Most Popular Compliance Content
Timing for Checking OFAC on Loans
01/05/2004
We do the check for OFAC when the loan is settled. This is done automatically by our software when the loan is opened in the system. Is this OK or should we do it after the loan application is taken? We do a daily search agains the OFAC list on all new accounts and a monthly complete file check. Lenders are complaing that it takes 5 to 7 minutes to imput the data or add the potential loan customers to the system after the application is taken. We do have the capability of adding the customers (s) to the system after the application is taken even though the loan is not disbursed until settlement.
HMDA Reporting for Bank That Sells All Loans
01/05/2004
HMDA Question. The secondary market division of our bank sells 100% of the loans it originates. We collect the application, arrange for the title work, order the appraisal, and we close the loan in our name with our money. Who is responsible for HMDA reporting? I know it is the entity that makes the credit decision. We have felt like the investor makes the credit decision and so they report the loans they make and decline. However, we send the adverse action notice. I am hearing from others that both report. It seems to me that if we are comforatble not being part of the credit decision, then we are not responsible for HMDA reporting of loans that eventually are originated or declined.
CIP and ATM/Debit Card Accounts
01/05/2004
Does the CIP program include a ATM/Debit Card accounts, especially if the debit card can also be used as a credit card? I looked at the matrix you provided for list of accounts included and excluded but the ATM/Debit Card category is not listed. Also, in our particular situation some of our ATM/Debit card users can also use the card as a credit card. This card is issued through our corresponding bank. So, can you help me determine where this falls?
FCRA and Deposit Accounts
01/05/2004
I am confused by something. In the recent article "CIP and Compliance With Other Laws" it was stated that the FCRA does apply to deposit accounts. Yet, section 615.10 of the FCRA states "The Act does not require that a report user provide any notice to consumers when taking adverse action not relating to credit, insurance or employment. For example,a landlord who refuses to rent an apartment to a consumer based on credit or other information in a consumer report need not provide the notice." Could you clarify this for me?
Reg E Coverage of Automatic Loan Payments
01/05/2004
We recently had a compliance exam and the examiner mentioned that we should be tracking automatic loan payment errors (from a checking account held at our bank to a loan held at our bank) since this falls under Reg E. We had not been doing this since Reg E excludes transfers to intra-bank accounts. Do automatic loan payments fall under Reg E rules/procedures?