Most Popular Lending Content
Changes from FHA to CNV- Send Initial Disclosures?
12/16/2018
I understand we have to send out a full set of initial disclosures when a product changes from CNV to FHA and a new 3 day wait period applies, but when it changes from FHA to CNV is a redisclosure package enough or we do need to send a full set of initial disclosures?
John S. McCain National Defense Authorization Act
12/16/2018
I'm hoping you can help answer a question for me regarding the John S. McCain National Defense Authorization Act for Fiscal Year 2019. My understanding is that the Act is effective on January 1, 2019. However, I have been told that Section 600 of the Act was actually effective on August 13, 2018. I have been unable to locate any information which points to the August date. Would you please confirm the correct date in which compliance is required for both Section 600 and the Act itself? If applicable please include a link which addresses my questions above.
Does Reg GG Apply to All Commercial Customers?
12/16/2018
I am reviewing Regulation GG and am getting conflicting information. In recent training they said Reg GG applies to all commercial customers, for both loans and deposit accounts. But when I read the regulation and my other resources, it does not indicate both nor does it say only deposits. What is the correct answer, does it apply to all commercial customers, regardless if for a loan or a deposit account? I believe it applies to all commercial customers, regardless if deposit or loan. If that is true, where would you recommend the notice be on loan documents? For deposits, we have it in the Terms and Conditions. But I think for loans, we need a separate disclosure. What are your thoughts?
ACH Info to New Servicer for Auto Pay
12/16/2018
When a lender/servicer is accepting ACH payments from a loan customer and the loan is sold/transferred to a non-affiliate, can the ACH account information be passed to the new servicer and the auto pays continue? Or must the borrower authorize the new servicer?
Reg Z-Open End Credit: Carryover Balance
12/16/2018
In regards to Reg Z-Open End Credit, if a client has a revolving line of credit for $100K (personal use) and they make initial draw of $60K , they have met the Reg Z for threshold. Then, three years down road their plan/revolving LOC has expired and the remaining outstanding balance is under $30K. A new note is issued and signed by the client for renewal of the plan. Since the "carryover" balance at this time is only $30K, does this cause an immediate Reg Z violation? Does the carryover balance impact threshold requirement with a new note for renewal? In the same scenario as above, but instead of a new note being issued for renewal, an Amended & Restated note is issued, is the carryover balance an issue for the threshold?
