Most Popular Lending Content
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?
Obtaining a Tax Transcript to Verify Income
03/02/2025
What is the procedure for getting a 4506-T (Tax Transcript) on behalf of a client?
Electronic routing for commercial loan applications
03/02/2025
Why consider implementing a system to enable electronic routing of commercial loan applications?
Getting permission to pull a credit report
03/02/2025
We are reviewing our procedures when it comes to pulling credit for loans/credit cards. One question that has come up is - what is required when pulling credit? Our branch staff can take in-person and telephone applications. For in-person applications should we have the customer sign a document stating that they are authorizing us to pull credit? What should that process look like for applications taken over the phone? We are concerned that if we add a check box to the application the branch employee may click that box without discussing with the client (for both in person and over the phone applications).
Reporting Income for CRA
02/23/2025
When reviewing purchased loans for CRA that are business purpose loans, can we use the revenue listed on the Loan Summary page to determine revenue if there is nothing else in the file that show the business income?