Latest Lending - Reg. B Topics

Loan Solicitation Disclosures Needed?

01/12/2025

Currently our Cascade Alerts only provide that a customer did an application for a Mortgage or Home Equity at another bank, but does not provide any details as to what they applied for. If we were to utilize an option with Cascade Alerts on our Mortgage and Home Equity customers where we would be able to know what type of loan the customer applied for at another bank (Mortgage or Home Equity), what would we then be required to provide disclosure wise to the customer?

Applications, Reg B, Fair Lending

11/24/2024

Can you remove the primary borrower off a pending loan? I was under the impression that as long as both borrowers were married, and they both completed the application and received the initial disclosures that the primary borrower could be removed and the co-borrower moved over to the primary borrower position. This was the only way, and any other attempt would result in a denial, or withdrawn application. We have done this with a couple of our loans, but upper management wanted documentation stating that this can be done.

Providing copy of appraisal final inspection

10/13/2024

Is there an ECOA/Regulation B delivery requirement for an appraisal final inspection to the borrowers prior to closing if the initial appraisal has already been delivered?

Intent to apply for joint credit

07/21/2024

In reviewing our Consumer Loan Application, I noticed there is no formal Reg B section in which the Borrower(s) indicate whether they are applying for individual credit or joint credit. In my prior employment, the applications always included a formal Reg B section. Is this formal section required?

Should our board deny commercial loans?

03/17/2024

Our residential mortgage lending team is very thorough to ensure that the Lending Committee signs-off on adverse action/denial documentation. We are newer to commercial lending. Thus, the Board approves all commercial loans. The commercial lending officer has been given the discretion to decline certain requests before they even get to the Board. The question is more of a compliance/procedural one. Is it sufficient for only the commercial loan officer to sign-off on adverse actions, or should we be obtaining Board sign-off on these as well....under our current approval structure?

Reasons for Denial and Joint Applicants

12/24/2023

When sending an adverse action letter for joint applicants with different reasons for denial, can I use two letters (one for each applicant) for all denial reasons combined?

When is the appraisal rights notice required?

11/05/2023

There is confusion over the disclosure for the Reg B, Right to Receive Copy of Appraisal. I read that David Dickinson (Aug 9, 2010) said there is no date requirement for this disclosure, whereas Dan Pesfull advised it is given at or within 3 days of application but can be given at closing. Per the CFPB website it must be given within 3 business day of receipt of application. (12 CFR § 1002.14(a)(2). Can some one clarify.

Mail-in Apps and Disclosure Clocks

07/02/2023

When an applicant emails a mortgage loan application, when it is considered received by the bank? When does the disclosure clock start to run?

New Small Bus. LAR, Does it Duplicate HMDA

06/04/2023

Regarding the new small business data reporting requirement expected to come out soon. Will this "1071" requirement be similar to HMDA and CRA whereby if it’s HMDA it cannot be reported as CRA? So if it’s a HMDA reportable loan, then we won't report it for the small business data?

Handling a joint loan and deceased borrower

04/23/2023

Are there best practices for handling loans with two borrowers and then one passes awayY What is the best way to handle consumer and mortgage loans when this happens? Should the bank require the survivor to refinance or allow them to make regular payments? And what about HELOCS? Would it be best to remove the limit and allow payments on the balance, leave limit and allow terms of HELOC to continue or require them to requalify/refinance? Then, what about IRS reporting if the decease person's SSN is on the 1098?

Record retention for open, paid, and charged-off

03/16/2025

How long do you have to retain loan records? Until the loan is paid off? What if the original loan just continues to add on more loans? The original loan is closed but it continues to have more loans attached to it? Also, how long do you have to retain records of charged-off loans? Are these permanent records, seven-year retention periods?

Administrative fee on consumer loans

03/16/2025

We do consumer loans consisting of auto, unsecured, and CD secured loans and we charge an administration fee of $25.00. This fee is listed in our [vendor name redacted] system as an Administrative Fee that affects the APR. I was wondering if this is okay, because it is a consumer loan.

Early capture in banking

03/16/2025

What is early capture in banking?

TRID tolerance violation for omitting cost of PMI

03/09/2025

I have a processor who issued a Loan Estimate and missed the fact that the loan had a 90% LTV, and the Loan Officer did not catch it either. So, the Loan Estimate did not include PMI. Even if we redisclose it will not fix the TRID tolerance violation. I have always been told that the first month we collect at closing to pay to the PMI vendor would have to be paid by the lender to "cure" the tolerance violation, and then we continue on as normal collecting PMI escrow from the borrower monthly and passsing it on to the PMI vendor. Now someone tells me that when this happens the lender has to pay for the entire life of the PMI, because of the tolerance error. Can anyone tell me what they think and give me something to back up your thoughts?

Third-party fees and tolerance cure

03/09/2025

If a third-party fee, such as a wire fee or E-Doc fee from the Closing Agent, was not disclosed on the LE, does the lender have to provide a tolerance cure for the full amount of such fee(s) or would they fall into the 10% tolerance cure calculation bucket?

Latest Lending - Reg. B Topics

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