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?
Our bank has several home improvement applications that have been approved prior to 10-3-16 but they have not funded yet because we do not disburse the funds until all the improvements are completed. In cases like these, must we run an "MLA check" against the DOD database?
My bank is currently looking into accepting application online. One of the requirements is that the application would need to be e signed so we have a completed application and a signature to pull credit. I am not sure where to start on if we need a new policy for this or what disclosure we would need to provide to our customers.
When 1026.2 defines the six pieces of information that makes a complete application (and therefore starts the clock on the 30 day loan decision time frame), specifically the applicants income - are they referring to the income notated on the application only? Lenders are wanting to know if substantiating documentation of income is considered part of the application. I can't find anything concrete in the Regs saying that "income" is defined by what is on the application only.
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?
With an online loan application, can the applicant authorize the credit report check of a co-applicant?
Commercial Lending Guarantors and Joint Intent: How do you handle whether or not to get Joint Intent on a guarantor if you have a set in stone credit policy that's states something like, "All owners of a borrowing entity who own more than 25% of the borrowing entity are required to give a personal guarantee on any loans extended to the borrower"?
My issue with the above, is what do you do when you have a voluntary contemporaneous guarantor applicant, does joint intent apply since your requiring it before they even walk in the door? Does a Voluntary Contemporaneous applicant supersede Credit policy requirements when it comes to Joint Intent?
Is it a better practice to just obtain joint intent on all guarantors?
Can you pull a credit report for a commercial purpose loan before you have a signed financial statement or loan application?
Do we have to provide the appraisal disclosure for loans denied within 3 days?
What happens under the new HMDA rules with applications taken in 2017 on which final action is completed in 2018? Which format gets used?