What does BISG stand for, and what does BISG mean for Fair Lending Compliance?
My bank offers consumer personal loans, and we recently hired a new underwriter for mortgage and consumer loans. Our new underwriter is saying that if the applicant shows no credit (no trade lines) from all 3 bureaus we must ask the applicant to supply us with four non-credit payment references. I know we have done this in the past for mortgages as we underwrite to Freddie Mac policies and this is one of their requirements to establish credit, but is this something that should be done for personal loans as well? We have never done this in the past.
I am renewing a loan that was originally a HELOC. The loan matured and I collected an updated "consumer HELOC" application and obtained a new credit report. The loan was approved for renewal but for a lower amount and shorter term. I was told that I should not have collected a new loan application (purpose on application was stated a renewal of HELOC) because this is not a new loan request. No new disclosures were required and only a simple form modification agreement was needed to renew the loan. Can you please advise as to what documentation would be need for this type of transaction?
If the original loan application package was issued for a husband and wife and signed by both but later changed the loan to husband's name only, can the original disclosures (not 1003) be used or would a new set be required in the husband's name with his signature only?
Regarding SAFE Act compliance - the "Relation to Other Laws" section on page 9 of the March 2012 CFPB Safe Act guide - seems clear the MLO's NMLS number must be included on the loan application. BUT - if the loan is going to be kept in-house and not sold to the secondary market - is it still necessary to include the MLO's NMLS number on the loan application?
When a Commercial Department is presented with an opportunity to provide a term sheet for a commercial loan - prior to receiving a loan application - is this request to be considered a loan application? Does HMDA reportable issue apply if the bank never received a loan application and there is no loan decision?
When a commercial department is presented with an opportunity to provide a term sheet for a commercial loan - prior to receiving a loan application - is this request to be considered a loan application? Does a HMDA-reportable issue apply if the bank never received a loan application and there is no loan decision?
Once we take a residential mortgage loan application over the phone, we send the 1003 and initial disclosures to the applicant. Would we be prohibited from providing a written notification with the loan package that instructs the applicant to return the documents to us within 14 days or the bank will consider the application to be withdrawn by applicant?
For ECOA purposes only is a mortgage lender required to have a loan application taken, processed and submitted to underwriting within 30 days so that an underwriter can issue a conditional approval? Please explain when the "30 days" starts ticking for the lender to issue a decision? Can a decision be made just from the 1003 or does a fully processed package need to be submitted?
Are there any penalties imposed if an institution collects Monitor C information for HMDA on both the loan application and the Monitor C form?