Vendor Guru Q&A - Compliance

Latest Compliance - Real Estate Lending Topics

Calculating Flood Coverage if Multiple Collateral

04/21/2014

We have a property that is in the flood zone and is collateral on three loans. On two of those loans there is multiple collateral. How do we calculate the coverage amount needed?

Laws Prohibiting Bank From Not Taking Ownership?

02/24/2014

Our bank is in PA-the property is located in OH.We wish to foreclose on the loan, issue the 1099C, but not take ownership of the property (deed in lieu). We are willing to charge off the loss rather than spend the money to rehab & market the property. Are there any laws prohibiting us from not taking ownership?

New Reg Z Requirements-Mortgage Billing Statements

02/10/2014

Per new Regulation Z requirements, if we are a bank that has under 1000 mortgage loans, are we exempt from sending out the mortgage billing statements and the new rate adjustment notices for adjustable-rate mortgages?

Reg B Appraisal Rules and CFPB Mortgage Liens

01/27/2014

We are a small community bank operating in a predominantly rural community. In many instances, we may have multiple mortgages on a dwelling, cross-collateralized across a customer's loan portfolio. In determining compliance for the CFPB Mortgage Rules, there are several references to first-lien transactions, Reg B Appraisal rules for instance. If our bank is the only secured creditor with multiple security instruments, are all of the mortgages considered the first-lien or is the first-lien the earliest dated mortgage and all subsequent mortgages are considered junior liens?

Modifying HELOCs Into Closed-End Products: Refi?

01/20/2014

We used to have a HELOC product but have discontinued all HELOCs. Our previous HELOCs are reaching maturity and we would like to modify them to closed-end products with either fixed or variable rates. Can we treat this as a modification or do we have to treat it as a refinance? If we have to treat it as a refinance it will be much more expensive for the borrower because we are in a state that requires an attorney closing for refi?

Dwelling Definition: Home vs. Land Purchase

11/25/2013

The HMDA Getting It Right Guide has a definition of what a dwelling is. So, what about this scenario: A borrower gets a loan to purchase the lot next to their primary residence. On that lot is a home that has not been occupied for 20 years and is not habitable because the ceilings have fallen in, the floors are rotted, etc. and borrower intends to demolish it. Do we need to report this loan as a home purchase on our HMDA LAR? Or can we view this as a land purchase?

Supervisory LTV - Definition Needed

06/07/2010

What is the definition of Supervisory LTV? I find many articles on what they can do, but what is the actual definition?

Real Estate Lending & Skip-a-Payment Programs

06/18/2007

I have two questions specifically geared toward loan skip-a-payment programs. Can real estate secured loans be solicited for skip-a-payment programs? Is this skip-a-payment program considered an extension? (We follow a six extension rule.) Any help you can give on this subject would be greatly appreciated. It has caused quite a controversy between our audit and compliance area.

Real Estate Lending Cheat Sheets

05/02/2005

am new in a compliance position and am having difficulty in real estate compliance. All of the matrices that I have don't contain all of the scenarios. For instance "Land purchase and construction". When do preliminaries disclosures apply. I need resources.

Exception to LTV Ratio

02/02/2004

Is there a compliance issue if you make an exception to your fixedrate home equity policy in order to extend the loan to value ratio from 80% 95% for one customer?

Lottery Exceptions

07/02/2023

Now that banks can participate in lotteries, can we facilitate raffles unrelated to the bank for local service groups- post lobby posters or sell tickets for or be a sponsor, etc.?

Holding Stock - Original or Copy

07/02/2023

Is there a regulation/law for Trust Departments holding common stock certificate's for clients where it must be the physical copy or is a digital scanned copy acceptable to have on file to verify?

Internal raffles matter

06/25/2023

Can we do an internal raffle (selling tickets for a chance to win a prize) to benefit a non-profit organization?

Complaints, Forgeries, and a Deceased Customer

06/25/2023

We currently have an individual stating that a forgery has been committed on a DBA account that was owned by his mother. The account had an authorized signer, who was added by the account owner. The account owner passed away in November 2022 and it is the Personal Representative stating that forgeries were completed by the authorized signer's wife. I have been investigating the statements and now the Personal Representative has filed a complaint with our regulator saying we are not responding to his claim. That is incorrect. We have reached out to the bank's legal counsel on the claim, but I'm looking for advice on handling the complaint with the regulator? The forgery claim investigation is ongoing.

Reimbursing Paid Fraudulent Checks

06/25/2023

Is a bank obliged to reimburse a consumer client for a fraudulent check paid out of their checking account? (We are in New Jersey.). Also, the client reported the fraudulent checks 10 months after statement cut which is deemed late according to our account agreement. I have not been able to locate a rule/code or law that makes us liable to a consumer for this.

Latest Compliance - Real Estate Lending Topics

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