Most Popular Lending Content
Appraisal Fees on Construction Loans
12/15/2003
Is it possible to charge an appraisal fee on a construction loan and the fee not be a finance charge? If I understand correctly, appraisal fees are excluded from the finance charge if the appraisal is done before closing. However, on a construction loan, an appraisal cannot be done before closing.
Dating a Rescindable Loan
12/15/2003
If a bank makes a loan that requires a notice of right of rescission, should the "contract date" on the bank's computer system be the date the contract was completed, or the date when the rescission period ended and the funds were disbursed?
Enter 'The FACT Act': Identity Theft Law Merges With FCRA
12/01/2003
The Fair and Accurate Credit Transactions Act of 2003 has been signed into law by the President. The short name, and one we'll soon get to know intimately, is The FACT Act.
Figuring Income When Some Is Tax Exempt
12/01/2003
Does a Tax Service fee have to be included on the TIL disclosure? In a highly reputable banking compliance publication that shall remain unnamed, I recently read an article entitled "Grossing Up Public Assistance Income". In this article it stated "Under ECOA, while making loan approval decisions, banks must not discriminate against applicants who receive public assistance income. Generally this income is exempt from federal income taxation. If the income is exempt from taxation, then before making a loan approval decision, this exempt income needs to be grossedup to a pretax, taxable incomeequivalent amount." The article goes on to say that a "client bank" was written up for not doing this and the examiners also said that this also needed to be spelled out in the bank's loan policies and procedures manual. I've read every word in my Federal Reserve Manual under Regulation B, to include the commentary, and can find no reference to this. In the past, we have always considered this to be a "gross" income since it was not t axed. I have a HMDA related loan that has an sole income source of Social Security Benefits and need to know what my "gross" income figure is. I would appreciate any assistance that you could give me in light of this new information. Thank you in advance for your help.
Clear & Conspicuous: A Federal Reserve Standard for Disclosures
12/01/2003
We saw it coming. When the privacy regulation was promulgated, the agencies had to set standards for notifications.