When issuing a revised Loan Estimate (LE), we have already received intent to proceed from our applicant so there wouldn’t be a specific timeframe where the closing costs would expire. We are confused by what date we should be putting in this section (on page 1). Would the date stay the original date disclosed on the initial LE? Or do we re-disclose a new date?
We recommend keeping the date from the original LE for all subsequent revised LEs, unless the reason for the changed circumstance was that the original LE expired—in that case, the date should be revised to 10 business days after that revised LE is provided to the borrower.
If we have a customer that brings in a cashier’s check for deposit, but we have reason to believe the cashier’s check is fraudulent, could we place an exception hold for reason to doubt collectibility?
Yes, you may. Regulation CC states, in Section 229.13 (e) : (1) In general. Sections 229.10(c) and 229.12 do not apply to a check deposited in an account at a depositary bank if the depositary bank has reasonable cause to believe that the check is uncollectible from the paying bank. Reasonable cause to believe a check is uncollectible requires the existence of facts that would cause a well-grounded belief in the mind of a reasonable person. Such belief shall not be based on the fact that the check is of a particular class or is deposited by a particular class of persons. The reason for the bank's belief that the check is uncollectible shall be included in the notice required under paragraph (g) of this section.
Therefore, reason to doubt collectibility is a valid reason to place a check hold on a cashier's check that has been brought in for deposit. Keep in mind, however, that notice of the hold must be provided to the customer.
When doing a loan for the purchase of a 1-4 family dwelling but taking an interest in the sellers interest in a land contract as collateral for a loan (and not the dwelling), is the disclosure of right to receive a copy of appraisal applicable?
No, the appraisal notice is required for transactions that are to be secured by a first lien on a dwelling. The notice requirement is not dependent on the type of property being purchased (if it's not also being taken as collateral).
If we have a loan to satisfy an existing lien on a vacant lot and provide funds for the initial construction of a dwelling on that lot, what would the purpose be for the Loan Estimate? The loan will be secured by the lot and new construction.
This would be a refinance. There are four possible loan purposes on the Loan Estimate and Closing Disclosure: Purchase, Refinance, Construction and Home equity. For loans with multiple purposes, you would list Purchase over Refinance, Refinance over Construction, and Construction over Home Equity.
In this case, we have two purposes. A refinance of an existing lien that is secured by the property, and the initial construction of a dwelling – so a Refinance and a Construction loan. Since Refinance trumps Construction, you would list the loan purpose on the Loan Estimate and Closing Disclosure as a “Refinance”.
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