We currently program our form using a different font than what is on the model of the form. Will this be an issue?
Use of a different font does not strictly comply with the rule.
I processed a worksheet with PMI, and the PMI dropped off before the LTV reached 78%. What happened?
The federal Homeowners Protection Act provides for three potential PMI drop off points. First, under certain circumstances, the borrower can request cancellation when the loan is either scheduled to, or actually does, reach 80% of the original value of the property securing the loan. This is called the “cancellation date." Second, PMI must be automatically terminated by the servicer when the principal balance is first scheduled to reach 78% of the original value of the property of the loan. This is called the “termination date.” Third, the HPA provides for “final termination”.
Why doesn’t the “No Obligation” statement appear on the final Truth-in-Lending Disclosure Statement?
The Truth-in-Lending disclosure requirements for certain mortgage and variable rate transactions are found in Regulation Z (12 CFR § 226.19(a)).
Some DocMagic High Cost memos refer to “4(c)(7) charges” when describing fees that may be excluded from the points and fees calculation. What are “4(c)(7) charges”?
Many state anti-predatory lending laws provide a definition of “points and fees” that refers to Section 32 (12 C.F.R §1026.32).
How does DocMagic calculate the APR?
DocMagic has the ability to calculate the APR by either excluding the per diem interest period or extending the loan term by the per diem interest period. Both methods are authorized under Reg. Z Section 226.17(c)(4).
Are Closing Protection Letter fees classified as prepaid finance charges?
Generally speaking, a charge is a finance charge unless it is specifically excluded. You might be able to squeeze this into the exemption afforded by Reg. Z Section 226.4(c)(7) for title examination and related charges, but that is a stretch. The better, more conservative approach would be to treat this type of charge as a finance charge.
Where is Mortgage Insurance, VA Funding Fee and USDA Fee shown on the HUD-1?
As provided in the RESPA FAQs for GFE Block 3, the VA Funding Fee (and other fees specific to government loan programs) and any up-front mortgage insurance premiums should be displayed in Block 3 of the GFE.
On what closing documents does the CA CFL license number need to appear?
According to the California Department of Corporations, the CFL license number needs to be disclosed on at least one document that is to be signed by the consumer. It does not necessarily need to be disclosed on the deed of trust if another document already discloses it. However, we currently disclose the CFL license number on the Note, Good Faith Estimate, TIL and the CA Finance Lender's Law Statement of Loan.
