Real Estate Finance

Section 32 disbursements, servicing and modification restrictions

by Carrie B. Reyes | Jan 2, 2024

Learn the ten prohibited lender actions which protect the borrower after origination of a high-cost (Section 32) consumer-purpose mortgage.

The points and fees test for Section 32

by Carrie B. Reyes | Dec 26, 2023

Learn when a consumer-purpose mortgage falls under Section 32 limitations and disclosure rules.

Form-of-the-Week: Further Encumbrance Consent, and Note Enforcement Provisions — Forms 410 and 418-5

by Amy Platero | Dec 21, 2023

These forms are used by a prospective junior lender or carryback seller when the real estate is encumbered by an existing first mortgage containing a due-on clause, to obtain consent from the lender holding the mortgage to further encumber the property with a second mortgage, and by a loan broker or escrow officer when originating a mortgage with the lender or carryback seller, to include a guarantee, exculpatory or governing law provision in the promissory note.

Paying appraisers

by Carrie B. Reyes | Dec 20, 2023

Fee appraisers are to be compensated by mortgage lenders and their agents at a reasonable rate – but there are exceptions that effectively gut this rule.

Mortgage delinquencies inch higher, equity shields homeowners — for now

by Carrie B. Reyes | Dec 19, 2023

Even as mortgage delinquencies rise, high levels of equity continue to shield homeowners from foreclosure.

The APR Coverage Test: Part 2

by Carrie B. Reyes | Dec 18, 2023

Part 2 of this video series provides examples for how MLOs can determine whether a transaction is subject to Section 32 compliance.

Form-of-the-Week: Deed of Trust & Assignment of Rents, and All-Inclusive Trust Deed Addendums — Forms 450, 442 and 443

by Amy Platero | Dec 14, 2023

An agent or escrow officer uses these forms when a seller of property carries back an all-inclusive note and trust deed (AITD) evidencing a principal debt which includes the balance owed on an existing mortgage and a payoff demand.