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
I have two FACT Act questions. Has there been a delivery time period established for the NOTICE TO HOME LOAN APPLICANTS? Are there two types of forms? (One that actually gives the score and another that is a more generic notice that says they will get specific score information in the future.) The form that we are using includes the score, factors, address, phone number, etc. Is it to be delivered within 3 business days at closing? What about a prequalification? We realize that there are quite a few unknowns yet with this regulation, but we have heard various ideas for the content and delivery of this notice.
We process applications for credit cards issued by a third party, but don't book the accounts in-house. How long do we have to retain records of the denials and approvals and other records pertaining to the credit cards?
I have read the FACT and FCRA guidelines, but find them confusing when it comes to sharing information with affiliates. I find reference to a proposal that would cause the need for a privacy notice with an opt out provision, but cannot find that it actually went into effect. Here is my scenario. Bank A and Mortgage Co. B are owned by the same holding company. Bank A receives a loan application. In order to provide the customer/consumer with the best loan product, Bank A would like to share the application and credit bureau information with Mortgage Co. B. Does Bank A have to provide a privacy notice with an opt out provision or would the sharing of information be considered exempt under the marketing exemption?
My question deals with the definition of the term abundance of caution. I have recently read "to qualify under the abundance of caution definition, you would have to make the loan under the same terms and condition as if the borrower did not offer the real estate as collateral." However, in some FDIC material I have read the following: "abundance of caution, e.g., the institution takes a blanket lien on all or substantially as of the assets of the borrower, and the value of the real property is low relative to the aggregate value of all other collateral." These two seem to be in conflict. Can any of you help me get a handle on what exactly is meant by this term? If possible cite your source.
Our loan officers frequently do not get a signed loan application on commercial loans. Do you know of any risk involved in not having one?
Where can I buy the "special information booklets" to give to my borrowers?
I need to find information regarding each U.S. state's regulations regarding real estate loans. RESPA gives guidelines regarding escrow accounts and fees, but gives each state the ability to overrule the rules if they favor the borrower. What is the best/easiest way to research what rules each state abides by?
Currently, the appraisal fee for customers is paid by the bank, and disclosed as POC on the GFE. We will possibly be charging the fee for multi-family appraisals to the customer. How should the GFE be updated? Currently the GFE indicates Appraisal Fee #803 (POC). The fee will only be charged on multi-family/<WBR>investment properties. Also, in what time frame must the GFE be updated?
When modifing an ARM note, to lower the interest rate or lower the margin, what all should be done? Also, does the modification need to be recorded since an ARM deed of trust has rate and margin info on it? Do we also need a ARM Ryder. Do we need a new ARM Disclosure?
I'm a mortgage loan underwriter. I have a prospective borrower, age 88, who's applying for a 30 year mortgage. Can I counter with a 10 year mortgage? Or have I violated the ECOA?