SECURITY FREEZES: A LENDER'S RESPONSIBILITY
With growing concern over identity theft and privacy, many states are
taking steps to protect consumers. Among those measures are statutes
enabling consumers to place "security freezes" on their credit
reports. These long and complicated statutes leave lenders wondering what they
need to do. The answer is simple.
Most lenders are familiar with the "Notice to Home Loan
Applicants" (VMP-140), required under the Fair and Accurate Credit Transactions
(FACT) Act. However, most statutes do not impose any additional
disclosure requirements upon lenders.
While every state has specific requirements, the majority of them follow
a similar model. Most state security freeze laws do not impose additional
disclosure requirements. The only disclosure required is triggered when a
"summary of rights" must be provided to a consumer under the
Federal Fair Credit Reporting Act (FCRA), 15 USC §1681 et seq. A "summary of
rights" is a defined term under FCRA at 15 USC §1681g(c)(2) and applies only to
consumer credit reporting agencies. Therefore, a lender would never have
to provide a consumer with a "summary of rights" or the security
freeze notice contained in many state statutes. You should consult with your
counsel to ensure you are meeting the specific requirements for your state.
You can trust Wolters Kluwer Financial Services to monitor state privacy
laws to ensure you have the most complete compliance solutions available.
Contact us to order the VMP-140 or any other forms at (800) 521-7291.
REVISED CONSUMER HANDBOOK ON ADJUSTABLE RATE MORTGAGES (CHARM) BOOKLET IS NOW AVAILABLE
October 1, 2007, is the mandatory usage date for the CHARM disclosure
booklet. It is now available in both print and electronic file formats,
including PDF compatible with your LOS.
INITIAL DISCLOSURE COMPLIANCE IN TODAY'S MARKET
Increased compliance scrutiny, caused by turmoil in the subprime market,
has called for greater accountability on the part of originators to
ensure that compliant initial disclosures are delivered to borrowers
within regulatory mandated timelines. Many investors are also requiring
additional disclosures be provided to borrowers for specific loan
features, such as Interest Only, Prepay, and no/low documentation. Some
investors also require borrowers to sign documents verifying they
received the disclosures.
Originators can no longer take a lax approach towards initial disclosure
fulfillment. This means continuing to utilize solutions provided by Loan
Origination Systems and doc prep companies that don't provide the
necessary comprehensive solutions. Originators need complete and
compliant initial disclosures solutions, meeting both regulatory and
investor specific requirements as well as provide secure delivery capabilities.
Desert Document Services can help. DesertDocs offers the most
comprehensive and cost effective initial disclosures solution in the
industry. It features compliant initial disclosures that meet federal,
state, and investor specific requirements with eDelivery abilities,
including eConsent. We can also provide primary or back-up mail
fulfillment, giving you the complete outsourced solution. Spend less time
managing the internal resources necessary to maintain compliance and
reduce your risk with our auditable process, guaranteeing assembly of
accurate and compliant initial disclosure packages. To learn more, visit
www.WoltersKluwerFS.com/docprep.
SECURE DOCUMENT EXCHANGE (SDX) E-DISCLOSURE DEMONSTRATION
Using the latest techniques for sending electronic disclosures is crucial
for financial institutions to effectively meet deadlines, increase
customer satisfaction, and compete in today's complex industry. Learn more about the advantages of e-disclosures and how institutions are
ensuring the security of confidential information with the highest
standards for both senders and recipients.
Please join us for one of the following live e-disclosure demonstrations:
Wednesday, May 31, 2007-11 A.M. CST
Tuesday, June 5, 2007-12 P.M. CST
Wednesday, June 6, 2007-11 A.M. CST
Click here
to register, or learn more about SDX.
CRA & FAIR LENDING COLLOQUIUM IS JUST AROUND THE CORNER!
The CRA & Fair Lending Colloquium offers senior compliance executives the
opportunity to speak with experts in CRA and HMDA in an interactive
environment. It's a great opportunity to discuss latest fair lending
trends, changes to the regulatory environment, and strategies for success.
For more information, click here.
While at the CRA & Fair Lending Colloquium, compliance professionals
can:
- Participate in sessions on relevant and timely subject matter
- Network with over 350 compliance executives
- Hear top experts discuss programs proven to work or they plan to try in the future
- Learn in a few days what would take months or years to learn through experience
- Get the fundamental, analytical, and strategic information necessary to work smarter, not harder
- Make sound strategic decisions today to shape the future
- Earn CRCM & CREE Credits to put towards your ICB certification
The 2007 Colloquium will be held in sunny San Diego, California, at the
Loews Coronado Bay Resort and Spa from September 30 through October 3. To
view the agenda and register for this year's event, visit
www.cracolloquium.com.
NONTRADITIONAL MORTGAGE CONSUMER EDUCATION
Are you looking for an easier way to educate your borrowers on the
features and terms of interest-only and payment option adjustable rate
mortgage (ARM) loan programs?
In response to the Federal Guidance issued September 29, 2006, we've
developed a comprehensive line of educational booklets and disclosures
focused on interest-only and payment option ARMs. These are valuable
resources to help you educate your borrowers early in the mortgage
shopping stage.
Learn more about these products and view samples here.
ADDITIONS TO THE EBOOKLET LIBRARY COMING SOON:
- Home Equity Lines of Credit (English and Spanish) - VMP-483 and VMP-483S
- Spanish HUD Settlement Cost Booklet - VMP-18S
- Spanish CHARM Booklet - VMP-20S
- Protect Your Family From Lead In Your Home - VMP-323 and VMP-323S
- Guide to Payment Option ARMS - VMP-13S
- Guide to Interest-Only ARMS - VMP-15S
REMINDERS
Check out ComplianceHeadquarters™, your
free online resource for additional real estate compliance information.
Missed an issue of the VMP® Information Newsletter? Click here to
access the archive.
