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Ask the Compliance Experts: August 2017

Question: Perhaps there is no “rule” for this issue and only a “best practice” for LO signatures on Final 1003.  I am aware that there is no regulatory requirement that a LO sign the final 1003 and that it is a GSE requirement that a LO signs the 1003, however, …

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Ask the Compliance Experts: June 2017

QUESTION: A discussion has arisen in our office regarding the ability to recapture an EPO or EPD fee from a loan officer’s commission.  Is this allowed under Regulation Z/Loan Officer compensation regulations? ANSWER: Whether a charge for an EPO or EPD can be deducted from an LO’s compensation is dependent …

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Ask the Compliance Experts: May 2017

Question: If a consumer selects a rate that has a rebate, why isn’t the rebate disclosed in box “A “loan costs as a credit? If they are paying a fee for a specific rate it shows there as a charge. Instead it is showing up as a lender credit. In …

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Ask the Experts: February 2017

I have a question regarding loan originator advertising/marketing. I am curious as to what, if any, restrictions there are to loan originator self- promotion. I am familiar with MAP rules, Regulation Z, that I must include NMLS ID, and all of the general guidelines as to what advertisements must or …

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Ask the Compliance Experts: January 2017

Q: I am looking for direct, plain, and straight-forward language to help answer questions for my manager. If an employee asks a customer “Have you heard about our mortgage rates? Let me have so-in-so call you,” and this later results in the LO ‘so-in-so’ closing a loan, can we pay …

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Ask the Compliance Experts: December 2016

Question: Should we have the borrower sign an authorization prior to pulling their credit report? Or is a written note in the LOS system stating the borrower authorized us to pull their credit sufficient? Thank you in advance. Answer: Written authorization is required before a lender or broker is permitted …

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Ask the Compliance Experts: November 2016

Question: To whom it may concern: can you provide me with the regulation summary for co-marketing with other real estate professionals, as well as referral sources? Thank you. Answer: We assume that you are not referring to any type of Marketing Services Agreement and request our opinion relating to joint …

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Ask the Compliance Experts: October 2016

Question: Is an error in the disclosed monthly PMI subject to a tolerance cure? Answer: TRID does not subject the monthly PMI to either the zero or 10% tolerance violation.  Having said that, TRID does provide broad protections to consumers and so the lender may still have some liability despite …

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Ask the Compliance Experts: August 2016

A: I enjoy your magazine.  It’s one of the best in the industry.  Please find an ECOA/FCRA question below: When we take adverse action on a joint application because one of the applicants has a credit score that is below our minimum, how do we complete the co-applicant’s ECOA/FCRA denial …

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