02/13/2012
For the second time, a loan officer has presented a loan which is to purchase rental property through the customer's IRA. The Trust Company had procedures on how to title the property, etc. and we followed it to a tee. However, even though we followed their rules, I am not 100% sure that we are following lending rules. The borrower and owner of the RE is stated as "___ Trust Company dba ___ Trust Company Custodian FBO __[our customer's name]__ IRA #______". How do you CIP this entity? Whose TIN and address to use? We were instructed to use the TIN of the main Trust Co, but to use the address of the 'dba' Trust Co. The corporate docs were obtained for the main Trust Co, and all they give us is a list of 22 people from the main Trust Co and their signatures with titles of "Corporate Alternate Signer" stating any of them can sign our docs but state they cannot tell us which of those 22 will be the actual person signing and state they are not required to submita copy of that signers ID. I just want to make sure we are following all steps correctly (legally).
01/17/2011
I recently heard an experienced mortgage banker say that some bank governing body (not sure which one or if it's all of them) advises against keeping an actual copy of a customer's drivers license in the loan portfolio. Instead, we should just be keeping the valuable information from the document in the file. Is this truly valid?
10/25/2010
When opening an account for an LLC and the documentation is from another state, do we require special documentation?
04/12/2010
We have a customer who has titled his business as an investment company, and indicated that on his CIP form. Recently, he withdrew $15,000 in cash, and when asked the nature of his business, explained that it was "hard-money lending". Considering the amount of cash withdrawn, which is unusual for him, could he be an MSB? What is a hard-money lender?
06/02/2008
When a bank has an indirect lending relationship with a car dealer, then how does it go about complying with enhanced due diligence, CIP, etc.?
06/11/2007
Should we keep the privacy policy disclosure in the file or give it to the customer? Are we allowed to have picture IDs of the customers in the loan files?
02/26/2007
For an applicant that is not a U.S. citizen, Freddie Mac requires proof of employment authorization from the U.S. Immigration and Naturalization Service. I realize it is a violation of Reg B to keep a copy of a citizen's driver's license in the file but is it a violation to keep a copy of the employment authorization of a green card in the loan file?
07/24/2006
I'm having a slight issue regarding BSA/CIP with our loan officers. I'm wondering what other banks may be doing in specific cases. Such as, if the loan is with a corporation, do you identify the corporation and the principals (not as actually responsible for the loan, just as say the president or owner)? What if the president is signing as a guarantor and what if the loan is with an LLC? Of course, with a partnership or as individuals you would identify each person.
05/22/2006
What documents are required for our loan files when we do a loan for a Limited Liability Company or a Limited Liability Partnership? Are these considered corporations? Do you have a check list to go by?
05/15/2006
We are considering making loans via the internet. I know CIP and internet security need to be arduous. What other considerations and compliance issues are there?