How should we calculate Lender's and Owner's Title insurance for TRID purposes? Is it the same for the LE and CD?
Answer: Lender's Title should be disclosed at its full premium without considering any discount from purchasing Owner's Title. For Owner's Title, you take the full Owner's Title plus the discounted Lender's Title, then subtract the full amount you disclosed for Lender's Title. This calculation applies to both the LE and CD.
Lender's Title = Cost of Lender's Title without purchasing Owner's Title
Owner's Title = (Owner's Title + discounted Lender's Title) - Cost of Lender's Title without purchasing Owner's Title
Can an LLC assign a POD on a business account?
Ultimately, this is a state law question, and so you should check the rules in the state where the deposit account is opened. However, it would be very unusual for this to happen. An LLC is an entity and doesn’t “die”, and therefore the POD designation wouldn’t really do anything since there is never a “death” of the LLC. Even if the owner of the LLC dies, the LLC continues on in existence.
If the customer wants to leave the business to a specific person, then it would be best to amend the formation documents to consider succession. The bank should suggest that the customer speak with their attorney to help them with corporate succession management.
We have a situation where the borrower has PMI and they are at the automatic termination threshold where we would normally cancel the PMI. However, they are currently past due. Do we have to cancel it now, or would we be able to wait until they are current before cancelling PMI?
For automatic termination, the borrower has to be current per HOPA:
A servicer must automatically terminate PMI for residential mortgage transactions on the earliest date that both:
• The principal balance of the mortgage is first scheduled to reach 78 percent of the original
value of the secured property (based solely on the initial amortization schedule, in the case of a fixed-rate loan, or on the amortization schedules, in the case of an adjustable-rate loan, regardless of the outstanding balance), and
• The borrower is current on mortgage payments.”
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