12/16/2008
Overview: Regulation C's reporting requirements are changing.
12/08/2008
Is an adverse action notice required when a loan is approved and the borrower receives a verbal approval (with conditions of approval) and he calls to say he does not want to continue with the application. Can we simply mark the loan approved and not accepted in the HMDA screen and not have to send the borrower any further communication?
07/21/2008
What compliance issues do we need to think about when taking a loan application over the phone? Currently, we do not practice taking them and I am trying to figure out why we don't. Any input or specific resources would be great.
07/14/2008
Someone in our holding company's compliance area told us that unmarried co-borrowers should complete separate loan applications when applying for joint credit. I've reviewed both the WBA-FIPCO forms and the Wolters Kluwer Financial Services ARTA Lending forms and they appear to allow unmarried co-borrowers to be on the same loan application. Can you give me any regulatory guidance here?
03/10/2008
We received a business loan application for ABC company. As part of the application the lender pulled a credit report on the primary owner of the company who agreed to personally guarantee the debt, but the credit was denied based on information contained in the credit report. Since the individual is not an applicant, does the FCRA adverse notice need to be sent to the individual as well as the company? I have had some interpret that notice does not need to be provided to guarantors, as technically they are not applicants and thus no adverse action is taken against them and some interpret that the notice needs to be sent to any individual for whom a credit report was pulled which contained the adverse information. Which is correct?
06/18/2007
A loan application is completed by an applicant and dropped off at our office, but they did not complete the government monitoring information. Would this be considered mail or face to face for determining the HMDA codes?
06/11/2007
For HMDA reporting purposes, if a bank knows that information submitted by a prospective borrower on a standard residential loan application is not correct, can the bank modify the application itself or just leave it as is, which means the HMDA reporting would not be accurate? I am a regulator asking this question on behalf of one our bankers. He explained that his bank has noted errors and/or discrepancies throughout the application form, including: <ol><li>The borrower refinancing a present residence marks on the declarations that he or she has had no ownership interest in a property in the last three years. <li>The borrower indicates he or she has not filed bankruptcy in the past seven years but a credit report and public records indicate there has been a filing. <li>The borrower indicates he or she is both a U.S. citizen and a permanent resident alien. <li>A borrower indicates he or she intends to occupy the property as a primary residence but elsewhere in the application it is evident the property is for investment purposes. </ol>Perhaps the question about what to do on a loan application when these instances are discovered needs to be answered separately for each instance. I will relay your response(s) to my banker.
04/16/2007
If an application is withdrawn by a borrower are we required to give them the Reg V "Notice to Home Loan Applicant" disclosure?
03/19/2007
If an application is withdrawn by a borrower are we required to give them the Reg V "Notice to Home Loan Applicant" disclosure?
01/15/2007
What do the acronyms CAR and LAR mean?