1. In order to determine whether a commitment falls within the credit limit of the National Bank or the Savings Bank, the Bank or the Savings Association may deduct from the amount of the commitment the amount of any obligation to participate in a legally binding loan issued at the same time as the commitment of the Bank or the Savings Association which would be excluded from the definition of the term “loan or credit extension” in paragraph (q)(2) (vi) of this Section. 2. This Part shall not apply to loans or credit extensions to the bank or savings banks: (7) Loans to financial institutions with the agreement of the competent Bundesbank agency. Loans or extensions of loans to a financial institution or beneficiary, custodian, bank superintendent or any other agent responsible for the activity and ownership of a financial institution when an emergency situation arises and a national bank or savings association is invited to provide support to another financial institution and the loan is approved by the competent Bundesbank agency. For the purposes of this subsection, “financial institution” means a commercial bank, savings bank, trust company, savings bank or credit union. 3. Student loans. In a secured student loan program, a creditor can obtain a parent`s signature as a guarantor if required by federal or state laws or government regulations, or if the student does not meet the creditor`s credit standards. (See §§ 1002 Abs.
7 D S. 1 and 5.) The creditor cannot require an additional signature if a student has a professional or credit history that meets the creditor`s standards. 5. Pre-qualification requests. Whether a creditor is required to provide notice of the steps taken for a prequalification application depends on the creditor`s response to the request, as set out in article 2 (f)(3). For example, a creditor may treat the application as an application if the lender evaluates certain consumer information and provides the consumer with the loan amount, interest rate and other credit terms that the consumer may be eligible for under various credit programs, explaining the process that the consumer must follow to submit a mortgage application, and the information that the lender will analyze when making a credit decision. On the other hand, a lender has treated an application as a claim and is subject to the counterclaim notification requirements under section 1002.9 if, after reviewing the information, the lender decides that it does not approve the claim and communicates that decision to the consumer. For example, if the lender tells the consumer that it would not approve a mortgage application due to bankruptcy in the consumer`s file, the lender has rejected a loan application. (b) the date of entry into force. 1. The credit limit of a national savings bank or association calculated in accordance with point (a)(1) of this Section shall apply from the earlier of the following dates: (q) Loans and credit extensions are direct or indirect advances granted by a national bank or savings association to or on behalf of a borrower, on the basis of the borrower`s obligation to repay the funds or repay them from certain pledged or pledged assets. on behalf of the borrower; and any credit risk, as determined in accordance with Article 32.9, arising out of a derivative or SFT transaction.
(cc) Small business loan: a loan or loan extension “secured by a non-residential non-agricultural building” or “a commercial or industrial loan” as defined in the instructions for the preparation of the consolidated condition and income report. (6) Loans secured by separate deposit accounts. Loans or extensions of loans, including parts thereof, to the extent that they are secured by a separate deposit account with the National Bank or the Lending Savings Association, provided that a security right in the deposit has been created under the applicable law. (iv) Any other subsidiary consolidated under GAAP with the Bank or Savings Association. (c) loans and credit extensions granted to all borrowers in accordance with point (d)(2)(i) do not exceed a total of 150 % of the impaired capital and impaired surplus of the savings association; and 8. Automatic rejection. Some credit decision methods include features that require automatic rejection due to one or more negative factors in the applicant`s file (e.g., the applicant`s history of poor credit history with that creditor, the applicant`s declaration of bankruptcy or the fact that the applicant is a minor). If a creditor rejects the loan application on the basis of an automatic refusal factor, it must disclose that specific factor. (c) More frequent calculations. If, for reasons of security and soundness, the competent Bundesbank agency decides that a national bank or an association of savings banks should calculate its credit limit more frequently than provided for in point (a) of this section, the competent Bundesbank agency may send a written notification to the National Bank or the Association of Savings Banks requesting it to calculate its credit limit at a later interval. frequent.
and the National Bank or savings account then calculates its credit limit at that interval until further notice. (iv) the holder of warehouse receipts, bills of lading, documents considered title under the Single Commercial Code or other similar documents must have control and be able to immediately obtain possession of the staple food so that the bank or savings association is able to sell the underlying staple foods and immediately transfer ownership and possession to a buyer; if a loan secured by these documents is in default. The existence of a short notice period or similar procedural rules under the applicable law for the sale of collateral shall not affect the suitability of the instruments for that particular ceiling. The Fair Housing Act prohibits discrimination against loan applicants on the basis of race, colour, sex, national origin and other protected personal characteristics. A law called the Real Estate Settlement Procedures Act (RESPA) prohibits those who refer a settlement service from receiving a fee or other portion of the product. It also requires lenders to provide certain information throughout the loan process and to give the consumer a good faith estimate of the closing costs expected to close the loan. For loans that fall under TILA, you have a right of withdrawal, which gives you three days to reconsider your decision and withdraw from the loan process without losing any money. This right protects you from high-pressure selling tactics used by unscrupulous lenders. (b) “borrower” means a person designated in a loan or extension as borrower or debtor; a person in respect of whom a national bank or a savings bank association presents a credit risk arising from a derivative transaction or a securities financing transaction registered by the bank or savings association; or any other person, including a drawer, endorser or guarantor, who is considered a borrower within the meaning of the `direct benefit` or `joint venture` criteria referred to in section 32.5.
