Most Popular Lending Content
Texting “better pay up”
07/21/2019
Our borrower routinely said it was OK to text them and we have that screen capture in our records. Can I contact them now to collect the debt via text messages?
Difference between an enforcement action and a consent decree
07/21/2019
What is the difference between an enforcement action and a consent decree?
"Self-reporting" Utility Accts. on Credit History
07/14/2019
Credit Bureaus are now allowing consumers to "self-report" utility accounts on their credit histories. These accounts show as payments and performance does affect their credit scores. For ATR compliance, should these reported accounts now be considered in DTI calculations or can they be excluded? As a side note, I am seeing automated software pulling these utility accounts into the calculations as any other credit account.
E-SIGN Applicability to Compliance & Law
07/14/2019
I am doing some research around E-SIGN and its applicability to both compliance and the law. While I know we have members in different states, and each state is different and any case law or state law, mentioned may not be binding in our "home" state, I would still be interested in how other jurisdictions are handling this. What is your take on courts requesting original signature cards? We have an in-house collections department, that will go to court to file judgement on charged-off checking accounts or past due loans. In our local courthouse a certain judge has often asked our collections manager for the original signature card, when she is trying to obtain judgement. At our bank, customer signature cards can be obtained a number of different ways. The most common is via a digital topaz screen (electronic screen that the customer physically signs when they open a new account). There are some situations however where the customer can not come to the branch and sign, so we will go to the customer and have them sign a “wet” signature paper form, and then we come back to the branch and scan that paper form to our customer accounts team. I am trying to find out if that scanned wet signature will hold up in court as an original (since after it is scanned we destroy the paper copy). Additionally we have circumstances when the customer is out of area, or someone is opening a joint account where only one party is present in the branch and we send out the signature form electronically to the other party via email and they “remote E-sign” via a digital signature (which is just a printed version of their name). I am wondering if these will hold up in court? Furthermore, have you ever seen where a bank will allow customers to completely doc-u-sign/ remote E-SIGN a loan application and all associated closing documents? Even the big players in this space (Rocket mortgage, Quicken loans) usually send a mobile Notary once all the paperwork is completed to come meet with you and obtain a wet signature on the paperwork. Our mortgage department has asked if instead of that wet signature at closing if an electronic signature would suffice in the courts. What about Deeds of Trust, can they have electronic signatures? I really appreciate your help or any insight you can provide via your years in banking. If you find or know of any relevant case law please let me know as that would certainly help in my analysis.
Loan to New Entity-Short Term Line of Credit
07/14/2019
We are trying to make a loan to a new entity and provide a short term line of credit to help fund the costs of there first contract as a company. We are wanting to take an assignment of the contract and have their customer issue joint checks for their payouts. I have been unable to find any document that works on our compliance software. Any ideas of how I would perfect this transaction?
