Q&A

Question and Answer

On a commercial loan do we need to provide a credit score disclosure (CSEN)? For example, we have a 1-4 family dwelling investor loan program where we have customers that are looking to purchase, say a 3 flat, either in their individual name or in the name of an LLC and they provide a personal guaranty. Do we need to generate a credit score disclosure for these if we pull credit report with credit score?

Q&A / By

On a commercial loan do we need to provide a credit score disclosure (CSEN)? For example, we have a 1-4 family dwelling investor loan program where we have customers that are looking to purchase, say a 3 flat, either in their individual name or in the name of an LLC and they provide a personal guaranty. Do we need to generate a credit score disclosure for these if we pull credit report with credit score? Read More »

Question and Answer

We are originating a bridge loan to refinance existing obligations and provide funds for the down payment and closing costs associated with a purchase money mortgage for a new primary residence. The loan is secured by the borrower’s current primary residence and will be paid off upon the sale of that property. As such, it is exempt from HMDA reporting requirements. We would like clarification on whether we are still required to collect Government Monitoring Information (GMI) under Regulation B. Does Regulation B also consider this type of loan to be temporary financing and therefore not subject to §1002.13?

Q&A / By

We are originating a bridge loan to refinance existing obligations and provide funds for the down payment and closing costs associated with a purchase money mortgage for a new primary residence. The loan is secured by the borrower’s current primary residence and will be paid off upon the sale of that property. As such, it is exempt from HMDA reporting requirements. We would like clarification on whether we are still required to collect Government Monitoring Information (GMI) under Regulation B. Does Regulation B also consider this type of loan to be temporary financing and therefore not subject to §1002.13? Read More »

Question and Answer

Are there any requirements for specific disclosures on periodic home equity loan statements for consumers in bankruptcy? 12 CFR Part 1026.41 (Regulation Z) has requirements for closed-end consumer credit transactions but unclear about HELOCs.

Q&A / By

Our review of Reg Z for open-end credit periodic statement requirements (1026.7) found nothing specific noted relating to loans in bankruptcy. The requirements only apply to closed-end credit under 1026.41. However, there may be state specific rules regarding statements and borrowers in bankruptcy. We recommend reaching out to your legal counsel or state banking association

Are there any requirements for specific disclosures on periodic home equity loan statements for consumers in bankruptcy? 12 CFR Part 1026.41 (Regulation Z) has requirements for closed-end consumer credit transactions but unclear about HELOCs. Read More »

Question and Answer

The FDIC logo change was pushed until May 1, 2025, but my institution was wondering if the logo on our printed rate sheets given to customers upon request needs to be updated. My understanding is that the gold/black signs we have at the teller windows, and banker desks are NOT changing, and I think printed logos aren’t changing, but really, it’s mainly about the digital channels – and those need to be navy blue and black. So, if I’m correct, then the rate sheets do not require updates?

Q&A / By

You are correct. Nothing pertaining to advertising is changing. The FDIC advertising rules stay the same. The gold/black signage, use of Member FDIC/FDIC-Insured that is all the same. So, on rate sheets, printed advertisements, social media, etc. there is no change. Lobby signage is an optional change. There is a provision to remove the signage

The FDIC logo change was pushed until May 1, 2025, but my institution was wondering if the logo on our printed rate sheets given to customers upon request needs to be updated. My understanding is that the gold/black signs we have at the teller windows, and banker desks are NOT changing, and I think printed logos aren’t changing, but really, it’s mainly about the digital channels – and those need to be navy blue and black. So, if I’m correct, then the rate sheets do not require updates? Read More »

Question and Answer

When will an institution have to comply with the upcoming 1071 Small Business Lending reporting requirements?

Q&A / By

Compliance dates for 1071 will be enforced on a tier system. According to a release from the CFPB in June of this year, the final rule, which was to become effective August 29, 2023, was subject to a stay by a federal Texas court pending the outcome of the Supreme Court decision in CFPB v.

When will an institution have to comply with the upcoming 1071 Small Business Lending reporting requirements? Read More »

Question and Answer

Is the SCRA Notice expired? The expiration date is November 30, 2024. Is there an updated version?

Q&A / By

The SCRA Notice (HUD-92070) was implemented by HUD Mortgagee Letter 2006-28 and now mandated by the HUD Handbook 4000.1. The notice must: The form is technically “expired,” however since no new form has been issued yet by HUD. The expired form should still be used until replaced.

Is the SCRA Notice expired? The expiration date is November 30, 2024. Is there an updated version? Read More »

Question and Answer

On a loan where the borrower enacted their rights under SCRA, how is interest paid by the borrower refunded? Is it Interest from time the Institution was notified, or time Borrower was to report? Is it a refund of any interest to the borrower or can the institution decide?

Q&A / By

Interest is refunded from the effective date to report for active duty. §3937 (b)(2) LIMITATION EFFECTIVE AS OF DATE OF ORDER TO ACTIVE DUTY- Upon receipt of written notice and a copy of orders calling a servicemember to military service, the creditor shall treat the debt in accordance with subsection (a), effective as of the

On a loan where the borrower enacted their rights under SCRA, how is interest paid by the borrower refunded? Is it Interest from time the Institution was notified, or time Borrower was to report? Is it a refund of any interest to the borrower or can the institution decide? Read More »

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