This is a new area for my institution as we have previously only had one option for mortgage loans and thus no steering issues. Management is looking at signing up with another company for a certain product they offer and the question has arose if we are required to offer their other products. The regulation states, "Possible loan offers are available through the loan originator if they could be obtained from a creditor with which the loan originator regularly does business." If something is available, but is not a program we have signed up for, would it be considered when looking at whether the loan was in the consumer's interest?

If you haven't signed up for the program, then it shouldn't be an issue. I don't know a single creditor that has signed up for every single product that is available to them. (That said, I don't exactly know what you mean by "sign-up" and "available," so pending this, it could make a difference in my reply.)

The concern with steering is when you have multiple available products (that you offer) but only point customers in the direction of products that benefit the lender and are not necessarily in the best interest of the customer.

One thing is to be completely honest about the advantages and disadvantages of the products, if they serve the same purpose. If one is for applicants with bruised credit, make sure the referrals are both ways - not just to the best one for the lender. If there are different products, guide the customer.

A chart one bank uses lists various type loans across the top - 30 year Fixed - .10 Year Fixed - 30 year ARM - 10 Year ARM - HELOC. Down the side they have the following - Faster to pay off - Lower monthly payments - Rate Never Changes - Rate Starts out Lower - Use Only What You Need - Flexible Repayment plan - Has Escrow Account - Can Use it to Purchase a Home - Can be a Second Mortgage - Can use proceeds for any Legal Purpose. Then they have "X's" under the types of mortgage loans where the phrases apply.