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#2238415 - 06/19/20 09:39 PM Demographic Information + Loan to LLC
NoJustNo Offline
100 Club
Joined: Oct 2013
Posts: 189
Midwest
Anyone have thoughts on how to document when a LO inadvertently collects GMI on an owner of an LLC when the loan was made only to the LLC? Mark through and note "collected in error"? It appears the original app was on an URLA (who knows why!) instead of a commercial loan app -- and the individual's name was included instead of business.

So grateful that loan officers keep us busy!

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#2238419 - 06/19/20 09:54 PM Re: Demographic Information + Loan to LLC NoJustNo
Andy_Z Offline
10K Club
Andy_Z
Joined: Oct 2000
Posts: 27,384
On the Net
Well it was found either in your control or audit process. That means your compliance management program is working. This sounds like a training issue to be covered. And review 1002.13, 13(b) (6) - https://www.bankersonline.com/regulations/12-1002-013

6. Inadvertent notation. If a creditor inadvertently obtains the monitoring information in a dwelling-related transaction not covered by ยง 1002.13, the creditor may process and retain the application without violating the regulation.

A key is this being inadvertent and not showing up on a frequent basis. What's a frequent basis? Some examiners I've asked answered "more than once" while others would be more forgiving.

Mark the file to denote it was inadvertent and denote in your audits that it was an anomaly and training is being done to prevent it from happening again.
Last edited by Andy_Z; 06/19/20 10:00 PM.
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AndyZ CRCM
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#2259004 - 08/31/21 03:28 PM Re: Demographic Information + Loan to LLC NoJustNo
complyorelse Offline
Gold Star
Joined: Nov 2007
Posts: 433
U.S.
I want to be sure that I am crystal clear on this topic before I push the issue. I, too, found an application or two where the GMI was collected for a guarantor and it appears it was known at the time of application that the borrower would be an LLC. Does the fact that we are a HMDA reporter have any bearing on the GMI collection of a guarantor under either Reg B or Reg C? I know we don't report the data, but is there any overlap of the two regs that allows for the collection of the guarantor data?

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