When we close an account due to overdraft, we mail notices to the customer of the amount owed and that the account should be brought to a positive balance to avoid any collection proceedings. However, we will then turn the charged-off account to a collection agency, do we have to notify the customer of this action?
The bank does not have to notify the customer that the charged-off account has been turned over to a collection agency. The collection agency will contact the customer requesting a verification of the debt and inform them they are handling the collection efforts of the debt from the charged-off checking account.
I know the LE now replaces the right to receive an appraisal form. Do we need to have a form that the customer signs acknowledging?
There is no requirement that your customer sign or acknowledge receipt of the appraisal disclosure notice contained in the Other Considerations section of the LE. The appraisal notice contained in the LE satisfies the right to receive an appraisal notice requirements for Higher-priced mortgage loans (HPML) under Regulation Z and for loans secured by a first lien on a dwelling under Regulation B. Neither the Reg Z HMPL provisions or the Reg B provisions require that the appraisal notice be signed by the customer. That being said, separate appraisal notices (not built into the TRID disclosures) often included signature lines to demonstrate compliance but again, that signature is not a regulatory requirement.
In determining whether or not Saturday is a business day for us, for TRID purposes, what does it mean “to be open for substantially all business functions”?
The TRID rule did not change the definition of business day under Regulation Z. The definition for the term “business day” is found in 12 CFR 1026.2(a)(6). Outside of a few exceptions, a business day means:
a day on which the creditor's offices are open to the public for carrying on substantially all of its business functions
The Commentary to this section provides for a “business function test” and it states:
Activities that indicate that the creditor is open for substantially all of its business functions include the availability of personnel to make loan disbursements, to open new accounts, and to handle credit transaction inquiries. Activities that indicate that the creditor is not open for substantially all of its business functions include a retailer's merely accepting credit cards for purchases or a bank's having its customer-service windows open only for limited purposes such as deposits and withdrawals, bill paying, and related services.
Ultimately each bank will need to determine independently whether or not a particular day is a “business day”. Again, note that TRID does not alter the current definition of “business day”. That being said, if you currently treat Saturday as a business day, you would most likely continue to do so under the TRID rule unless the availability of services has changed. Also, if you haven’t done so, be sure to document in your policies and procedures the days that you consider to be business days for purposes of disclosure delivery.
The Bank is currently providing the Notice regarding Homeownership Counseling and the SCRA Notice each month with its home equity line statements, and the SCRA notice each month on consumer 1-4 family 1st DOT, Consumer 1-4 family 2nd DOT, and Non-Owner Occupied 1-4 family. The Bank asks for guidance in order to improve efficiency in this area, including information regarding disclosure type, timing and frequency.
The Homeownership Counseling Notice and SCRA Notice must be sent within 45 days of the homeowner borrower becoming delinquent, unless the loan is brought current within that period. If the notice is provided and the loan is brought current but then becomes delinquent again, the notice must be provided again.
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