Question of the Week

  • QUESTION: The bank wants to enact a fair lending self-testing program. The program meets the criteria described in Reg B to ensure privileged information. If self-testing finds violations, is the bank safe from having the results used against it?

    ANSWER: 

    If the bank’s program meets the criteria set forth in Regulation B 1002.15(d)(3) the self-test report or results and any other information privileged under this section may be obtained and used by an applicant or government agency solely to determine a penalty or remedy after a violation of the Act or this part has been adjudicated or admitted. Disclosures for this limited purpose may be used only for the particular proceeding in which the adjudication or admission was made. Information disclosed remains privileged.

    Reference: Regulation B 1002.15(d)(3); see also the Official Staff Interpretation 1002.15 for additional information about what information is privileged and not privileged under self-testing.



Question of the Week Archive

  • QUESTION: The bank has started marketing on social media. The bank wants to market deposit accounts. What must the bank be aware of when marketing on social media?

  • QUESTION: If a service member does not notify the bank of active duty until months after they receive active duty orders, does this bank need to go back to the original date of the orders or the date it receives notification for the 6% maximum rate?

  • QUESTION: Is the director of an affiliate bound by the extension of credit requirements of Regulation O?

  • QUESTION: The consumer reporting agency generates the credit score disclosure and includes three scores. Is the lender required to indicate which score was used to price the loan under the Fair Credit Reporting Act?

  • QUESTION: In understanding the nature and purpose of customer relationships, are financial institutions required to develop and document customer risk profiles for self evident products or customer type (e.g., a safe deposit box)?

  • QUESTION: If a bank originates a 2nd mtg for a property in a SFHA & the 1st lien holder does not have sufficient flood coverage for both liens & does not escrow for flood insurance, does the 2nd lien holder have to escrow for the additional insurance?

  • QUESTION: Does error resolution apply to a prepaid account for which the consumer identification and verification process is not completed?

  • QUESTION: Is training required for bank personnel who do not sell nondeposit investment products?

  • QUESTION: Under the Children’s Online Privacy Protection Act (COPPA), what is meant by parental consent?

  • QUESTION: The bank has some customers who want to receive all correspondence via social media. Now the bank wants to use social media for debt collection, is the use of social media permissible under Fair Debt Collection Practices Act?

  • QUESTION: How are refinancing’s of small business loans, which are secured by a one-to-four family residence and that have been reported under HMDA as a refinancing, evaluated under CRA?

  • QUESTION: Are new disclosures required to be provided under the Military Lending Act for a renewal of a covered transaction?

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