02/19/2017
On an Adverse Action notice, how should the term of a HELOC be reported? Our HELOCS are 120/180: A 120 month draw period and a 180 month payback period. Should the term of the loan be displayed as 300 months?
01/22/2017
Can a consumer be declined for credit when they qualify for the credit or if they have been approved for credit at the institution previously?
Situation - Applicant has applied several times for credit with the financial institution. All loans have been paid according to terms on the two loans currently on the books. Prior paid off loans always paid off as agreed. Never any late pays. The bank approved the two prior loans with their credit score in upper 500 range due to a deed in lieu of foreclosure on a previous property. The applicant has now increased their score to upper 600's to lower 700's depending on which credit report you look at. There are no past dues on their CB reports other than the deed in lieu from a couple years ago. Their DTI ratio is within policy guidelines with the bank. The one of the loans on the books has two policy exceptions that were already approved and being tracked. The same applicant applied to increase this particular loan and extend out one more year. The bank declined them; however has not yet given them a reason why. Can this be considered a fair lending issue since they qualified with income and due to bank already approving prior loans with the above mentioned exceptions? The same two exceptions would exist on this new loan with no new exceptions to mention. Seems like discrimination to me.
11/27/2016
Can a combined counter offer/adverse action notice be issued pending
an appraisal? Model C-4 per Reg B does not allow for conditions, therefore, my interpretation is that a combined notice or counter offer can be issued only when the Bank has made its credit decision which includes determination of appraised value. Also, if appraised value is less than anticipated, the Bank may find itself in a situation where two counter-offers may need to be
provided which I don't believe is acceptable. Please advise!
11/13/2016
At what point does an oral inquiry for a loan become an application, thereby
requiring an adverse action letter if denied? For example:
1. Bob asks about the bank’s car rates and terms for a 5 year old
automobile. When he is answered he decides not to proceed. Was this an
application that requires an Adverse Action Notice?
2. Sue calls and says she wants to talk about a Home Equity LOC. But the
banker explains that it does not offer that loan product. Has Sue applied
for a HELOC and required to get an Adverse Action Notice, or was it simply an
inquiry that requires no further action by the bank?
3. John says he wants a loan to start up his own business, but mentions he
does not have a job currently and filed bankruptcy last year. The loan
officer tells John that he won’t be able to help him out. Has John applied
for a loan and an Adverse Action notice is required, or did John simply
inquire about a loan and no further action is necessary by the bank?
4. Peggy asks for the rate and terms of an automobile loan. The loan officer
provides her with the information, then asks how her credit looks. If she
tells him it’s not good, and the officer says he wouldn’t be able to make
the loan, has Peggy applied and is she due an Adverse Action notice?
12/20/2015
Where can I find the regulation that states if a lender denies a loan application, the loan applicant must wait 30 days before reapplying?
10/04/2015
If a borrower was denied credit for insufficient income (non credit score related),
does the credit /score disclosure need to be included with the denial letter?
09/07/2015
Do the ECOA/Regulation B requirements around incomplete applications (12 CFR 1002.9(c)) apply to business credit applicants?
09/07/2015
In a QC HMDA audit 2014 it was found that the action taken was inaccurate after the borrower was sent a withdrawn letter. It should have been declined. (ECOA Violation noted) The loan was not reported on HMDA LAR in 2014 due to the AA letter being prepared in March of 2015. The date of AA letter is what is used for reporting. Can this HMDA loan still be reported in 2015 using the date of the now final action taken of AA letter?
05/04/2015
Reg B: Do you need to disclose the Bank's name and address to a declined business applicant?
04/27/2015
Can you name the 5 parts that constitute a written adverse action notice?