16. Loan Closing & Servicing Servicing means receiving any scheduled periodic payments from a borrower pursuant to the terms of any mortgage loan, including amounts for escrow accounts … and making the payments to the owner of the loan or other third parties of principal and interest and such other payments with respect to the amounts received from the borrower as may be required pursuant to the terms of the mortgage servicing loan documents or servicing contract. In the case of a home equity conversion mortgage or reverse mortgage as referenced in this section, servicing includes making payments to the borrower. -- Regulation X, 24 CFR § 3500.2
Additional time may enable borrower to raise money to reinstate or sell, or to save money, etc.
“ Stalls” -- commonly, a sale to scam artist or confederate at way below fair market value
PMI: private mortgage insurance Alt-A: usually used for borrowers with unorthodox or unverifiable income streams
Teaser rate usually lasts only hours or days
DFI: Department of Financial Institutions
Use of state statute may enable plaintiff to avoid pre-emption
Main value of the HUD-1 will usually be in discovery – will show purchase price, source of funding, who got what $$, may show the “reason” given for the payments – if HUD-1 not completed, transaction will not pass smell test
Single-premium credit insurance used to be the big issue
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