Most Popular Lending Content
Denied based on outside information.
05/12/2024
Can you provide guidance on what is considered an outside source? On the Notice of Action Taken in the Disclosure of Use of Information Obtained from an Outside Source, what would be considered an outside source. We have a customer where the denial is based on “Collection Action or Judgment” which was identified when the account officer did a search through our State’s website. Would this constitute such a disclosure and if the borrower wanted to request a copy as they have a right to would we simply give them the name of the website?
Can people under 21 get a credit card?
05/12/2024
Is it true that people under the age of 21 are not permitted to get their own credit card?
Appraisals, Values and Exceptions
05/05/2024
Assume the following terms on a loan to an individual to purchase real estate: The purchase price is $100,000. The borrower wants to add an additional tract of land in lieu of paying any cash down. The land is owned free and clear and is valued at $30,000. This results in a loan amount of $100,000 with total collateral value of $130,000 and a loan to value (LTV) of 77%. Am I right in thinking that I will have a loan to cost exception and not an LTV exception? This loan would not need to be reported against the banks 30% of capital limit on commercial real estate exceptions.
Compliance Management: How often should I test APYs and APRs?
05/05/2024
How often should compliance be testing APY and APR accuracy? I rely on our expensive software to get it right. Is that OK?
Score obtained but not utilized in loan decision.
05/05/2024
If a loan is denied based on collateral but our credit reports include the credit score, is there anything wrong with include the applicants score on the Notice?