What do other banks do to limit access to employee account info?
It has been determined that a customer has fraudulently indicated employment on a loan application. At the time of the application he was employed, but at closing he had been terminated and did not notify the lending officer of his change in status. Other than a SAR, what else should I pursue to report this situation?
A lender approved a mortgage loan and did not gross up the customer's social security income, so for HMDA reporting, I used what the loan officer came up with in determining his income. Now, upon reviewing my quarter-end HMDA reporting, the HMDA compliance officer claims the social security income needs to be grossed-up and that I should change my HMDA LAR to reflect this change. Is this correct? I thought that I was to report my HMDA according to the data used to approve the loan application. Please clarify this for me.
Our bank wants to put a loan application on our website. What disclosures are required?
I work in bank fraud cases. We have a case management system in which we input all of our fraud cases (forgeries, counterfeit checks, unauthorized check card trans,etc...). We are trying to make a determination as to the difference between "recovery" and "loss avoidance" when it comes to bank fraud. Could you please help with a clear understanding on what determines in which category an item would fall?
Does the Patriot Act require that national banks update existing customers and merged customer CIP information? Do we have to update customers with a P.O. Box as their physical address if they have had their accounts with the bank since before the Patriot Act was written or were customers with a merged bank?
In reviewing an auto loan app today I noticed the customer has had 13 auto loans in the last 24 months (June '04 to June '06). He trades them in, usually with the same dealer. He has never made more than 2 payments on a loan. He first became our customer in July '02 and through Aug '03 received 9 separate auto loans, with this same pattern - one or two payments and trades off. Three off the loans in his whole portfolio received large principal reductions as one of their payments. None appear to be in cash. Is there cause here for a SAR? Or is this simply an aggravating customer?
FinCEN conducted research on SARs filed by depository institutions reporting mortgage loan fraud as the violation (in whole or in part).
Can the bank take an adverse action on a consumer mortgage loan application if the bank has previously filed two SARs on the consumer's account activity? If the bank can take an adverse action, how does it give a reason when it can't disclose the SARs? If the bank can't take an adverse action, isn't it exposed to liability for potentially providing funds which it has reason to believe may further a criminal enterprise?
Implementing the changes to HMDA is not going to be easy.