Profile for User: pcorder

Forum Replies Created

Viewing 15 posts - 1 through 15 (of 35 total)
  • Author
    Posts
  • in reply to: ATR – Lending over 43% ATR #37279
    pcorder
    Participant

    The home equity loan would be closed end, I’m assuming.

    We claim the small creditor exemption, and follow the 8 factor rules. I understood the 43% D2I maximum was out of Appendix Q rules (which we don’t follow).

    There are times when we have approved loans with a D2I that exceeds 43%. Our maximum D21 (per loan policy) is 36%. If we exceed the internal policy maximum, it is an exception to loan policy, that must obtain additional approval.

    Hope this helps…

    in reply to: Usury Limits #37278
    pcorder
    Participant

    Good morning,

    Are you speaking of the usury maximum for the interest rate? We interpreted it as usury max on APR for a long time, until we realized the maximum threshold was actually the actual interest rate itself (*see below). We also opt use the Credit Union statute for rate, even though we are not a Credit Union. Bank’s max is 8% per annum, but credit union’s is a little more flexible.

    286.6-435 Interest rate. (Credit Unions)
    The *interest rates* on loans shall be determined by the board of directors, not to exceed two percent (2%) per month on unpaid balances.
    Effective: July 13, 1984/ History: Created 1984 Ky. Acts ch. 408, sec. 44, effective July 13, 1984./ Formerly codified as KRS 290.435.

    The only time the APR exceeded 24%, was when we had a small loan amount, with a short payback. It helped when we set the minimum loan amount to $1,000, but then we took another look and interpreted it to mean actual interest rate, and not APR as we once thought.

    When we did exceed 24% APR (in the past), we lowered fees first. If that didn’t work, we would lower the rate accordingly…just enough to land under the max. We tried to make sure and be consistent, to avoid any fair lending criticism by our (FRB) regulators.

    **I’m sure hoping someone will either agree with me in reference to the INTEREST rate vs ANNUAL PERCENTAGE rate, and/or clarify the statute.** =]

    in reply to: Annual escrow analysis and past due loan #36883
    pcorder
    Participant

    I suspected that was the answer. Thanks for confirming!

    in reply to: Closing Disclosure for a commercial transaction #36392
    pcorder
    Participant

    Got it.

    IMO, because it was missing the issue date, it would be a violation, because it was incomplete. The attorney also provided a separate settlement statement, that described the transaction, as well. Go figure.

    Thanks, Jack!

    in reply to: HMDA – Correspondent/Broker reporting #34440
    pcorder
    Participant

    Thanks, Jack.

    in reply to: 2021 Derby Contest #33835
    pcorder
    Participant

    Super Stock, Pattie Corder, Monticello Bank, Group 2

    in reply to: HMDA #33821
    pcorder
    Participant

    I guess my question is regarding the mobile home “being taken as collateral”.

    I was thinking Valerie mentioned they weren’t placing a lien on the mobile home. If the MH is part of the collateral, shouldn’t there by some type of lien, and mentioned in the security instrument (and some type of appraisal)? That’s really what I’m confused about. I was just trying to get all the facts. lol

    Thanks!

    in reply to: HMDA #33816
    pcorder
    Participant

    Okay, I’m sorry for all the questions.

    Does the existing lien being satisfied with the new loan also include the mobile home? Did the appraisal on the land for the new loan include the MH? Or, does the lien being satisfied contain land only or non dwelling buildings? So sorry, it really becomes convoluted sometimes.

    IMO, if you don’t place a lien on the MH, and/or if your appraisal does not include it in the appraised value, it would not be reportable.

    Can someone please let me know, if I’m wrong?

    Thanks so much!

    in reply to: HMDA #33812
    pcorder
    Participant

    When you say “reportable property”, do you mean the purpose of the loan was to purchase, refinance or improve the mobile home (and land)?

    Thanks,

    in reply to: TRID – Settlement Agent & number on CD #33662
    pcorder
    Participant

    Just ran across this post, and wanted to comment.

    The FRB interprets it as: the bank is the settlement agent (if no other agent is listed), and to go one step further, they expect a file # to be there too. The file number for a bank will be identical to the loan id#, which is located on the other side of the CD. IMO, it could create some confusion for the borrower. That’s not the intent of the disclosure. I argued this point at our last Consumer Compliance and CRA exam, but to no avail.

    As Brent said, it is illogical, but personally, I seldom find logic in most regulations. lol

    Thanks,

    in reply to: Notice of Less Favorable Terms #33624
    pcorder
    Participant

    RE:

    You also have a right to a free copy of your report from the reporting agency. If you request it no later than 60 days after you receive this notice.

    We provide the credit score and negative influencing factors on the adverse action notice, but applicants have always had the opportunity to obtain a free copy of the full credit report, when adverse action is taken. That may be what the statement on your consumer app is in reference to. But generally, it’s stated on the AAN. You might want to verify it’s on your AAN.

    The consumer also can obtain a free credit report from each of the reporting agencies annually @ annualfreecreditreport.com.

    Hope this helps!

    in reply to: Correct rescission form… #33622
    pcorder
    Participant

    Rcooper…so sorry, I just saw your response today! I’ve been out of the office a couple of days. Thanks for getting back to me. What you say makes perfect sense. (If there is such a thing w/regulations. lol)

    Thanks again, and have a super weekend! 🙂

    in reply to: Reliance on another Financial Institution #33558
    pcorder
    Participant

    Good morning,

    I conferred with our BSA Officer, and our BSA policy has a blurb in it that states: [“Bank” does not rely on any other financial institution or third party to conduct any of its Customer Identification responsibilities with the exception of a purchased loan, in which case, the customer is unaware, and is not identified by “Bank” personnel. In these cases, we rely on the financial institution in which the loan was partially purchased from, to identify the customer.]

    We don’t rely on other FIs or 3rd parties, but if you want a contract or agreement to do so, I would think your bank attorney could create one for you. Also, I would ask for the FI or 3rd party’s applicable policies/procedures to ensure they were in compliance on their end. A little bit like monitoring MSBs, for their BSA policy and program, I suppose.

    Hope this helps.

    in reply to: Reg CC Record Retention #33312
    pcorder
    Participant

    We retain our hold notices for a period of 5 years, even though the Reg says 2. They are imaged to the applicable account. Examiners ask us for copies of hold notices that were placed during a specific time frame, while performing our consumer compliance exam. They review the notices to determine if the proper hold was placed, and when funds were released. Thanks.

    in reply to: Bank Owned Life Insurance (BOLI) #32860
    pcorder
    Participant

    Hi Matt,

    Shoot me an email @ pcorder@mbcbank.com, and I will be happy to share our policy with you.

    Thanks,

Viewing 15 posts - 1 through 15 (of 35 total)