Latest Lending - Mail Topics

Credit Denial Form

05/05/2008

How many business days do we have to mail out a credit denial form on a consumer loan?

Loan Funds Disbursal

03/10/2008

Does a consumer home equity loan have to be disbursed when the rescission period is up and it has not been rescinded? What if the consumer does not want it disbursed until 10 days from signing?

Loan Renewal - Flood Certification Notice

09/03/2007

When relying on a previous flood certification on a loan that has been renewed, are financial institutions required to give the notice to borrower when the property is located in a flood zone? (Keep in mind we gave and retained a copy of the initial notice in the file.)

Correcting a Closing Fee Error

06/25/2007

If it is determined after the closing that a customer was overcharged a fee (documented on the HUD-1), is it necessary to mail the customer a letter explaining what happened or could we just adjust their account? I do not see anything that specifically addresses this in the regulation, but it seems a good customer service move to alert them via letter.

Mandatory Early TIL Disclosure

05/28/2007

Is the Truth in Lending Disclosure a mandatory early disclosure in addition to the Special Information booklet, Good Faith Estimate and the Mortgage Servicing Disclosure?

Loan Collection of Customer Filing for Bankruptcy

05/14/2007

If a customer has filed Chapter 7 bankruptcy, but the attorney's office says it will probably be 30 to 45 days before it is filed, can the bank continue to try to collect on the loan in the meantime?

Comments Requested by the Department of Defense

04/10/2007

Send Stock to be Re-registered

02/05/2007

I need to send stock to be re-registered to eventually liquidate to cover indebtedness for one of our loans. How do I send the original certificate and original irrevocable stock power "Medallion guaranteed" under a traceable means of delivery?

Timing of Force Place Flood Insurance Notification

10/23/2006

We need clarification on the timing of when the first notice must be sent to force place flood insurance. I know that we must purchase flood insurance within 45 days after the notification is sent if the borrower fails to purchase flood insurance or provide verification of coverage, however, is it acceptable to mail the first notification a week before the existing policy expires?

Loan Officer Signing Phone/Mail Applications

07/17/2006

When should a 1003 loan application be signed by the loan officer (the "interviewer") in the case of mail or telephone applications? Some of our staff says at the time the loan officer sends the application to the applicant, others say at the time the signed application is received back from the applicant. What is your opinion? What do the regulations say?