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August 26
Keeping Bank Secrets: Things you Can Go to Jail for Telling;
Mary Beth Guard

September 8
Checkup for your RDC Program;
Susan Orr

September 10
Critical Issues on Certificates of Deposit;
Deborah Crawford

September 16
S.A.F.E. Act - Auditing for Compliance;
Patricia Cashman

September 22
FinCEN's Beneficial Owners Proposal: What It Can Mean for You;
Sonja Kriegsmann and John Burnett

September 23
Bankruptcy 101;
Sam Ott



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#1919172 - 04/30/14 08:04 PM PRIVACY NOTICE
Complianceking Offline
Gold Star

Registered: 12/02/05
Posts: 338
Loc: West Coast
From a residential lending compliance standpoint, how is the Privacy Notice handled with the consumer. Basically, it is mailed with the initial disclosures within three business days of application. Would the Privacy Notice be treated differently in a HELOC transaction? Its my understanding that the Privacy Notice is delivered to the consumer at the time of Loan Documents preparation for HELOCS. What are your thoughts on the subject matter? Is there any reference source that I can refer to?

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Lending Compliance
#1919177 - 04/30/14 09:07 PM Re: PRIVACY NOTICE [Re: Complianceking]
Rocky P Online
Power Poster

Registered: 06/24/03
Posts: 4543
Loc: South Carolina
Reg 1016.4 - since it is a loan, they are not a customer until the loan closes.

(iv) Examples of loan rule. You establish a customer relationship with a consumer who obtains a loan for personal, family, or household purposes when you:

(A) Originate the loan to the consumer; or

(B) Purchase the servicing rights to the consumer's loan.

See http://www.bankersonline.com/regs/12-1016/12-1016-004.html
_________________________
I survived an OCC Fair Lending/Comparative File Review of 1,756 loans with no findings that stuck!
CRCM, CIA, CRP, CBA

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#1919178 - 04/30/14 09:10 PM Re: PRIVACY NOTICE [Re: Complianceking]
Kathleen B Online

10K Club

Registered: 12/27/00
Posts: 17283
The privacy notice for consumer loans is usually included with either the early disclosures (covering more than required) or in the final document package. If it prints out automatically, you don't have to think about it. Keep it simple, no decisions.
_________________________
Kathleen Blanchard CRCM "Kaybee"
Lending/CRA/HMDA/Mapping/Consulting
www.kaybeescomplianceinsights.com

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#1919444 - 05/01/14 02:52 PM Re: PRIVACY NOTICE [Re: Complianceking]
Complianceking Offline
Gold Star

Registered: 12/02/05
Posts: 338
Loc: West Coast
Thanks for the guidance provided. Since it is a simplified process, is there really a procedure needed?

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#1919458 - 05/01/14 03:07 PM Re: PRIVACY NOTICE [Re: Complianceking]
Kathleen B Online

10K Club

Registered: 12/27/00
Posts: 17283
Are the docs/disclosures coming from a system? If yes, I would have a statement in the overall procedures that this document is programmed.

If manual, it would be jn the instructions as a "must include".
_________________________
Kathleen Blanchard CRCM "Kaybee"
Lending/CRA/HMDA/Mapping/Consulting
www.kaybeescomplianceinsights.com

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#1928283 - 05/30/14 05:01 PM Re: PRIVACY NOTICE [Re: Complianceking]
complyorelse Offline
100 Club

Registered: 11/14/07
Posts: 237
Loc: U.S.
We are setting up online account opening for deposit accounts. I'm struggling with when we can provide the initial Privacy Notice for a consumer, not a customer yet. If we provide the notice with all of the required disclosures once the account is approved and ready to fund, are we in compliance? Or, does the notice have to be provided and acknowledged by the consumer prior to reaching this stage?

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#1928302 - 05/30/14 05:27 PM Re: PRIVACY NOTICE [Re: Complianceking]
complyorelse Offline
100 Club

Registered: 11/14/07
Posts: 237
Loc: U.S.
Let me actually clarify something from my question above. The account is not actually approved until they accept the disclosures. Not sure if it makes a difference because we would have already pulled the Chex report.

Thank you.

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#1928583 - 06/02/14 02:55 PM Re: PRIVACY NOTICE [Re: Complianceking]
ynot Offline
Member

Registered: 09/26/11
Posts: 64
Loc: Florida
We are in a very similar situation as complyorelse, any thoughts??

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#1932558 - 06/13/14 03:50 PM Re: PRIVACY NOTICE [Re: Complianceking]
complyorelse Offline
100 Club

Registered: 11/14/07
Posts: 237
Loc: U.S.
We give privacy notices to all consumer deposit and loan "applicants" whether or not a customer is established. In evaluating this practice, it seems that we are perhaps providing the initial notice to consumers when it is not necessary. If the deposit or loan relationship is not established with the consumer, are we required to provide the initial notice?

Thank you.

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#1932562 - 06/13/14 03:56 PM Re: PRIVACY NOTICE [Re: Complianceking]
raiders Offline
Gold Star

Registered: 05/22/13
Posts: 423
Loc: OH
1016.4 Initial privacy notice to consumers required.

(a) Initial notice requirement. You must provide a clear and conspicuous notice that accurately reflects your privacy policies and practices to:

(1) Customer. An individual who becomes your customer, not later than when you establish a customer relationship, except as provided in paragraph (e) of this section; and

(2) Consumer. A consumer, before you disclose any nonpublic personal information about the consumer to any nonaffiliated third party, if you make such a disclosure other than as authorized by 1016.14 and 1016.15 of this part.

(b) When initial notice to a consumer is not required. You are not required to provide an initial notice to a consumer under paragraph (a) of this section if:

(1) You do not disclose any nonpublic personal information about the consumer to any nonaffiliated third party, other than as authorized by 1016.14 and 1016.15; and

(2) You do not have a customer relationship with the consumer.

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