11/26/2017
Do I need to worry about font size on the reason for the adverse action for denied mortgage or retail loans?
11/05/2017
If we deny an application for a consumer installment loan from a consumer who applies with a cosigner, do we need to send an adverse action notice to the cosigner?
10/22/2017
I just want to confirm that the “we intend to apply for joint credit" verbiage must be on the applications to comply with Reg B?
Our applications state "What type of credit are you requesting?" then the applicant(s) initial if they check the joint credit box. The information I have read on Reg B says a person's intent to be a joint applicant must be evidenced at the time of application. Signatures on a promissory note may not be used to show intent to apply for joint credit. On the other hand, signatures or initials on a credit application affirming applicants' intent to apply for joint credit may be used to establish intent to apply for joint credit. The method used to establish intent must be distinct from the means used by individuals to affirm the accuracy of information. For example, signatures on a joint financial statement affirming the veracity of information are not sufficient to establish intent to apply for joint credit.
10/08/2017
If we want to provide notices of incompleteness and/or adverse action notices to commercial loan customers electronically. Am I correct in understanding we only need to obtain demonstrable evidence they have consented to receiving such notification electronically?
10/01/2017
Adverse Action Webinar - June 21, 2017 - David Dickinson
I wanted to confirm. David Dickinson said in a recent webinar that if a consumer comes into the bank to inquire about a loan and we know from the initial conversation they will not qualify and after explaining our basic underwriting guidelines we can provide them with an adverse action notice on the spot. We would no have pulled credit. We would not have discouraged them from applying.
Would we use form C-1 to provide the notice?
We would of course keep any documentation with the notice for retention and Fair Lending audits and risk assessments. We would also provide training to our LO's and provide them basic scripts.
Am I on the right track?
10/01/2017
I wanted to find out if the following would be viewed by a regulator as being in violation of Reg B:
We buy dealer paper and part of the closed loan packet we receive from the dealer is a photocopy of the applicant's ID, the photo ID was not utilized by the bank to make a credit decision. Would this be a violation as the regulation states the following: "To the extent the institution maintains any information in its files that is prohibited by the ECOA or Reg B for use in evaluating applications, that information may be retained if it was obtained (a) prior to March 23, 1977; (b) from consumer reporting agencies, an applicant, or others without the specific request of the creditor; or (c) as required to monitor compliance with the ECOA and Regulation B or other federal or state statutes or regulations. (12 CFR 1002.12(a))."
10/01/2017
If one person owns the house and is not married but both parties apply for a mortgage, who signs the mortgage?
09/24/2017
Pre-qualification application received Refer/Eligible Findings from GUS - Rural Development for a purchase of a primary residence loan. The loan could potentially be manually underwritten for approval if the borrower were to provide the documentation. Borrower chooses to not go manual underwrite and says cancel my file. Is the loan Denied based on the GUS refer findings or is it approved/not accepted on the hypothetical possibility that it may have been able to be manually underwritten?
09/24/2017
A customer completed a consumer application to refinance their vehicle. The lender did not run a credit report because after interviewing the borrower and running a value on the vehicle she determined the borrower did not have sufficient equity to refinance. She only has 'insufficient collateral' as a reason. A senior lender is telling her she needs to have two reasons and must run a credit report. Is there a regulatory requirement for two reasons or that a credit report MUST be run in order to give an adverse action?
09/24/2017
Are we correct that we do not have to send an adverse action notice in the event we freeze a HELOC for “inactivity, default, or delinquency” of the account? Do we need to send a notice to restrict credit? If so, is there sample language? We have not been able to find an example of this notice.
(c)Change in terms -
(1)Rules affecting home-equity plans -
(i)Written notice required. For home-equity plans subject to the requirements of § 1026.40, whenever any term required to be disclosed under § 1026.6(a) is changed or the required minimum periodic payment is increased, the
creditor shall mail or deliver written notice of the change to each consumer who may be affected. The notice shall be mailed or delivered at least 15 days prior to the effective date of the change. The 15-day timing requirement does not apply if the change has been agreed to by the consumer; the notice shall be given, however, before the effective date of the change.
(ii)Notice not required. For home-equity plans subject to the requirements of § 1026.40, a creditor is not required to provide notice under this section when the change involves a reduction of any component of a finance or other charge or when the change results from an agreement involving a court proceeding.
(iii)Notice to restrict credit. For home-equity plans subject to the requirements of § 1026.40, if the creditor prohibits additional extensions of credit or reduces the credit limit pursuant to § 1026.40(f)(3)(i) or (f)(3)(vi), the creditor shall mail or deliver written notice of the action to each consumer who will be affected. The notice must be provided not later than three business days after the action is taken and shall contain specific reasons for the action. If the creditor requires the consumer to request reinstatement of credit privileges, the notice also shall state that fact.