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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.
Under Regulation Z, promotional rates must be disclosed clearly and conspicuously on periodic statements, including the promotional rate, the period it applies, and the annual percentage rate (APR) that will apply after the promotional rate expires. The disclosure must be in a prominent location, closely proximate to the listing of the promotional rate.
Here’s a little breakdown:
1. Promotional Rate and Period:
The promotional rate itself must be clearly stated.
The period during which the promotional rate will be in effect must also be disclosed.
2. Post-Promotional Rate:
The type of rate (e.g., purchase or cash advance rate) that will apply after the promotional rate expires must be disclosed.
The APR that will apply after the promotional rate expires must be clearly stated.
3. Prominence and Clarity:
The disclosures must be in a clear and conspicuous manner, meaning they should be easy to read and understand.
The disclosures should be placed in a prominent location, such as on the same page as the promotional rate listing.
They should be closely proximate to the promotional rate, meaning they should be immediately next to or directly above or below the promotional rate.
4. Annual Percentage Rate (APR):
Even though the promotional rate itself is not an APR, the APR that will apply after the promotional period must be disclosed clearly.
The APR must be stated as an “annual percentage rate”.
5. Other Considerations:
If there is a date by which the consumer must use the promotional rate, that date must be disclosed.
If checks are part of the program, will the creditor will honor checks used after the date but will apply a different APR, that fact must also be disclosed.NOTICE: This email message, including any attachments, is intended only for the addressee, and may contain confidential and privileged information either as protected work product or confidential client information. Any unauthorized review, use, disclosure or distribution is prohibited. If you are not the intended recipient, do not read, copy, retain, or disseminate this message or any attachment, and please contact the sender by reply e-mail or at 888.760.5646 and destroy all copies of the original message and attachments. Neither the transmission of this message or any attachment, nor any error in transmission or misdelivery shall constitute waiver of any applicable legal privilege.
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The secondary lender is not required to force place insurance for another institution’s loan. They must do their own force placing. The challenge you will have under a FEMA policy is that they will pay the first position lien holder first. So if the policy is not sufficient to cover both loans your institution is at risk. However, if you are using a private policy you will want to verify that it is in the name of your institution and doesn’t have the “pay in order” clause.
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