{"id":2584,"date":"2021-07-30T16:18:49","date_gmt":"2021-07-30T16:18:49","guid":{"rendered":"https:\/\/albanknews.com\/?p=2584"},"modified":"2021-07-30T16:22:16","modified_gmt":"2021-07-30T16:22:16","slug":"2584","status":"publish","type":"post","link":"https:\/\/albanknews.com\/?p=2584","title":{"rendered":"Compliance Q&#038;A: Homebuilders and Lines of Credit"},"content":{"rendered":"<p><strong>Q: <\/strong>We provide lines of credit to home builders using a \u2018master note\u2019 and then use sub-notes for each specific construction loan. Our question stems from the appraisal notice that is required to be given within 3 days of application. Is the bank required to provide an appraisal notice for each subsequent note \u2013 or would one be sufficient when the master note is signed by the customer?<\/p>\n<p><strong>A: <\/strong>Typically, with this loan structure, each &#8220;sub-note&#8221; is its own separate extension of credit. Therefore, for Reg. B appraisal purposes, as long as an appraisal or valuation is being developed in connection with each sub-note (and of course assuming it is to be secured by a first lien on a 1-4 dwelling) then each would be subject. Regulation B, \u00a7 1005.14(a), <a href=\"https:\/\/www.consumerfinance.gov\/policy-compliance\/rulemaking\/regulations\/1002\/14\/\">https:\/\/www.consumerfinance.gov\/policy-compliance\/rulemaking\/regulations\/1002\/14\/<\/a><\/p>\n<p><strong>Not a member?<\/strong> Learn more about membership with Compliance Alliance by attending one of our live demos:<\/p>\n<ul>\n<li><a href=\"https:\/\/compliancealliance.com\/news-events\/event\/live-membership-demo-08-03-2021\"><strong>Live Demo on Tuesday,\u00a0August 3rd,\u00a0@ 10:00 am CT<\/strong><\/a><\/li>\n<li><a href=\"https:\/\/compliancealliance.com\/news-events\/event\/live-membership-demo-08-05-2021\"><strong>Live Demo on Thursday,\u00a0August 5<sup>th<\/sup> , \u00a0@ 1:00 pm CT<\/strong><\/a><\/li>\n<\/ul>\n<p>&nbsp;<\/p>\n<hr \/>\n<p>For timely compliance updates and resources, <a href=\"http:\/\/eepurl.com\/bjXIVv\"><strong>subscribe to <\/strong><strong>Bankers<\/strong><strong>Alliance\u2019s email newsletters<\/strong><\/a>. Compliance Alliance offers a comprehensive suite of compliance management solutions. To learn how to put them to work for your bank, call <strong>(888) 353-3933<\/strong> or email <a href=\"mailto:info@compliancealliance.com\"><strong>info@compliancealliance.com<\/strong><\/a>and ask for our Membership Team.<\/p>\n<p>&nbsp;<\/p>\n<p>&nbsp;<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Q: We provide lines of credit to home builders using a \u2018master note\u2019 and then use sub-notes for each specific construction loan. Our question stems from the appraisal notice that is required to be given within 3 days of application. Is the bank required to provide an appraisal notice for each subsequent note \u2013 or would one be sufficient when the master note is signed by the customer? A: Typically, with this loan structure, each &#8220;sub-note&#8221; is its own separate extension of credit. Therefore, for Reg. B appraisal purposes, as long as an appraisal or valuation is being developed in [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":1070,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":true,"jetpack_social_options":{"image_generator_settings":{"template":"highway","default_image_id":0,"font":"","enabled":false},"version":2}},"categories":[19,33,23],"tags":[],"class_list":["post-2584","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-breaking","category-compliance-qa","category-publications","has_thumb"],"jetpack_publicize_connections":[],"jetpack_featured_media_url":"https:\/\/i0.wp.com\/albanknews.com\/wp-content\/uploads\/2017\/11\/compliance-alliance.png?fit=800%2C800&ssl=1","jetpack_shortlink":"https:\/\/wp.me\/s4Y3P2-2584","jetpack_sharing_enabled":true,"jetpack-related-posts":[],"_links":{"self":[{"href":"https:\/\/albanknews.com\/index.php?rest_route=\/wp\/v2\/posts\/2584","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/albanknews.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/albanknews.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/albanknews.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/albanknews.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=2584"}],"version-history":[{"count":2,"href":"https:\/\/albanknews.com\/index.php?rest_route=\/wp\/v2\/posts\/2584\/revisions"}],"predecessor-version":[{"id":2587,"href":"https:\/\/albanknews.com\/index.php?rest_route=\/wp\/v2\/posts\/2584\/revisions\/2587"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/albanknews.com\/index.php?rest_route=\/wp\/v2\/media\/1070"}],"wp:attachment":[{"href":"https:\/\/albanknews.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=2584"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/albanknews.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=2584"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/albanknews.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=2584"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}