Are you required to send an adverse action notice, when applying Reg B or FCRA, when the Customer is denied due to insufficient collateral? In this situation, the Customer credit report was run and the credit score was not a factor concerning approval.
We have a customer who has been in Afghanistan for the past 5 years due to their being in the military. The customer has come back to the United States and has discovered unauthorized withdrawals which took place 5 years ago - about a month after they were deployed. Are we in compliance if we deny the claim, or we obligated to pay due to fact our customer was not receiving statements to Afghanistan. The account was charged off in 2007 and customer discovered this on her credit report.
I have a question in relation to Section 202.9(a)(1) of Regulation B which states that a creditor shall notify an applicant of action taken within 30 days after receiving a completed application concerning the creditor's approval of, counteroffer to, or adverse action on an application. Example: August 1st: Application is taken and loan receives preliminary approval subject to verification of income, property value, etc. September 6: Receive the tax returns from the client, income is much less than indicated by the client and it is determined that Debt-to-income ratio is too high and the loan will be denied. How should we handle this situation? Most of our 1st mortgages don't close within 30 days of application. If we are still waiting on info from the client when we are nearing the 30 day mark, should we be sending a letter of incompleteness? Reg states we can give them a reasonable period of time to provide the info. What do you think is reasonable?
What is considered the application date on a commercial loan application. Is it the date credit is pulled? I just need to know when the clock starts ticking to make my decision (denied, approved, etc.).
Does the FACT act apply to commercial loans?
Can we pull a credit report on a customer without their consent? We have a customer who wants to consolidate some credit card debt. We told her that she needed a co-signer. She gave us her husband's social security number. Can we pull a credit report without his authorization?
Can a bank charge a fee that is more than the cost for a credit report?
Here is an issue that our mortgage department has been looking into to determine if they need to change their procedures. They currently pass on the fee to the borrower when they are required to have trade lines updated on a credit report. There is no up-charging, it is only the fee that they are directly charged by the consumer reporting agency. They do not pass through the fee (rescore was completed). However, they are trying to determine if they can even pass through the fee for the trade line updates. Per 609 and 611 of FCRA, it would appear that they cannot. We are trying to determine the best course of action.
I have a question about completing the HUD-1A settlement statement. The credit union pays the credit report fee on behalf of the borrower. The borrower pays other settlement charges. The credit union discloses an estimate of the credit report on the GFE form. When using the HUD-1A, how would you disclose the credit report fee to show that the lender is paying and not the borrower?
Can you require someone to "un-freeze" their credit bureau in order to open a depository account?