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I agree. The revised definition of “mortgage loan originator” in the proposed rule does expend the community of those who must register.
It is not clear if your existing customer is entering into a short sale or if you are also financing the purchase for another customer. If your bank is financing the purchase for a customer you need all of the documents you need for any home purchase loan. State law may also come into play so you should with counsel in Ohio or with your state banking association, or maybe one of our members may be familiar with Ohio law.
No. Banks do not have to offer education loans, but if they do special disclosures under Truth in Lending are required.
Your analysis, as always, is completely accurate. Regulation C, the Commentary and the instructions for completing the form do not address mixed use property and refinances. I agree that using the square footage/rental test is appropriate, but always open to speculations since it is not specifically addressed.
Glenn,
The Protecting Tenants at Foreclosure Act (PTAFA) does not have any implementing regulations or model forms. All we have is the bare bones requirements of the law.
The law does not specify any particular method of notice, but err on the side of caution and provide the notice in every way possible; the expense is negligible. The law does not address whether other notice information may be included in the notice or not. I suggest using one form for the PTAFA notice and include other information, such as the party to whom the payments are now payable, on a separate notice.
You need to consult with your legal counsel regarding issues related to the lack of a rental agreement. If there is no rental agreement the arrangement may not be a bona fide lease or tenancy, and then PTAFA may not apply.
The itemization of the amount financed only includes amounts included in the loan amount. That would not include fees you paid on the borrowers behalf. I am not familiar with your Disbursement Request and authorization. That is not a required by federal law. You should discuss that form with your loan origination software vendor, or perhaps another bankers familiar with the form can supply an answer.
There is an old HUD opinion that states that a single parcel of 25 or more acres is needed for the exemption to apply. Examiners today do not appear to adhere to that old opinion. Today if you have a total of 25 or more in one or more parcels the exemption is allowed. Still the safest answer is the old single parcel rule.
You obviously paid very close attention to our discussion yesterday. Your conclusions are correct.
Remember the CFPB has promised to address this in a future rulemaking and we expect that rulemaking in the coming weeks. Hopefully we will get a good answer that resolves your problem.
For an ARM loan you must send a rate change notice if the rate changes. The timing of the notice depends on whether the payment amount also changes in response to the rate change. If there is no rate change, then no notice is needed.
The previous replys are completely accurate, but let me add – if you require an escrow for either property insurance or property taxes then must also escrow for flood insurance. If the escrow is voluntary, not required, then this is not an issue.
I am a little confused by your question, but since I have been spending so much time with 1,400 pages of proposed Regulation Z I am getting confused about everything.
If appears you want to avoid having a first lien higher-priced mortgage, which occurs when your APR exceeds the APOR by 1.5 or more percentage points. In your situation you could assure the APR stays below the threshold either by lowering the origination charge or lowering your rate. If you lower the APR, by either method, you would need to re-disclose if the APR changes by more than the allowed tolerance. It is doubtful that you would have a tolerance problem. But, if you do need to redisclose, you must delay closing until three business days after the consumer receives the revised disclosure.
Explanations from credit reports can be helpful. A FICO score is not available for someone who does not at least one active line in the last six months.
No. The recording fees are itemized on page 2 pf the HUD-1. On the TIL disclosure filing fees are a single line entry within the Fed Box. If the fees are financed the total is included in the itemization.
On the new combined TIL/RESPA forms recording fees appear once. Much easier.
Yes, the TIL disclosure should always include the payment schedule disclosure. The content of the payment schedule for mortgage disclosures changed on January 31, 2011. Previously all loans received a payment schedule disclosure as required by section 1026.18(g). As of January 31, 2011 the 18(g) disclosure is for loans that are not secured by real property or a dwelling and for loans secured by real property or a dwelling the onsumer receives a new disclosure required by section 1026.18(s).
