Lucy is Editor of Compliance Action and President of Compliance Resources, Inc., a company offering compliance support and services to banks. She is also a Senior Associate of Paragon Compliance Group, a company dedicated to providing compliance training. She has more than twenty-five years of experience working with regulatory agencies and financial institutions. Her extensive work experience with regulatory agencies includes the Federal Home Loan Bank Board, the Board of Governors of the Federal Reserve System, and the Federal Trade Commission. As the manager of the Compliance Division of the American Bankers Association, she worked directly with several of the association's banker committees and with regulatory agencies to identify compliance priorities, and to produce resources and programs.
Areas of Expertise:
Compliance Action Newsletter
Training the Trainer Materials
If we had a GFE issued to a customer under the new RESPA rules with entirely incorrect information caused by an error on the part of the loan representative, is there a way that we can reissue the disclosure? The rule allows us to reissue a GFE based on information that we had at application, as long as we can prove that information was not relied upon to issue the original GFE, correct? What documentation should we use to prove this? Are there specific steps for proving this?
Do the borrowers have to sign the Notice to Home Loan Applicant? This is with regard to home improvement loans or second mortgages. If the bank regulators come in to audit the lender that originated the loan, will a signed copy have to be in the file?
When a loan is extended or renewed, does a new flood determination have to be done purely because the forms have changed?
I understand that as far as HMDA is concerned, an application that cannot be considered due to incompleteness is incomplete (5) and coded as such, but for Fair Lending purposes, is the file considered withdrawn or denied?
Are there any changes being made to the application associated with the new RESPA changes?
Under new RESPA regs, is it ok to give a preapproval for a home loan with a property to be determined (TBD)?
When is a bridge loan exempt from RESPA? I know the standard answer is "bridge or swing loans where a lender takes a security interest in property that would otherwise be covered are exempt". I'm looking for guidelines. Is there a max term? Does it have to be secured by both the property being purchased and the property they are trying to sell? I have a loan that is for twelve months and is secured only by the property being purchased. Would this be covered or exempt?
If a lender pulls an applicant's credit report more than once, is the lender required to provide a credit score disclosure each time the credit report is pulled?
If while auditing our adverse action notices we discover a technical error, such as the wrong box being checked, may we amend the issue by sending a corrected adverse action notice or would an auditor still cite us?
We are looking into allowing voluntary escrow, and see that we have to adhere to the provisions of 3500.17 of RESPA. Are there any other concerns about which we should be aware?