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The 45 day notice is sent when the insurance expires, but since you have an adequate escrow the premium will be paid and no notice will be required.
Remember the SAFE Act requires all mortgage loan originators, both bank and non-bank, to register with the NMLS. Bank MLOs merely have to register. Non-banks MLOs have to both get licensed under state law and register with the NMLS. Non-banks, such as mortgage companies, also have the additional burden of filing periodic mortgage loan call reports to the NMLS. Banks do not have to file mortgage loan call reports with the NMLS, but they still must file call reports with their federal regulator, just as they have done for decades.
The Flood Hazard Notice (FHN) must be provided a reasonable time before completion of the transaction. The FHN is based on the flood hazard determination, so the determination must also be obtained a reasonable time before completion of the transaction. The regulation used to contain a 10-day standard, but that was replaced with a “reasonable time before completion of the transaction” requirement years ago.
The standard Flood Hazard Determination form does not include the borrower’s naame or account number.
Thanks for particpating in the Forum.
Thanks for being part of the Forum. I hope you come back often, both with questions and with answers for those seeking guidance.
I completly agree with your comments on commerical lending, the area is ripe for compliance violations. You asked for a list of the consumer regulations a commercial division might need to comply with? Periodically I conduct a webinar that deals directly with this issue. You note that Regulation B, Flood, HMDA, BSA/OFAC all apply. But even Regulation Z and RESPA may apply to certain loans made in the commercial department. Those coverage rules are the primary focus of the webinar.
The webinar is entitled Compliance for Commerical Lenders. I conducted the program on March 31, 2011 (how timely) for the state banking associations. Contact your state association to listen to the archived copy of the program. The same program program is tentatively scheduled for July 19th with bankersonline.com. With both options you can train an unlimited number of commercial lenders for one price. The July program includes a Question and Answer session, so your lender’s questions can be asked and answered.
Yes, re-filing does create a red flag; but you are generally better off finding and fixing your own problems than to have the regulators find your problems and order you to fix them. Finding your own problems proves your audit program works.
All MLOs must renew their registration each year during the annual renewal period – November 1st to December 31st. The only exception occurs in the year of the original registration if the MLO registers after July 1st.
Mollu – you are the first to post a question or comment on our new website. Thank you for your interest. You caught me a little off guard here, we haven’t officially launched our website we are getting questions. We need to come up with an appropriate token of appreciation for being the first to use our site. Does anyone have any suggestions?
And now your answer:
The flood regulations require flood insurance on the contents of a structure only when both the building and the contents secure the loan, so you are not required to obtain flood insurance on the contents. But don’t confuse compliance with safe and sound banking practices. Getting flood insurance on the contents located in a building in a special flood hazard area is a safe and sound banking practice.Section 226.36(d)(1) prohibits a person from compensating a loan originator, directly or indirectly, based on the terms of the transaction. Pay based on the overall profitability of the mortgage loan department appears to be compensation based indirectly on the terms of the loan. So the question is – Do the management employees receiving the bonus fit the definition of “loan originator?”
