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#1629404 - 11/16/11 09:21 PM Reg Z cutoff time
rachelchri Offline
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Joined: Aug 2010
Posts: 165
I recently attended a Compliance forum, and they brought up the change to Reg Z concerning compliance requirements for crediting mortgage payments. My question is: We have a cutoff time of 4:00 daily. We are open on Saturdays, but not full service for we don't do any processing that day. We do, however, take loan payments, but they aren't posted until Mondays date (because that's the date we are working on). Would we have to back date all loan payments received on Saturday? Or because we aren't open full service we wouldn't have to? PLEASE HELP!!!!

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#1629427 - 11/16/11 09:44 PM Re: Reg Z cutoff time rachelchri
NU Rhules Offline
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Joined: Mar 2011
Posts: 461
SE, Nebraska
Here's a good thread on this (below). My opinion is that if you don't credit on Saturdays (reason given above), that providing a disclosure describing your bank's practices complies with 12 CFR 226.36 (c).

Your case is exactly like ours. We close at 4PM. Here's our statement for principal dwelling secured loans: "Credits to your Account for Payments on your loan are subject to certain timing rules. If payments are received by the bank by 4:00 PM Monday-Friday, they will be credited to your account that same day. If received after 4:00 PM Monday–Thursday, they will be credited on the following business day. Payments received after 4:00 PM on Friday, or on Saturday will be posted within 5 business days, but in most cases on the following business day."

Good luck!


http://www.bankersonline.com/forum/ubbthreads.php?ubb=showflat&Number=1370308

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#1629439 - 11/16/11 09:56 PM Re: Reg Z cutoff time NU Rhules
rachelchri Offline
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Joined: Aug 2010
Posts: 165
Thank you! So, do you send this statement with coupon books? or, is the statement included on your notices sent to those customers? We have postings in our lobby & drive thru that say "Transactions made after 4:00 pm today will be credited on the next working day". Is this sufficient? or should a seperate notice be sent with mortgage customers?

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#1629449 - 11/16/11 10:10 PM Re: Reg Z cutoff time rachelchri
NU Rhules Offline
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NU Rhules
Joined: Mar 2011
Posts: 461
SE, Nebraska
226.31 says disclosures need to be in a form that the "customer may keep". So paper it is. This was backed up by Banker's Compliance when we asked. So, web page/signs etc are nice, but they don't comply with the intent.
In our case (ARTA) has room on the fixed rate Note to place this statement. But no room on the variable rate's! So, we made a nice little 1/2 page one that we must remember to give them. It's on our Closing checklist. Hope this helps. Oh and we had to query our primary dwelling secured loan customers and do a mailing too!

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#1629460 - 11/16/11 10:41 PM Re: Reg Z cutoff time NU Rhules
rachelchri Offline
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Joined: Aug 2010
Posts: 165
Oh, so not only do you have to notify new customers, but you had to do a mass mailing to current customers? By the way, when did this go into effect?

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#1629973 - 11/17/11 09:37 PM Re: Reg Z cutoff time rachelchri
NU Rhules Offline
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Joined: Mar 2011
Posts: 461
SE, Nebraska
No, not everyone - just us because we got written up for it. I am not sure, but I think this was implemented Oct 2009. See this thread:
http://www.bankersonline.com/forum/ubbthreads.php?ubb=showflat&Number=1252096

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#1629975 - 11/17/11 09:38 PM Re: Reg Z cutoff time rachelchri
NU Rhules Offline
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NU Rhules
Joined: Mar 2011
Posts: 461
SE, Nebraska
No, not everyone - just us because we got written up for it. I am not sure, but I think this was implemented Oct 2009. See this thread:
http://www.bankersonline.com/forum/ubbthreads.php?ubb=showflat&Number=1252096

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