Intent to Proceed on Commercial Purpose Loans?
06/09/2019
Are we required to have an intent to proceed on commercial purpose loans?
Randy Carey
Bio:
Randy Carey is a Compliance Specialist with PPDocs.com. A leader in technology, PeirsonPatterson, LLP (PPDocs) has enabled clients the ability to order, produce, deliver, print, and track closing document packages through the use of their website, www.ppdocs.com. PeirsonPatterson takes pride in its reputation of providing personal attention to their clients, regardless of their size.
Previously, Randy spent 15 years as an independent regulatory compliance and bank management consultant. He also has 20 years of banking experience which included positions ranging from Check Sorter Operator, Proof Supervisor, Senior Training Officer, Staffing Analysis Officer, VP and Project Manager, National Retail Loan Payment Processing Manager, VP - Compliance and Community Reinvestment Act Activities, and VP and Director of Internal Audit.
He is a graduate of the ABA National Compliance School, the ABA National Graduate Compliance School, and the ABA National Truth-in-Lending School. He has served as an instructor for the American Institute of Banking, the Texas and Oregon Bankers Compliance Schools, and the BankersOnline BSA Top Gun and Lending Triage Conferences and passed the Certified Bank Compliance Officer examination. He is also a former member of the Community Reinvestment Leadership Council of the Federal Reserve Bank of San Francisco.
Previously, Randy spent 15 years as an independent regulatory compliance and bank management consultant. He also has 20 years of banking experience which included positions ranging from Check Sorter Operator, Proof Supervisor, Senior Training Officer, Staffing Analysis Officer, VP and Project Manager, National Retail Loan Payment Processing Manager, VP - Compliance and Community Reinvestment Act Activities, and VP and Director of Internal Audit.
He is a graduate of the ABA National Compliance School, the ABA National Graduate Compliance School, and the ABA National Truth-in-Lending School. He has served as an instructor for the American Institute of Banking, the Texas and Oregon Bankers Compliance Schools, and the BankersOnline BSA Top Gun and Lending Triage Conferences and passed the Certified Bank Compliance Officer examination. He is also a former member of the Community Reinvestment Leadership Council of the Federal Reserve Bank of San Francisco.
Areas of Expertise:
AML/BSA Compliance
Deposit Compliance
Lending Compliance
Conference Speaker
Contact info:
You can reach Randy via email at: careyrandy@comcast.net
Questions Answered
MSB Customer Cashes Altered Check-Alteration Claim
06/09/2019
Our bank has several MSB check cashing customers. On occasion, an MSB customer will inadvertently cash an altered check, which eventually is deposited to their account at our bank. When our bank receives an affidavit of alteration from the paying bank, is it permissible to debit the MSB customer's account for the claim amount since they are the ones that "cashed" the check, or would our bank be responsible for paying the alteration claim?
Licensing Privately Owned ATMs & ATM Operators
06/09/2019
FFIEC Guidance on Privately Owned ATMs is ambiguous regarding registration and licensing requirements of Privately Owned ATMs and ATM Operators. Where can we locate specific guidance regarding licensing requirements by State/Parish/County for Privately Owned ATM Operators? We know what licenses are required by an entity to conduct business in general, however have not able to locate specific requirements for States other than those in the North East for registering and licensing Privately Owned ATMs and ATM Operators.
Determining Minimum Required Flood Insurance
06/09/2019
We have a loan in the pipeline and received notice that the building is in a special flood zone area. The building is a multiple unit apartment building consisting of a basement and 4 floors. There was an elevation certificate done which showed that only the basement is in the flood area. There is nothing in the basement, and no contents stored there. I realize that in determining the minimum required flood insurance we have to take into consideration: 1-Replacement cost of the building / appraised value; 2- MAX limits of coverage: $500,000.00 limit for structure / $500,000 for contents (since this is a multiple unit apartment building), and the 3- loan amount. Our question is, once we assign a value, and because the flood area is only in the basement, as determined by the elevation certificate, since the building is 4 floors and a basement, can use 1/5 of the value as a factor in determining minimum required flood insurance?
Revocable Trust Account-Beneficiaries Changes
06/09/2019
This question pertains to a Revocable Trust Account. Our client is reluctant to submit the entire Trust document and the attorneys version of what we need to know does not include list of beneficiaries. Can we insure this account for more than $250,000 without knowing the exact number of beneficiaries? What if they do submit a list, but make changes to the Trust afterwards without notifying us and the number of beneficiaries changes, are we obligated to provide the insurance for all?
ID for Cashing Checks & Making Deposits
06/09/2019
What is the proper identification for cashing checks or making deposits?
2 Security Agreements if File for 2 UCCs?
06/02/2019
When we have a borrower in one state but their collateral is located in another state, we will file a UCC where the debtor is located. Some Lenders want us to file in both states just to be safe but then that posed the question, should we be preparing two separate security agreements, one for each state as well? Also, if we have a borrower that has collateral in both states we have been just preparing one security agreement where the borrower is located and still filing two UCC's but we think we should be preparing two separate ones in this case also?
Signed App w/Hyphenated Name- a/k/a?
06/02/2019
A customer signed her application using a hyphenated name. Her property is in solely her maiden name, but it is vested as "husband and wife". Do I still need to put a/k/a on documents?
Counterfeit Check from BOFD-Who Takes the Loss?
06/02/2019
My bank has received a counterfeit check from a depositing bank. Our customer called the day the check cleared his account and we returned the check to the Bank of First Deposit on the same day as reported. Who will take the loss on this item, the BOFD or my bank? And should we treat this as a fraud/ disputed item ?
Charge a Default Rate on Construction Loan?
05/27/2019
Can the bank charge a default rate on a single-close, construction-perm mortgage loan during the construction phase if construction is not completed on time? For example, a 9 month construction term with multiple draws has a fixed interest at 4.125%. If construction is not completed at 9 months when the construction phase is to mature a default rate of 4.625% would apply from the maturity of that phase. If it is permissible, does this make the loan an ARM or the increased rate a refi?
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