When making a cash secured loan, is the bank able to hold the funds in the customer's checking account or MMA, or do the funds have to be held in a savings account or certificate of deposit? The question is posed for both consumer and business loans.
We are having trouble receiving proof of insurance on condos. Many insurance companies are stating that we must use EOI Direct to get an Accord form showing the insurance is current. The cost is $15 to $25. Can this fee be paid from the mortgagor's escrow account, or can the fee be assessed as another charge, like an NSF fee is assessed to the loan?
Our lending operations department (not credit card) would like to initiate an EFT through our third party vendor to debit our customer's deposit account to exercise our right to offset for amounts owed on our customer's loan. Our deposit account terms and conditions discloses our right to offset any amounts owed to the bank. We know that generally Reg E, Section 205.3 (c)(5) would allow the bank to electronically transfer funds between a customer's accounts without the customer's specific request under certain circumstances and that the official commentary provides that this exception to Reg E includes the right to initiate "electronic debits or credits to consumer accounts for check charges, stop-payment charges, NSF charges, overdraft charges, provisional credits, error adjustments and similar items that are initiated automatically on the occurrence of certain events." In order to exercise our right to offset electronically, the transaction will need to be processed through our third party vendor. Do we have any Reg E or other regulatory concerns in doing so?
Have you ever heard of a situation where a borrower closed a loan and then immediately tried to pay off the lender with a personal check? I think this may be a scam where we deposit the check and it comes back NSF and somehow the borrower tries to argue that our lien is invalid.
Disclosure for Reg DD NSF Paid/Returned and Overdraft Fees starts on July 1, 2006. Can Year to Date fees start to track as of that date, or must they track from the beginning of the year?
Since its introduction several years ago, the regulatory agencies have expressed serious concerns about bounce protection programs which, unlike traditional overdraft programs, can lead consumers i
If I open a business checking account for a corporation is there any form that can be signed by the principal holding them personally responsible, as well as the corporation, for any possible losses? Also, if there are no forms, could our bank draft one and use it?
We would like to implement a $25 returned payment charge when a loan payment drawn on another institution is returned to us NSF. This charge would cover our costs of reversing the loan payment and sending the NSF check back to the customer. When customers have a deposit account with us, we don't reverse the loan payment if the check is NSF. Instead, we just overdraw their deposit account and the overdraft charge is handled on the deposit side. As we cannot do that with payments drawn on another institution, we would add the $25 returned payment charge to their loan balance(not to the principal). What are the Reg Z or other federal regulation considerations for this? I do not see this specific situation addressed in Reg Z, and did not see anything on the BOL website addressing this either.