01/05/2004
The HMDA Final Rules state that beginning in 2004 we will be required to report the lien status of applications and loans. In reviewing Appendix A to Part 203 -- Form and Instructions for Completion of HMDA Loan/Application Register [Effective as of January 1, 2004] I do not find a column on the new LAR for reporting the lien status, nor any instructions for reporting the lien status. Will this reporting information be added to the Loan/Application Register in the new FFIEC software?
01/05/2004
We have some confusion distinguishing a renewal note from a refinanced note. At our bank we very seldom "refinance" debt secured by a dwelling. We "renew" the loan, retain original note, mortgage and all other documents, obtain a new promissory note (keep the same loan number) and modify the mortgage to reflet the new terms (i.e. new interest rate and new maturity date.) We refinance when we add new funds. Or, when a construction loan is financed into a permanent loan. We consider our renewal note as an Extension Agreement. How does this relate to the new definition of "refinance"? The word "renew" is no longer in the definition. This becomes important especially for commercial loans secured by a dwelling.
01/01/2004
PCi's annual CRA and Fair Lending Colloquium was the place for discussing where CRA has taken the banking industry and where the industry should head in the future.
01/01/2004
The Consumer Advisory Council advises the Federal Reserve Board on issues of concern to consumers. As the CAC completed its last meeting of 2003, it identified issues for consideration in 2004.
12/01/2003
Can redlining happen in the 21st Century? According to the National Fair Housing Alliance, the answer is a resounding yes. At PCI's annual CRA and Fair Lending Colloquium, Dr.
12/01/2003
I have just been nominated compliance officer of a thrift at which I am a new employee (this is my 3rd week). I have 15 years previous banking experience in almost every department but never in compliance. Where should I start?
12/01/2003
Does a Tax Service fee have to be included on the TIL disclosure? In a highly reputable banking compliance publication that shall remain unnamed, I recently read an article entitled "Grossing Up Public Assistance Income". In this article it stated "Under ECOA, while making loan approval decisions, banks must not discriminate against applicants who receive public assistance income. Generally this income is exempt from federal income taxation. If the income is exempt from taxation, then before making a loan approval decision, this exempt income needs to be grossedup to a pretax, taxable incomeequivalent amount." The article goes on to say that a "client bank" was written up for not doing this and the examiners also said that this also needed to be spelled out in the bank's loan policies and procedures manual. I've read every word in my Federal Reserve Manual under Regulation B, to include the commentary, and can find no reference to this. In the past, we have always considered this to be a "gross" income since it was not t axed. I have a HMDA related loan that has an sole income source of Social Security Benefits and need to know what my "gross" income figure is. I would appreciate any assistance that you could give me in light of this new information. Thank you in advance for your help.
11/01/2003
We are about to enter a period of reporting information on high cost loans on the HMDA LAR. The fun begins on January 1, 2004 - actually the first business day after that date.
10/06/2003
With the HMDA revision, I have read that the new definition of refinancing is a transaction in which a new obligation satisfies and replaces an existing obligation, where both the existing and the new loan are secured by a lien on a dwelling. However, in the revised reg., it says that for coverage purposes, a refinance is when the existing obligation is a home purchase loan and both the existing and the new obligation are secured by first liens on dwellings. For reporting purposes, both the existing and the new obligation are secured by liens on dwellings. What is the difference under the revised reg between coverage purposes and reporting purposes? What types of loans should be reported as refinances in the future?
10/06/2003
I am starting a new position as a lending manager. I am rusty with the regs. Where could I go to get a printed version of the regs applicable to lending, and which ones would you recommend I read up on?