Other considerations

Question 1

A client signs a paper application with a date of August 1; however, turns it in for approval on August 15. What should the loan officer do to prove the application was worked in compliance with Reg B and CB bank policy?

Answer 1

1. Date stamp the application when received and initial near the stamped date.
2. Have the client correct the date and initial any changes.
3. Hand write “APPLICATION RECEIVED ON 8/15/21 by Betty Loan Officer”
4. When keying the application into DecisionPro, be sure to update the date as to date received.

Question 2

Does Reg B apply to Business or Commercial loan requests?

Answer 2

Yes. The non-discrimination rules and the notification of right to receive a copy of an appraisal when a request is secured by a 1-4 family dwelling.

Question 3

What is another name for Reg B?

Answer 3

The Equal Credit Opportunity Act.

Question 4

What is adverse action?

Answer 4

A notification of a non-originated credit request.

Question 5

What actions by a lender are included in an adverse action?

Answer 5

Incomplete application, declined, withdrawn, or counter offered.