Does a bank have to charge employees fees on consumer loans?
I have an employee applying for a small consumer loan. Our loan fee is only $50 and we used to waive that fee for employees. I'm now being told it is against the Fair Lending Act to waive an employee fee. Is it a compliance violation to waive an employee (non-officer) loan processing fee?
Can employees in the credit department have customer contact?
A director of a bank has a related interest. An employee of the related interest guarantees a loan for an entity that will provide services for the related interest. In addition, the related interest deducts the loan payments from the service providers check and sends it to the bank. The loan would not have been made without the guarantee of the related interest's employee. Would this loan be attributable to the Director through the Tangible Economic Benefit Rule of Reg O.
This question is in regards to the SAFE Act and disclosure of the MLO's unique identifier with the initial written communication. If loan is made to an employee of Sr. Management and the MLO is Sr. Management as well, does the requirement still apply? Obviously these employees know each other well, and since the unique identifier is a tool for customers to get info about the MLO would the disclosure of the unique identifier be relevant in this case? Would an examiner cite an Institution for not having disclosed the unique identifier on initial written communication?
We have a customer that is buying a spec home from a builder. The customer has moved into the spec home prior to the loan being closed. Does this loan require that we give a Right of Rescission to the borrower? Our compliance consultant company says NO but I have an employee at an IBA seminar today that is saying per Reg Z says No but Truth in Lending Law says Yes so we should do a rescission.
My question concerns SAFE Act procedures. The MLO completes the MU4R Form for the background search. The Bank submits the background search. The MLO registers himself on the registry website. HR verifies the MLO's website entry information and "taps" the MLO as the Bank's employee (after we receive notification that the MLO has passed the background search). Is this correct? I am a little confused about the MU4R Form. Is it used for the background search or is it the information the MLO will enter on the registry website?
It is my understanding that a Bank Lending Officer does not need to be licensed under the SAFE Act, is that correct? We are regulated by the FDIC.
If an employee of a company applies for personal credit through a program offered to the employer for their employees by a financial institution, which is for the employee's personal use and the employer is under no obligation for repayment or has no influence whatsoever in the credit decision, should the employer be notified of the approval or denial of such credit?
Recently the Department of Labor came out with rules regarding mortgage loan officers. We currently have an employee whose primary job is in commercial lending. He also does some mortgage lending on the side. Would we have to evaluate his salary as a part of the new rules? Because he doesn't primarily work with mortgages, would he be exempt from this?