06/11/2007
For HMDA reporting purposes, if a bank knows that information submitted by a prospective borrower on a standard residential loan application is not correct, can the bank modify the application itself or just leave it as is, which means the HMDA reporting would not be accurate? I am a regulator asking this question on behalf of one our bankers. He explained that his bank has noted errors and/or discrepancies throughout the application form, including: <ol><li>The borrower refinancing a present residence marks on the declarations that he or she has had no ownership interest in a property in the last three years. <li>The borrower indicates he or she has not filed bankruptcy in the past seven years but a credit report and public records indicate there has been a filing. <li>The borrower indicates he or she is both a U.S. citizen and a permanent resident alien. <li>A borrower indicates he or she intends to occupy the property as a primary residence but elsewhere in the application it is evident the property is for investment purposes. </ol>Perhaps the question about what to do on a loan application when these instances are discovered needs to be answered separately for each instance. I will relay your response(s) to my banker.
04/24/2006
I work in the compliance department for a National bank and have been asked this question by our credit underwriting staff. If our credit underwriting group reviews a customer's credit report and would like to ask the customer about information listed on that credit report, such as a bankruptcy or other credit references, what type of detail is the underwriter permitted to go into regarding the customer's credit report to make a credit decision without violating FCRA since we are not a Credit Reporting Agency?
04/17/2006
I am looking over some of the new TIL disclosure requirements and have a question regarding our Ready Reserve line of credit accounts. We offer a Ready Reserve line of credit attached to DDA accounts that are treated basically as loans (not as the "bounce protection" products talked about recently). Are we subject to the new TIL disclosure requirements? (Prompted by Bankruptcy reform which includes a warning about making only the minimum payment and also provides 2 examples based on whether the minimum balance is 4% more or less of the minimum balance.) Also, it mentions making this information available by telephone. We are a small community bank, and when customers call they talk to a live person. Are we required to disclose these minimum payment requirements in some type of phone recording? Is it correct that this requirement applies to HELOCs? Will it apply to our overdraft Ready Reserves? (FYI...on these RR, we require 5% of the balance payment per statement cycle).
11/21/2005
In regards to Reg B. If in the application process we find out that we have taken a loss on a customer after a bankruptcy can we verbally deny their ability to apply? Or do we treat it as a complete application and send the proper adverse action notices?
05/01/2005
I received a press release the other day that said that because banks face increased government regulation, more hiring is needed to keep up with the workload.
04/18/2005
I have some questions regarding the IRS reporting on 1099-C cancellation of debts. 1. Are personal bankruptcy accounts reported if they have been discharged? 2. Are you required to report charged off loan accounts before the statute of limitations (15 years) for collection has expired? 3. If you cancel a debt can you no longer pursue collection of that debt?
01/01/2005
It is talked about in many contexts. It is a term tossed about without clear definition. It engenders fear and caution among lenders. It raises compliance concerns.
06/09/2003
We have denied someone credit based on their credit report scores, bankruptcy and collections. They have requested a copy of the credit report from us. Are we obligated to give them a copy, or may we refer them to the credit agency to obtain a copy?
11/18/2002
We have a business that has a loan that is secured by another business's Certificate of Deposit. The loan became past due to the point that the CD was redeemed and applied to the loan. Now the borrower has declared bankruptcy and the CD owner would like information on the loan (which they did not sign, only assigned their property). Can we give them this information?
11/01/2002
Meeting for the third time this year, the Fed's Consumer Advisory Council made identity theft its leading topic.