As for any reimbursement, the correct amount financed and projected payment schedule must be input into the online APR verification tool, along with the disclosed values for the APR and FC, and periodic (monthly) payments that may have been made since closing. The program will indicate if any reimbursement is due. (The APR and APR-related FC overstatements may very well cancel out the understatement of the prepaid FC.) TISA. Q: The bank is doing a joint marketing effort with the local minor league team. Children under 18 can come into the bank and open a savings account, mention the team’s kids club, and they will receive a 2024 season pass to the team’s home games (provided by the team), as well as a kids club t-shirt and lanyard (provided by the bank). The t-shirt and lanyard combined have a value under $10. How do we determine the amount to use in determining if this is a “bonus” under Regulation DD (Truth in Savings)? Do we also include the season pass that is provided by the minor league team? Or is the “bonus” based only on what the bank itself is providing, which is under $10? A: Regulation DD requires that the bank aggregate the values of all items it provides to customers to open or maintain a particular account, which, in this case, would include the season pass for the team. Flood insurance. Q: We have a question about the need for running a flood hazard determination after a commercial loan has closed. Our commercial credit staff runs a flood check on commercial deals at the time of application based on whether or not the county’s valuation states that it has a building and/or improvement value. If the particular property does not have a building/ improvement value listed, a flood hazard determination is not run. We now have a situation where a loan that was recently closed was secured by three parcels. One parcel reflected a building/improvement value, and two parcels reflected no such value. Our operations department is completing their due diligence and is requesting that flood checks be run on the two other parcels that we initially had not run them on. I have no problem running these flood checks, that is simple. However, these new flood determinations will be dated after the closing date of the loan. Is a flood determination needed or warranted after a loan is closed if we can show from the county that the two questioned parcels have no building and/or improvement value? A: Flood hazard determinations are required only for properties that have insurable buildings/improvements on them since flood insurance does not cover the land itself. TILA. Q: We have an individual who wants a home equity line of credit (HELOC) secured by the home he is living in. The home is owned by a limited liability corporation (LLC) of which our borrower owns 100%. Should he or the owner (LLC) be signing a notice to cancel? A: If the home is owned 100% by the LLC, then no one will be signing any notice of the right to cancel since there will be no rescission right. The right to rescind applies only when a natural person owns the subject dwelling (other than when a trust established for tax or estate planning purposes or a land trust is involved). Advertising. Q: If we have yard signs printed up that will say “Financing Provided by ABC Bank” with our telephone number, do we have to include “Member FDIC” and the “Equal Housing Lender” logotype? These signs would be placed on properties where houses are being built with bank-loaned funds. A: No and yes. No, “Member FDIC” is not required since this is advertising related only to lending. Yes, the “Equal Housing Lender” logotype (the phrase and the “doghouse” logo) must be included since the signs are promoting the bank’s home lending. SBA 504 Loans Montana’s SBA 504 Lender providing businesses across Montana with long-term, fixed rate financing for commercial real estate and/or equipment with as little as 10% down. Our experienced staff is here to guide you, contact us today! WWW.BIGSKYFINANCE.ORG Powered by Big Sky Economic Development Cucina Florabella Missoula, MT Meadowlark Brewing Billings, MT Brandon Berger / brandon@bigskyeda.org / 406-869-8403 18 Community Banker
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