03/26/2012
A finding in a recent audit may possibly result in a change of procedures for us. I disagree with the finding. Are we indeed required to keep a copy of all Notice of Adverse Action forms when we decline a customer (personal, business) for a checking account? We currently give them a blank form advising them to contact the consumer reporting service (i.e. eFunds) and that is all-we do not even inform them as to why they have been declined. If yes, what information are we required to keep?
03/12/2012
I have a question in relation to Section 202.9(a)(1) of Regulation B which states that a creditor shall notify an applicant of action taken within 30 days after receiving a completed application concerning the creditor's approval of, counteroffer to, or adverse action on an application. Example: August 1st: Application is taken and loan receives preliminary approval subject to verification of income, property value, etc. September 6: Receive the tax returns from the client, income is much less than indicated by the client and it is determined that Debt-to-income ratio is too high and the loan will be denied. How should we handle this situation? Most of our 1st mortgages don't close within 30 days of application. If we are still waiting on info from the client when we are nearing the 30 day mark, should we be sending a letter of incompleteness? Reg states we can give them a reasonable period of time to provide the info. What do you think is reasonable?
03/05/2012
How long do we need to retain "Notice of Adverse Action in Non Credit Transaction Based on Credit Report" and supporting documentation?
02/06/2012
Does the FACT act apply to commercial loans?
01/23/2012
Related to the Reg B ECOA changes to adverse action notices. If using a consumer reporting agency like ChexSystems that also gives you a score and uses credit information, should you be disclosing their score and range of scores and listing the items that adversely effected their score on the notice when denying a deposit account?
01/02/2012
If we have two applicants and one has excellent credit and one has bad credit and we decline the loan, is it required that we send out an Adverse Action Notice to the applicant with the good credit and indicate that the co-applicant does not meet the minimum standards?
01/02/2012
What documents require the NMLS number? Is the NMLS required on Adverse Action notices as well?
12/12/2011
Do the new adverse action notices apply to commercial loans or just consumer loans?
11/28/2011
The commentary to Reg B and Reg V recognizes that the definition includes the phrase “arranges a loan” but also points out that in requiring credit score disclosures, section 1100F of the Dodd-Frank Act does not state that the credit score disclosures are only required for adverse action decisions related to credit. My question - we use eFunds/QualiFile which interfaces with TransUnion for both Debit and Credit information that translate to a score for opening DDA and SAV accounts. Are we now required to disclose in the same manner for denied DDA and SAV account opening requests?
11/14/2011
What is the address for the OCC that we should use for the ECOA Section on our Adverse Action? I am unable to find it on the OCC website. We are a Federal Savings Bank, and as of July 21st, we will be under the OCC.