If we are accepting a mortgage application on-line, are we required to provide the Servicing Disclosure on line? In an in person application, we would provide that at point of application and in a mail in application we would provide it within 3 days. Under which scenario should I consider a on line application?

An online application is considered an application when you have enough information to make a credit decision. As far as I know, there is nothing wrong with mailing any/all of your early disclosures as long as you stick to your timelines.

What if a particular unique line of business with the Bank doesn't have a formal hard copy HELOC application? Therefore, a hard copy application is never provided to the consumer. The consumer could inquire in-person about a HELOC, and even apply for a HELOC in person, but was never provided an application.

I know the common sense answer is that the Bank should provide the disclosure and brochure at the time the consumer applies in person. But I can't find where the Reg specifically discusses the above scenario. 1026.40(b) states: “Time of disclosures. The disclosures and brochure required by paragraphs (d) and (e) of this section shall be provided at the time an application is provided to the consumer.”

Per the Reg, an “application” is “the submission of a consumer's financial information for the purposes of obtaining an extension of credit.” - 1026.2(a)(3) – Effective August 1st, 2015. So based on the definition of “application”, how can the BANK provide an application to a Consumer…?

Yes, sometimes I wonder if the "on-line app" people checked with compliance before they devised their programs. We ran into a problem with joint intent signatures for on-line apps, so now there is a drop down box which did not solve the problem.

Any feedback on my question about disclosure timing for an in-person HELOC application where an actual application wasn't provided to the consumer?

If a person is applying in person and the loan officer is recording the information then the loan officer is providing an oral application to the consumer. IMHO the disclosure would be required at that time.

Also it is management's responsibility to insure they have procedures in place to comply with the timing requirements of the regulation. Allowing a consumer to apply for a HELOC without a "formal hard copy" application would IMO not be living up to that responsibility.

Also remember that Reg. B requires a written application if the known purpose of the loan request is to purchase or refinance the consumer's primary residence and the loan will be secured by that residence..