Avoid Adverse Action Danger Zones: Requirements & Responsibilities After Loan Origination
Examiners have long identified weaknesses in the generation of adverse action notices. This webinar is an opportunity to learn about notification requirements for both consumer and business applicants. Common regulator-identified errors will be explained, and avoidance tips will be provided. To help comply with fair lending and Reg B, participants will receive a tool designed to document the second review of a denied loan file.
AFTER THIS WEBINAR YOU’LL BE ABLE TO:
- Accurately notify applicants when denying a loan request
- Properly inform applicants regarding an incomplete application
- Explain the requirements for an incomplete or withdrawn application
- Understand the notification options for business credit
- Comply with Reg B’s timing requirements for loan applications
- Effectively use the eight sample notification forms referenced in Regulation B
- Identify when the FACT Act requirements apply to denial notices
- Fulfill notification requirements when terms change for an existing borrower
- Monitor for frequently identified errors on adverse action notices
- Appropriately prepare counteroffers
- Conduct secondary reviews of adverse action notices for fair lending purposes
- Recognize potential fair lending discrimination practices
WEBINAR DETAILS
Timely communication with applicants and existing borrowers is critical, especially when an application is being denied or pre-existing loan terms are changing. Notices are designed to communicate concerns to applicants and borrowers and explain how to complete loan application requests. Along with being an informational notice, a loan denial triggers Regulation B requirements, and depending on the reason for denial, a Fair Credit Reporting Act (FCRA) notice may also be mandated. This webinar will focus on pinpointing when an inquiry becomes an application, important timing requirements, and proper completion of an adverse action notice and other notification options, including when there are unfavorable changes to the terms of an existing credit arrangement.
WHO SHOULD ATTEND?
This informative session is designed for all loan officers, loan processors responsible for denials and/or second reviews, compliance officers, and auditors.
