05/04/2009
When renewing a note loan, is it necessary to collect the interest due at maturity or can it be added back to the principal balance of the loan?
04/20/2009
How would we best handle a request for a wife be added to an open-end HELOC that is in the husband's name only? This transaction involves no new money and no extension of the original maturity date so should we prepare a renewal note and provide new disclosures?
03/02/2009
If a balloon loan secured by a customer's primary residence is renewed are all RESPA disclosures required?
12/15/2008
Under the SCRA, when reducing the rate to 6% on pre-service obligations is the 6% the interest rate or the APR?
10/27/2008
We have a home equity line of credit at renewal. We do not assign a new loan number, but we do prepare a new promissory note. The intended purpose of the renewal is for school tuition. Is this renewal considered a refinance and HMDA reportable?
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?
06/09/2008
We do a lot of term lending (usually 6 months to a year) to small businesses and farmers. We collect the interest at maturity, but can we charge an additional fee to renew the loan? Would we have to change our renewal agreement to reflect a charge?
03/31/2008
What is legally required when renewing notes or extending/<wbr>modifying loans tied to a mortgage? We currently use a note renewal form that contains a new Fedbox with new interest rates that the customer signs. We also have a loan modification form that we use if a mortgage is involved if the loan is extended or modified. However, what if all parties liable on the original note or on the mortgage do not sign the new modification agreement? Rarely do all parties come in to renew and/or modify a note. Could you please give me some advice on what to do?
03/03/2008
We have a revolving line of credit that is being renewed to a term loan with a balloon payment and the loan amount is being decreased to what is outstanding now which is only about a $200 decrease in the loan amount. I have done a renewal note, but my question is the mortgage. I would need to do a mortgage modification to reflect the term note and new loan amount, correct? Also, am I charging the document stamps over again and intangibles if the mortgage is modified?
02/18/2008
Is a demand clause needed for an executive officer's loan taken out prior to that employee becoming an executive officer?