My bank charges an application fee for closedend home equity loans, which covers all closing costs, including credit report, flood determination, title search, appraisal, and mortgage recording fees. Currently we disclose each of these thirdparty fees as P.O.C. and the applicable amount on the GFE and HUD1A. Another local bank uses a similar method of one fee to cover all closing costs. However, they only disclose the one fee on the GFE and HUD1A, with no references to fees paid to thirdparty service providers. Needless to say, our loan operations would prefer to follow this local bank's example. I believe we should continue our current practice, but I'm having some trouble finding clear regulatory wording to support my opinion. Section 3500.7(a)(2) refers to "no cost" loans, but our loans do have an application fee. Could I have your opinion on how our situation should be disclosed and also a regulatory reference to back that up?
Filling out the Good Faith Estimate and the HUD-1s is a lot like math exercises in elementary school.
For Reg. P purposes, do we need to revise our privacy disclosure since we just took on a mortgage company who services our mortage loans? Would this company now be considered an affiliated third party?
How can I better protect my bank clients? As an inbound call center we receive calls from prospective borrowers. The prospects are responding to directmail inviting them to apply for a loan. Prior to the telephone call all prospect information is from a public source. During the call the prospective borrower is asked to complete a loan application. The application is designed to prequalify the borrower. Our duties cease when we transfer that information to our client, the bank. All other communication and correspondence is handled by the bank or by other partners. 1. Do we meet the definition as an "outside service?" 2. Should we modify our current confidentiality agreements with employees to stress or include specific language? 3. Once the data is captured, is it by definition "nonpublic" information?
I am unsure what type of service providers we need a confidentiality agreement with. Some examples are: appraisers, realtors, surveyors, Insurance underwriters, Inspection companies, title companies, janitroial services, attorneys used for legal purposes for the financial insitution, attorneys used for title searches and other legal work involving a loan, Insurance companies use to obtain insurance coverage for the bank.
We have a situation with the HUD1. In our last examination we were told to identify to whom all fees are paid on the HUD1. We are dealing with secondary markets. One of the mortgage companies is claiming that they are being fined by the brokers because the commitment fee is identified as being paid to them (which it is) and not our bank. They claim that because we collect the fee which they receive, not us, that we must identify that fee as being paid to us. I also cannot find in the regs where it states that to whom all fees are paid must be stated. I can find where it states that they must be itemized. Can you help me with this?
What are the information security needs of a bank?Which laws/guidelines deal with information security needs of the bank?What are the steps involved in designing a security policy for a bank?
My question is in regards to annual escrow account statements specifically when are the asterisks suppose to appear on the account history portion of the statement? My understanding is the asterisks are suppose to appear any time the amount or date differ between the past projection and the actual on the account history portion of the escrow statement. Therefore asterisks could appear for a shortage, deficiency, or a surplus. Our service provider compliance area is indicating that the asterisk is only to appear for a surplus situation. Who is right? I am using appendix I5 from the HUD annual escrow account disclosure statement format as a reference.
DirectPointe provides managed computing services that include remote PC and Network Management services. We are working with a community bank in Utah that is interested in our services, but is concerned with any regulatory issues that may not allow us to have remote access to their network and PCs (since their network is connected to a service bureau, which has confidential information). Can you provide any information/insight into this issue? Can we provide remote services and if so, does our company need to meet certain requirements? Please let me know if you have recommendations.
Can we charge this fee or does it violate RESPA? It is a common question and a very tough one to answer.