Latest Compliance - Applications Topics

2004 HMDA Preapproval Rule Procedure

06/23/2003

I have been trying to draft procedures to follow the 2004 HMDA rules regarding HMDAreportable preapprovals. One thing the new HMDA regs never seem to clearly state is how far back a lender must look to determine whether an origination started as a preapproval. What I want to believe is that once a preapproval request is denied, withdrawn, closed for incompleteness, or approved but the commitment expires, any future application by the client is a NEW event NOT related to the earlier preapproval request. Example: Preapproval is granted and the written commitment expires April 15. Client shows up on May 12 to start a full application, which later closes. The May 12 application is NOT going to be marked on HMDA as having started with a preapproval, because the earlier preapproval commitment expired before the client showed up to start a full application. (If the Bank chose to report approvedbutnotaccepted preapprovals, there would be two HMDA records reported for this client: the approvednotaccepted preapproval, and the originated loan.) I hope my interpretation is correct; if we have to go back indefinitely to match preapproval requests of various dispositions with future applications, it would become impractical to offer preapprovals!

Record Retention For Withdrawn Loan Applications

06/23/2003

Is there a records retention requirement for loan applications that are withdrawn within 3 business days after the date the application was made?

Telephone Mortgage Applications & Required Early Disclosures

06/16/2003

When are the required earlier disclosures provided for residential mortgage transactions, when the customer is solicited by telephone? Reg. Z 226.19(a)(1) reveals only pertaining to written applications.

Reg B Changes Roundup

06/03/2003

HMDA Transition Guidance

06/01/2003

Making the Transition to New HMDA

06/01/2003

Applying the new HMDA rules

06/01/2003

LAR Information Recorded Without Monitoring Info

05/19/2003

I am compliance auditor of our bank. Recently when I audited our 2002 HMDALAR, I discovered in a number of cases that our HMDA reporter completed the Sex codes with a "1" to "A" and "2 to "CA"(male and female) and the Race code with a code other than the "6", "7" and "8"(Other, No information, and N/A) all in the absence of the monitoring information obtained directly or indirectly from the applicant/coapplicant. There is no evidence of the reporter having gone thru the process of obtaining the monitoring information, but rather he bases his judgement on the names and other personal information given on the loan documents. Can he do that? Instead, should be change those codes to "N/A" or "No Information"?

Font Specifications For Credit Card Disclosures

05/05/2003

We are changing our fees on our credit cards and need to know what fonts specifications if any are in effect for credit card disclosures.

Pulling Credit Report Without Customer's Signature

05/05/2003

Is it acceptable to pull credit from an application faxed by a Manufactured Home Dealer that does not have the customer's signature on the application? (phone in applications or they have signed another Bank's Application or the Dealer's Application.)