Bio:
Lucy is Editor of Compliance Action and President of Compliance Resources, Inc., a company offering compliance support and services to banks. She is also a Senior Associate of Paragon Compliance Group, a company dedicated to providing compliance training. She has more than twenty-five years of experience working with regulatory agencies and financial institutions. Her extensive work experience with regulatory agencies includes the Federal Home Loan Bank Board, the Board of Governors of the Federal Reserve System, and the Federal Trade Commission. As the manager of the Compliance Division of the American Bankers Association, she worked directly with several of the association's banker committees and with regulatory agencies to identify compliance priorities, and to produce resources and programs.
Areas of Expertise:
Compliance Action Newsletter
Compliance Consulting
Compliance Seminars
Training the Trainer Materials
Questions Answered
08/28/2006
I have been told that if you charged an origination fee on the original note you cannot recharge an origination fee on the same money, but you can charge an origination fee if any new money is added to the deal. Is this correct?
08/28/2006
We are considering filing our UCC statements online, and the state charges a $2.00 surcharge for the service, which we would pass on to the borrower. I'm wondering if on a consumer transaction the $2.00 charge would need to be part of the APR?
08/21/2006
My question concerns Reg B (Equal Credit Opportunity). Does Reg B require an evidence of an intent to apply for joint credit in the following example? An entity, ABC, LLC, has requested a loan secured by monies in a DDA account. The two owners of ABC, LLC signed the Promissory note. Is an intent to apply for joint credit required with the signatures of both parties?
06/12/2006
We have discovered that a few variable simple interest loans have been printed on a simple interest note disclosure and security agreement instead of a variable simple interest note disclosure and security agreement. We have considered converting these to fixed rate loans rather than redisclose. Any suggestions?
06/12/2006
On the day of funding on a refinance the lender increases their loan origination fee by $1,500.00. They provide the new TIL and itemization, but state they do not require the borrower to sign the new documents and want the loan disbursed according to schedule. Wouldn't a new rescission period begin when the borrower receives the new disclosure?
06/12/2006
Where would I find the verbiage in the RESPA guidelines that indicates that a First mortgage loan file only needs to document that the customer was provided the RESPA Servicing Disclosure within 3 days of application, and that the lender does not have to have it signed by the customer in order to close?
06/05/2006
Someone told me that the monthly condo fee must now be disclosed on the Good Faith Estimate and the Settlement Statement as a P/O/C by borrower (line 904) as this is a cost incurred by them at closing. Is this correct? I have not heard this or been able to find documentation of this anywhere. The only time we show the condo fees is on a purchase on the front of the Settlement Statement if it's being pro-rated between buyer and seller. Please advise.
06/05/2006
Required Provider List - Our auditors have written us up for not providing the nature of our relationship with some of our providers. These providers include credit bureaus, flood tracking and appraisers (we use infrequently). How should we disclose these types of relationships?
06/05/2006
I am confused about Indemnity Deeds of Trust and the effect on Reg B signature exclusions. I have been taught that no matter who you are, if you are a co-owner of a property being granted as collateral by an IDOT you must guarantee also. I know that IDOT's were created for the purpose of securing guarantees not the reverse, but that is the reality. Is this just a back door to get the spouse to personally guarantee?
05/29/2006
I am on the board of a non-profit housing program. During our family selection process we ask if they or any dependents have a disability. According to Reg B section 202.8 we are allowed to do that if it is part of the selection process (we receive monies from the Lions who require it to be used for a person with a disability) but we also provide housing for those who are not disabled. Would it be prudent to have two separate application processes? One for those who would like to apply for the house using Lions money which requires a disability and one that is open to others without regard to disabilities? If you were wondering, yes, we are subject to Reg B because we carry the mortgages on the home, hence we provide credit.
Pages