DISCLOSURE OR NOTICE THAT MAY BE REQUIRED
WHEN THE DISCLOSURE OR NOTICE IS GIVEN
LAW OR REGULATORY REFERENCE
If loan (consumer or business) will be secured by a dwelling, written notice of the right of applicant to obtain a copy of an “appraisal report” used with the application. Alternatively, a copy of the “appraisal report” may be given without notice.
During application process -- no later than when creditor provides notice of action taken.
ECOA -- Regulation B
§ 202.5a
For business loan (with gross revenues of $1 million or less), creditor may give advanced written notice of right to statement of reasons for action taken, instead of when adverse action is taken.
At the time of application.
§ 202.9
For first mortgages on residence, notice of history of transfer of mortgage servicing rights; to be acknowledged by applicant.
RESPA -- Regulation X
§ 3500.21(b)
ARM loan covered by Regulation Z requires a Consumer Handbook of Adjustable Rate Mortgages or suitable substitute and loan program disclosure for each variable rate program in which consumer expresses an interest.
At application or before consumer pays a nonrefundable fee, whichever is earlier.
Truth-in-Lending -- Regulation Z
§ 226.19(b)(1) & (2)
HUD booklet Settlement Costs and You given to applicant, unless a RESPA-covered loan involving an open-end credit plan (home equity line-of-credit) as defined in Regulation Z (in which case borrower is given copy of When Your Home is On the Line: What You Should Know About Home Equity Lines of Credit).
At time of application or mailed within 3 business days of application unless denied within 3 days.
RESPA -- Regulation X § 3500.6
§ 226.19(a)(1)
Good Faith Estimate of Settlement Services provided to applicant.
§ 3500.7
Notification of action taken (approval, counteroffer or adverse action).
Within 30 days after receiving a completed application.
§ 202.9(a)(1)(i)
Notice of incompleteness of application or notice of adverse action due to incompleteness of application.
Within 30 days after receiving application that is incomplete.
§ 202.9(a)(1)(ii) and § 202.9(c)(2)
Notice of adverse action on an existing account.
Within 30 days after taking adverse action.
§ 202.9(a)(1)(iii)
Notice of action taken after applicant was notified of a counteroffer and applicant does not expressly accept or use the credit offered.
Within 90 days after notifying applicant of counteroffer.
§ 202.9(a)(1)(iv)
Notice of right to obtain a statement of reasons for adverse action or the actual statement of reasons for adverse action (Notices not required for business loan [with gross revenues of $1 million or less] if creditor gave advanced written notice of right to statement of reasons at time of application).
When adverse action is taken.
§202.9(a)(3)(i)(B)
Oral or written statement of action taken on application for business loan (with gross revenues of $1 million or less). Disclosure of applicant’s right to a statement of reasons may be given at time of application or at time adverse action is taken. Business telephone application allows for an oral statement of action taken and of the applicant’s right to a statement of reasons for adverse action.
§ 202.9(a)(3)(i)
Notify business applicant (with gross revenues greater than $1 million) orally or in writing of action taken and provide written statement of adverse action with ECOA notice if applicant makes written request for reasons within 60 days of notification of adverse action.
Within a reasonable time of the action taken on the application.
§ 202.9(a)(3)(ii)
When applicable, written notice to applicant that property securing loan is or will be located in special flood hazard area and whether federal disaster assistance is available.
No later than 10 days before closing or the bank’s commitment if period between commitment and closing is less than 10 days.
Flood Disaster Protection Act
§ 208.8(e)(3)
If loan is covered by RESPA and Regulation Z, applicant must be given early Truth-in--Lending disclosure.
Before loan consummation or no later than 3 business days after written application is made.
Truth-in-Lending -- Regulation Z and
§ 226.19
For loans subject to Right of Rescission, two copies of notice of right to rescind given to each consumer who has right to rescind.
At time of or prior to consummation of the loan.
Truth-in-Lending --Regulation Z
§ 226.23(b)
Receipt of written acknowledgment by borrower that property securing loan is or will be in a special flood hazard area and that the borrower has received the required notice on federal disaster assistance.
Prior to closing.
§ 208.8(e)
Upon borrower’s request, HUD-1 statement completed and available for inspection.
One business day prior to settlement.
§ 3500.10
HUD-1 mailed or delivered to borrower and seller or their agents (borrower may waive right of delivery at or before settlement). When borrower or borrower’s agent is not present at settlement, transaction is exempt from inspection and delivery requirements (HUD-1 mailed to borrower and seller as soon as practicable after settlement).
At the time of or prior to settlement.
§ 3500.8
Truth-in-Lending disclosures given to borrower.
At the time of or prior to consummation of transaction.
§ 226.17(b)
Escrow account statement given to borrower (applicable if escrow account required).
At the time of closing or within 45 days beginning on date of establishment of escrow account.
§ 10
Credit requests by mail or telephone allows creditor to delay Truth-in-Lending disclosures if information required under § 226.17(g) is made available in writing to consumer or public prior to actual request.
At the time of due date of first loan payment.
§ 226.17(g)
Variable-rate adjustment disclosures are required when an interest rate adjustment is made with or without an accompanying payment change, at least 25, but no more than 120 calendar days before payment at new level is due.
At leas annually.
§ 226.20(c)
Notice by Transferor of transfer of loan servicing given to borrower.
Not less than 15 days before transfer of loan servicing rights or not more than 30 days after effective date of assignment, sale or transfer.
§ 3500.21(e)
Notice by Transferee of transfer of loan servicing given to borrower.
NOTE: Charts serve as summaries and quick references to certain regulatory requirements, but should only be used in consultation with the actual regulations for further details.
NOTICE OF ADVERSE ACTION
(Derived from Form C-1 Sample Notice of Action taken and Statement of Reasons, Federal Reserve Board, Reg. B., Appendix B)
STATEMENT OF CREDIT DENIAL, TERMINATION, OR CHANGE
Date
Applicant’s Name:
Applicant’s Address:
Description of Account, Transaction, or Requested Credit:
Description of Action Taken:
PRINCIPLE REASON(S) FOR CREDIT DENIAL, TERMINATION, OR OTHER ACTION TAKEN CONCERNING CREDIT:
Credit application incomplete
Insufficient number of credit references provided
Unacceptable type of credit references provided
Unable to verify credit references
Temporary or irregular employment
Unable to verify employment
Length of employment
Income insufficient for amount of credit requested
Excessive obligation in relation to income
Length of residence
Temporary residence
Unable to verify residence
No credit file
Limited credit experience
Poor credit performance with us
Delinquent past or present credit obligations with others
Garnishment, attachment, foreclosure, repossession, collection action, or judgment
Bankruptcy
Value or type of collateral not sufficient
Other, specify:
DISCLOSURE OF USE OF INFORMATION OBTAINED FROM AN OUTSIDE SOURCE
Disclosure inapplicable
Our credit decision was based in whole or in part on information obtained in a report from the consumer reporting agency listed below. You have a right under the Fair Credit Reporting Act to know the information contained in your credit file at the consumer reporting agency. The reporting agency played no part in our decision and is unable to supply specific reasons why we have denied credit to you.
NAME:
ADDRESS:
TELEPHONE NUMBER:
Our credit decision was based in whole or in part on information obtained from an outside source other than a consumer reporting agency. Under the Fair Credit Reporting Act, you have the right to make a written request, no later than 60 days after you receive this notice, for disclosure of the nature of this information.
If you have any questions regarding this notice, you should contact:
Creditor’s Name:
Creditor’s Address:
Creditor’s Telephone Number:
NOTICE: The federal Equal Credit Opportunity Act prohibits creditors from discriminating against credit applicants on the basis of race, color, religion, national origin, sex, martial status, age (provided the applicant has the capacity to enter into a binding contract); because all or part of the applicant’s income derives from any public assistance program; or because the applicant has in good faith exercised any right under the Consumer Credit Protection Act. The federal agency that administers compliance with this law concerning this creditor is (See, “Equal Credit Opportunity Act Notice” article in this Real Estate section).
NOTICE OF INCOMPLETE APPLICATION AND REQUEST FOR ADDITIONAL INFORMATION
(From Form C-6, Federal Reserve Board, Reg. B, Appendix B)
Bank’s Name
Address
Telephone Number
Date ____________
Dear Applicant:
Thank you for your application for credit. The following information is needed to make a decision on your application:
We need to receive this information by (DATE) . If we do not receive it by that date, we will regrettably be unable to give further consideration to your credit request.
Sincerely,
Regulation B Appendix B
Uniform Residential Loan Application
The lender uses this form to record relevant financial information about an applicant who applies for a conventional one- to four-family mortgage. Roman numerals in these instructions correspond to the sections on the form. Lenders must use the PDF dated 6/09 for mortgage loans applications taken on or after July 1, 2010.
You can find the “Uniform Residential Loan Application” by going to www.fanniemae.com and searching for “Form 1003.” You can view the “Uniform Residential Loan Application” form in a fillable PDF, a printable copy or a fillable Spanish version.
EQUAL CREDIT OPPORTUNITY ACT NOTICE
The Federal Equal Credit Opportunity Act prohibits creditors from discriminating against credit applicants on the basis of race, color, religion, national origin, sex, marital status, age (provided that the applicant has the capacity to enter into a binding contract) because all or part of the applicant’s income derives from any public assistance program, or because the applicant has in good faith exercised any right under the Consumer Credit Protection Act. The federal agency that administers compliance with this law concerning this creditor is the [Office of theComptroller of the Currency, Customer Assistance Group, 1301 McKinney Street, Suite 3450, Huston, TX 77010-9050]*
Notice ( ) delivered or ( ) mailed on
First National Bank
By:
Telephone Number:
(One primary applicant must receive a copy of this NOTICE)
*Address reflected above required for National Banks, and Federal Branches and Federal Agencies of Foreign Banks.
For Nonmember Insured Banks and Insured State Branches of Foreign Banks:
FDIC Consumer Response Center 1100 Walnut St, Box #11 Kansas City, MO 64106
For State member banks, branches and agencies of foreign banks (other than federal branches, federal agencies, and insured state branches of foreign banks), commercial lending companies owned or controlled by foreign banks, and organizations operating under Section 25 or 25A of the Federal Reserve Act;
Federal Reserve Consumer Help Center P.O. Box 1200 Minneapolis, MN 55480