[JGo9]

Messier, Jonathan D. Goforth, Citizens National Bank, Group 2

[JGo9]

Medina Spirit, Citizens National Bank of Somerset (Jonathan D. Goforth), Group 2

[JGo9]

Authentic – Jonathan D. Goforth – The Citizens National Bank of Somerset – Group 2

[JGo9]

Jack and Robin, I appreciate you both looking at this.

Thanks!

[JGo9]

Thank you hcutts! I had found that article and it mainly addresses additional audit requirements.

I’m trying to see if it would impact any requirements under the A B C regs.

[JGo9]

If the business is your borrower and their officers are not co-borrowers, then 3 would be the proper way to report the occupancy for the scenario you have described.

It may feel odd, and it may not make sense, but you talking about bank compliance where common sense does not always apply.

[JGo9]

To handle this situation at my bank we always list the fees typically associated with the type of loan applied; even if we anticipate at the time of disclosure not charging for something such as an appraisal, to avoid the potential pitfalls Robin has warned about.

Once we get to the Closing Disclosure (CD) if we did not charge for a fee(s) we had listed on the Loan Estimate (LE) we have the fee(s) fall off. This gives the bank some added flexibility, in case we bank change our mind about charging a fee for whatever reason. We feel this provides the bank with the best protection; which I think Robin was alluding to.

Robin, don’t let me put words in your mouth, so if you disagree let me know.

Thanks!

[JGo9]

April,

When you say cosigner I’m assuming you mean you have two people on the loan and not one borrower and one guarantor.

In the situation you have outlined we would give them the rate the borrower qualified for which had the highest credit score. I would recommend you be consistent in your practice on assigning rates so you don’t run into any kind of Fair Lending issue. I would recommend having something in policy to address how your institution handles this to assist you in being consistent.

To adjust your situation slightly, if you had a borrower with poor credit and you had a guarantor with good credit, we would base the rate on the borrower with poor credit.

I hope this helps!

[JGo9]

We had our first TRID app on 10-5-2015 @ 3:30 EST.

[JGo9]

Dscluder1,

I’m assuming you are talking about the “intent to proceed” that is typically given with the delivery of the GFE. This is in reference to the requirement that the bank can not collect money for fees (including third party fees) other than a fee for pulling a credit report; until the applicant(s) have indicated their intent to proceed.

This does not apply to HELOCs.

The intent to proceed is covered by 12 CFR 1024.7(a)(4) (Regulation X – RESPA).

12 CFR 1024.7(h) covers that HELOCs do not have to comply with the portion of RESPA that talks about the intent to proceed.

(h) Open-end lines of credit (home-equity plans) under Truth in Lending Act. In the case of a federally related mortgage loan involving an open-end line of credit (home-equity plan) covered under the Truth in Lending Act and Regulation Z, a lender or mortgage broker that provides the borrower with the disclosures required by 12 CFR 1026.40 of Regulation Z at the time the borrower applies for such loan shall be deemed to satisfy the requirements of this section.

[JGo9]

Keep in mind that you should document your file with a take-out or aka commitment letter to show that you are not doing the perm financing. Without this your examiner may view the situation as you committing to doing the perm financing.

Document…Document…Document!

Generally for the temporary loan to be exempt it has to meet all of the conditions:
• It is for temporary financing only. The borrower has a takeout from another lender;
• The borrower already has title to the real property; and
• The term is less than two years.

[JGo9]

Marcella,

In my opinion, it would not be interpreted to bar a customer from bringing a claim. That being said this might be something for legal counsel to review.

I’d love to get some more opinions on this.

[JGo9]

Susan,

I thought I would post section 516:

SEC. 516. EXTENSION OF RIGHTS AND PROTECTIONS TO RESERVES ORDERED TO REPORT FOR MILITARY SERVICE AND TO PERSONS ORDERED TO REPORT FOR INDUCTION.
(a) RESERVES ORDERED TO REPORT FOR MILITARY SERVICE- A member of a reserve component who is ordered to report for military service is entitled to the rights and protections of this title and titles II and III [sections 511 to 515, 516 to 519, 521 to 527, and 531 to 538 of this Appendix] during the period beginning on the date of the member’s receipt of the order and ending on the date on which the member reports for military service (or, if the order is revoked before the member so reports, or the date on which the order is revoked).
(b) PERSONS ORDERED TO REPORT FOR INDUCTION- A person who has been ordered to report for induction under the Military Selective Service Act (50 App. U.S.C. 451 et seq.) is entitled to the rights and protections provided a servicemember under this title and titles II and III [sections 511 to 515, 516 to 519, 521 to 527, and 531 to 538 of this Appendix] during the period beginning on the date of receipt of the order for induction and ending on the date on which the person reports for induction (or, if the order to report for induction is revoked before the date on which the person reports for induction, on the date on which the order is revoked).

I’ve tried to highlight above key phrases that points to the fact that the timing starts when they receive orders. It sounds like you are correct in your assessment that you’ve been using the wrong date, and I would start using the date the orders are received instead.

I hope this helps.

Thanks,

[JGo9]

I would start by reading your Note to see how it says to handle this situation.

[JGo9]

Thanks for the heads up and here is a direct link to the PDF version of the list: https://files.consumerfinance.gov/f/201303_cfpb_preliminary-list_rural-or-underserved-counties.pdf

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