07/29/2018
In our residential mortgage loan application in process, an application was completed (6 pieces of information collected) on 2/28. Our lender mailed out the initial disclosure package on 3/1. This package includes the loan application which contains our joint intent notice. Is this in compliance with ECOA given that the notice was not mailed on 2/28, or is it acceptable to send it on 3/1?
"..3. Evidence of joint application. A person's intent to be a joint applicant must be evidenced at the time of application. Signatures on a promissory note may not be used to show intent to apply for joint credit. On the other hand, signatures or initials on a credit application affirming applicants' intent to apply for joint credit may be used to establish intent to apply for joint credit. (See Appendix B.) The method used to establish intent must be distinct from the means used by individuals to affirm the accuracy of information. For example, signatures on a joint financial statement affirming the veracity of information are not sufficient to establish intent to apply for joint credit."
07/22/2018
1. Do you need a new credit application for commercial loans that are
renewals, extensions or change in terms on an existing account?
2. Do you need permissible purpose to pull a credit report on commercial loan
renewals, extensions or change in terms on an existing account?
06/24/2018
What should the application date on the HUD 1003 be based on, the applications definitions for Reg B, HMDA, RESPA & TRID?
06/10/2018
We are trying to set up mortgage application online. We are having debates on what disclosures we need and how to provide the disclosures. Is it something as simple as sending a PDF or does it require us to follow E-SIGN? If the mortgage is submitted online, do the disclosures need to be sent online?
05/06/2018
What are the requirements if a written adverse action notice of denial is provided to the applicant with a counteroffer and then the counteroffer is denied later on during the process of the application? Is the creditor required to send another adverse action notice denying the counteroffer?
03/11/2018
I have an incomplete application (no property) that is expressly withdrawn by the applicant 3 days after submission because they now want a 30 year fixed rate loan where we only have balloon loans with an amortization up to 30 years. The lender had "approved" them to go forward, prior to verifying their credit with paystubs, tax returns, etc. I know you cannot have a "withdrawn" application unless it is prior to credit approval. Please define "credit approved" when it comes to HMDA. Would this be
underwritten and verified credit? Or would I submit this as "approved but not accepted"?
10/22/2017
I just want to confirm that the “we intend to apply for joint credit" verbiage must be on the applications to comply with Reg B?
Our applications state "What type of credit are you requesting?" then the applicant(s) initial if they check the joint credit box. The information I have read on Reg B says a person's intent to be a joint applicant must be evidenced at the time of application. Signatures on a promissory note may not be used to show intent to apply for joint credit. On the other hand, signatures or initials on a credit application affirming applicants' intent to apply for joint credit may be used to establish intent to apply for joint credit. The method used to establish intent must be distinct from the means used by individuals to affirm the accuracy of information. For example, signatures on a joint financial statement affirming the veracity of information are not sufficient to establish intent to apply for joint credit.
10/01/2017
Adverse Action Webinar - June 21, 2017 - David Dickinson
I wanted to confirm. David Dickinson said in a recent webinar that if a consumer comes into the bank to inquire about a loan and we know from the initial conversation they will not qualify and after explaining our basic underwriting guidelines we can provide them with an adverse action notice on the spot. We would no have pulled credit. We would not have discouraged them from applying.
Would we use form C-1 to provide the notice?
We would of course keep any documentation with the notice for retention and Fair Lending audits and risk assessments. We would also provide training to our LO's and provide them basic scripts.
Am I on the right track?
09/24/2017
Pre-qualification application received Refer/Eligible Findings from GUS - Rural Development for a purchase of a primary residence loan. The loan could potentially be manually underwritten for approval if the borrower were to provide the documentation. Borrower chooses to not go manual underwrite and says cancel my file. Is the loan Denied based on the GUS refer findings or is it approved/not accepted on the hypothetical possibility that it may have been able to be manually underwritten?
05/21/2017
In 1026.37(f)(5) we know that creditors are required to use terminology that is reasonably understood by consumers. We lend in Indiana in which the Title Company will charge a $5 TIEFF fee. This is an acronym for Title Insurance Enforcement Fund Fee, but it is recognized as TIEFF in the industry and is searchable on the web as TIEFF.
We have an investor who is requiring the full name be placed on the CD for all IN loans versus the TIEFF acronym. We feel that the acronym is reasonably understood. The problem with using the full fee name is that it would always require an addendum due to the character limitations on the CD.
Has anyone else run up against this scenario and have overcome the investors' concerns?
