What if you do not have a complete address to send an adverse action to?
Is a large bank required to send adverse action notices when a payment due date change or extension is denied for consumer loan products?
I am trying to find documentation to determine if denying a loan for "collateral" is appropriate when the issue is that the property is up for sale. The result is that the loan will not meet our guidelines so is this an appropriate reason to deny the loan for "collateral." Or would the appropriate denial reason would be "Other." Can someone point me to the correct location to view documentation to better support the use of denial reason other vs collateral?
As a lender (agent) in a syndication deal, what are the responsibilities of the agent bank with respect to Regulation B (ECOA) compliance specifically related to adverse action notice requirements?
For banks that provide combined ECOA-FCRA disclosures, is it standard practice to “Check the 1st Box” and provide FCRA credit score information if the decline reason is not based on the consumer report, but some other factor? (i.e. insufficient collateral, product not offered, out of lending area) Do other banks do this?
We understand that we do NOT have to “Check the 1st box” and provide credit score information if it was NOT used in making the adverse decision, but what would be the risk to provide this information in the above cases?
I have a client (a lender) who orders their credit reports from "XYZ Data" and when a loan is declined, they list Equifax on their Adverse Action
Notice (with appropriate address and phone number) and they have now been told that because "XYZ Data" is considered a reseller of credit under the
FCRA 603(u) that they should also list XYZ Data (along with its name and telephone number) on the Adverse Action Notice. Is this true?
If a loan is denied due to collateral value, would the adverse action notice include that an outside source was used in the decision and the outside
source was the appraiser? I believe the appraiser would NOT be an outside source for this purpose.
If an individual applies for a loan and they don't qualify, is the lender required to formally disposition (deny) the loan request? Or can they solicit other individuals to be added to the application to see if they would
help qualify and get loan approval?
We currently offer a loan, repayable in six monthly installments at zero percent interest, to help customers bring their checking account to a positive balance.
Letters are automatically generated and mailed to customers who may qualify for such loan once their account becomes 30 days overdrawn for $100 or more.
Upon receipt of the notification, the customer must call in as directed in the notification (or they can come into the branch) to request the fresh start loan. Their account will be reviewed. If the customer has previously had a fresh start loan with us, we will not make them another fresh start loan. In those situations where a customer requests a fresh start loan and we
are unable to make them one, would we owe the customer a Notice of Action Taken? Would Regulation B apply to these fresh start loans?
Is an adverse action/counter offer determined by the loan product or the loan amount? If I am doing an 80% LTV cash out Mortgage refinance (ex: $80K loan on $100K estimated value) but the appraisal value comes in for less than estimated, I now have to change the loan amount to 80% of the actual value (ex: verified value = $90K therefore new loan amount is $72K).
Does this mean that I have to do an adverse action/counter offer in addition to re-disclosing an updated loan estimate for the change in loan amount? My product is still the 80% LTV cash out mortgage refinance. My product did not change and I am still giving the borrower cash out that he requested, it just isn't as much as we estimated.