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What I am wandering now is this amount will be more than what may be needed at closing time so is it ok to hold the customers funds until the contractor needs it? So lets say our loan amount is $100,000.00. Construction costs are $125,000.00. We would be holding $25,000.00 of what the customers money for construction costs. We would not be paying any interest on these funds is this ok?
what we are wanting to do is send out the CD at clear to close and attempt to have the closing on the 6th day. It may not always take place on that date but we will not know this the day we are sending out the CD. If the closing date differed we would then prepare a new CD at time of closing keeping in mind that we would have a 3 day wait period if the APR to be inaccurate, the loan product changes or a prepayment penalty is added. Due to odd days interest out APR and finance charges would differ from the original CD that was prepared but should not be off more than 1/8.
in looking at the regulation under 1026.37(h)(1)(vii), where it says pursuant to a purchase and sale contract what exactly do they mean there. does the gift funds have to be outlined in the purchase or sales contract in order for us to have to list them on the LE or the CD?
we are going with no under the rate lock, then under the all other charges and fees going with the 10 business days at 5:00 P.M. and the time zone we are currently in.
I am wanting to know what you deem the simultaneous title insurance policy is. Would this be the amount of the discount or the actual Leder’s policy amount.
Also, with all this I am trying to figure out how I would make the buyer whole, if I use your example for instance on The LE I put under the Lender’s Policy of $500.00, then for the Owner’s Policy i put $450.00. In our area the Buyer would only pay generally $100.00 for the Loan Policy and the seller pays for the rest of the title insurance. How would I show this on the CD when the Regulation and the commenatry gives me the same instructions.
i can’t remember where i got that information, but i thought that since we honor the rate that is disclosed at application we had to show that we did lock the rate and would want the rate lock to expire at or after our anticipated closing date.
I am trying to figure out how we should handle our rate lock dates, I have been reviewing section 1026.37(a)(13), but am still confused. We do a lot of arm loans in which we don’t really have have a rate lock, we honor the rate that was disclosed at the time of application. From what I have read I think we should set our rate lock date to be 90 days out in this instance, and then the all other estimated costs will be 10 days.
