02/19/2007
A customer owns two separate businesses, each of which has a small line of credit. The collateral securing these lines of credit is a personal vehicle that the customer owns. The car is titled in one of the business names so how and where do I reflect that the second business also has a loan on that vehicle? As of today the title only reflects the first business as the owner and only one line of credit.
02/19/2007
What are the criteria for retention of CIP forms? How long do we retain CIP forms? Do we need to retain them for a specific period after accounts are closed and loans are satisfied?
12/04/2006
If you purchase loans from another institution is CIP required if the previous lender does not have a CIP in the individual loan files?
10/23/2006
Is a right of rescission necessary if two loans from the same financial institution are refinanced into one loan? One loan refinanced was secured by the borrower's primary residence and the other loan refinanced was secured by a motorcycle (not by the residence). I viewed the motorcycle loan as new money because it was not originally secured by the residence, but I'm the only one who sees it that way.
10/23/2006
Besides the annual privacy disclosure are there any other disclosures required to be provided to customers annually?
09/25/2006
In reviewing an auto loan app today I noticed the customer has had 13 auto loans in the last 24 months (June '04 to June '06). He trades them in, usually with the same dealer. He has never made more than 2 payments on a loan. He first became our customer in July '02 and through Aug '03 received 9 separate auto loans, with this same pattern - one or two payments and trades off. Three off the loans in his whole portfolio received large principal reductions as one of their payments. None appear to be in cash. Is there cause here for a SAR? Or is this simply an aggravating customer?
08/14/2006
In reference to the question below, would you also be required to report a loan to a mortgage company that is not affiliated with any bank? Ex Officer Reporting Loans from other Banks by Randy Carey, BOL GuruQuestion: Regarding Regulation O Section 215.9, relating to Executive Officer reporting loans from other "banks." Does this definition of Banks mean only members of the Federal Reserve? We are regulated by OCC and I looked in their Insider Activities handbook, but it only states "215.9 - Reports by Executive Officers "Executive officers" must provide a written report to the board of directors within 10 days of becoming indebted to any bank if the aggregate amount of the indebtedness exceeds $100,000 (or the greater of 2.5 percent of the bank's capital and surplus or $25,000). The report shall state the lender's name, the date and the amount, security, and purpose for each extension of credit."Answer: The term "bank" alone is not defined within the regulation. I would interpret it to be defined very broadly and would include any type of bank, whether a member bank or not. First published on BankersOnline.com 1/30/06
06/12/2006
We have discovered that a few variable simple interest loans have been printed on a simple interest note disclosure and security agreement instead of a variable simple interest note disclosure and security agreement. We have considered converting these to fixed rate loans rather than redisclose. Any suggestions?
06/05/2006
Our bank sometimes purchases lease participations from other non-regulated lenders. These lenders do the necessary customer identification steps to comply with regulations, including obtaining the driver's license of the person who is liable for the lease payments. I have two questions: First, must we also adhere to the customer identification protocol? Also, can we simply have the entity from whom we are obtaining the participation forward copies of the documents they inspected and thereby be in compliance with the customer identification program? I cannot imagine most down stream participants in a loan participation would be expected to obtain individual documentation under the customer identification program, but after 20 years of banking and a law degree, nothing would surprise me.
05/15/2006
We are considering making loans via the internet. I know CIP and internet security need to be arduous. What other considerations and compliance issues are there?