Latest Lending - Renewal Topics

Handling the Interest on a Loan Renewal

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?

Adding Spouse to Open-End HELOC

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?

Balloon Loan - RESPA Disclosures

03/02/2009

If a balloon loan secured by a customer's primary residence is renewed are all RESPA disclosures required?

SCRA - Is 6% the Interest Rate or the APR?

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?

Is This HELOC Renewal Considered a Refinance?

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?

Supervisory LTV Limits

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?

Business & Farm Loan Renewal Fee

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?

Loan Modification Procedures

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?

Loan Renewal & Mortgage Modification

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?

Executive Officer's Loan - Demand Clause Required?

02/18/2008

Is a demand clause needed for an executive officer's loan taken out prior to that employee becoming an executive officer?

Administrative fee on consumer loans

03/16/2025

We do consumer loans consisting of auto, unsecured, and CD secured loans and we charge an administration fee of $25.00. This fee is listed in our [vendor name redacted] system as an Administrative Fee that affects the APR. I was wondering if this is okay, because it is a consumer loan.

Early capture in banking

03/16/2025

What is early capture in banking?

Record retention for open, paid, and charged-off loans

03/16/2025

How long do you have to retain loan records? Until the loan is paid off? What if the original loan just continues to add on more loans? The original loan is closed but it continues to have more loans attached to it? Also, how long do you have to retain records of charged-off loans? Are these permanent records, seven-year retention periods?

Does an entity need a separate resolution for each

03/09/2025

Do you have to have a new resolution with every new loan a borrower does. Or will oneresolution for the entity work?

TRID tolerance violation for omitting cost of PMI

03/09/2025

I have a processor who issued a Loan Estimate and missed the fact that the loan had a 90% LTV, and the Loan Officer did not catch it either. So, the Loan Estimate did not include PMI. Even if we redisclose it will not fix the TRID tolerance violation. I have always been told that the first month we collect at closing to pay to the PMI vendor would have to be paid by the lender to "cure" the tolerance violation, and then we continue on as normal collecting PMI escrow from the borrower monthly and passsing it on to the PMI vendor. Now someone tells me that when this happens the lender has to pay for the entire life of the PMI, because of the tolerance error. Can anyone tell me what they think and give me something to back up your thoughts?

Latest Lending - Renewal Topics

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