Questions from CMG Group 1 – March 19

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    QUESTION: from Lindsey to Everyone: Will it make a difference if it is a refi or purchase on the assumption?
    ANSWER: The assumption disclosure is required for all covered loans, regardless of purpose. Your response (the loan may or may not be assumed) may differ depending on whether the transaction is a refinance or purchase.

    QUESTION: from FNB Bank to Everyone: Anyone know what KY law says about liability after foreclosure?
    from Robin Cooper to Everyone: A quick search turned up KRS 426.005 and 454.165 with relevant information.
    From Jack Holzknecht: Kentucky law, and the law of most states, allow the lender to collect the deficiency balance, so state law does not protect the consumer.

    QUESTION: from Lindsey to Everyone: Should the Partial payment language be in the note?
    ANSWER: Truth un Lending generally does not dictate what information must be in the note. The note is a contract between the lender and the borrower. That contract should provide a clear understanding of all aspects of the transaction.

    Your contract explains if the full amount is not paid when due, the bank will impose a late charge. It probably explains when a payment is applied, it is applied first to outstanding fees, then to interest, and finally to principal. I am of the opinion the note should explain if a partial payment will be applied as described above or if it will be held in a suspense account until the full payment amount is received.


    HI Jack, thank you for your response. We use laser pro as our LOS and if we are typing a refinance the assumption language is not there. Is this incorrect?

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