TOPIC: Loans

Homeownership Counseling List

Person at a bank ($5.2BUSA)
We are trying to pull the Homeownership Counseling List for a military borrower with an overseas APO address and are receiving an error message indicating the zip code doesn't exist.  We've verified the zip code is correct.  Anyone else run into this situation and been able to resolve for these kinds of addresses?

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      45 day advance notice - open end credit

      Person at a bank ($158MUSA)
      I am going in circles trying to determine if this requirement applies to our product.  Any help would be greatly appreciated.
      We have an unsecured open-end line of credit that does not have credit card access, it does have a floor/minimum rate and our new software (in the middle of testing new software) is giving a warning that states the following: the part of the regulation that I have been reading is 1026.9(c)(2)(v) and 1026.55(b)(2) and I just don't know for certain if it truly applies to the product.  Basically I need to know if we should be providing this advance notice or not. 
      thank you in advance for any help provided. 

        Delay in Recording Automobile Liens During COVID

        VP at a credit_union ($1.3BUSA)
        Our institution is revising some of our loan operating controls and procedures during COVID.  Given some state DMV offices being closed during the initial phase of COVID and some operating with reduced workforces, there has been a delay in getting liens on auto recorded and the titles being returned to us.  Have your institutions adopted any additional measures to compensate for this exposure period? 

          WEBINAR: Stress Testing and COVID-19

          Do you know how #COVID19 is impacting your #portfolio? Do you know if you have enough #capital? How do you get answers during the middle of the #pandemic with rapidly changing economic conditions? Join us on Wednesday, July 29th at 9 a.m. PT to hear unique perspectives from a former CFO and a former COO on COVID-19 considerations for stress testing and changes in regulator expectations due to COVID-19. Register Today! 

            Security Agreement

            Manager at a bank ($1.1BUSA)
            The Security Agreement on our consumer loans states the following: “You may, but you do not have to, allow me to take a portion of money from my account(s) without affecting the security interest.  If I have given you a specific pledge of shares in the amount and in the account indicated above, I may not withdraw those sums until what I owe is paid in pull.” Do your security agreements include similar language?   Specifically, I’m wondering if that second sentence doesn’t create more problems than it is intended to solve.  With the first sentence alone, we would have the ability—but not the mandate—to release whatever portion of the amount secured is in excess of the amount owed.  Eliminating the second sentence would seem to give us greater flexibility while maintaining our security interest and minimizing our liability.  If a joint signer pledged the funds and the other signer withdrew the excess without the knowledge of the other, for example, including that second sentence and indicating a specific amount on the security agreement would seem to place the financial institution in a position of liability. What are your thoughts? 

              How to Manage Credit Risk in a Recession: A Series Examining Best Practices | Webinar Series

              Credit risk management is a cornerstone of community banking. How can your financial institution grow while also effectively managing the risk in the portfolio? Many bankers are asking this question right now, given that this could be their first recession in banking or because this recession is so different than previous ones due to the COVID-19 pandemic.

              In this 4-part webinar series, join credit risk experts as they walk through best practices for operating in this unique credit environment.

              Session topics are: 
              • Part 1: Credit Memo (7/22) 
                • How does an economic downturn alter the credit memo’s content and process?
                • What are the right questions to ask and how can those answers be factored into future recommendations?
              • Part 2: Loan Grading (7/29)
                • How should institutions tweak loan grading in the face of a recession?
                • How should specific sectors be treated?
              • Part 3: SBA 7(a) Lending (8/5)
                • How can this program be used to hedge credit risk?
                • What would an institution need in order to get going?
              • Part 4: Loan Pricing (8/12)
                • Should pricing vary by loan type?
                • How should strategies change during a recession?

              Register for the series.