HMDA – WHAT IS A REFINANCE
Category: HMDA, Lending Compliance
Recently I got a question from a banker. “We have received conflicting information on what qualifies as a refinance. If we have the borrower sign a new note but keep the same note number, should we report the transaction as a refinance?” That’s a great question, but not so easy to answer. The failure to adequately define the term “refinance” is one of the Federal Reserve Board’s biggest screw-ups. We can only hope that when
There are not a lot of changes with Fair Lending right now, but the topic is red hot. Both HUD and the Department of Justice have taken recent action, and much more is coming. HUD Settlement Agreement On December 21, 2010 the U.S. Department of Housing and Urban Development (HUD), the Metropolitan St. Louis Equal Housing Opportunity Council (EHOC), and First National Bank of St. Louis entered into an agreement that requires the bank to
Apparently examiners have recently slammed a few lenders for the failure deliver a GFE or for the failure to provide the GFE within the required three business day period. The penalty examiners are imposing for this RESPA violation is a refund of all fees imposed in the transaction. Yes; you read that correctly, a refund of all fees. Some bankers are asking what happened to the 10% tolerance applicable to certain items on the GFE.
WHAT’S UP WITH THE DECEMBER 22 REGULATION Z CHANGES
Category: Lending Compliance, Regulation Z, Truth in Lending
On September 24, 2010 the Federal Reserve board issued an interim rule that requires new rate and payment disclosures in the “Fed Box.” The rule is effective on January 30, 2011. On December 22, 2010 the Fed issued an interim rule that modifies the September 24th interim rule. (An interim rule that modifies an interim rule; the Fed is starting to look like HUD.) The latest interim rule makes a couple of small changes to
HAPPY NEW YEAR!!!
Category: Uncategorized
We hope all of our readers have had a great holiday season. We wish you a happy, healthy and prosperous new year.
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