Type of Checks Deposited in Estate Account
08/30/2020
What type of checks can be deposited to an estate account? If a check is made payable to Frank Smith and he is deceased, can that check be deposited into the Frank and Jane Smith Estate account?
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
1099 Required for a $50 Refer-a-friend Bonus?
08/30/2020
We are trying to develop a Refer-a-friend program. We will offer a $50 bonus" for referring customer and a $50 bonus for the referred customer once the account is opened with direct deposit and they use a debit card a predetermined number of times in 60 days. We have a third party company that tracks referrals and bonuses which is trying to tell me I don't have to 1099 anyone because we're not paying the bonus at account opening - we're paying the bonus for meeting the qualifications of the program. Is a 1099 required for a $50 refer-a-friend bonus?
Home Equity Application-3 Business Days Rule
08/30/2020
If a home equity loan application is not decisioned within 3 business days and preliminary disclosures are not sent out within those 3 business days, does the application need to be canceled and a new application keyed in? That is our current practice and it's a nightmare for HMDA monitoring submissions.
Collections/Chargeoffs on CR-Credit Score
08/30/2020
If a member has collections and chargeoffs on their credit report and they want to payoff one or the other, paying off which one will help their credit score the most?
Transactional Broker& Limited Capacity (CD)
08/23/2020
I received the following question from one of our Lenders and I am having a hard time tracking down an answer: "First lets define a Transactional Broker. In this context, a transactional broker is an agent that is not licensed. The agent will usually work under a supervisor. A transactional broker may be listed on a purchase contract, but they will be identified a Limited Agent (or similar language, sample contract attached). Transactional brokers are also called Statutory Brokers (often in WY) and occasionally Intermediary. It is important to note that a licensed agent can work in a "Limited" capacity, but a non-licensed agent (Transactional Broker) can never represent a buyer or seller. That means, not all contracts with limited agents are "Transactional Brokers." Assumption 1: When the agent is licensed, even when they are shown as working in a limited capacity, then their contact information is to be shown on page 5 of the closing disclosure (CD). Is this a correct understanding? Do divisions have discretion on this point? Can they leave the contact information off in order to match the Seller CD produced by title? This is common practice by title companies in this area. Next question, what is best practice when the limited agent is not licensed? Do we show non-licensed agents (Transitional Brokers) on the CD, without a license number, or do we leave their name off the CD? Last point of clarification, it is our understanding that discrepancies in the contact information section of the CD (page 5) are to be included in the post closing seller CD Review process outlined in the Seller Obligated Job Aid. Please confirm."
Modify Open End Deed to Closed End Deed?
08/23/2020
We have a loan that was a HELOC. Our customer is now renting the property so he applied for a commercial loan. Can we modify the open end deed to a closed end deed?
How to Resolve 30 Year Residential Loan
08/23/2020
How do we resolve a conventional 30 year residential loan, originally floating at application, that was closed without being officially "locked," at the rate originally stated on the LE, which did state that the rate was floating? Will the resolution differ if the now current market rate has dropped lower than the original stated rate versus an increase in the rate?
Rebates-Bonus and Reporting on 1099-INT
08/23/2020
We are rolling out a new rewards program. For members who maintain multiple accounts with direct deposit and have an average balance of at least $XX,XXX, we’re going to rebate X% of each debit card purchase, up to $100 per year. I was reading some compliance discussions that noted if the credit/rebate is tied to a service instead of just opening and maintaining an account, then it would not be considered a bonus or need to be reported on a 1099-INT. In this case, the accountholder would first need to qualify for a certain level on our rewards program based on their products and balance. However, to receive the rebate, they would need to use their debit card to receive the rebate reward up to $50. We are leaning towards the rebates not being a bonus or reported on a 1099-INT as payment is triggered on the use of their debit card, not solely on opening or maintaining an account. Thoughts?
Reporting FCRA Info on Adverse Actions
08/16/2020
I understand that you must report the FCRA info on adverse actions if you used information from a credit report to deny the loan, but does this include using the debt listed on the credit report as well? We did not deny based on the credit score (over 700) but did deny due to excessive obligations in relation to income.
Titling Accts. for Payable on Death Purpose
08/09/2020
We have a savings account that was opened March of 1993 titled hypothetically: Mary Smith and John Smith Trustees for Tim Smith. Does anyone ever remember titling accounts this way for payable on death purpose?
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