Most Popular Lending Content
Section 202.2(f) Application Requirements
12/02/2002
I need some ammo to use, such as the 12 CFR gauge or more powerful. My lending executive officer has authorized for use in a consumer transaction an application that does not meet any of the requirements found in Appendix B of Sec. 202 of Reg. B. For example, no space for Co-applicant information; no disclosure for other income (alimony, child support or other maintenance income; no statement as the correctness of the information above the applicant signatures; no authorization for credit verification, or employment verification, etc.; and no lines for applicant(s) signatures. That's right, consumer application without applicant's signatures. When the new operations VP came on board in 1980, he brought along the Lending Officers Worksheet(WKS). The sole purpose of the WKS was to be used to document credit requests in the case of business and corporate use. Ten years later one lending officer began the practice of using the form as a consumer application as a way to cut corners. That officer is still here. I have made recommendations during my Fair Lending Audit year after year to cease using the form as an application for credit. I have used Reg B as my basis of argument to no avail. I think I need some big guns, such as, law suits, where banks lost money due to technicalities where the documents are not signed properly. Any suggestions or examples would be appreciated.
UCC, Refinancing, & Terminations
12/02/2002
It has been a few years since I personally looked at the UCC forms since their revision. I see that no signatures are required on the form. Since most lenders are lax in filing termination, in the case of a refi, can the new lender simply file the terminations?
The Overdraft Product Craze
12/01/2002
Management may be excited about the fee income opportunities with an overdraft product. In fact, fee income is the carrot that the vendors are using to sell the product.
More on Payday Lending
12/01/2002
Payday lenders have a market in customers who have bank accounts but do not qualify under the bank's lending criteria for an overdraft line of credit.
New Census Data
12/01/2002
When you begin using the 2000 census data, you'll discover some challenges.