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Ask the Compliance Experts: February 2018

Question: I was hoping to get your opinion on this scenario.  A loan is denied, and an adverse action notice is generated, can we re-activated the same loan number under a new loan program? Answer: In a circumstance where a credit decision has been made and an adverse action communicated …

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Ask the Compliance Experts: January 2018

Question: For some strange reason our company does not want us to issue the CD more than 7 days before the borrower signs their loan doc’s. Is there some regulation regarding the 7 days or is this a strange co. policy? Answer: Your company’s policy is likely intended to address …

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Ask the Compliance Experts: November 2017

Question: Recently, I have heard some discrepancies on whether or not a mortgage broker can have different comp plans set at different lenders?  For example, can one comp plan at lender “A” be set at 1.5% and at lender “B” set at 1.25%?  OR does it have to be set …

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Ask the Compliance Experts: October 2017

Question: Hello:  Hope you can help me out with my question. We know under the FCRA, the CRA’s are required to delete the BK accounts once the 10-year time limit has passed, however does the furnisher have an obligation under the FCRA’s rule around accuracy and integrity in reporting, to …

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Ask the Compliance Experts: September 2017

Question: If we have a loan where the client demands a competitive adjustment to stay with us can we give them that adjustment and if so, can we lower the commission to the LO if we put it in writing? Answer: The company may choose to provide any concession it …

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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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