Most Popular Lending Content
If a borrower leaves no forwarding address (but keeps the collateral vehicle), has he committed theft?
12/16/2002
If borrower who has pledged a vehicle as collateral leaves the state with the vehicle and doesn't leave a forwarding address or phone number, can this action be reported as a theft?
Refinancing, Government Information, and Reg B
12/16/2002
A loan customer applied for a $5,000 loan to be secured by second mortgage his dwelling (our bank has the first mortgage). The loan officer did not complete the Govt. information section of the application. Upon review, the actual loan made was a refinance of the borrower's principal dwelling plus the new funds of $5,000. Do we need to collect the govt. information required by Reg B?
Paying Off Construction Loans and the Right of Rescission
12/16/2002
We are financing a customer's real estate loan which will be paying off another institution. However, the loan we will be paying off is the initial construction loan for the home.Does rescission apply?
USA PATRIOT Act, Safe Deposit Policy, and the Deputy
12/02/2002
We are updating our Safe Deposit policy to reflect the USA PATRIOT Act. I would like to know what you think the procedures for a deputy should be as far as verification of the identification. Should we treat a deputy the same way we would handle adding a signature to an account?
Section 202.2(f) Application Requirements
12/02/2002
I need some ammo to use, such as the 12 CFR gauge or more powerful. My lending executive officer has authorized for use in a consumer transaction an application that does not meet any of the requirements found in Appendix B of Sec. 202 of Reg. B. For example, no space for Co-applicant information; no disclosure for other income (alimony, child support or other maintenance income; no statement as the correctness of the information above the applicant signatures; no authorization for credit verification, or employment verification, etc.; and no lines for applicant(s) signatures. That's right, consumer application without applicant's signatures. When the new operations VP came on board in 1980, he brought along the Lending Officers Worksheet(WKS). The sole purpose of the WKS was to be used to document credit requests in the case of business and corporate use. Ten years later one lending officer began the practice of using the form as a consumer application as a way to cut corners. That officer is still here. I have made recommendations during my Fair Lending Audit year after year to cease using the form as an application for credit. I have used Reg B as my basis of argument to no avail. I think I need some big guns, such as, law suits, where banks lost money due to technicalities where the documents are not signed properly. Any suggestions or examples would be appreciated.