/2012

On home equity lines of credit, how far in advance of payments must the billing statements be sent? If a bank chooses to make a change in the number of days must the customer be notified, and if so, how far in advance?

Dwelling Secured Loan-Refinance or Purchase?

07/23/2012

If two individuals own a dwelling and have a loan that is secured by the dwelling and one purchases the other's interest in the property, with a dwelling secured loan, is that reported on the HMDA LAR as a Refinance or a Purchase?

Guidelines for Loan Extension Agreements

07/23/2012

Loan extension agreements. Where can you find the forms? What disclosures are required when a maturity extension is given, no change in interest rate and no new money advanced?

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Appraisal timing and fair lending

10/20/2024

If a financial institutions normal process for commercial property loans is to start appraisal bids/engagements post-decision, can there be fair lending violations for starting appraisal bids/engagements pre-decision for customers based on length of relationship with the financial institution, credit exposure with the financial institution, etc?

Selective reporting to credit bureaus

10/20/2024

As part of an initiative to be able to sell to secondary market we need to set up reporting to all credit bureaus. Currently we only report to Equifax. I am wondering if there are any compliance concerns if we only report to all bureaus for some loans (mortgage loans) and not others (in house branch originated) or mortgages vs. other loan types, commercial vs consumer, etc?

Call report codes and agricultural use land

10/20/2024

We have a number of residential loans that sit on several acres of property that i would consider 1B if it were vacant, i.e., "usable for agricultural purposes." Should these be classified as 1C2A or 1B on the Call Report? The definitions leave room for interpretation. For example, a loan for a single family residence that sits on 100 acres.

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