Forum Replies Created
-
Posts
-
In my experience the expectation for these types of donations need to be justified. So you would need to know how much of the donation went to LMI students. For example, how many of the children who participated on the team are from LMI neighborhoods? You would need to know the dollar amount and/or percentages that benefited the LMI students. Even understanding those facts may not guarantee your Bank CRA credit.
Hi Vicki:
After looking over the sections you reference in your question, I would agree with the approach you have taken. However, if you are concerned about any legalities, you should consider reaching out to legal counsel, so you have everything covered.
Best,
KimberlyNOTICE: 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
You are correct; the new Q & As do not require you to do anything in the event of a discrepancy. The proposed Q & As required you to document the discrepancy but did not require any further action. We believe document the discrepancy is still a good practice.
There is concern that if the consumer has underpaid the insurance premium, the deficiency would be assessed by FEMA on any loss payout in the event of flood damage.
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 RESPONSE AND ITS ATTACHMENTS DO NOT CONSTITUTE LEGAL ADVICE
The loan amount is $500,000. The maximum amount from FEMA is $1,000,000 (Two general policies at $500,000 each). The value of the improvements is $1,170,700.
To be in compliance you must obtain at least $500,000 in coverage, which is the loan amount. The maximum coverage you could obtain is $1,000,000, assuming each unit is worth at least $500,000.
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 RESPONSE AND ITS ATTACHMENTS DO NOT CONSTITUTE LEGAL ADVICE
Hello:
Generally, a margin stock” is listed on an exchange. Your question does not contain enough information to make that determination. You may want to review this with your examiner or legal counsel. It is likely they will need the additional information as well.
When a loan is secured by a margin stock you must require the borrower to complete a purpose statement (Federal Reserve Form U-1). There is not a reporting requirement.
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 RESPONSE AND ITS ATTACHMENTS DO NOT CONSTITUTE LEGAL ADVICE
As good rule of thumb, IMO, outside of BSA/AML requirements, has been to maintain workpapers and documentation at a minimum of exam cycle to exam cycle. Or for five years to align with the BSA testing. However, with recent enforcement actions depicting the Regulators using HMDA data that is 5-6 years old in Fair Lending and redlining cases. You may want to consider maintaining testing documentation for a period of 7 years.
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
With certain exceptions, the Ability-To-Repay/Qualified Mortgage Rule (ATR/QM Rule or Rule) requires creditors to make a reasonable, good faith determination of a consumer’s ability to repay. Regulation Z currently prohibits a creditor from making a higher-priced mortgage loan without regard to the consumer’s ability to repay the loan. Based on what you describe, it appears you have a made a good faith effort to ensure they can repay the loan.
My question back to you, is based on fair lending. Have you clearly provided in policy/procedures requirements for granting this exception so that if another borrower is in the same situation, it can easily be applied to their loan utilizing similar standards? But in addition, the loan notes documenting the exception match back to FI standards. Hope this helps.
Best,
KimberlyNOTICE: 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
Good afternoon:
I can’t really respond based off business practices of other FIs. However, from a fair lending perspective have you covered this in procedures to ensure equal treatment for all borrowers that fall into this scenario? Based off your question it appears you may have different types of scenarios based on loan amount or length of time. I would want to make sure these are covered in procedure so that you can track them for analysis based on numbers, volume, product type, and how often you are having to remove fees etc.
I’m hoping other FIS can weigh in on how they handle this.
Best,
KimberlyNOTICE: 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
Good afternoon:
When reviewing and research the question, it appears that you would use the address for the FDIC as your primary Federal banking agency. (Section 338.4—Fair Housing Poster).
Best,
KimberlyNOTICE: 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
Good afternoon:
I think I might have an answer, but if you could provide more detail that would be helpful to ensure we provide you the best answer.
Thank you
Good afternoon:
The answer to both questions is yes. In June 2021, The CFPB clarified, defined, and explained that the terms and requirements of the EFTA including:
1. Which consumers are protected,
2. Which transfer circumstances are covered, and
3. Who is obligated to follow the Act.Additionally, the CFPB clarified whether a P2P payment app qualifies as a financial institution and whether P2P transfers are covered by the EFTA.
The Bureau’s statement confirmed that:
1. P2P payment app companies fall into the official definition of a financial institution under the EFTA, and
2. P2P payments are specifically included as covered transactions under the Act.I hope this helps,
KimberlyBased on what you are describing the answer is yes. Even if a borrower is paying for the appraisal, it had to be on the initial CD. Since the fee is in the zero-tolerance category it needed to be disclosed and shouldn’t have been left off. Without having it on the initial CD the borrower didn’t have an accurate understanding of total loan costs/fees even though they wanted to pay it. Based on what you described it sounds like it was handled appropriately.
Best,
KimberlyNOTICE: 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
