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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My head is spinning from trying to deal with mixed use,1-4 and multi-family HI loans. Does one first have to classify if either is a
dwelling vs. a commercial property. Am I correct that once classified as a dwelling a 1-4 with an improvement of a commercial space is always reported as a HMDA HI loan? If not classified as a dwelling we do not report. Also, if a mixed use multifamily is determined to be a dwelling and improvements are made to the residential portion of the building or the entire building, is this a HMDA home improvement loan? I seem to have a disconnect where multifamily is thrown into the mix. Please clarify.
Customer has not lost or had his physical card stolen. He had 4 unauthorized transactions happened Dec. 5 $190.79, Dec. 13th $287.80, Dec. 22nd $205.60 and Dec. 26 $235.60. He noticed them on Jan.29th and reported them to us Jan.30th. Yes, he did come into the bank on Jan.30th and stated he noticed on the 29th which is within the 2 day period. But, we show that he logged onto his online banking 178 times between Dec. 5th and Dec. 30th and he did not report any of the activity. He logged in successfully from at least 3 different ip addresses and all log-ins were within times he should have noticed and reported. Does this not fall under MasterCard customer negligence and what should his liability be.
We have a mortgage loan application accepted in 2018 that has a completed 2017 GMI info section. We can we do to fix this?
How does HMDA define a "complete" and "incomplete" loan application?
I am looking for some direction on establishing escrow accounts for residential construction mortgages that are not high priced. This escrow is new to our bank, and we've done quite a bit of research, but still have questions. We initially planned to "estimate" T&I during the 12 months construction period based on comparable size/valued homes in close proximity.
However, we have come to find that in certain situations we may have to refund a borrower their escrow balance when construction is not complete and the annual escrow analysis is performed - say for a project started in June with analysis in Dec of same year. Then, once construction is completed in the following year, we would re-collect the amount needed to re-establish escrow.
If the borrower is not disciplined, they could spend the escrow refund, and not be able to provide sufficient funds to re-establish the escrow account, which could significantly increase their monthly payment and impact their ability to repay.
We are looking for the best way to work around this issue? Is there a way for us NOT to have to complete an analysis on the escrow account until construction is complete? (Does the reg permit this?) Has this always been an issue, or is this something that recent regulation has changed?
Is there a complete list of triggering terms for open-end credit (credit cards namely) somewhere? I have scoured the internet and cannot find a definitive list.
As long as the borrower signs their personal financial statement, is it OK for the lender to fill out everything else in their handwriting?
I remember being taught at a different job that a lender should never put their pen to the borrower's PFS. But as long as the borrower signs it then what is the harm?
I have an incomplete application (no property) that is expressly withdrawn by the applicant 3 days after submission because they now want a 30 year fixed rate loan where we only have balloon loans with an amortization up to 30 years. The lender had "approved" them to go forward, prior to verifying their credit with paystubs, tax returns, etc. I know you cannot have a "withdrawn" application unless it is prior to credit approval. Please define "credit approved" when it comes to HMDA. Would this be
underwritten and verified credit? Or would I submit this as "approved but not accepted"?
Does a bank have to continue to make escrow taxes and insurance on behalf of borrower when they have stopped making their monthly payments? In other words, they are about to be in default?
Our BSA officer insists when a customer deposits or withdrawals over $5,000 in cash, we have to ask what the cash is being used for. Is there regulation to support this? I understand CDD, but isn't this taking it too far? Is it our job to be nosey?