regulatory and compliance issues and considerations

Agreement/Advance Voucher;
and either this item or the
“advance proceeds check” has
to be signed. Thus, signatures
are generally required for
collateral loans (which most
CE loans are). Note: The
MFOE Plans rely on advance
proceeds checks being
properly drawn and endorsed
to provide a proper security
interest under UCC Article 9.
Query – pull a sampling of
your current OE loans and see
if: (1) The checks are always
made payable to all owners of
the collateral to be pledged;
and (2) all of those persons
actually endorse the advance
proceeds check.
laws have caught up with
technology. Remote lending is
very much possible; most
likely simpler; and less likely to
create the paper mistakes of
current OE systems.
Remote Lending See Above See above. Also with a CE
Loan Application that provides
the Application will serve for all
loan requests, the CE system
and technology can in fact
facilitate remote lending.
Internet banks use it
exclusively – not OE loan
forms.
In Branch Closings See Above See Above
Modifications
“Skip-a-pay” Programs
As an OE Plan (an ongoing
relationship) many changes
require disclosures under
TILA/Z; of may need to be
addressed via the Credit
Union’s Periodic Statement
with revised or additional
disclosures.
Require additional disclosures;
or in most cases – are not
allowed where fees are
charged (as these fees affect
the APR).
As a CE loan, modifications
generally require no
disclosures. Though some
simple confirmation is
generally recommended.
Readily Available as TILA/Z
have no requirements; and
fees are not considered in the
APR.
Moving forward together to meet members' needs and to exceed expectations,
Todd
Copyright©1994-2010 by Credit Union Resources & Educational Services, LLC. All rights reserved.
Revised February 2010
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