Bio:
Dan is Vice President and Compliance Officer for The Peoples State Bank with its main office located in Ellettsville, IN and supporting nine branches in surrounding communities. The bank is a privately owned bank that began its existence in 1904.
Dan entered the financial services arena in 1974 when he went to work for Commercial Credit Corporation. He worked eighteen years with Bank One and three years with the Indiana University Employees Federal Credit Union. In addition to serving as a Compliance Officer, he has served as a Collection Officer, Consumer Loan Officer, Commercial Loan Officer and Loan Operations Officer. His primary duties falls within lending compliance, training and consumer loan reviews.
He attended Three Rivers Junior College in Poplar Bluff, MO and Arkansas State University in Jonesboro, AR. He is also a graduate of the ABA Bank Card School, ABA Commercial Lending School and ABA National Truth-in-Lending Compliance School.
Questions Answered
12/03/2023
Is there any requirement to disclose the specific rates used to calculate purchase, balance transfer, and cash advance APRs in the credit card agreement, if that information is already clearly disclosed with all other required pricing information (as defined in Reg Z 1026.6(b)(2)(i) through (b)(2)(xii))? This is already provided on our Interest Rates and Fees Disclosure form provided to the applicant with the card.
For example, our credit card agreement (a separate document from the Interest Rates and Fees Disclosure) includes "For the non-promotional purchase and balance transfer APR, we add X.XX% to the Prime Rate. For the cash advance APR, we add XX.XX% to the Prime Rate. However, all of this information is also disclosed on our Interest Rates and Fees disclosure, which is given to the applicant with the Account Agreement and card.
11/26/2023
Is a customer required to sign an intent to proceed? I have not found that in the Reg.
11/05/2023
There is confusion over the disclosure for the Reg B, Right to Receive Copy of Appraisal.
I read that David Dickinson (Aug 9, 2010) said there is no date requirement for this disclosure, whereas Dan Pesfull advised it is given at or within 3 days of application but can be given at closing. Per the CFPB website it must be given within 3 business day of receipt of application. (12 CFR § 1002.14(a)(2). Can some one clarify.
11/05/2023
I have a member who has a credit card with us. He recently notified us that he is now active duty. I know what our responsibility is regarding the interest rate under SCRA because this is a pre-service obligation. He now wants a limit increase of several thousand dollars on his credit card. Must we give him 6% on that portion?
09/17/2023
Can you do a HELOC on a home a customer is buying? The first draw will be to complete the purchase.
The house has a purchase price of $90,000 and they need to borrow $30,000. They don't want all the expenses and hassle a regular mortgage entails. They want to just take out a HELOC on that new home. A HELOC is not TRID so we would not need all the documention either.
08/27/2023
I would like to know when exactly does a financial institution need to send the annual PMI notice? I understand that it can be included in the annual escrow statement, but if sent separately, what annual date should be used?
08/06/2023
How do other bank handle flood certifications on loans which are secured by an existing real estate mortgage on subsequent loans? For example: We do an original note secured by a mortgage. Two years later, the loan is refinanced, and new money is added. Do you require a new flood certificate for this increased loan? We do have life of loan on our flood certificates which notify of us flood map changes.
We also have loans secured by GBSA (general business security agreement) as the main piece and real estate secondary. If our flood certificate is within 7 years and maps have not changed, do we need to do a new flood certificate? Can we just print out a section from FEMA's website as proof the maps haven't changed?
We're trying to come up with procedures which keep us in compliance and uncomplicate the process we currently have.
08/06/2023
Would terming out a construction loan be considered a purchase on HMDA LAR?
08/06/2023
We have loan that has three applicants. One will live at the property but has no credit. The other two had the credit and income. Since there are only two places to record DOB and Credit Scores for HMDA, which ones do you use?
07/16/2023
A flood policy expired on a loan that had deferred principal due to a COVID Deferral program. The customer didn't renew their policy and force placement of coverage was implemented, notices went out on time and the force placement happened on day 46. The problem came one week prior to the renewal of the force placed policy, when evaluating to renew, it was discovered that the number used to calculate coverage last year was incorrect. The principal used was a much smaller amount which is the one agreed on the COVID deferral, but not the real one. Since the policy is a forced placed policy, and regulation doesn't require a new set of notices, we only send one courtesy letter advising the client of the imminent force placed renewal. My counterparts think that we should restart the letters since we will renew the policy for a higher amount but I don't agree with that assessment. What do you think?
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