Most Popular Lending Content
Applying Principal To Loans Against A Credit Card
07/15/2002
What are the regulations concerning the application of the principal portion of a payment when the loan is against a credit card that has different balances kept for purchase advances, cash advances and balance transfers? Is it permissible to reduce only one of these balances with the principal portion of the payment or must each balance be reduced? If each balance must be reduced, what is the formula used to decide what portion of the principal is applied to each balance?
APR matrix For Fees
07/15/2002
Is there a matrix out there (Mary Beth probably has one!) that charts APR issues like if a fee falls into what category: fee, finance charge, and prepaid finance charge, or exempt/excluded? I tried to sit down with Reg Z and make one for our bankneedless to say, I am now emailing you.
RA9, Continuation, And The Need For An Initial Filing Statement
07/15/2002
I noted on your Roadmap that you indicated a transaction subject to RA9, with security interested perfected under old A9, perfected by filing, in the correct state, with the correct filing, should be continued prior to the normal lapse date by an initial financing statement. I was under the impression that a correctly filed security interest subject to a UCC1 filing under old A9 that meets all the requirements of RA9 should be continued by virtue of a UCC-3 continuation within the window period prior to the normal lapse date, not by an initial filing statement. Please clarify the need for an initial filing statement. Up to this point, I had understood that the initial filing statement was the means to maintain your lien position at the same time you were "correcting" or bringing into compliance with RA9 a filing not meeting the requirements of RA9, but for which you had been perfected under prior A9.
Reg Z & Interior Billboard Promotion Requirements
07/15/2002
I am reviewing an interior billboard promotion for a home equity credit line and I've looked everywhere in Reg. Z (is that possible?)for the answer to this: The ONLY print copy in the ad reads, "x% less than Prime (for the life of the loan) Ask about our Home Equity Credit Line." Is this ambiguous enough to avoid all the implicit terms disclosures required under 226.16(b), namely, from 226.6?
Notification Requirements When Pulling Credit Reports
07/15/2002
Our Consumer Lending unit received the following response to a recent audit. "According to the regulation, a bank may pull a credit report on a person if they have a permissible purpose. An application for credit is considered a permissible purpose. When the Contact Centers take applications over the telephone (he doesnt mention anything about the Internet) they are only speaking with one of the applicants, but if the application is joint, credit bureaus aer obtained for both applicants. Without talking to the joint applicant, the bank can not be sure that the second individuaal is aware of, or wants to apply for a loan. If a co-applicant does not want to be an applicant on the loan, the Bank would not have a permissible purpose for obtaining the credit bureau. It is recommended that the Consumer Lending Dept require that all parties on a loan application be made aware that a credit bureau will be obtained." I realize that this is only a recommendation, but this team believes because a compliance auditor wrote this, they need to act on this recommendation. Is there some litigation that suggests we need to do this? I simply can not find anything, anywhere that states we are required to verbally inform a co-app that we are going to pull a cbr. What am I missing here? Is this a business decision and if so, based on what? If its written somewhere, I would like to see it. What are other institutions doing?