10/29/2012
If the original loan application package was issued for a husband and wife and signed by both but later changed the loan to husband's name only, can the original disclosures (not 1003) be used or would a new set be required in the husband's name with his signature only?
10/22/2012
We are starting up a new debit card program. I need help on what policies I need to make sure that I include in our debit card program. Prior we only offered ATM cards. What disclosures do I need to be mailing out? I figured I needed to mail out new EFT disclosure and Reg E disclosure. What kind of offline limits do I need to set for our customers? Is there a Regulation on that?
10/15/2012
We are going to offer a DDA tiered rate paying 2.75% on the first $10,000 if qualifications are met (10 debit card transactions - 1 direct deposit or debit - access Internet banking once during the monthly cycle),.25% on balances over $10,000 if qualifications are met and .05% on all balances if qualifications are not met. It has a $100 to open minimum but interest will be paid on all positive balances. How do I disclose the APY? On the top tier do I use the $100 (min to open) to disclose the amt used to obtain the APY or can I use $1? On the middle tier - do I have to take into consideration the first $10,000 earned the higher rate?
10/01/2012
I understand that Reg CC availability schedules do not govern checks deposited to nontransactional accounts. However, I have also read that if you give your Funds Availability policy to all account holders regardless of the type of account, as many banks do to avoid the possibility of failing to give it in required situations, that your actual availability policy for nontransaction accounts must match what your disclosure says. Should the bank add a clause to the disclosure or can we qualify the reference within the disclosure to read "funds deposit into your 'transactional' account may be delayed...."
09/17/2012
According to Reg CC, does the bank have the right to delay availability for withdrawal of cash or similar means by one business day, and only provided $400 deposited fund available for cash withdrawal?
08/13/2012
I know that Reg X allows for E-SIGN use but I cannot find in any of the Regs the definition of "email." Reg X allows for the delivery of corrected disclosures in the cure process. There are time frames to meet to make the delivery effective and email is nearly instant. It seems though that anything other than handing the corrected disclosure to the applicant is considered mailed. Can we email these corrections when time is short?
08/13/2012
Once we take a residential mortgage loan application over the phone, we send the 1003 and initial disclosures to the applicant. Would we be prohibited from providing a written notification with the loan package that instructs the applicant to return the documents to us within 14 days or the bank will consider the application to be withdrawn by applicant?
08/13/2012
I've been asked to research what compliance issues there might be with changing our CD early withdrawal penalties from interest based (e.g., 3 months interest) to principal based (e.g., penaltiy is 1% of principal amount at opening or renewal).In what I've been able to find, the only thing I see relates to the Reg D requirements for the penalty to be at least 7 days simple interest if the withdrawal occurs within the first six days to be considered a time deposit. Assuming we can cross that hurdle, are there other compliance issues that I'm missing? UDAAP potential comes to mind, but if we are clear and transparent in disclosing the penalty are there other aspects of UDAAP that could bite us? We are looking at this as a defensive/customer retention tactic. With today's rates so low, and as a result with interest-based early w/d penalties also low, customers have no real downside to locking in higher yields today by putting into long term CDs with the thought that if rates jump significantly in a year, the penalty will be more than offset by moving to a higher yield CD early.I'd be interested in hearing any thoughts. We have heard anecdotally that other banks may be considering or already doing this. Is anyone aware of a bank doing this at this time?
07/30/2012
What if a rescission is not given at all? Does this error last beyond three years? What if the date of the loan is one day and the day of the rescission was given the day after? What is the effect?
07/30/2012
At the time of an application the rate was 3.79% and was displayed as such on all required disclosures. We are portfolio lenders so when our rates went down a little to 3.75% I gave the new rate to the customer but did not redisclose anything because we were still within the tolerances. Our compliance officer disagrees with me and thinks that I am required to redisclose. What is your opinion?