Random Recipes

Comment period: Beginning to 9/24/10. Most recent comments With respect to the amendments to the CLA imposi ng a licensing obligation to service residential mortgage loans, I recognize that a licensing obli gation would arise for an entity that actually conducts the activities that define servicing CLA 2010 Rulemaking – Public Comments - 1 I was reading through the newly released CR-102 for the Consumer Loan Act and noticed this addition (page 18 & 19). (d) You must disclose payment of a rate lock fee as a cost in Block 2 of the GFE and as a ft of the borrower column. Our contact at HUD’s Office of RESPA did say that the rate lock fee belongs in Block 2, as it is a charge for the interest rate chosen. So I am agree ing with that portion of the rule. However, if I understand this correctly, the HUD-1 part strikes me as rate lock fee would be included in Line 802 as a charge, and then added to another blank line in the 800 series (line 808) as a counterbalancing P.O.C. credit. Q that discuss 800 series credi discusses line 801, but I think it is applicable to 802 as well. If a borrower pays some of the origination charge prior to closing, how should it be disclosed on the HUD-1? The full charge for origination, except for any charge for the specific interest rate chosen (points), must be shown on Line 801 of the HUD-1 to the left of the borrower‘s column. If CLA 2010 Rulemaking – Public Comments - 2 quires that the payment be made in the form of guaranteed funds such as wire tr ansfer, cashier’s check or money order. When payment is made in that manner, we credit the pa yment the day it’s received. However, if the payment is made by personal check, we do not credit the payment until that check has cleared and we have received notice from the you collect escrow amounts held for the borrower for payment of insurance, taxes, or other must collect and make all payments from we “must…make all payments from the escrow account” if sufficient amounts have been CLA 2010 Rulemaking – Public Comments - 3 consumer to the NMLS Consumer Access webs CLA 2010 Rulemaking – Public Comments - 4 identifier(s) appear in a conspicuous place on the website. The DFI also might consider requiring statement referring the consumer to the NMLS CLA 2010 Rulemaking – Public Comments - 5 the correct party within the licensee’s organization. The or may not be the “Resident/Registered Agent” for service of process, as is required in certain jurisdictions.” [Emphasis Added]. Further, displaying the company’s NMLS record contact person on all the “contact us” web pages will cause consumers to contact this person about typical loan transaction matters that the contact person simply cannot assist them with. This will result in confusion and frustration on the part of the cons umer. As previously mentioned, the DFI might consider requiring statement referring the cons umer to the NMLS Consumer Access website to CLA 2010 Rulemaking – Public Comments - 6 the billing and make the payment timely, but ci rcumstances could present themselves that make this impossible. This provision leaves no room for circumstances that are out of the servicer’s control. Additionally, the use of the term “ ” seems vague and overly broad. WAC 208-620-900 (6) You must make a reasonable attemp t to comply with a borrower's mortgage loan account and to respond to any dispute initiated by the borrower about the loan account. A reasonable attempt includes, but is not limited to: (a) Maintaining written or el ectronic records of each written request for information regarding a dispute or error involv ing the borrower's account until the residential mortgage loan is paid in full, sold, or otherwise satisfied; (b) Providing a written statement to the borrower within fifteen business days of receipt of borrower's request must include the name and account number, if any, of the borrower, a statement that the account is or may be in erro CLA 2010 Rulemaking – Public Comments - 7 representative with the informati on and authority to answer questions and resolve disputes. (e) You may charge a fee for preparing and furnishi exceeding thirty dollars per statement. (f) Y ou must promptly correct any errors and refund any fees assessed to the borrower resulting from an error you made. Again, RESPA addresses various requirements for handling borrower inquiries relating to their account. It is requested that the DFI look to RESPA and make the requirements consistent. Additionally, it is unclear if all of the items required in this proposed section would be provided in all cases. What if the borrower’s request for information or dispute does not relate to any of these items? It seems that information that is not relevant to the concern at hand may cause further confusion. WAC 208-620-900 (8) CLA 2010 Rulemaking – Public Comments - 8 rate “within three lock” delete “within Federal guidelines for Good Estimate. Attached excerpt website under Application Requirements originator standard GFE three application mortgage I can’t speak as to any specific clients, but generally, one might think of the type of ontemplated at loan origination) as falling into the following categories: 1. Payment convenience-type fees, such as pay-by-phone services; 2. Collateral control-type fees, such as a agreeing to a partial t; others examples would be loan assumption fees, deed in lieu fee, or short sale fee. 3. Duplicate information or document-type f provided a copy of the informa statement fees; and, These examples are by no means inclusive, but hopefully they provide an illustration of the type of additional services that might be provided. Except as to the fourth category, agrees. There is no requirement to use thos As a follow-up to my question, as of today, is there any guidance on the permissibility of third party servicing type fees? The following are some initial issues to be a ddressed as the Department develops rules to an servicing companies. Consumer Loan Act as amended in 2010, we do not make, originate or broker mpany, we service debt obligations, most of which are mortgages held on residentia l property and mobile homes that were CLA 2010 Rulemaking – Public Comments - 9 sold via seller financing contracts. The obligations we service are not even loans to the buyer. We have nothing at all to do with the transactio n until it is fully consummated at which time one of the parties to th purchased by a third party and is then placed with us for servicing. nd leases, and service loans that are not origination fees on those same loans. earnings are drawn from servicing fees which are approximately $100 per loan per year. Applying the loan assessment ca lculation in this manner to our business would take such a substantial portion of CLA 2010 Rulemaking – Public Comments - 10 after the decimal. Th at would make it .00000180271. CLA 2010 Rulemaking – Public Comments - 11 CLA 2010 Rulemaking – Public Comments - 12 recent Survey of Licensee Technology Read iness. As a prospective licensee I intended to fill it out and submit it, but I co uld not do so. Except for being able to ing contracts (Lincoln Data) none of the servicing of seller financed c many fundamental ways from consumer lending.