TOPIC: HELOC

HELOC Promo

VP at a credit_union ($162MUSA)
Just wondering if anyone was aware of any restrictions on allowing for a promotion where we give a gift card for any new advance on a home equity line of credit? Just didn't know if due to it being secured by a home if any restrictions would apply?  And if we do a gift card, do the same 1099 requirements apply as if it were cash?

    HELOC modification

    Employee at a bank ($150MUSA)
    Does anyone have a sample of changing terms for HELOC to lower the floor?  With rates decreasing we are looking at lowering our floor for some.

    Thanks in advance.

      California HELOC

      VP at a bank ($897MUSA)
      Is there anyone out there willing to help that does HELOC's in California. I have a few questions I have been tasked to get answer that is more specific to state law I believe. If possible I would a chance to make a call or email Monday about this. I am struggling reading through/finding CA State law. 

      Sample Questions:

      Consumer vs. Commercial purpose (Homestead or non-homestead as collateral)
       Any fee caps or other specific California requirements to watch out for? 

        HELOC

        Employee at a bank ($1.4BUSA)



        Our bank is going to start originating Texas HELOC loans this year. Does anyone have a HELOC checklist they are willing to share so we can implement processes and not miss any required disclosures? 
        Thank you,

          HELOC - Customer Request Freeze

          Employee at a bank ($935MUSA)
          When the customer requests the credit line on the HELOC to be frozen, are any notifications required?  The request presented doesn't indicate for what period of time the advances should be restricted.  What is the best practice for this type of request?  HELOC is joint.
          Thanks for your help!

            HELOC Risks

            AVP at a credit_union ($125MUSA)
            We are looking to see how other FI's manage risk related to their HELOC products. Does anyone have a HELOC specific risk assessment template? We heard of an issue recently where an FI had a fraudster call and request an advance from HELOC to be wired out. Later a fraudulent check was sent as payment to the HELOC. Funds were again wired. When the dust settled they were out quite a bit of money. This has prompted us to take a look at our product to see how we can minimize risks. Any help or advice you could provide with regards to HELOC risk manangement would be appreciated. 

              Lendwell Demo Video

               "In the last few weeks, you've likely heard about Lendwell, a mortgage settlement platform that offers multiple services in one convenient location. A common question that we have received is, "What does the process look like in Lendwell?”. 

              To answer that question, we've put together a short demo so that you can see how simple the ordering processing is with Lendwell. If you have any questions or if you're ready to try Lendwell for yourself, please reach out to us at hello@lendwell.com. We can get you set up today.

              https://videos.sproutvideo.com/embed/a49ddbb61d18efcb2c/5e8c3c5ea10e53fb 

                FAIR LENDING: (HMDA)

                With the adopted amendments to Regulation C, referred to by the Consumer Financial Protection Bureau (CFPB) as the “Final Rule.” It brings with it a potential set of new challenges. The Final Rule adds 25 new data elements to the existing LAR data set, modifies, and expands many other existing elements. The lack of certain loan-level information in the current LAR data set has resulted in regulatory and enforcement agencies’ allegations of disparate treatment redlining based primarily on a statistical analysis of a mortgage lender’s application or origination rate in comparison with that of other mortgage lenders that are deemed to be its peers. Do the new data elements in the Final Rule improve fair lending or do they just allow for other areas of fair lending analysis to emerge and therefore present new challenges for mortgage lenders? Let me know what you think!

                  Periodic Statements for HELOCs

                  Employee at a credit_union ($313MUSA)
                   Hi there,

                  We are looking into making some changes with our statement provider and are hoping for some suggestions.  Also, we would like to revamp our HELOC statements and would like to get an idea for what other institutions are doing.  Does anyone have a template of a HELOC statement they would be willing to share?

                  Help is appreciated. 

                    True Costs of Processing a Loan File

                    We all know that loan files can be costly. Whether it be the cost of working with a vendor or to get a report processed, we know those monetary costs can stack up. But what is the true cost of each loan file? How many hours do you spend inputting customer information or going back and forth with an appraiser? Most importantly, why is spending all that time justified, or are you seeking ways to cut down the true costs of a loan file? 

                      HELOC Review

                      Manager at a bank ($5.1BUSA)
                      Morning all,
                      We are in the process of constructing a HELOC review process and wondered if anyone out there had a best practice procedure we could look at.  We don't want to be too constrictive or to else too liberal.

                        Now available to watch on demand! [FREE] New CBANC Member Benefit: Lendwell

                        Check out our new webinar! We discuss how Lendwell is currently helping hundreds of financial institutions and their lending teams save 2 hours per loan file by having a one-stop-shop for all settlement products and how we are able to deliver 20% immediate savings to your settlement costs. We also answer questions in real time and highlight some of our current institutions who use this platform today.

                        https://www.cbancnetwork.com/education/webinars/view/66b66f6e-7789-453a-814f-3277ac986a6c

                        Please feel free to message me directly to schedule a demo. 

                          My takeaway from the California Mortgage Bankers Association's inaugural Mortgage Innovators Conference

                          Attending the Mortgage Innovators Conference in San Diego this past week was a very interesting and an eye-opening experience. The conference, sponsored by the California Bankers Association, specifically gave insight on the latest efforts of leading Fintech companies in the mortgage industry to improve the process of making mortgage loans to their consumers. Expert speakers from these companies covered topics from using new software platforms to enhancements in technology that will move the industry into digital mortgages. The overall goal was how to streamline the business processes to reduce cost, increase efficiency, and create a better consumer experience. 

                          One particular hot topic that was highlighted was the increased use and dependency of social media in communicating with their customers and to market the different lending programs to potential borrowers. The emphasis on cell phone friendly applications was key to implementing consumer engagement strategies, account maintenance, service innovations, and new platform designs. 

                          The incorporation of HousingWire to gather leading companies to attend and exhibit at the conference was very valuable since they analyze the most innovative technology companies in the U.S. housing economy. Several companies such as SimpleNexus, Blend, and BeSmartee were among the FinTech companies breaking new ground on making strides to move the processing of loans to a new era. 

                          Bringing together industry leaders, technology decision-makers, and vendors to explore, learn, exchange best-in-class ideas, technology, solutions, and solve real problems was a perfect opportunity for lenders across the country to network with attendees to discuss challenges and opportunities ahead.  

                          What news or emerging tech from this conference are you most interested in?

                            CBANC Network Announces New TRID Compliant Calculator

                            CBANC Network is pleased to announce the integration of LodeStar's fee quoting service into our Lendwell platform. A long-time Lendwell partner, LodeStar helps lenders save time and money by automating the closing cost quoting process. Their TRID complaint quotes are 100% guaranteed for accuracy and include transfer taxes, recording fees, and title costs. Both first mortgages and home equity loans are supported. The new Fee Calculator is now available through your Lendwell platform. LodeStar's online demo can be accessed by clicking on: www.lodestarss.com/loan-estimator-features/demo/ For more information, contact Joe Walsh (jwalsh@cbancnetwork.com) at 512-583-4576.

                              Disclosures Required on 2nd Forbearance Agreement?

                              Employee at a bank ($1BUSA)
                              I want to gather some opinions on a particular Forbearance Agreement scenario.  I am not new to Compliance, but am in Lending Compliance.  The original loan was a HELOC.  A Forbearance Agreement was executed converting the HELOC into a closed-ended loan with monthly payments, along with the suspension of the line of credit.  Now, there is a Second Forbearance Agreement.  The principal balance will not change, nor will the rate increase.  There will be Appraisal and Attorney fees.  My question is, are TIL disclosures required under this workout plan?  I am finding in RESPA and Reg Z that for closed-ended loans, they are exempt under the below circumstances.  Does the simple fact that this is a workout loan and an agreement involving a court proceeding justify the customer not receiving a TIL?

                              Refinancing means a transaction in which an existing obligation that was subject to a secured lien on residential real property is satisfied and replaced by a new obligation undertaken by the same borrower and with the same or a new lender.  The following shall not be treated as a refinancing, even when the existing obligation is satisfied and replaced by a new obligation with the same lender (this definition of “refinancing” as to transactions with the same lender is similar to Regulation Z,
                              12 CFR 1026.20(a)):
                              (1) A renewal of a single payment obligation with no change in the original terms;
                              (2) A reduction in the annual percentage rate as computed under the Truth in Lending Act with a corresponding change in the payment schedule;
                              (3) An agreement involving a court proceeding;
                              (4) A workout agreement, in which a change in the payment schedule or change in collateral requirements is agreed to as a result of the consumer's default or delinquency, unless the rate is increased or the new amount financed exceeds the unpaid balance plus earned finance charges and premiums for continuation of allowable insurance; and
                              (5) The renewal of optional insurance purchased