09/21/2009
What are the reporting requirements for loans exceeding the Supervisory Loan to Value limits relative to the recent decline in real estate market values? Does a bank need to report a loan as a loan to value exception based upon the following scenarios? <ol><li>Loan to value was originally conforming at origination of loan; however, at renewal a new appraisal or evaluation reports a lower value which causes the LTV to be in excess of the Supervisory limits. Should the loan now be report as an exception or should loans only be reported if they are an exception at origination?<li>If during the term of a loan a new appraisal or evaluation is received that reports a lower value that would result in a LTV exception, should the loan be reported as an exception to the Supervisory limits?</ol>
06/15/2009
When real estate is in the name of a trust and we qualified the borrowers based on their individual incomes, does the note need to be signed by the borrowers individually, or as individual and as trustees, or as trustees only?
08/25/2008
I understand from reading the OCC's Real Estate Lending and Appraisals Part 34 that renewals without the advancement of new monies are excluded from supervisory LTV limits. Does this mean that the original transaction is to be removed from the supervisory LTV report upon renewal or does it mean the original transaction remains on the report, but the subsequent renewal is not added additionally? What stops a bank from processing the original transaction on a short term basis knowing that they will be able to simply drop the entire transaction/property from the SLTV limit exception report upon renewal if indeed these transactions (original closing and renewal) are to be dropped from the SLTV report?
06/18/2007
A borrower is applying for a home equity line of credit with our institution. An appraisal was done within the past year as part of a refinance of the first mortgage through a mortgage company. The combined loan to value is sufficient using the existing appraisal. The appraiser is one of our approved appraisers and the appraisal will be reviewed by us as well as a property verification performed. Are there any restrictions regarding the use of the existing appraisal? I am specifically asking if it is required that this appraisal be originally ordered by an FDIC insured financial institution or can we determine if the source is acceptable?
06/18/2007
Even though Part 365 of the Real Estate Lending Standards states that a 1-4 family owner occupied LTV percentage is 85%, is it acceptable to go to 90% if our loan policy discloses such?
06/18/2007
I have two questions specifically geared toward loan skip-a-payment programs. Can real estate secured loans be solicited for skip-a-payment programs? Is this skip-a-payment program considered an extension? (We follow a six extension rule.) Any help you can give on this subject would be greatly appreciated. It has caused quite a controversy between our audit and compliance area.
05/07/2007
Part 365 of the Real Estate Lending Standards states that 1-4 family, owner occupied LTV percentage is 85%. Is it acceptable to go to 90% if our loan policy discloses such?
04/03/2006
Is anyone aware of any specific regulatory-defined concentration limits for the amount of lending we can have in RE/Speculative Construction lending? We've got a number we've been managing to, but some question has arisen as to the source of that number, and whether it is something that was just developed internally or something that came from a regulation. I'm not aware of anything from a regulation standpoint, but others may know something that I've overlooked.
09/19/2005
From a Federal Savings Bank SBA and Commercial Real Estate Lending Platform: are there constraints (whether state specific or federal regulated) in the payment of referral fees to third parties such as commercial or residential real estate agents for Commercial origination opportunities? i.e. using a percentage of the loan amount as opposed to flat fee etc.
05/02/2005
am new in a compliance position and am having difficulty in real estate compliance. All of the matrices that I have don't contain all of the scenarios. For instance "Land purchase and construction". When do preliminaries disclosures apply. I need resources.