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From A Guide to HMDA Reporting: Getting it Right (https://www.ffiec.gov/hmda/pdf/2013guide.pdf)
Paragraph 4(a)(9).
1.
Property location—multiple properties (home improvement/refinance of home improvement). For a home improvement loan, an institution reports the property being improved. If more than one property is being improved, the institution reports the location of one of the properties or reports the loan using multiple entries on its HMDA/LAR (with unique identifiers) and allocating the loan amount among the properties.There has not been any change in the notification process you are talking about. If you are not force-placing through MPPP then one notification is all that is required by regulation.
Here is a link to Jack’s Blog articles on flood and an inter-agency statement on the effects of Biggert-Waters:
https://www.fdic.gov/news/news/financial/2013/fil13014.pdf
https://mycomplianceresource.com/category/flood-insurance/From the Interagency FAQ:
22. When must a lender require the purchase of flood insurance for a loan secured by a building in the course of construction that is located in an SFHA in which flood insurance is available?
Answer: Under the Act, as implemented by the Regulation, a lender may not make, increase, extend, or renew any loan secured by a building or a mobile home, located or to be located in an SFHA in which flood insurance is available, unless the
property is covered by adequate flood insurance for the term of the loan. One
way for lenders to comply with the mandatory purchase requirement for a
loan secured by a building in the course of construction that is located in an
SFHA is to require borrowers to have a flood insurance policy in place at the
time of loan origination. Alternatively, a lender may allow a borrower to defer the purchase of flood insurance until either a foundation slab has been poured and/or an elevation certificate has been issued or, if the building to be constructed will have its lowest floor below the Base Flood
Elevation, when the building is walled and roofed.12 However, the lender must
require the borrower to have flood insurance in place before the lender disburses funds to pay for building construction (except as necessary to pour the slab or perform preliminary site work, such as laying utilities, clearing brush, or the purchase and/or delivery of building materials) on the property securing the loan. If the lender elects this approach and does not require flood insurance to be obtained at loan origination, then it must have adequate internal controls in place at origination to ensure that the borrower obtains flood insurance no later than
when the foundation slab has been poured and/or an elevation certificate has been issued.The FAQ is linked here: https://www.fema.gov/media-library-data/20130726-1742-25045-4927/interagency_q_a.pdf
Although I would prefer it be included, I can’t put my finger on anything either.
I’ll ask Jack to offer his opinion.
I’m not aware of any guidance on this particular area. The most recent information I know of regarding internet/mobile banking in general is the FFIEC guidance update linked here: https://ithandbook.ffiec.gov/media/153051/04-27-12_fdic_combined_fil-6-28-11-auth.pdf. Also there is an FDIC notice from 2011 that address mobile banking in general linked here: https://www.fdic.gov/regulations/examinations/supervisory/insights/siwin11/mobile.html.
I don’t think either one of these specifically address what you are looking for but may provide some good information to consider. I believe it is customary to inform the customer that text fees may apply (even though not assess by the bank, it is a good idea to disclose this so they aren’t surprised when they see text fees on their phone bill).
Look at the definition of valuation and its commentary – I think that will help you determine if what you have is a valuation falling under the Reg B valuation rules.
(3) Valuation. The term “valuation” means any estimate of the value of a dwelling developed in connection with an application for credit.
14(b)(3) Valuation.
1. Valuations—examples. Examples of valuations include but are not limited to:
i. A report prepared by an appraiser (whether or not licensed or certified) including the appraiser’s estimate of the property’s value or opinion of value.
ii. A document prepared by the creditor’s staff that assigns value to the property.
iii. A report approved by a government-sponsored enterprise for describing to the applicant the estimate of the property’s value developed pursuant to the proprietary methodology or mechanism of the government-sponsored enterprise.
iv. A report generated by use of an automated valuation model to estimate the property’s value.
v. A broker price opinion prepared by a real estate broker, agent, or sales person to estimate the property’s value.
2. Attachments and exhibits. The term “valuation” includes any attachments and exhibits that are an integrated part of the valuation.
3. Other documentation. Not all documents that discuss or restate a valuation of an applicant’s property constitute a “valuation” for purposes of § 1002.14(b)(3). Examples of documents that discuss the valuation of the applicant’s property or may reflect its value but nonetheless are not “valuations” include but are not limited to:
i. Internal documents that merely restate the estimated value of the dwelling contained in an appraisal or written valuation being provided to the applicant.
ii. Governmental agency statements of appraised value that are publically available.
iii. Publicly-available lists of valuations (such as published sales prices or mortgage amounts, tax assessments, and retail price ranges).
iv. Manufacturers’ invoices for manufactured homes.
v. Reports reflecting property inspections that do not provide an estimate of the value of the property and are not used to develop an estimate of the value of the property.
vi. Appraisal reviews that do not include the appraiser’s estimate of the property’s value or opinion of value.
I would take the conservative approach and interpret it literally as 90% is the max, unless your policy specifies otherwise.
Here’s a link to the Fannie Mae guidelines on LTV rounding – they aren’t regulation, but their guidelines/requirements often serve as examples.
https://www.fanniemae.com/content/guide/selling/b2/1.1/01.htmlIf a denial is based on any information in a credit report – score or otherwise – you need to include the FCRA notice. If a credit score isn’t available you don’t need to include the credit score information (see below). Also, if you are complying with the Risked Based Pricing rules by using the exception notices, then you’ll still need to provide the “No Score Available” or other applicable notice.
§ 615. Requirements on users of consumer reports [15 U.S.C. § 1681m]
(a) Duties of users taking adverse actions on the basis of information contained in consumer reports. If any person takes any adverse action with respect to any consumer that is based in whole or in part on any information contained in a consumer report, the person shall:
(1) provide oral, written, or electronic notice of the adverse action to the consumer;
(2) provide to the consumer written or electronic disclosure
(A) of a numerical credit score as defined in section 609(f)(2)(A) used by such per- son in taking any adverse action based in whole or in part on any information in a consumer report; and
(B) of the information set forth in subparagraphs (B) through (E) of section 609(f)(1);
Note: paragraph (2) above inserted by § 1100F of the Dodd-Frank Act, effective 7/21/2011.From the Reg V final rule:
Disclosure that no credit score is available. In some cases, a creditor may try to obtain a credit score for an applicant, but the applicant may have insufficient credit history for the consumer reporting agency to generate a credit score. One commenter asked that the creditor have the option to amend the model forms to provide the applicant notice that no credit score was available from a consumer reporting agency in the space available on the model forms for the credit information disclosure.
Section 1100F only applies when a creditor uses a credit score in setting the material terms of credit. The creditor cannot and is not required to disclose credit score information if an applicant has no credit score. Nothing in section 1100F of the Dodd-Frank Act prevents a creditor from providing the applicant notice that no credit score was available from a consumer reporting agency, although section 1100F does not require such notice.I’m not aware of any requirement to have this disclosure. And I agree that these could be seen as promotional if you aren’t careful. If you continue to use the notice, make sure it includes information on other overdraft options, ways they can opt-out of your bounce protection, the cost of the program, how items will be paid, who to contact if they need counseling, etc. so it is more of a “know before you use” disclosure/ pre-counseling tool rather than promotional material. Take a look at the 2005 interagency guidance and the FDIC’s 2010 guidance on overdraft programs. Also, since Ken is the one who provided training, I recommend contacting him to clarify his thoughts.
I don’t think there is a problem with obtaining consent once as long as your disclosure is clear as to what it applies to and your system is equipped to retain the information. Also, you should tell the customer how they can withdraw consent and future disclosures should comply with the format of your demonstrable consent – if you change the hard/software needed to access or retain the documents then you need to need to meet certain re-disclosure requirements. Also consider that customers might not like this – they might prefer to have the option of paper or electronic.
Here’s a link to the E-SIGN Act disclosure requirements (7001(c)): https://www.bankersonline.com/regs/esign/esign.html
Small servicers are not exempt from the 120 foreclosure rule you are talking about.
From Regulation X,
1024.41(j): Small servicer requirements. A small servicer shall be subject to the prohibition on foreclosure referral in paragraph (f)(1) of this section. A small servicer shall not make the first notice or filing required by applicable law for any judicial or non-judicial foreclosure process and shall not move for foreclosure judgment or order of sale, or conduct a foreclosure sale, if a borrower is performing pursuant to the terms of an agreement on a loss mitigation option.1024.41(f)(1): Pre-foreclosure review period. A servicer shall not make the first notice or filing required by applicable law for any judicial or non-judicial foreclosure process unless:
(i) A borrower’s mortgage loan obligation is more than 120 days delinquent;
(ii) The foreclosure is based on a borrower’s violation of a due-on-sale clause; or
(iii) The servicer is joining the foreclosure action of a subordinate lienholder.If you comply with the SAFE Act rules for federally regulated institutions (Part 1007, Reg G) there are not training requirements for your MLOs and, therefore, your all of your LOs must comply with the training requirements in Reg Z, 1026.36.
If your MLOs comply with the state licensing SAFE Act rules (Part 1008, Reg H) your MLOs will have already completed required training and, therefore, Reg Z 1026.36 does not require training for these MLO-LOs.
The Biggert-Waters escrow provisions are delayed until January 1, 2016 so currently there isn’t a requirement to escrow for flood insurance unless you are requiring escrow for other fees on a specific loan (i.e. if you require escrow for other fees on a loan that requires flood insurance you need to escrow for the flood insurance as well). For those loans which you currently require escrow, you will need to escrow for the flood insurance as well.
