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:
Lending & Operations Compliance Matrices
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For a commercial real estate loan with 3 units: one retail store and two residential units with one being occupied by the owner/borrower. Loan underwriting is done per commercial loan standards. If the loan is for refinancing, is this loan subject to RESPA and Reg Z. If this loan is for purchasing the property, is it a residential mortgage transaction under Reg Z?
We have always made it a practice to give an initial TIL on our home-equity closed end loans, no matter the purpose of the loan. Some of our offices state that they have never given an initial TIL only the final at loan closing. Can you tell me the specifics of when an initial TIL must be given on closed-end home-equity loans? I believe we have chosen always to over disclose and give the initial disclosure, instead trying to have our lenders remember when it is required and when it is not.
Are document preparation fees which are charged by the lender included in the APR and prepaid finance charge?
Do mortgage applicants need to sign a ECOA notice and Fair Credit Reporting Act notice at time of application. Where is it in the Reg.
On a construction loan, is a construction inspection fee considered a finance charge/prepaid finance charge? We collecte the fee as construction progresses. The fee is either kept by the bank if we conduct the inspection or it is paid to a third party to conducts the constrction inspection on behalf of the bank.
What specific organizations, entities, associations, etc. are eligible to open a notforprofit NOW account?
I have a Reg Z question and just need a second opinion. This week we noticed that on our HELOC disclosures, instead of disclosing the Wall Street Journal as the index, the computer was disclosing our bank's own index. In discussing this with the system support at a company that I won't name but they are a very popular loan processing system, he said this was caused by a computer glich and we needed to rebuild our adjustable rate products. I then asked him if a change in terms agreement would need to be sent to all of the customers affected (approx. 300) he said yes. I verified this with Reg Z and the index is one of those that would need a change in terms, but if the error was a "bona fide" computer mistake can we avoid doing this? Just so you know, our base rate is the exact same as the Wall Street Journal index rate. I'm sure the answer is to send the new disclosures, but I thought I'd double check. I sure would like to send this company the bill for what this will cost.
For HMDA reporting: If I have a commercial loan/business purpose where the applicant is a natural person, should I answer N/A for monitoring information, or am I obligated to complete the motioring info in the form based on observation. (The commercial loan application does not provide for collecting the government monitoring.
If a bank provides a right of rescission but disburses a loan before the 3-day cooling off period ends, what are the consequences to the bank if the customer then rescinds within the 3-day cooling off period (after disbursement and assuming no special emergency waiver)? Does this represent the cancellation of the contract itself or just the cancellation of the security interest? If the contract is still valid, though unsecured, can the bank charge interest on the loan while trying to collect? (Basically, what is the bank's legal recourse in regards to the improper disbursement?) Also, what are the possible regulatory penalties for such a violation?
The FDIC recently completed a compliance examination at our bank. TheCompliance Report of Examination identified significant violations ofRESPA. In the first violation the bank was cited for not detailing thenames, addresses, and telephone numbers of each lender-designatedservice, [Section 3500.7(e)(1)(iii)] and for not describing the natureof any relationship between each and the bank [Section3500.7(e)(1)(ii). In the second violation, the bank was cited forproviding mortgage servicing disclosure statements that did notdisplay the bank's servicing transfer record for the most recent threecalendar years [Section 3500.21(b)(3)(ii)]. Finally, in the thirdviolation, the bank was cited for having five mortgages that containedGood Faith Estimates and HUD-1 or HUD-1A statements that did notreflect an estimate for hazard insurance.I am new to the compliance arena and I have been assigned the task ofcorrecting these violations. Since these mortgage loans are already onthe books, should the bank issue "correct" Good Faith Estimates,Servicing Disclosure Statements, and HUD-1 or HUD-1A's that reflectestimates for hazard insurance? Or should the bank take note of theviolations and not make any corrections because this problem is akinto "closing the barn door after the horse has already left"? Anyrecommendations that you can offer to correct these violations iswelcomed!