Forum Replies Created
-
Replies
-
This question would need to be asked of your institution’s attorney. There could be specific state laws that need to be addressed with these types of issues.
NOTICE: This email message, including any attachments, is intended only for the addressee, and may contain confidential and privileged information either as protected work product or confidential client information. Any unauthorized review, use, disclosure or distribution is prohibited. If you are not the intended recipient, do not read, copy, retain, or disseminate this message or any attachment, and please contact the sender by reply e-mail or at 888.760.5646 and destroy all copies of the original message and attachments. Neither the transmission of this message or any attachment, nor any error in transmission or misdelivery shall constitute waiver of any applicable legal privilege.
THIS EMAIL AND ITS ATTACHMENTS DO NOT CONSTITUTE LEGAL ADVICE
This questions has a few complications.
1. You indicate you are new to CRA. Is your bank new? Has the assessment area already been defined and established by your BOD? Are you needing to make adjustments for growth? Changing markets? Or are you traying to establish an FBAA under the new rules? What is your bank size?
2. Making loans in other counties is not reason enough to make adjustments to your AA. Consideration needs to be given to:
a. The percentage of loans out side your Bank defined AA. Is it significant enough to adjust the boundaries? If you are starting to see more than 25-30% outside your AA then you are going to need to make an adjustment.
b. Are any of the counties that are adjacent/contiguous LMI? if they are you will definitely want to include those. If they are not, you will want to understand why loans are being made there and if it appears you only services Moderate and High net worth areas.
c. If you are intermediate or Small can your bank reasonably serve these new areas?
3. You can only create an assessment area if: the geographic area that can reasonably be served by each of a bank’s locations, including its main office, any branches, and deposit-taking ATMs. It has to have a deposit taking facility in it. I’m not sure that would be true of a trade area.NOTICE: This email message, including any attachments, is intended only for the addressee, and may contain confidential and privileged information either as protected work product or confidential client information. Any unauthorized review, use, disclosure or distribution is prohibited. If you are not the intended recipient, do not read, copy, retain, or disseminate this message or any attachment, and please contact the sender by reply e-mail or at 888.760.5646and destroy all copies of the original message and attachments. Neither the transmission of this message or any attachment, nor any error in transmission or misdelivery shall constitute waiver of any applicable legal privilege.
THIS EMAIL AND ITS ATTACHMENTS DO NOT CONSTITUTE LEGAL ADVICE
If the loan is being denied because of the title issue then you would send it as being denied and list the reason. If the title issue has caused the applicant to not move forward with the loan and your institution approved it, it would qualify for approved not accepted.
NOTICE: This email message, including any attachments, is intended only for the addressee, and may contain confidential and privileged information either as protected work product or confidential client information. Any unauthorized review, use, disclosure or distribution is prohibited. If you are not the intended recipient, do not read, copy, retain, or disseminate this message or any attachment, and please contact the sender by reply e-mail or at 888.760.5646and destroy all copies of the original message and attachments. Neither the transmission of this message or any attachment, nor any error in transmission or misdelivery shall constitute waiver of any applicable legal privilege.
THIS EMAIL AND ITS ATTACHMENTS DO NOT CONSTITUTE LEGAL ADVICE
That would not be considered a violation as long as you are informing them of a know issue and not selling product.
NOTICE: This email message, including any attachments, is intended only for the addressee, and may contain confidential and privileged information either as protected work product or confidential client information. Any unauthorized review, use, disclosure or distribution is prohibited. If you are not the intended recipient, do not read, copy, retain, or disseminate this message or any attachment, and please contact the sender by reply e-mail or at 888.760.5646 and destroy all copies of the original message and attachments. Neither the transmission of this message or any attachment, nor any error in transmission or misdelivery shall constitute waiver of any applicable legal privilege.
THIS EMAIL AND ITS ATTACHMENTS DO NOT CONSTITUTE LEGAL ADVICE
Escrow on TRID disclosures is tricky as it was not really addressed by the CFPB when the rules were released or with any subsequent updates. The only guidance is that if there is no required Escrow you still have to show payments. If you are a FI that does not offer (meaning you are exempt from Escrow requirements) to Escrow you select that option on the form.
NOTICE: This email message, including any attachments, is intended only for the addressee, and may contain confidential and privileged information either as protected work product or confidential client information. Any unauthorized review, use, disclosure or distribution is prohibited. If you are not the intended recipient, do not read, copy, retain, or disseminate this message or any attachment, and please contact the sender by reply e-mail or at 888.760.5646 and destroy all copies of the original message and attachments. Neither the transmission of this message or any attachment, nor any error in transmission or misdelivery shall constitute waiver of any applicable legal privilege.
THIS EMAIL AND ITS ATTACHMENTS DO NOT CONSTITUTE LEGAL ADVICE
Based on what you stated in your question. I understand the reason for denial to be insufficient income. If that is the only reason and the real reason for the denial. You should not list anything about the credit score. You should only ever list credit score if it is actually a denial reason. Since it sounds as if you gave the borrower a loan the last time, I assume they must have a credit score that meets the institutions underwriting requirements and is not why they were denied a loan this time.
NOTICE: This email message, including any attachments, is intended only for the addressee, and may contain confidential and privileged information either as protected work product or confidential client information. Any unauthorized review, use, disclosure or distribution is prohibited. If you are not the intended recipient, do not read, copy, retain, or disseminate this message or any attachment, and please contact the sender by reply e-mail or at 888.760.5646and destroy all copies of the original message and attachments. Neither the transmission of this message or any attachment, nor any error in transmission or misdelivery shall constitute waiver of any applicable legal privilege.
THIS EMAIL AND ITS ATTACHMENTS DO NOT CONSTITUTE LEGAL ADVICE
________________________________________They they would need to be able to download the public file if they are inclined to do so. Similar to coming into a branch and asking for a copy they have a right to receive a copy of it and you have the right to charge them a reasonable fee for providing it in a form they can take.
NOTICE: This email message, including any attachments, is intended only for the addressee, and may contain confidential and privileged information either as protected work product or confidential client information. Any unauthorized review, use, disclosure or distribution is prohibited. If you are not the intended recipient, do not read, copy, retain, or disseminate this message or any attachment, and please contact the sender by reply e-mail or at 888.760.5646and destroy all copies of the original message and attachments. Neither the transmission of this message or any attachment, nor any error in transmission or misdelivery shall constitute waiver of any applicable legal privilege.
THIS EMAIL AND ITS ATTACHMENTS DO NOT CONSTITUTE LEGAL ADVICE
The answer to this would need to come from the investor and/or program that is requiring the course. Not having the details behind this request does not allow for better answer.
NOTICE: This email message, including any attachments, is intended only for the addressee, and may contain confidential and privileged information either as protected work product or confidential client information. Any unauthorized review, use, disclosure or distribution is prohibited. If you are not the intended recipient, do not read, copy, retain, or disseminate this message or any attachment, and please contact the sender by reply e-mail or at 888.760.5646and destroy all copies of the original message and attachments. Neither the transmission of this message or any attachment, nor any error in transmission or misdelivery shall constitute waiver of any applicable legal privilege.
THIS EMAIL AND ITS ATTACHMENTS DO NOT CONSTITUTE LEGAL ADVICE
I can’t answer for other institutions but at will seem to be a risk IMO. How will it be monitored? Do these “at will” pulls cause any negative effects to the consumer/customer? What is the purpose for needing at will? Based on HCR programs and Third-party management due diligence standards a case could be made for a frequency that aligns with your programs based on their risk rating, but I would caution the “at will” concept. Without strong controls based on a program built on your institutions risk program standards.
NOTICE: This email message, including any attachments, is intended only for the addressee, and may contain confidential and privileged information either as protected work product or confidential client information. Any unauthorized review, use, disclosure or distribution is prohibited. If you are not the intended recipient, do not read, copy, retain, or disseminate this message or any attachment, and please contact the sender by reply e-mail or at 888.760.5646and destroy all copies of the original message and attachments. Neither the transmission of this message or any attachment, nor any error in transmission or misdelivery shall constitute waiver of any applicable legal privilege.
THIS EMAIL AND ITS ATTACHMENTS DO NOT CONSTITUTE LEGAL ADVICE
The section of the regulation that speaks to Written List of Providers is Paragraph 19(e)(1)(vi) – 3. It states –
If the creditor permits the consumer to shop for a settlement service it requires, § 1026.19(e)(1)(vi)(C)[Written List of Providers] requires the creditor to provide the consumer with a written list identifying at least one available provider of that service and stating that the consumer may choose a different provider for that service.
The settlement service providers identified on the written list required by § 1026.19(e)(1)(vi)(C) must correspond to the required settlement services for which the consumer may shop, disclosed under § 1026.37(f)(3). See form H-27 in appendix H to this part for a model list.
Creditors using form H-27 in appendix H properly are deemed to be in compliance with § 1026.19(e)(1)(vi)(C). Creditors may make changes in the format or content of form H-27 in appendix H and be deemed to be in compliance with § 1026.19(e)(1)(vi)(C), so long as the changes do not affect the substance, clarity, or meaningful sequence of the form. An acceptable change to form H-27 in appendix H includes, for example, deleting the column for estimated fee amounts.
I’m not sure I understand your question or why your Audit firm is saying it is a violation as long as you have identified one vendor for the service and have them listed in ABC order having the same one listed for different services they offer doesn’t appear to be an issue.
NOTICE: This email message, including any attachments, is intended only for the addressee, and may contain confidential and privileged information either as protected work product or confidential client information. Any unauthorized review, use, disclosure or distribution is prohibited. If you are not the intended recipient, do not read, copy, retain, or disseminate this message or any attachment, and please contact the sender by reply e-mail or at 888.760.5646and destroy all copies of the original message and attachments. Neither the transmission of this message or any attachment, nor any error in transmission or misdelivery shall constitute waiver of any applicable legal privilege.
THIS EMAIL AND ITS ATTACHMENTS DO NOT CONSTITUTE LEGAL ADVICE
Per the Veteran’s administration requirements they should be keeping a list on their website. But as part of the application process doesn’t your application ask them? If not as part of normal due diligence it would probably be a good idea to ask anyone with medical debt if they are or have been a member of the armed services. Since the CFPB is considering the removal of all medical debt in credit decision you may want to watch the proposed rule as well.
NOTICE: This email message, including any attachments, is intended only for the addressee, and may contain confidential and privileged information either as protected work product or confidential client information. Any unauthorized review, use, disclosure or distribution is prohibited. If you are not the intended recipient, do not read, copy, retain, or disseminate this message or any attachment, and please contact the sender by reply e-mail or at 888.760.5646 and destroy all copies of the original message and attachments. Neither the transmission of this message or any attachment, nor any error in transmission or misdelivery shall constitute waiver of any applicable legal privilege.
You have file requirements for all disclosure sections of Reg. Z as well as the Reb B. retention. I would also recommend you reviewing any state retention requirements and for consistency retain the documents at the most conservative date.
NOTICE: This email message, including any attachments, is intended only for the addressee, and may contain confidential and privileged information either as protected work product or confidential client information. Any unauthorized review, use, disclosure or distribution is prohibited. If you are not the intended recipient, do not read, copy, retain, or disseminate this message or any attachment, and please contact the sender by reply e-mail or at 888.760.5646 and destroy all copies of the original message and attachments. Neither the transmission of this message or any attachment, nor any error in transmission or misdelivery shall constitute waiver of any applicable legal privilege.
THIS EMAIL AND ITS ATTACHMENTS DO NOT CONSTITUTE LEGAL ADVICE
Okay, then if I’m understanding from the original question this is a business purpose/commercial loan. Commercial loans only get recorded on the LAR if the dwelling is for purchase, refinance or home improvement. To be a dwelling for HMDA the property has to be in the United States of America, the District of Columbia, or the Commonwealth of Puerto Rico. Since none of the improvements are going to the property in the US, IMO, I would not put it on my LAR, because from the commercial requirements it doesn’t meet the purpose of when you do file.
However, if you feel it needs to be reported. They do allow for voluntary reporting. Another option would be to contact the HMDA Help desk at: HMDAHelp@cfpb.gov.
NOTICE: This email message, including any attachments, is intended only for the addressee, and may contain confidential and privileged information either as protected work product or confidential client information. Any unauthorized review, use, disclosure or distribution is prohibited. If you are not the intended recipient, do not read, copy, retain, or disseminate this message or any attachment, and please contact the sender by reply e-mail or at 888.760.5646 and destroy all copies of the original message and attachments. Neither the transmission of this message or any attachment, nor any error in transmission or misdelivery shall constitute waiver of any applicable legal privilege.
THIS EMAIL AND ITS ATTACHMENTS DO NOT CONSTITUTE LEGAL ADVICE
My response was related to the definition of a dwelling. The home improvements being done on a property outside of the US do not count as a dwelling. So the transaction is not IMO, a home improvement.
Scope § 1003.1(c)
Regulation C:
• Applies to financial institutions as defined in § 1003.2(g).
• Requires a financial institution to:
*Submit data to the appropriate Federal agency for the financial institution as defined in § 1003.5(a)(4); and
*Disclose certain data to the public, about covered loans for which the financial institution receives applications, or that it originates or purchases, and that are secured by a dwelling located in a State of the
United States of America, the District of Columbia, or the Commonwealth of Puerto Rico.Since the property being improved on is not in the United States of America, the District of Columbia, or the Commonwealth of Puerto Rico. It does not fall into the “dwelling” category.
The regulation does allow for voluntary reporting, so if a business decision is made to report this on the HMDA LAR, you can report it. However, the property being improved is not a “dwelling” for HMDA purposes and this is a business loan. Which has allowable exemptions.
To verify – the original loan is not being refinanced? But just using equity where is will be like a second lien?
NOTICE: This email message, including any attachments, is intended only for the addressee, and may contain confidential and privileged information either as protected work product or confidential client information. Any unauthorized review, use, disclosure or distribution is prohibited. If you are not the intended recipient, do not read, copy, retain, or disseminate this message or any attachment, and please contact the sender by reply e-mail or at 888.760.5646 and destroy all copies of the original message and attachments. Neither the transmission of this message or any attachment, nor any error in transmission or misdelivery shall constitute waiver of any applicable legal privilege.
THIS EMAIL AND ITS ATTACHMENTS DO NOT CONSTITUTE LEGAL ADVICE
The updated version is more straightforward. IMO
NOTICE: This email message, including any attachments, is intended only for the addressee, and may contain confidential and privileged information either as protected work product or confidential client information. Any unauthorized review, use, disclosure or distribution is prohibited. If you are not the intended recipient, do not read, copy, retain, or disseminate this message or any attachment, and please contact the sender by reply e-mail or at 888.760.5646 and destroy all copies of the original message and attachments. Neither the transmission of this message or any attachment, nor any error in transmission or misdelivery shall constitute waiver of any applicable legal privilege.
THIS EMAIL AND ITS ATTACHMENTS DO NOT CONSTITUTE LEGAL ADVICE
