Compliance – Change of Circumstance – Fees Disclosure: What are the timing requirements if a CD has been issued and a valid change of circumstance occurs? In our case a POA was added, which resulted in an increase of recording fees.

Answer: It can be disclosed on the CD even if the initial CD has gone out. The fee can be increased as long as it is re-disclosed no later than 3 days after finding out about the POA. Your example does not reset the 3-day clock for closing. The APR is not increasing more than [...]

2019-02-21T16:13:23-05:00February 25th, 2019|

Compliance – Lender Credit Incentives: Is it okay for a lender to offer a $500 credit to borrower, and/or also pay for appraisal?

Answer: A lender can pay for borrower’s closing costs/prepaids, and an appraisal would be considered a closing cost. The issue is not whether a lender can do this, it is whether or not it results in varying treatment of your clients. During an audit, regulatory bodies such as the CFPB will look to see if you [...]

2019-01-25T08:26:53-05:00January 25th, 2019|

Compliance – Policy on Credit Report Name Errors: When should we re-run a credit report when we discover minor issues such as name misspellings, nicknames vs. formal name or missing addresses?

Answer: In most cases you can resolve credit report variables for the borrower’s name, by an aka statement.  However, if there is an issue with a married name vs. maiden name you will likely need a new credit report. In some cases, addresses can be resolved with an LOE, but for a DOB or SSN [...]

2018-12-26T07:48:51-05:00December 25th, 2018|

When a lender looks at your credit, they can do a “soft pull” of your credit or a “hard pull”. There is a big difference between the two, so call me with any questions about what may be best for you.

Related Article Title: Compliance – Soft Pull vs. Hard Pull:  Recently, our originators are requesting the ability to pull a soft pull on a client vs. a hard pull, as other lenders in the area are doing it, and it could be a cost-saving measure.  Is this a regulatory issue? Answer: QM/ATR only requires that [...]

2018-11-26T11:51:47-05:00November 26th, 2018|Compliance, Social Media Posts|