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A refinance is not subject to the right of rescission unless the transaction involves new money. New money includes paying an existing debt that is not secured by the principal dwelling, the single family in your case.
Regulation Z is not clear as to whether the party acquiring the property under the land contract has the right to rescind or not. Even though that party does not acquire full title until the land contract is satisfied, the safe course of action to provide them with the right to rescind since they have acquired some interest in the property as payments are made under the contract.
Comment 19(e)(1)(vi) – 4. states, “a creditor does not comply with the availability requirement in § 1026.19(e)(1)(vi)(C) if it provides a written list consisting of only settlement service providers that are no longer in business or that do not provide services where the consumer or property is located.”
It is acceptable to include regional or national providers on your list as long as they actually provide services in the area where the consumer or property is located.
Including your local providers on the list that do not provide services in the area where the consumer or property is located may be a problem.
Comment 2(n) – 3, from the definition section of Regulation C distinguishes between multiple dwellings that are not multi-family on one property versus multiple dwellings that are not multi-family on multiple properties. The former is considered multi-family, the later is not.
This is not a new issue. That is a quirk in Kentucky law that I am certain LaserPro dealt with decades ago.
Generally the maturity date of the mortgage and the maturity date of the obligation are the same. In some cases such as a balloon note that may not be true. Sounds like your attorney and Laser Pro need to have a conversation.
Your reply raises two issues:
1. Even though for a business purpose the transaction is HMDA reportable since it is for home purchase.
2. In my previous reply I should have noted that the permanent financing that replaces a construction loan is HMDA reportable as a purchase loan, even if for a business purpose.Regulation C is not clearon this point. The HMDA Small Entity Compliance Guide states. that NA is reported for:
– age if the applicant is not a natural person.
– the income if the applicant or co-applicant, is not a natural person.
– the credit score if the applicant and co-applicant, if applicable, are not natural persons.Section 1026.37(a)(10)(I)(B) defines a step rate product as a transaction where the interest rate will change after consummation and the rates that will apply and the periods for which they will apply are known at consummation. You have a step rate product.
Please note the Commentary to Appendix D – 7.iii states, “If the legal obligation for a loan secured by the consumer’s principal dwelling provides that the permanent financing interest rate may adjust when the construction financing converts to permanent financing, and such adjustment to the interest rate results in a corresponding adjustment to the payment, the creditor provides the disclosures pursuant to § 1026.20(c), but not (d), if the interest rate for the permanent phase will be fixed after the conversion.” This means the transaction is an ARM and an ARM rate change notice is needed upon conversion.
You will have to check with Laser Pro regarding the set up of their product.
Excellent question and you have done a fine job on the research. I agree with your conclusion – the loan is not a refinance since it does not “satisfy and replace” the original debt. By default the loan is for the “other” purpose (Code 4).
1. If your borrower is an individual you report the income of the individual. Cash flow is not income. If you are certain that your lenders did not consider income then NA is the appropriate entry.
2. It sounds like you lenders are picking through the income statement to calculate the cash flow. They have income figures but do not rely on them in the credit decision. NA is still your answer.
1. If your borrower is an individual you report the income of the individual. Cash flow is not income. If you are certain that your lenders did not consider income then NA is the appropriate entry.
2. It sounds like you lenders are picking through the income statement to calculate the cash flow. They have income figures but do not rely on them in the credit decision. NA is still your answer.
Section 1003.4(a)(31) requires reporting of the total number of individual dwelling units related to the property securing the covered loan. When more than one property is taken as security, a financial institution reports the covered loan in a single entry on its LAR and provides the information for one of the properties taken as security that contains a dwelling. You simply choose one of the properties and report the number of units in that property.
You are on the right track, but it is not simple. If an applicant is not a natural person you report:
– Ethnicity as Code 4
– Race as code 7
– Sex as code 4
– Age as code 8888
– Income as not applicable
– Credit score as code 8888.The flood regulations generally require flood insurance for each structure. FEMA policies do not allow more than one structure on a policy. So, you would need a separate policy for each structure.
There is no provision that allows you to move line 05. Comment 38(j)-2. states, “Additional pages may be attached to the Closing Disclosure to add lines, as necessary, to accommodate the complete listing of all items required to be shown on the Closing Disclosure under § 1026.38(j) and (k)… A reference such as “See attached page for additional information” should be placed in the applicable section of the Closing Disclosure.
