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#2233327 - 03/19/20 07:22 PM Case-by-Case Decisions
Mel in WA Offline
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During this pandemic, credit administration has communicated that adjustments to loan payments/terms for existing customers will be made "case-by-case", rather than create a skip payment program or something similar. Should I have fair lending concerns with this approach?

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Fair Lending
#2233330 - 03/19/20 07:26 PM Re: Case-by-Case Decisions Mel in WA
rlcarey Online
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I am sure that you would want to have some guidelines - but leaving it open to lender discretion - well, you know what road that leads down.
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#2233346 - 03/19/20 10:18 PM Re: Case-by-Case Decisions Mel in WA
Rocky P Offline
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Mel, Rules of engagement:

Rule 1 - Randy is right.
Rule 2 - in the unlikely event Randy may be wrong, reread Rule 1!
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#2233781 - 03/27/20 03:10 PM Re: Case-by-Case Decisions Mel in WA
Mel in WA Offline
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Another related question about case-by-case situations in regards to Reg B and adverse action.

Lenders are constantly having discussions with borrowers to determine their options. For example, a commercial borrower came in and asked for a modification to pay interest only. However, the lender knows they have a large amount of funds on deposit and suggested the borrower use that if times get tough, basically saying no to their original request. I don't think this would be considered a "denial", but rather giving advice.

Does the lender need to obtain financials, pull credit, etc. and underwrite the credit in order for adverse action to be required?

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#2233783 - 03/27/20 03:23 PM Re: Case-by-Case Decisions Mel in WA
rlcarey Online
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a commercial borrower came in and asked for a modification to pay interest only

The loan officer told him no - did he not.
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#2233797 - 03/27/20 04:46 PM Re: Case-by-Case Decisions Mel in WA
Mel in WA Offline
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I'm leaning towards that being an inquiry rather than a complete application. Why don't you agree?

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#2233812 - 03/27/20 05:38 PM Re: Case-by-Case Decisions Mel in WA
rlcarey Online
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I am only going by what you originally wrote: a commercial borrower came in and asked for a modification

How is that an inquiry?

Now if he came and said - you know - what do you think are some of my options - that would be an inquiry.,
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#2234026 - 04/01/20 01:14 AM Re: Case-by-Case Decisions Mel in WA
BrianC Online
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Reg B doesn't care whether you obtained information from a third party. We may not need an adverse action for FCRA, but I agree with Randy, it sounds like your lender made a credit decision,
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#2234451 - 04/08/20 08:12 PM Re: Case-by-Case Decisions Mel in WA
John Burnett Offline
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Cape Cod
As for matching the accommodation to the borrower's needs -- while that might be difficult when the hordes are beating on your doors for relief, but isn't that a basic rule of lending -- to address the customer's needs? At least select the best option for the borrower from your menu of choices.

Sometimes, though, the menu may not be more than "I got burgers and hot dogs, Whaddya want?"
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