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Here is a link to their address on the FDIC’s website: https://www.fdic.gov/consumers/consumer/ccc/contact.html
It shows the 1100 Walnut St address.
Currently the appraisal notice just needs to be given before or at closing; so I’m guessing you are talking about the changes that are coming. Lets see what Jack has to say about this in an upcoming session.
tstrait,
Having different scales for different types of loans sounds like a bad idea to me. Keep in mind that steering is also part of the MLO Compensation changes that went into place. I can easily see where this could be viewed as setting your lenders up for steering customers. I know I sure would hate to have to prove to a regulator that each time a customer choose the type of loan that gave the MLO more compensation that it was in the best interest of the customer.
kstephenson,
To my knowledge there is not a requirement to have this as a separate policy.
Typically if you are disclosing the fee at account opening then there is no requirement to give additional notice before charging such a fee. This case is a bit different as the Bank may have created a sense that it doesn’t charge the fee. I don’t believe there is a regulatory requirement that would require you to give the 30 day notice, but by doing so it would be a good customer service move and would give you a pretty good argument about it not being a UDAAP issue.
In the regulatory environment that we are in know, I could see this potentially being spun into a UDAAP issue. I like where you are headed with the 30 day notice, and that does sound like the safest route to go.
Wouldn’t their address on their application tell you their location as well? I’ve not heard of this either and I don’t think it is any kind of Reg B violation. I would ask for citation from whoever is telling you this.
Great addition cmitchell!
Typically the violation would occur if it is kept in the loan file. If ID for BSA reasons is kept on in the Deposit side of the house, then I wouldn’t anticipate any issues.
Having a copy of a photo ID in file can be considered as collecting Monitoring Information. If the loan requires or allows for the collection of monitoring information, then you should be fine.
However, on consumer loans where you don’t collect race, ethnicity, and sex information; the presence of a photo ID could be considered as collecting monitoring information and be a violation.
Modifications really are not a compliance issue per say; it is more of a legal question and something I would encourage you to talk about with Bank counsel. Caution should be used when deciding on if a modification should be used or not.
I’ve personally not had time yet to read through the new Escrow requirements, so hopefully Jack will be going over these in detail in an upcoming Compliance Masters Group, and he may need to weigh in here.
Marcella,
I’m assuming you are referring to the following:
(4) together with its affiliates, not escrow for any mortgage it or its affiliates currently services, except in limited instances.
(taken from Jack’s blog post)
The way I’m reading this at this point, and I think Jack briefly talked about this during last Friday’s Compliance Roundtable session, is that if you are just escrowing when the regulation requires you, then you would meet this exemption criteria. If you escrowed for other loans here and there, it would get to a deeper conversation as to if you and your financial institution meets the criteria to be exempt or not.
If it is a fee that is typically associated the particular type of loan in question then you MUST disclose it on the GFE; so I don’t think leaving it off is an option.
However, I don’t think Block 4 is the proper location to disclose this fee. You would need to disclose it on Page 2, Block 3 of the GFE (Required services that we select). The only alternative that I see would possibly be block 6 if you let them shot for this service, but it has been my experience that most Banks do not allow customers to shop for this item.
You don’t mention what the overnight fee was used for. What was being overnighted. So I’m going with the assumption that this is for overnighting the final package of loan documents.
