Topic: Mortgage Loans
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Is it acceptable to collect government monitoring information (GMI) for construction loans if the intent is the make the loan permanent?
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Whether you can collect government monitoring information (GMI) depends on whether the loan is considered a “home purchase loan,” “home improvement loan,” or a “refinancing.” Regulation B prohibits banks from collecting information about race, color, religion, national origin, or sex unless they are required to collect information required by regulations such as Regulation C (the…
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What resources are available regarding mortgage escrow accounts?
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Section 17 of the RESPA/HUD regulations imposes escrow account documentation and recordkeeping requirements, among other requirements, relating to real estate mortgage transactions. Lenders on such loans must (1) “keep records, which may involve electronic storage, microfiche storage, or any method of computerized storage, so long as the information is easily retrievable, reflecting the servicer’s handling…
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Are higher-priced mortgage loans and three- and five-year balloon renewals treated as higher-priced mortgage loans, or are they just renewals of the same note?
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Whether a renewal of a loan is treated as a higher-priced mortgage loan depends on whether it is considered a “refinancing” under Regulation Z. Supplement I to Section 226, Paragraph 1(d)(5)-1 (“if the transaction were a modification of an existing obligation’s terms that does not constitute a refinance loan under §226.20(a), the final rules, including…
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Does the Home Ownership and Equity Protection Act (HOEPA) apply to FHA Title 1 loans, even though they are government secured?
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We are not aware of any laws or regulations that exempt federally-secured loans from HOEPA’s requirements. In general, the Truth in Lending Act (TILA) applies to loans that are: (1) closed-end credit, (2) secured by the borrower’s principal dwelling, (3) not purchase-money loans, (4) not reverse mortgage loans, and (5) primarily for personal, family, or…
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If a wife takes out a HELOC on the couple’s primary residence, does the husband get a notice of right of rescission and sign the homestead waiver, even if he does not own the property?
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The husband does not receive a notice of the right of rescission, but the husband should sign the homestead waiver. The right of rescission only applies to persons with an ownership interest in the property. Having homestead rights only does not give rise to rescission rights. However, a spouse must sign the homestead waiver or…