If we accidentally deny a loan that has already been withdrawn by the borrower, prior to our credit decision, how should we handle the reporting of the HMDA data on the LAR? Should we report it as withdrawn per Reg C regardless of the existance of the denial letter, or should we report it as denied because there was a credit decision and letter issued and that's the action taken by the bank?
I'm looking for some clarification on the Notice of Action Taken provided to businesses with revenues in excess of $1MM.
Can a Bank choose to provide these businesses with an Adverse Action Notice which lists the reasons for denial, or is the Bank required to provide the Notice of Action Taken which does not list the reasons for denial? I wasn't sure if there were any reasons that would prevent us from providing an Adverse Action Notice as opposed to a Notice of Action Taken.
Also, the provision does give the Bank the flexibility to notify the applicant, orally or in writing. If the applicant is notified orally, what would be the best course of action that the Bank or Loan Officer would need to take for compliance monitoring purposes?
"(ii) With regard to a business that had gross revenues in excess of $1 million in its preceding fiscal year or an extension of trade credit, credit incident to a factoring agreement, or other similar types of business credit, a creditor shall:
(A) Notify the applicant, within a reasonable time, orally or in writing, of the action taken; an
(B) Provide a written statement of the reasons for adverse action and theECOA notice specified in paragraph (b)(1) of this section if the applicant makes a written request for the reasons within 60 days of the creditor's notification."
We have a business entity request for commercial credit and a credit report was pulled on the two owners, with the credit request denied based on one owner's credit score.
If the FCRA portion of the Adverse Action Notice is completed is that wrong?
If this is included and the score, key factors etc. are for the credit score used in making the credit decision is sent to both owners, in the name of the business entity, is that wrong?
If I am doing a loan for an LLC where two partners own 40% each and the third owns 20%, do I need any information/documentation on the third owner if he is not going to be a borrower on this loan? Would meeting minutes be required where it is decided the third owner will not be signing the loan?
We don't make owner occupied mortgages, but do make business purpose loans for rental properties. Do we need to continue using the Equal Housing Lender logo in advertising?
I have a question about the use of the Equal Housing Lender logo. Does it need to be included in a mortgage company email signature?
We are trying to set up mortgage application online. We are having debates on what disclosures we need and how to provide the disclosures. Is it something as simple as sending a PDF or does it require us to follow E-SIGN? If the mortgage is submitted online, do the disclosures need to be sent online?
Where can I find information or samples of ECOA self-testing to get started on this project for my bank?
Do I need to worry about font size on the reason for the adverse action for denied mortgage or retail loans?
At what point does an oral inquiry for a loan become an application, thereby
requiring an adverse action letter if denied? For example:
1. Bob asks about the bank’s car rates and terms for a 5 year old
automobile. When he is answered he decides not to proceed. Was this an
application that requires an Adverse Action Notice?
2. Sue calls and says she wants to talk about a Home Equity LOC. But the
banker explains that it does not offer that loan product. Has Sue applied
for a HELOC and required to get an Adverse Action Notice, or was it simply an
inquiry that requires no further action by the bank?
3. John says he wants a loan to start up his own business, but mentions he
does not have a job currently and filed bankruptcy last year. The loan
officer tells John that he won’t be able to help him out. Has John applied
for a loan and an Adverse Action notice is required, or did John simply
inquire about a loan and no further action is necessary by the bank?
4. Peggy asks for the rate and terms of an automobile loan. The loan officer
provides her with the information, then asks how her credit looks. If she
tells him it’s not good, and the officer says he wouldn’t be able to make
the loan, has Peggy applied and is she due an Adverse Action notice?