When you take adverse action on an application for a credit product/service, Regulation B requires you to disclose the specific reasons that led to your decision. Have you ever been told you are limited to the number of reasons you can disclose? This used to be common years back and while we don’t see that much anymore, we still occasionally run into institutions that think they cannot disclose more than four reasons on an adverse action notice.
David explains more in the video.
Video Highlights:
- Regulation B does not limit adverse action notices to only four reasons.
- You should disclose all the primary reasons for denial for the primary applicant, as well as any co-applicants.
- There is no privacy between co-applicants.
Published
2023/05/11
David’s banking career began as a field examiner for the FDIC in 1990. He later became a Compliance Officer and Loan Officer for a small bank. In 1993, he established Banker’s Compliance Consulting. Along with his amazingly talented Team, he has written numerous compliance articles for prestigious banking publications and has developed compliance seminars that Banker’s Compliance Consulting produces.
He is an expert in compliance regulations. He is also a motivational speaker and innovative educator. His quick wit and sense of humor transforms the usually tiring topic of compliance into an enjoyable educational experience. David is on the faculty of the American Bankers Association National Compliance Schools and has served on the faculty of the Center for Financial Training for many years. He also is a frequent speaker at the ABA’s Regulatory Compliance Conference. He is also a trainer for hundreds of webinars, is a Certified Regulatory Compliance Manager (CRCM) and has been a BankersOnline Guru for many years. The American Bankers Association honored David with their Distinguished Service Award in 2016.
David and his wife Karen have three adult children, four grandchildren (none of whom live at home!) and two cats (of which Dave is allergic … the cats, not the children!). They recently moved to an acreage outside of Lincoln, Nebraska where he gets to play with his tractor. When possible David can be found fishing, making sawdust in his shop, or playing the guitar and piano. He also enjoys leading worship at his church.
