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Short answer is “Yes” the disclosure is a statutory requirement, and we cannot find evidence that that requirement has been changed. The Department of Financial Institution’s website is still active and still lists the requirement.
We suggest you contact your legal team to do more research on this requirement and monitor for whether the law changes. The disclosure requirement is tied to the mortgage, not the grant program.
However, as customers may be confused, you may want to provide a script to customer service reps advising that this is occurring and we have no way of knowing when grant applications will resume, and provide the customer with appropriate links.
IMO – I would use the contract information it will be what the client has. They could have changed offices, which would account for the difference in addresses. Websites are often times not updated quickly. In a lot of cases, a LLC will use a DBA but on Professional State Pages it will list legal names.
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Yes, I do think you would have a Fair Banking issue by allowing an exception based on “large business customers” employees getting special treatment. If you were to make an exception to your Bank’s policy, you would need to make sure it was for everyone and had standards that would provide the same opportunity to all prospects equally.
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Townhomes are treated as individual SFR. If the unit you are taking is not in the Special Food Hazard Area, then the borrower would not be required by Flood rules to get flood insurance. However, as a Safety and Soundness precaution you Institution could consider requiring it to protect your collateral. If you do that you will need to make it a standard practice for consistency.
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Townhomes are treated as individual SFR. If the unit you are taking is not in the Special Food Hazard Area, then the borrower would not be required by Flood rules to get flood insurance. However, as a Safety and Soundness precaution you Institution could consider requiring it to protect your collateral. If you do that you will need to make it a standard practice for consistency.
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Anytime you obtain an appraisal in conjunction with a home transaction (ref, purchase, home improvement) you are required to provide the Appraisal Notice. You as the lender may not waive this.
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I agree with @pparks, Since the Income was collected and updated to figure a DTI. It would need to be HMDA reportable. I also agree with the need to have a policy to have consistency.
I would agree that a counteroffer with a qualified applicant would be the safest way to go to avoid DL issues. Particularly since you have the 550-619 policy rule, The insufficient file is not a valid reason based on having a file since 2022 with a score. You would have issues with the credit score reason because of the 550-619 policy.
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IMO – I would not select insufficient credit file since the applicant has one. Unless your policy is specific on what constitutes an insufficient file. If you are counter offering for a qualified co-applicant that would be a good option to avoid a Fair lending issue. You never indicated what the loan type is but I’m assuming this is for unsecured or a vehicle since you stated that policy. I’m also assuming this is not a customer? If it is not a customer again asking for a qualified loan applicant seems reasonable to me recognizing that credit score is below and your have a policy on low score standard and not being a customer who I assume would be the norm for the 550 -619?
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If the loan is not for a purchase, refinance (even cash out), or hoe improvement. Then you would use other.
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Yes, you must tell the borrower on the LE all the fees they will be paying. It is your responsibility to provide them the best information available for all fees they will be paying, even if it is out of town. Which the scenario you are describing sounds like creating a special providers list for them. Also based on the scenario is sounds as if a third-party is dictating your process, with the release of the interagency guidance on third-parties in June of 2023, you may want to consider more controls over those realtor third-parties. Mortgage third-parties have been looked at more stringently in the last few years.
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For HMDA transactions you would only report number of units for multi-family properties. Multi-family is described as more than 4. This would not qualify as muti-family by way of definitions based on the situation described in the question.
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@dbishop quick question are you also in KY, since the original post and answer had State specific questions?
first question – yes you can take both properties as collateral. But you must follow Reg Z ROR rules for the transaction since you are taking collateral on the primary.
As far as your 2nd question for ROR in Reg Z. you date your docs the day of closing and funding is delayed until the 3 days have passed.
If it is the same loan and a Line of Credit it would only be reported the first time. It is not reported every time the borrower draws from the LOC. IF the borrower is mortgaging a finished property and creating a new loan obligation for that dwelling then that new loan would be reported as a new transaction, that transaction would be treated separately from the original LOC obligation.
