10/19/2009
Recently a seminar was held by Jack Holzknecht on the new Reg Z requirements that began 7/30/09. One of his points on the timing of early disclosures was that the delivery rule was satisfied upon putting the disclosure in the mail. We attended a FED "Call the FED" phone seminar last week and the regulators stated that upon mailing of the disclosure you must wait three days before starting the seven day waiting period before loan consummation. Who is correct?
09/07/2009
Our bank routinely pulls credit bureau reports for all new loan requests. Although credit scores are only one of the criteria used to make a decision on a loan request, a poor score would weigh heavily on a credit decision. With regard to the FACTA provision of providing Credit Score Disclosures to residential mortgage loan applicants, a question arises about those applicants whose credit bureau we request and the report is returned without a credit score. The lack of a score is sometimes a factor in determining the decisioning of an application, the need for a co-signer, or even the interest rate that may be charged. Should a customer with a credit bureau history, but no score, be supplied with the notice?
09/07/2009
We want to start charging our customers for credit reports and flood determinations. Is it ok to only charge customers that we actually close the loan with or would this be discriminatory? We don't want to charge the credit report fee at application. We would rather wait until the loan is closed before the fee is imposed on the customer, therefore if a denial is made, the denied customers would not have the fee imposed on them.
05/25/2009
I have been in the mortgage business for 35 years. I am now a consultant and I keep coming across this phrase: "disclosures must be pulled within three days of the credit report". It is my understanding that there is no such rule and I have found many back-dated documents {customer comes back later after the credit pull and proceeds with the loan}. Do you know of any reference to this approach?
05/18/2009
Must a merchant services application/agreement have a separate document or separate authorization that must be signed in order for the merchant processor to pull a credit report on the principals?
05/18/2009
I am filling in for our bank's compliance officers while they are away at training. A co-worker posed the following question/situation and I have been unable to find the answer after some research. Our bank does credit checks/counseling for customers and non-customers. We have a form signed authorizing/permitting us to pull credit reports on the individuals. How long are we required to retain the authorization forms?
04/27/2009
How can I communicate compliance risk in terms that the business can understand and use to make immediate, measurable cost versus benefit risk decisions?
04/20/2009
Is it possible to add a written off checking account as a negative relationship on a credit report?
04/20/2009
How can I communicate IT risk in terms that the business can understand and use to make immediate, measurable cost versus benefit risk decisions ?
04/06/2009
Our bank does not charge the borrower a credit report fee when applying for a loan. Therefore, we do not include the fee on the final HUD or on the Reg Z disclosures. We are being questioned as to why not by our internal auditor. His view is that we must disclose all fees related to the transaction even if the borrower did not pay for it.