Bio:
David's banking career began as a field examiner for the FDIC in 1990. He later became a Loan Officer for a small bank. In 1993, he established Banker's Compliance Consulting. Along with his amazingly talented Team, he has written numerous compliance articles for prestigious banking publications and has developed compliance seminars that Banker's Compliance Consulting produces.
He is an expert in compliance regulations. He is also a motivational speaker and innovative educator. His quick wit and sense of humor transforms the usually tiring topic of compliance into an enjoyable educational experience. David is on the faculty of the Center for Financial Training, the American Bankers Association National Compliance Schools and is a frequent speaker at the ABA's Regulatory Compliance Conference. David is also a trainer for hundreds of webinars, is a Certified Regulatory Compliance Manager (CRCM) and has been a BankersOnline Guru for many years. The American Bankers Association honored David with their Distinguished Service Award in 2016.
David and his wife Karen have 3 adult children (none of whom live at home!) & 3 cats (which Dave is allergic to). They live on a lake in Nebraska and when possible, Dave can be found fishing or in the water. David plays the guitar & piano and enjoys singing with Karen. Together they lead worship at their church.
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Areas of Expertise:
Audit Services
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Compliance Seminars
Lending
Lending & Operations Compliance Matrices
Risk Assessment
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Questions Answered
01/19/2004
We routinely cross-sell HELOCs to purchase money mortgage customers, and close them simultaneously with the purchase money first (although HELOC funds are not used for the purchase). Our review of Reg Z seems to indicate that these HELOCs are subject to the 3 day right to cancel, even though at the time of closing, the borrower does not live in the home being purchased. Are we interpreting this incorrectly?
01/19/2004
What required disclosures to you need on a HELOC ifthe main purpose of the loan is to purchase the borrowers' house? They are only asking for $40,000.00? Do you need an early truth in lending disclosure or early good faith estimate and any other early disclosures?
01/19/2004
Is a Home Equity Line of Credit subject to RESPA? RESPA uses "federally related mortgage loan" for purposes of section 8 violations. I don't see that HELOC's fall under this category and therefore don't see how they are subject to RESPA and section 8.
01/19/2004
A current HELOC customer would like to change his authorized credit limit. He is still in his draw period. Do we have to accomplish a new note and right of rescission? Any other docs? Or could we just accomplish a Modification Agreement?
01/19/2004
Are preliminary disclosures required on preapprovals when there is no designated property? Borrowers obtain full credit approval, subject to appraisal. Also on prequalifications, are disclosures required? These would be cases that there is no credit verified, only qualified at borrower's verbal communication.
01/19/2004
Does the right to rescind apply when we are just "swapping properties"? We currently hold a 2nd mortgage on a property. That property is being sold and we would like to replace the mortgage with the new property, but not refinance the loan. Does Reg Z apply to this transaction? No new money is involved. Original lender.
01/05/2004
We have some confusion distinguishing a renewal note from a refinanced note. At our bank we very seldom "refinance" debt secured by a dwelling. We "renew" the loan, retain original note, mortgage and all other documents, obtain a new promissory note (keep the same loan number) and modify the mortgage to reflet the new terms (i.e. new interest rate and new maturity date.) We refinance when we add new funds. Or, when a construction loan is financed into a permanent loan. We consider our renewal note as an Extension Agreement. How does this relate to the new definition of "refinance"? The word "renew" is no longer in the definition. This becomes important especially for commercial loans secured by a dwelling.
01/05/2004
The HMDA Final Rules state that beginning in 2004 we will be required to report the lien status of applications and loans. In reviewing Appendix A to Part 203 -- Form and Instructions for Completion of HMDA Loan/Application Register [Effective as of January 1, 2004] I do not find a column on the new LAR for reporting the lien status, nor any instructions for reporting the lien status. Will this reporting information be added to the Loan/Application Register in the new FFIEC software?
01/05/2004
It appears it is not necessary to do the Early TIL disclosures on a 1-4 family residential refinance even with new money, but only at closing. I know Early TIL disclosures are required on Purchase and with permanent lender on construction loans. Is this correct?
01/05/2004
Counteroffers and the need for a denial, as concerns dealer applications, have us in a quandary and we're getting differing opinions from regulators. The question is: if we counteroffer (through the dealer) and then another financial instituion ultimately makes the loan, do we need to send the counteroffer/denial to that applicant? Section 202.9(g) states: When an application is made on behalf of an applicant to more than one creditor and the applicant expressly accepts or uses credit by one of the creditors, notification of action taken by any of the others is not required. That begs another question - what if you deny and other bank approves?
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