What regulation states that you should obtain a statement of purpose for consumer loans over $10,000? Also, is this only for consumer loans or all loans not secured by real estate?
How do we address our examiner's questions regarding years of experience in compliance? Several members in our department have been in compliance for 1-2 years but have years of operational experience and compliance training, which should count towards their total experience, correct?
My question involves Section 202.6(b)(5) of Reg B. When calculating a loan applicant's income, should contributions being made to a retirement plan (401-K, for example) by the applicant be added back as income? An FDIC examiner recently told us that such income is discretionary and that not adding it back to income is a violation of Reg B. If this is true, what about individuals who are required to contribute to retirement plans each pay period, like teachers? In this example, is it truly discretionary income?
Should a bank ever go by a customer's "collected balance" when deciding to pay a check for a non-customer or to purchase a cashier's check? I was always taught not to go by that balance but to go by "available" because "collected" has to do with the different routing numbers on checks deposited. If you do not put a Reg CC hold on a check, isn't it against the regulation to not pay against that check even though you did not put a hold on the check and notify the customer of the hold? This has been the big discussion at our bank and this is the first bank I've worked at that even goes by this balance.
We have a situation where a customer's loan request is being turned down for "excessive obligations in relation to income" and "unable to make loan on an unsecured basis." A credit report was never pulled. The loan officer made his decision based solely on a list of credit card debt provided to him by the customer. Our question is, do we have to disclose that we used an outside source in making the credit decision?