Bio:
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
Compliance Consulting
Compliance Seminars
Training the Trainer Materials
Questions Answered
01/07/2002
As many other banks are now doing, our bank has formalized our overdraft protection plan (deposit product). There are a few other banks that have been observed that have incorporated a 'continuous daily overdraft fee' in addition to the NSF fee. I have been asked if our bank can do this since other banks are charging this daily fee. Would this daily fee suggest 'time and money' charges and fall under Reg Z and require disclosures?
01/07/2002
Can you issue credit life and/or disability when renewing or doing a change in terms on an existing closed end consumer loan?
01/07/2002
In light of the recent implementation of Regulation "Consumer Protection in Sales of Insurance," questions have arisen concerning the applicability of this regulation to deposit accounts including an accidental death insurance policy. The insurance policy is a part of a package of benefits that the customer pays a fee of $8$10. What is your interpretation of the regulation in regards to this matter?
01/07/2002
We're having a difference of opinion at the office! When a loan has Right of Rescission, is the Date Finance Charge Begins the funding date (after Rescission) or the note date? In other words, if the customer does not rescind, can you charge interest from the date of the note or the date you disburse?
01/07/2002
Is rescission required?........ We took a construction loan to permanent financing and in order to reduce the amount of the loan the customer obtained a home equity line of credit securing the same property and closed at the SAME TIME. When you look at the home equity loan on its own.... it looks like any other 2nd mortgage openend line of credit on their primary residence. Is rescission required and how would an examiner look at this loan?
01/07/2002
We have just put into our HELOC notes/disclosures a floor rate of 6% even though our index is WSJ prime plus a margin. Currently, the WSJ prime is 5% plus our index puts our HELOC's at 5.25% My question is can we put a floor rate feature on the HELOC?
01/07/2002
If the purpose of the loan is other than purchase or refinance, i.e., debt consolidation, and secured by 14 family dwelling, is the "servicing disclosure statement" required? If yes, do we check 1c.? because this type of loan is never sold, unlike our residential mortgage department loans.
01/07/2002
If we want to put a floor rate on our prime plus a percentage loans, can we just type that on the front of the note? What other disclosures are needed, if any? Can we use the term "floor"? Given the number of times prime has dropped this year, we would like to protect ourselves
01/07/2002
I recently saw a <a href="http://www.bankersonline.com/articles/v05n13/v05n13a7.html">question and answer</a> on BOL regarding adverse action letters to all individuals applying for credit. What if your prospective borrower is a business? (1) is an adverse action letter required and (2) if so, is a letter required to go to all owners associated with the business? Taking it a step further, if individuals apply for a business loan, is an adverse action letter required in that situation?
01/07/2002
On 9/3/01, a question regarding <a href="http://www.bankersonline.com/compliance/gurus_cmp0903c.html">"FTC Notice/Notice of Holder in Due Course"</a> was answered by Jim Bedsole. In our case, his answer states if we have a floor plan agreement with Dealer A and a borrower purchases an auto, but directly finances with us, the notice would still be required. He also stated this could be found at 16 CFR 433 and in the FTC Staff Commentary. My questions: 1) Where is the staff commentary, so I may provide to my attorney? and 2) what types of "claims and defenses" could a debtor assert against the seller?
Pages