09/15/2008
We have a loan with two borrowers, a mother and daughter applying for a loan jointly. One of our lenders asked them to complete separate applications. Is this a violation of Reg B? Should all loan applications with two borrowers be listed on the same application unless otherwise requested by the borrowers?
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?
07/14/2008
I have read the following statement under Reg B staff interpretations of 202.13 (#5) "an application for open-end home equity line of credit is not subject to this section unless it is readily apparent to the creditor when the application is taken that the primary purpose of the line is for the purchase or refinancing of a principal dwelling". To me that means that if an applicant applies for a HELOC with the intention of purchasing or refinancing their home that we (the lender) should gather government monitoring information. Am I understanding correctly? If I am, what is the creditor supposed to be doing with the GMI? For HMDA we report the GMI on the HMDA LAR, but there is not a Reg B LAR to my knowledge.
07/07/2008
Since web sites have widely varying degrees of functionality, each bank must determine its own obligation. It's been a long time since I've seen a bank web site that isn't at least an advertisement. Catalog the products that will be promoted there and then aggregate the advertising regulations that apply to those products. If you offer online applications, then add the rules that apply up to that stage. If you also provide online decisions, then add the additional rules that come into play. If you go all the way and open the new loan/deposit online, keep adding the additional rules that apply during all stages of a customer relationship. There are very few rules that are uniquely Internet-related and not tied to a product. Included in this short list are "speed bumps," CAN-SPAM, and COPPA.
04/21/2008
We have chosen to not report HELOCs on the HMDA LAR, but we do collect GMI on all home loan applications. I cannot find in Reg C that we are prohibited from collecting the GMI data for loans not reported on the HMDA LAR. Is collecting this data on loan applicants against any regulation and if so, could you please site the regulation?
02/04/2008
I have a question concerning Reg B and closed-end Home Equity Loans. We currently use Fannie Mae Form 1003 for all real estate related loans. In doing so are we violating Reg B with GMI on our home equity and construction loan on 1-4 family dwellings? My understanding is that the 1003 is a suggested form to use under Reg B because it gives that disclosure to the borrower about the use of the information. What is your opinion?
01/28/2008
Are we always required to provide the Credit Score Disclosure Statement(CSDS) prior to closing on all real estate, including interim construction (short-term with permanent take-out letter)? The credit bureau report is provided by the permanent take-out lender.
01/21/2008
Bankers at three locations take in loan applications and all of the documentation. While the customer dates the application the banker does not forward to underwriting until they have the complete application and required documentation (pay stubs, insurance), but we have a box on the application for the actual date received. Compliance is now telling me we need to add a definition of a complete application to the loan policy. Is there a standard definition of a complete application?
08/13/2007
Regarding the sale of credit life/A&H insurance, is the insurance disclosure for credit application required on every consumer loan even if such insurance sale was not solicited or sold?