Technology is the key differentiator for mortgage lenders and it’s only going to become a greater factor in our future success.
We are thinking about adding loan notices (i.e. pmt notices/past due notices/ maturity notices/ rate adjustments/ etc.) to our list of items that a customer can sign up to get electronically. We already do it for deposit products (stmts and such). I realize I need to consult the applicable lending regs, most of which I believe defer to the esign act and allow for electronic delivery, but I'm just wondering if I'm missing something. I guess I'm a little nervous about sending someone's past due notice electronically even if they have to elect to receive it and confirm that they can (call me cautious). Is there anything else I need to watch out for? I am happy to do my own research but if you know of any prohibitions or can point me to something I'm missing, I would appreciate it.
Where can we find information about paying/returning debit card transactions? Would we have to find out from MasterCard? Management wants something in writing about why we have to pay those when a customer is already in the negative. They are worrying that we could pay something over our legal lending limit and then get in hot water with our regulators.
Is it acceptable for a bank to require its customers to apply for and be credit-approved for a Visa debit card, even though the customer is not receiving a credit line of any kind?
Does the E-SIGN Act allow disclosures to be provided to borrower's via fax? If so, is it considered to be "received the same day"?
If a borrower calls and wants a mortgage home loan, under the E-sign rules, could the Loan Officer e-mail the regulatory disclosures, Authorization certification, RESPA Servicing, Private Policy, and GFE/TIL to the consumer without first making the LO send an e-mail to the borrower for an electronic consent and have the borrower send it back?
What individual risk assessments is a bank expected to perform? How do the individual risk assessments fit together with an "enterprise risk assessment"?
How do overdraft protection lines of credit pertain to Reg E and error resolution? Do they fall under the same time limits or under a different Reg?
Our lending operations department (not credit card) would like to initiate an EFT through our third party vendor to debit our customer's deposit account to exercise our right to offset for amounts owed on our customer's loan. Our deposit account terms and conditions discloses our right to offset any amounts owed to the bank. We know that generally Reg E, Section 205.3 (c)(5) would allow the bank to electronically transfer funds between a customer's accounts without the customer's specific request under certain circumstances and that the official commentary provides that this exception to Reg E includes the right to initiate "electronic debits or credits to consumer accounts for check charges, stop-payment charges, NSF charges, overdraft charges, provisional credits, error adjustments and similar items that are initiated automatically on the occurrence of certain events." In order to exercise our right to offset electronically, the transaction will need to be processed through our third party vendor. Do we have any Reg E or other regulatory concerns in doing so?
Are there any specific guidelines regarding how long company/business email must be retained?