Banking Articles

These Banking articles will give you the news and information you need to stay up to date in the ever changing Banking industry.

March 22, 2011 – 1,570 views
Michael Roche
From time to time the federal government "sponsors" enterprises.  Such an entity is appropriately called a "Government-Sponsored Enterprise". There are a substantial number of these types of entities.  Perhaps none has had greater impact on the social fabric of American society than two mortgage related Government-Sponsored Enterprises, the Federal National Mortgage Association (FNMA), and the Federal Home Loan Mortgage Corporation (FHLMC).  Each of these organizations has a homespun nickname, which are loosely derived from their acronyms.  In the case of FNMA, the nickname is Fannie Mae.  The nickname for FHLMC is more abstract, since it is derived from the "Federal" and "MC" in its acronym, and is referred to as Freddie Mac. Full Story 
March 15, 2011 – 1,488 views
HW Gregory
Technology is evolving more rapidly than ever - especially in the banking industry. Community banks are joining the revolution to better accommodate customers' wants and needs: mobile banking, advanced check deposit options, and smart phone apps, to name a few. What "behind the scenes" technologies are available to banks to help streamline operations and reduce risk? Implementing an effective, streamlined and user friendly loan software platform is one way to achieve both of these goals. Full Story 
March 8, 2011 – 1,656 views
Janis Arendsen
In Series Number One, we reviewed the merits of the Good Faith Estimate and its value to the borrower for transparent disclosure of facts and figures. In the Part Two, we need to address the "service" aspect of the Real Estate Settlement Procedures Act. When you apply for a home mortgage, you may think that the lender, or loan originator, will service the loan until it is paid off or your house is sold. However, in today's market mortgage, servicing rights often are bought and sold. The Real Estate Settlement Procedures Act (RESPA) is a consumer protection statute which affords you certain disclosures and strategies for problem resolution with your mortgage and/or escrow account. Full Story 
March 1, 2011 – 1,777 views
Joy Harmon Sperling, Peter E. Lembesis
In a recent decision, the New Jersey Superior Court, Appellate Division, analyzed the enforceability of a counterclaim waiver provision contained in commercial loan documents. In Investors Savings Bank v. Waldo Jersey City, LLC, A-6201-09, _____ N.J. Super. _____ (App. Div. 2011), the court held that enforcement of such a provision in a collection action is contrary to New Jersey's court rules and policy in favor of judicial efficiency. This decision, however, does not significantly impinge upon lenders' rights - it merely permits a borrower to bring a lender liability claim as a counterclaim in a collection action, rather than in a separate action.  Full Story 
February 22, 2011 – 1,453 views
Janis Arendsen
When the FDA required food manufacturers to reveal the ingredients, nutritional value, calorie count and net weight on their product labeling, the big winner was the consumer. The consumer wins again now that Department of Housing and Urban Development (HUD) has set a standard for loan transparency. As of January 2010, all loan originators are required to give borrowers a loan "ingredient" list called a Good Faith Estimate (GFE). This three page "label" is structured within the Real Estate Settlement Procedures Act (RESPA) and clearly discloses key loan terms and closing costs to the borrower. Actually the Good Faith Estimate is more than a guesstimate, because once presented to the borrower, it is a binding statement of costs with few exceptions. A loan originator must issue a GFE no later than 3 business days after the loan originator receives either an application or information sufficient to complete an application and failure to provide a GFE to a borrower is a violation of Section 5 of RESPA. However, if the loan originator denies the loan before the end of the three business day period, or if the applicant withdraws the application, then the GFE does not need to be provided nor does the Special Information Booklet. HUD's new settlement cost booklet (pdf version - updated 1/6/2010 with corrections of minor detail) Full Story 
February 15, 2011 – 18,136 views
Mike King
Parties to real estate transactions, commercial transactions, or credit arrangements often seek to avoid the risk of non-payment by insisting upon payment in the form of cashier's checks, teller's checks or certified checks.  Essentially, the party seeking to be paid is insisting that the debt be paid by an obligation of a bank, rather than a check from an individual or business.  After all, bank obligations don't "bounce."  Unfortunately, even this level of diligence will not always guarantee payment. Full Story 
February 14, 2011 – 1,451 views
David Montana
Bank debt collection may differ from other varieties of collections, for a variety of various factors. The greater number of debts to banks are usually collateralized debts, more particularly home loans and consumer loans that are collateralized against a property, such that in a majority of these cases bank debt recovery is normally quite simple. Whenever there are defaults on these loans, it is customary for the debt to be paid back as quickly as feasible or risk losing his or her residence and banks will typically enter into agreements for the debts to be paid off over a period of time, since it is without question better for the bank to have the debt paid out off steadily than to have to take ownership of the property. Full Story 
February 10, 2011 – 2,973 views
Mark D. Shapiro
A UCC (Uniform Commercial Code) lien, either is a general or a specific lien on most business property, and certain kinds of personal property. This lien does not cover real estate property. (Real estate requires a different kind of lien, such as an abstract of judgment, recorded at the county recorder where the property is located.) Full Story