We found an HPML in our audit. There is no escrow set up. What can we do?
If we offer a discount coupon from a local business to a consumer opening a checking account, is that considered a bonus under Truth in Savings?
If we price HELOCs based on the applicant's credit score and loan to value ratio, so some borrowers get a lower rate than other borrowers, can we disclose the lower rate in our advertisement, or do we need to disclose both rates? Do we also need to specify the criteria for receiving the lower rate?
Regarding a lender credit reduction for an extension of an interest rate lock, may a lender reduce a lender credit to extend the lock period?
Example; A rate lock expired 4-25-19 and the closing date was 4-28-19. The initial rate lock and Loan Estimate reflect a lender credit of $2000.00 with 4.25% interest rate. The lock was extended through 4-29-19 at the same rate, but the lender credit was reduced to 1800.00. Since the lender credit was reduced based on an interest rate dependent charge, is this acceptable for interest rate extensions? If it is, is there a requirement that documentation confirms the delay was due to the borrower or outside of the lenders control?
We often have lobby posters advertising products, services, benefits like trips on a discounted price and others things on display so staff can answer questions on these and to promote these items. Do they require the general FDIC advertising statement.
If a Rate Lock Extension Fee was incorrectly disclosed on a revised CD as Origination Points, can this be corrected with another revised CD before closing, or corrected on the final consummation CD?
1026.53 - Payment Allocation reads pretty clear - payments in excess of minimum payment must be made to the balance with the highest APR and then descending until the payment is exhausted.
But "balance" is not clearly defined. One could argue there could be two different balances. Cycle to date balances (in current cycle) or cycled balances (prior cycle)
For example; suppose a card holders billing cycle is the 1st – 31st with a payment due date of the 21st. The account has the following balances that rolled over from prior cycles;
$10,000 BT Promo at 0%
$225 Purchase at 11.99%
On the 21st the card holder makes their minimum payment of $25 which is applied to interest, fees and balances on the account in accordance with Regulation Z.
On 23rd the card holder makes a $500 purchase at 11.99% and a $2000 cash advance at 12.99%.
On the 28th the card holder makes an additional payment to the account of $3000. Should the additional (excess) $3000 payment be in the following order;
$2000 to the cash advance balance at 12.99%.
$700 the purchase balance at 11.99%
$300 to the BT Promo at 0%
Do not apply any of the excess payment to the transactions that occurred in the same cycle.
Alternatively, the payment is applied to the balance in the prior cycle:
$200 to the purchase balance at 11.99%
$2800 to the BT Promo balance at 0%
and nothing to the cash advance balance
What is correct?
The bank has used "replacement" to replace a private label card with a VISA open loop card. Some of the cardholders have not activated their cards, some probably because they threw away the envelope without opening their mail. The bank is considering placing a block on the cards, pending activation from the customer so that the customer can still activate rather
than reapply. The other option is to send a letter to activate the account within a stated time, otherwise the account will be closed. The consumer would need to apply again for a card. IMO, the second choice is a better customer experience in the absence of some foundational regulation to assert one position or the other.
What might happen if we don't have a system to track complaint resolutions?
We issued a Loan Estimate for a bridge loan to purchase a home to be secured with the purchased property and the applicant's current residence. Due to timing circumstances with the applicant and the sellers, the applicant now wants to expedite the purchase by using an investment account and use the TRID loan to get reimbursed. Can I use the same application and re-disclose the LE as a refinance or home equity purpose?