If we have three DDA accounts securing the same loan, does the "single action rule" limit us to only using the funds from one account in the event of default? It is the funds in all 3 accounts that add up to enough to cover our loan proceeds.
If you do a preapproval/prequalification where you have five pieces of information (not the property location) and the customer is approved for an amount but the customer never comes back to the bank, what is the proper procedure?
Can we require a borrower to open a deposit account with our institution as a condition for approving their loan request?
We are developing a new business credit card product. Can we require businesses to open a checking account to be eligible for the card? The checking account will not be security for the credit card.
Can an automatic payment be set up for a loan from a checking account that does not have the name of the person who is on the loan on the checking account? In other words two separate people and two separate accounts. No common person between the two.
How important is it for a bank to get a properly executed Assignment of Deposit Account when securing a loan with a certificate of deposit or savings account? If there is a signed note and security agreement that includes language about the deposit account being taken as collateral does the bank have a perfected lien without an Assignment of Deposit Account? Or is this similar to a real estate secured loan where if you don't have a properly executed deed of trust regardless if the collateral property is listed in the note and security agreement you don't have a perfected lien? I am in the state of Tennessee.
Is it ok to add a name to an existing account and change ownership or should the account be closed and new account be opened?
In lieu of the risk-based pricing notice, we use the credit score exception notice. It automatically prints every time we pull a credit bureau report. I understand the purpose of the risk-based pricing is for lending, but we also use the credit bureau report to determine if we will open an account. Is it permissible to give this credit score notice with an AAN when denying deposit accounts?
What is the difference between APR and APY?
Does a lending institution have to give its commercial deposit holders any type of notice if and when the fees on deposit accounts change? Could you clarify if commercial accounts are exempt, and which Reg I should be reviewing for this?