Question:
Why do we have to have two copies signed at closing for the notice of right to rescind?
 
Answer:
The regulation requires that two copies of the notice of right to rescind be delivered to each consumer entitled to rescind, but there’s not a regulatory requirement that the copies be signed. The signature requirement may come from bank policy to document that the consumers received the notices, but the signatures aren’t required by Reg. Z.
 
(1) Notice of right to rescind. In a transaction subject to rescission, a creditor shall deliver two copies of the notice of the right to rescind to each consumer entitled to rescind (one copy to each if the notice is delivered in electronic form in accordance with the consumer consent and other applicable provisions of the E-Sign Act).
1026.23(b)(1), https://www.consumerfinance.gov/policy-compliance/rulemaking/regulations/1026/23/#b

Question:
A customer provided the flood insurance binder. However, my loan dep is requesting that we also obtain paid receipts and a copy of the flood application.
Is this necessary?
 
Answer:
Yes, a binder is not recognized as proof of insurance for closing a loan. However, a paid receipt and copy of the application is recognized.
               
D. Evidence of Insurance
A copy of the Flood Insurance Application and premium payment, or a copy of the declarations page, is sufficient evidence of proof of purchase for new policies. The NFIP does not recognize binders. However, for informational purposes only, the NFIP recognizes certificates or evidences of flood insurance, and similar forms, provided for renewal policies if the following information is included:
 
1. Policy Form/Type (GP, DP, RCBAP*, PRP)
2. Policy Term
3. Policy Number
4. Insured’s Name and Mailing Address
5. Property Location
6. Current Flood Risk Zone
7. Rated Flood Risk Zone (zone used for rating, including when grandfathering or issuing coverage under the Newly Mapped procedure)
8. Grandfathered: Y/N 
Page 16 of the Manual:
https://www.fema.gov/media-library-data/1503238892702-b35cc754f462fe2c15d857519a71ec/03_general_rules_508_oct2017.pdf

Question:
Under Reg. DD, if a time account product is advertised generally is there a requirement to provide the term for CDs if a specific CD product is not advertised, and instead, simply that time accounts are among products offered? 
Answer:
No, you’re not required to provide the time requirements in 1030.8(c)(6)(i) when you are only advertising CDs generally and not a specific product. The time requirements are required when you are advertising a specific Annual Percentage Yield (or a bonus which would trigger the APY). If you advertise the APY, it is considered a “trigger term,” which requires you to provide all of the required information in 1030.8(c), as applicable. Since you are only advertising a general product and no APY, the time period requirement is not necessarily required. (c) When additional disclosures are required. Except as provided in paragraph (e) of this section, if the annual percentage yield is stated in an advertisement, the advertisement shall state the following information, to the extent applicable, clearly and conspicuously:  (6) Features of time accounts. For time accounts: (i) Time requirements. The term of the account. 12 C.F.R. 1030.8(c) https://www.consumerfinance.gov/policy-compliance/rulemaking/regulations/1030/8/#b
​

Question:
Our bank has an affiliate that purchases account receivables. The affiliate orders consumer reports in order to conduct their business.
 
One of their customers applied to our bank for a commercial loan. The affiliate, having obtained a credit report on the guarantor, provided our bank the report.
 
The affiliate has no privacy policy, as this affiliate does not have consumer services or products.
 
Is there an FCRA violation in their sharing the credit report with the Bank, even though there is no consumer purpose on either end? And has the Bank violated FCRA by using the credit report rather than obtaining its own report from a CRA?
 
Answer:
The violation isn't in the receipt of the credit report, the violation comes in the using it to make a solicitation to the consumer about products and services.  You are not prohibited from receiving the report, you're prohibited from using it for solicitation of products and services when this information hasn't been properly disclosed to the consumer and they have not had option to opt-out of such solicitations. 
 
The exception to this is if you already had an existing business relationship with the consumer, the FCRA would allow the use of the report for solicitation purposes.
 
Also note that the consumer reporting agency itself may have restrictions on this use in its agreement, so the bank would want to check that as well.
 
Any person that receives from another person related to it by common ownership or affiliated by corporate control a communication of information that would be a consumer report, but for clauses (i), (ii), and (iii) of section 603(d)(2)(A), may not use the information to make a solicitation for marketing purposes to a consumer about its products or services, unless – (A) it is clearly and conspicuously disclosed to the consumer that the information may be communicated among such persons for purposes of making such solicitations to the consumer; and (B) the consumer is provided an opportunity and a simple method to prohibit the making of such solicitations to the consumer by such person. FCRA § 624(a)(1)-(2), p. 97 https://www.ftc.gov/system/files/545a_fair-credit-reporting-act.pdf
 
This section shall not apply to a person – (A) using information to make a solicitation for marketing purposes to a consumer with whom the person has a pre-existing business relationship; FCRA § 624(a)(4)(A), p. 98 https://www.ftc.gov/system/files/545a_fair-credit-reporting-act.pdf
​