Posted by CJ/Alaska on 10/16/07 5:53pm
Msg #216780

about Greenbelt Real Estate - Melville NY..

I got an assignment from them and I see there are lots of people who had to fight to get payments, and I think some people still are owed... I wish I had time to research these companies before having to make a decision On the Fly when they call.. I will hope for the best BUT my issue is - the docs I got, I think are wrong and they wont address it.. Please read and tell me what you think?
There is a Doc where the borrower has to Initial, and it says they understand the loan DOES have a Prepay Penalty.. it says they are to refer to their Note and DOT for those provisions. The NOTE actually says: "I may make a full Prepayment or partial Prepayments without paying a Prepayment Charge."
HOW do I explain this to the Borrower?? The lady at Greenbelt SWEARS to me that this is how the lender does ALL their docs and its fine that way.. and that the loan DOES INDEED have a prepay penalty.. She told me to stay out of it, that Im not to give Legal Advice (DUHH) but the issue is, when my borrower asks me to point out WHERE in the docs it says what that Penalty can be, I cant find it! So Im on the Hot Seat.. COMMENTS ARE WELCOME!

Reply by Linda Spanski on 10/16/07 6:03pm
Msg #216784

where to find PPP

Each Note has a numbered clause that says something about "Payments before they are due." You referred to this, I'm guessing, when you quote " I may make a full Prepayment or partial Prepayments without paying a Prepayment Charge."

The other place to look, then, would have to be a rider to the Note. Also, the TIL addresses this near the bottom. If the "may" box is checked, then you know there are conditions.

Hope this helps.

Reply by CJ/Alaska on 10/16/07 6:06pm
Msg #216786

Re: where to find PPP

There are No riders at all to the Note, and none of the Rider Boxes are checked so I dont think any are missing.. and on the TIL at the bottom, all it says is - you 'may' be subject to a prepay penalty, then it says to refer to your loan documents to find the info!
This person @ Greenbelt went on to tell me its most likely a 36 month penalty..
3% 1st year. 2% 2nd year. 1% the 3rd year. HOW can they enforce that when its nowhere IN the docs??

Reply by Linda Spanski on 10/16/07 6:10pm
Msg #216789

"most likely"

... wouldn't cut it for me if that was MY loan. Did the bwr call Greenbelt and ask where to find those terms in writing? That what I would've suggested.

Reply by CJ/Alaska on 10/16/07 6:10pm
Msg #216790

Re: where to find PPP

AND - she told me to look for Governing Laws in the DOT - I found that.. she says that deals with it.. maybe in a general sense only - that says the DOT is governed by the jurisdiction where the property is located (which has nothing to do with Lending Statutes..)
Well, in the State of Alaska - which is where the property is - Prepay Penalties are not allowed anyways.. LOL

Reply by Philip Johnson on 10/16/07 6:10pm
Msg #216788

Have them call their LO and ask him/her about this.

Also the TIL will list if there is a PPP.

Reply by CJ/Alaska on 10/16/07 6:11pm
Msg #216791

Re: Have them call their LO and ask him/her about this.

At this point Philip, she doesnt want to ask them.. and she wants me to stay out of it..
I think she doesnt want any questions.. she just wants me to 'get the signatures..'
Who cares if the docs are right LOL

Reply by Amalia Contreras on 10/16/07 6:21pm
Msg #216794

Re: Have them call their LO and ask him/her about this.

Is this Citicorp and Primerica?

Reply by CJ/Alaska on 10/16/07 6:58pm
Msg #216804

to Amalia - YES its CitiCorp..

does that make a difference?

Reply by Amalia Contreras on 10/16/07 10:09pm
Msg #216852

Re: Check for p.m. n/m

Reply by Philip Johnson on 10/16/07 6:22pm
Msg #216795

I assume the buyer is over 18 and in good mental order

so he/she can wade right in and move forward with this. Our part in any transaction is to confirm that the person/persons standing in front of us are who they say they are and are reasonably competent. Good luck

Reply by CJ/Alaska on 10/16/07 6:56pm
Msg #216803

Re: I assume the buyer is over 18 and in good mental order

My job is also to be able to point to where something relevant can be found in those documents.. makes me look silly when I cant do so.. and the fact is, its just not there!

Reply by Charles_Ca on 10/16/07 9:07pm
Msg #216831

CJ/Alaska, I may be missing something in this whole thread

but you said that in Alaska a pre-payment penalty is not allowed by State law, therefore any pre-payment penalty would be void anyway. I don't see the difficulty.

Reply by BrendaTx on 10/16/07 9:11pm
Msg #216832

Re: CJ/Alaska, I may be missing something in this whole thread

Been there, done it. The borrowers still want to see it in the documents...that's the problem.

Reply by Monica Valle-Cavero on 10/16/07 10:56pm
Msg #216863

Re: CJ/Alaska, prepayment penalties

Everything....note ppp Rider, TIL should all agree. On note did you read the entire Prepayment paragraph. Usually they are longer than one sentence.

Reply by Linda Spanski on 10/16/07 7:00pm
Msg #216806

Re: I assume the buyer is over 18 and in good mental order

In California, notaries are supposed to make sure borrowers understand what they are signing. If I can't show 'em their numbers, then we call somebody for clarification.

Reply by MikeC/NY on 10/16/07 11:40pm
Msg #216866

Where in Melville are they? Melville is about 10 miles from me...

As far as the prepayment penalty is concerned, the lender can't hide it. If the note says there's no prepayment penalty and there's no prepayment rider that says otherwise, there's no prepayment penalty.

It sounds more like either a) they just forgot to include the rider in the docs, and the lady at Greenbelt doesn't have a clue, or b) the lender knew that Alaska doesn't allow prepayment penalties and purposely omitted the rider, and the lady at Greenbelt doesn't have a clue...

Reply by OR on 10/17/07 2:16am
Msg #216873

Re:Citicorp Bank it is the way they do it. I have signed

several Citicorp loans and 2 for Greenbelt this month. It does say that there is not penalty to pre pay in the Note. But there is an amendment doc (not a rider) that makes the change to PPP to 3% charge in 1st. year - 2% in 2nd. year and 1% in 3rd year. So the borrower has to keep their loan for at least 3 years to avoid the PPP. That is how Citicorp is doing it. The lady at Greenbelt is right. You need to tell the borrower that the Note is amended with a PPP. IMO

Reply by LJ on 10/17/07 8:46am
Msg #216891

Re: Re:Citicorp Bank it is the way they do it. I have signed

Every Citicorp loan I have seen has the 3-2-1% PPP. I have done many of them. There is a disclosure explaning this in every pkg. I also have never come across a borrower that is not aware of this before I get there. I have never had a Citicorp loan that didn't close. In my area, the LO is at the closing when possible.

Reply by Robert Hollenbeck on 10/17/07 10:29am
Msg #216910

Re: Re:Citicorp Bank it is the way they do it. I have signed

I agree, the LO is usually there and there is a doc disclosing the ppp. Also there is an explanation that federal law, which does allow ppp supersedes state and local law and that because Citicorp does business nationally federal law rules. I have done several of these loans for Greenbelt for the last 3 years and never had a problem with ppp or payment from them for that metter.