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From the information you’ve given, it sound as if you received the application over the phone, so this is when you should request the GMI. Take a look at Reg C, Appendix B (linked below) to ensure your procedures for requesting GMI over the phone are accurate. Also, remember to mark how the application was received (phone, mail, FTF…). Below are the definition of application from Regs B and C.
Reg B: 1002.2(f): Application means an oral or written request for an extension of credit that is made in accordance with procedures used by a creditor for the type of credit requested. The term application does not include the use of an account or line of credit to obtain an amount of credit that is within a previously established credit limit. A completed application means an application in connection with which a creditor has received all the information that the creditor regularly obtains and considers in evaluating applications for the amount and type of credit requested (including, but not limited to, credit reports, any additional information requested from the applicant, and any approvals or reports by governmental agencies or other persons that are necessary to guarantee, insure, or provide security for the credit or collateral). The creditor shall exercise reasonable diligence in obtaining such information.
1002.13(a)(1): A creditor that receives an application for credit primarily for the purchase or refinancing of a dwelling occupied or to be occupied by the applicant as a principal residence, where the extension of credit will be secured by the dwelling, shall request…
Reg C:
1003.2(1): Application.—(1) In general. Application means an oral or written request for a home purchase loan, a home improvement loan, or a refinancing that is made in accordance with procedures used by a financial institution for the type of credit requested.Although it isn’t video based, the Federal Reserve does have a training program for Directors. Here’s the link: https://bankdirectorsdesktop.org/.
It was finalized July 10, 2013. Here’s a link to the CFPB’s final rule with amendments: https://files.consumerfinance.gov/f/201307_cfpb_final-rule_titlexiv.pdf . See the bottom of page 44 for the charitable servicer amendment.
Yes, the rule covers applications for closed-end or open-end credit secured by a first lien on a dwelling. And you are correct on the timing. However, delivery occurs three business days after you mail or transmit the copies, or whenever you have evidence indicating that the applicant received the copies. The Small Entity Compliance Guide (SECG) answers a lot of questions: https://files.consumerfinance.gov/f/201305_compliance-guide_ecoa-appraisals-rule.pdf. See page 8-10 for what loans are covered and delivery information begins on page 13.
Below is an excerpt from the CFPB’s SECG:
When processing an application for a closed-end loan, you must deliver copies of appraisals and other written valuations “promptly upon completion,” or three business days before consummation, whichever is earlier. For example, if a loan will close on Friday, April 4, you must deliver the valuation no later than Tuesday, April 1. When processing an application for an open-end loan, you must deliver copies of appraisals and other written valuations “promptly upon completion,” or three business days before account opening, whichever is earlier.
If you receive the dispute from the CRA, then they received the dispute from the customer and have the responsibility of notification. Take a look at section 611 of the FCRA: https://www.ftc.gov/os/statutes/031224fcra.pdf
I recommend retaining the original contract/note, security instrument, etc. with the original signature. However, I’m not aware of any regulation that prohibits the retention of disclosures electronically or the reproduction of those disclosures.
There are currently requirements for payoff statements under 1026.36(c)(3) that apply to closed-end consumer transactions secured by the consumer’s principal dwelling. Effective 1-10-13 these provisions are revised under 1026.36(c)(1)(iii). Additionally effective 1-10-13, there are requirements under the High Cost Mortgage rules in 1026.34(a)(9)(i)-(v). This section details what fees are prohibited and permitted and when the payoff must be provided.
And you are correct, that in order to charge this fee is should be detailed in your note. Other Terms and Conditions seems like a reasonable place or if there is a section for “fees”; however, this is your contract and your forms vendor or attorney can be of more assistance with this. Check your state law to ensure a payoff fee isn’t prohibited.
1026.34(a)(9): https://www.ecfr.gov/cgi-bin/text-idx?SID=2a369a4c5efae1204c8c741463eceada&node=20130131y1.11
1026.36: https://www.ecfr.gov/cgi-bin/text-idx?c=ecfr&SID=2a369a4c5efae1204c8c741463eceada&rgn=div8&view=text&node=12:8.0.2.9.18.5.1.7&idno=12There aren’t any requirements to have specific adjustments and it’s quite typical to have the information you described in a land only appraisal. Unless there are some type of improvements to the land (buildings, irrigation system, roads, etc) there isn’t a good way to specify adjustments based on just the land. The note that one was weighted more heavily probably indicates that the appraiser deemed this property most similar to the subject property. The appraiser may an have included an addendum to the appraisal that gives more information.
If it is temporary financing (you know the loan will be satisfied/replaced with a long term loan) then IMO it would be temporary financing regardless if the permanent financing is with another lender.
The FFIEC has HMDA FAQs; one regarding temporary vs. short term financing is below:
Temporary Financing. When is a loan “temporary financing” such that it is exempt from reporting?Answer: The regulation lists as examples of temporary financing construction loans and bridge loans. See 203.4(d)(3). Construction and bridge loans are illustrative, not exclusive, examples of temporary financing. The examples indicate that financing is temporary if it is designed to be replaced by permanent financing of a much longer term. A loan is not temporary financing merely because its term is short. For example, a lender may make a loan with a 1-year term to enable an investor to purchase a home, renovate it, and re-sell it before the term expires. Such a loan must be reported as a home purchase loan. See 203.2(h).
If your procedures show that you are complying with the requirements and your file is documented with the delivery date I believe that is sufficient – a signature isn’t required and, I agree, may be difficult to always obtain. The commentaries to Reg B and Z note that provide or deliver is deemed to be 3 business days after the appraisal/valuation is mailed or when there is evidence of actual receipt (for email consider e-sign). So, if you have documented when the appraisal was sent should be sufficient documentation to show compliance. A formalized and consistent process for documenting delivery would be a sound addition to your procedures.
Take a look at 12 CFR 1026.36(c) and its commentary. There are also changes to this section effective January 10, 2014.
Including PMI is acceptable if it will be paid out of escrow. Take a look at question 3: https://portal.hud.gov/hudportal/HUD?src=%2Fprogram_offices%2Fhousing%2Framh%2Fres%2Frespafaq#TEM
Also see 12 CFR 1024.17(c)(1) which states “…In addition, the servicer may charge the borrower a cushion that shall be no greater than one-sixth (1/6) of the estimated total annual payments from the escrow account.”
I agree. However, I believe the OSI to 1005.11(c)(3) indicates that the Bureau discourages any fee on assertion of errors as it may prohibit consumers from invoking their error resolution rights.
This would be different from a stop pay. If you receive a stop pay on a recurring ACH I don’t any reason that you couldn’t charge your normal fees. It’s when it becomes an error or fraudulent that you shouldn’t charge a fee for stopping or correcting such activity as required by Reg E.
IMO you need separate flood determinations for each property, otherwise how will you know which property is in the flood zone if the determination comes back positive? I’m also thinking about the life of loan monitoring you most likely have with your flood determination vendor. There could be map change affecting one property and not another, which could make it difficult for you to determine which property has had a change – and when your being held to strict timeframes, as with flood regulations, the cleaner you can make the process the better.
