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ChrisMember
Thanks, Robin.
I’ve just learned a little bit of additional information. The loan officer contacted the non-profit org (who is trustee) – and spoke to the attorney who will be executing the loan documents for this credit. The attorney was adamant about the fact this trust was in no way, shape or form created “for the purpose of tax or estate planning’. The young lady (who benefits from the trust)was not born disabled. She was disabled as a result of an accident due to someone else’s negligence. This resulted in a monetary settlement awarded to the young lady which the court ordered to be held in trust. The main purpose of the trust is to ensure the young lady remains eligible to receive “standard” disability payments from the government. If the funds were held in her name personally, she would not qualify for those payments due to her net worth.
Furthermore, the trust was not created by the consumer, but was created due to the court’s ruling that the money be held in a trust.
Does this information make any difference in your previous answer?
April 20, 2020 at 1:38 pm EDT in reply to: To be HMDA-exempt or not to be HMDA-exempt, that is the question #32050ChrisMemberThanks for the information, Jack. I understand that, but what about the Fair Lending component in my original question? That is the part I’m digging harder to understand – if we become a non-HMDA reporter (which will happen most likely – I do not see my institution choosing to voluntarily remain a HMDA reporter), what other information would I / the compliance department need to track to assist with future examinations for Fair Lending, since they will no longer have a HMDA LAR to rely upon? I’m thinking outside of the box – wondering if I need to begin tracking additional fields on my loan / adverse action logs to assist with future exams. (For example – geocoding? GMI collected for Reg B purposes? Etc. I do not track these things currently, outside of the HMDA LAR. Should I add any of thee items or other such items to monitoring spreadsheets for auditors / examiners, or would they not expect that information to be tracked? I ask, because I’ve never worked for a non-HMDA reporting bank, so I do not know what they look for when a bank doesn’t report HMDA.)
ChrisMemberI am also interested in this topic. It has been a long time since we’ve offered a skip-a-payment program (before my time here), and I’ve been asked to research. Loans being considered for such a program include consumer loans (real estate and non – TRID & HELOC’s), and commercial loans.
I’m aware of the Flood requirements being triggered in the event the maturity date is extended. But are there other considerations that I need to be thinking of, especially in regards to HELOC’s / TRID loans subject to Reg’s Z & X?
Thanks for your help!
Chris
ChrisMemberImprobable, Christopher Copeland, Bank of the Bluegrass & Trust Co., Group 1
ChrisMemberThanks for the response, Robin. My apologies if the original post wasn’t clear, but the son of the elderly consumer is not an employee of our Bank – he is a close friend with an employee of our bank. The struggle here is that the elderly consumer is suffering from dementia / Alzheimer’s, so the option to pull her own credit report is complicated by that issue and her lack of understanding regarding current matters in her life.
Would it make a difference if one of the children had Power of Attorney, and requested the institution to pull the report? (Would that be a “permissible purpose,” utilizing a POA as the person requesting?)
ChrisMemberMichelle, we are doing a similar product (testing mode at present) through LaserPro. Ours is a 5/1 ARM, one year of interest only payments, followed by 48 months of P&I payments – so that is the first 60 months at one rate, and then after that point, the rate can change annually for the remaining 300 payments.
On our LE & CD, the product description is:
1 year interest only, 5/1 Adjustable rateI am of the same opinion as Jack – the ARM portion of the description should read 7/1, not 6/1, if the first year (interest only) is part of the first 7 years at the initial rate.
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