COMPLIANCE TRAINING QUESTIONS
AND ANSWERS
WhatsdoessthesFairsCreditsReportsprotect?s-sans--
Protectssthesinterestssofspersonssaboutswhomsinformationsisscollectedsandsdistributedsbysc
onsumersreportingsagencies
WhosdoessFCRAsapplysto?s-sans--Individualssonly,sNOTsentities
FCAsprimarilysexaminessFCRAsforscompliancesinsconjunctionswithsreviewings____?s-sans--
Adversesactionsnotices,srisk-basedspricingsnotices
Whatsissadversesaction?s-sans--
Asdenialsorscancellationsof,sincreasesinschargesfor,sorsreductionsorsothersunfavorableschang
esinstermssorscoveragesorsamountsofscreditsorsinsurance.sAsdenialsofsemploymentsorsothersd
ecisionsforsemploymentspurposessthatsissadversestosthesemployee.sAsdenialsorscancellation
sof,sincreasesinschargesfor,sorsothersunfavorableschangesinsthestermssofsanysgovernmentslic
ensesorsbenefitswheresfinancialsresponsibilitysorsstatussmustsbesconsidered.sAnsactionsorsd
eterminationsmadesinsconnectionswithsansapplicationsbysorstransactionsinitiatedsbysthescons
umersandsissadversestosthesconsumer.
Whatsaresthesadversesactionsdisclosuresrequirements?s-sans--
Name,saddress,stelephonesnumbersofsthesCRAsfurnishingsthesreportsandsasstatementsthatst
hesCRAsdidsnotsmakesthesdecisionstostakesthesadversesactionsandsissunablestosprovidesthesc
onsumerswithsspecificsreasonsswhysthesadversesactionswasstaken.sAsnoticesofsthesrightstoso
btainsasfreescopysofsthesconsumersreportsfromsthesCRAsincludingsnoticesofsthes60sdaysperio
dsforsobtainingsascopysandsthesrightstosdisputeswithsthesCRAsthesaccuracysorscompletenesss
ofsthesinfosinsthesconsumersreport
FACTsActsofs2003s-sans--
FinancialsinstitutionssandscreditorsswithscoveredsamountssmustsimplementsaswrittensIDsthef
tspreventionsprogramstosdetect,spreventsandsmitigatesIDstheftsinsconnectionswithsthesopenin
gsofsascoveredsaccountsorsanysexistingscoveredsaccount
Risk-basedspricingsnotices-sans--
Ifsthesinstitutionsisssettingstermss(interestsrate,slengthsofsloansetc.)sbasedsonscreditsscore,sth
eysneedstosprovidesthissnoticeswithsthescreditsscoreswithsthessource,sdatesetc.
Whensweresborrowersrightssenactedsinscongress?s-sans--1987
, Whatsdosthesborrowersrightssinclude?s-sans--1)sNotificationsofsinterestsrates
2)sDisclosuresofsloansdocuments
3)sDistressedsloansrestructuring
4)sNoticesofsactionsstakensonsloansapplications/DLR's
5)sCreditsReviewsCommitteesappeals
6)sAnsopportunitystosrepurchasespropertyslostsinsforeclosuresorsothersliquidationsactionss(Ri
ghtsofsFirstsRefusal)
Whatsissthesdefinitionsofsasloansundersborrowersrights?s-sans--
CreditstosasfarmersforsansAGsorsaquaticspurpose,sincludingsotherscreditsneedssandsprocessi
ngsandsmarketing.sExcludessruralshousing,sfarmsrelatedsbusinessessandsloansstoscooperati
vessmadesunderstitles3
Whatsissthesdefinitionsofsqualifiedslendersundersborrowersrights?s-sans--
Systemsinstitutionss(exceptsbankssforscooperatives).s(Non-
qualifiedslendersswouldsbesothersfinancialsinstitutionssoutsidesthessystem)
Whatsissasloansparticipationsdefinitionsundersborrowersrights?s-sans--
Asfractionalsundividedsinterestsinsthesprincipalsamountsofsasloansthatsisssoldsbysasleadslender
stosa sparticipatingsinstitution
Whensdoessasparticipationsreceivesborrowersrights?s-sans--
IfsthesleadslendersissasSystemslender
Whatsissasloanssyndicationsdefinitionsundersborrowersrightss-sans--
Asmultislenderstransactionsinswhichseachsmembersofstheslendingssyndicateshassasdirectscont
ractualsrelationshipswithsthesborrowers(DosNOTsgetsborrowersrights)
Whenscansborrowersrightssbeswaived?s-sans--Secondarysmarketsandsnon-
qualifiedslenderssalessandsloanssyndications,sandsSBAsguaranteedsloans
Allswaiverssmustsbesdones___sands____.s-sans--Voluntarilysandsinswriting
LoanssalesstosFCAsInstitutions(can/cansnot)sbeswaivereds-sans--
Cansnot.sLoanssmadesbysqualifiedslenderssandsinterestsinssuchsloanssthatsaressoldstosothers
qualifiedslenderssaressubjectstosborrowersrights
Loansdesignatedsforssalesintosassecondarysmarkets(are/aresnot)sexemptsfromsborrowersrigh
ts?s-sans--
Are.sThesborrowersrightssprovisionsofsthesactsexemptssloanssdesignatedsforssalesintosasseco
ndarysmarketswhensdesignatedsforssalesatsthestimesthesloansissmadesandsactuallyssoldswithi
ns180sdays.
Ifsthesloansissnotssoldsintosassecondarysmarketsduringsthes180sdaysperiod,swhatshappenssons
thes181stsday?s-sans--Borrowersrightssreattachsonsthes181stsday
AND ANSWERS
WhatsdoessthesFairsCreditsReportsprotect?s-sans--
Protectssthesinterestssofspersonssaboutswhomsinformationsisscollectedsandsdistributedsbysc
onsumersreportingsagencies
WhosdoessFCRAsapplysto?s-sans--Individualssonly,sNOTsentities
FCAsprimarilysexaminessFCRAsforscompliancesinsconjunctionswithsreviewings____?s-sans--
Adversesactionsnotices,srisk-basedspricingsnotices
Whatsissadversesaction?s-sans--
Asdenialsorscancellationsof,sincreasesinschargesfor,sorsreductionsorsothersunfavorableschang
esinstermssorscoveragesorsamountsofscreditsorsinsurance.sAsdenialsofsemploymentsorsothersd
ecisionsforsemploymentspurposessthatsissadversestosthesemployee.sAsdenialsorscancellation
sof,sincreasesinschargesfor,sorsothersunfavorableschangesinsthestermssofsanysgovernmentslic
ensesorsbenefitswheresfinancialsresponsibilitysorsstatussmustsbesconsidered.sAnsactionsorsd
eterminationsmadesinsconnectionswithsansapplicationsbysorstransactionsinitiatedsbysthescons
umersandsissadversestosthesconsumer.
Whatsaresthesadversesactionsdisclosuresrequirements?s-sans--
Name,saddress,stelephonesnumbersofsthesCRAsfurnishingsthesreportsandsasstatementsthatst
hesCRAsdidsnotsmakesthesdecisionstostakesthesadversesactionsandsissunablestosprovidesthesc
onsumerswithsspecificsreasonsswhysthesadversesactionswasstaken.sAsnoticesofsthesrightstoso
btainsasfreescopysofsthesconsumersreportsfromsthesCRAsincludingsnoticesofsthes60sdaysperio
dsforsobtainingsascopysandsthesrightstosdisputeswithsthesCRAsthesaccuracysorscompletenesss
ofsthesinfosinsthesconsumersreport
FACTsActsofs2003s-sans--
FinancialsinstitutionssandscreditorsswithscoveredsamountssmustsimplementsaswrittensIDsthef
tspreventionsprogramstosdetect,spreventsandsmitigatesIDstheftsinsconnectionswithsthesopenin
gsofsascoveredsaccountsorsanysexistingscoveredsaccount
Risk-basedspricingsnotices-sans--
Ifsthesinstitutionsisssettingstermss(interestsrate,slengthsofsloansetc.)sbasedsonscreditsscore,sth
eysneedstosprovidesthissnoticeswithsthescreditsscoreswithsthessource,sdatesetc.
Whensweresborrowersrightssenactedsinscongress?s-sans--1987
, Whatsdosthesborrowersrightssinclude?s-sans--1)sNotificationsofsinterestsrates
2)sDisclosuresofsloansdocuments
3)sDistressedsloansrestructuring
4)sNoticesofsactionsstakensonsloansapplications/DLR's
5)sCreditsReviewsCommitteesappeals
6)sAnsopportunitystosrepurchasespropertyslostsinsforeclosuresorsothersliquidationsactionss(Ri
ghtsofsFirstsRefusal)
Whatsissthesdefinitionsofsasloansundersborrowersrights?s-sans--
CreditstosasfarmersforsansAGsorsaquaticspurpose,sincludingsotherscreditsneedssandsprocessi
ngsandsmarketing.sExcludessruralshousing,sfarmsrelatedsbusinessessandsloansstoscooperati
vessmadesunderstitles3
Whatsissthesdefinitionsofsqualifiedslendersundersborrowersrights?s-sans--
Systemsinstitutionss(exceptsbankssforscooperatives).s(Non-
qualifiedslendersswouldsbesothersfinancialsinstitutionssoutsidesthessystem)
Whatsissasloansparticipationsdefinitionsundersborrowersrights?s-sans--
Asfractionalsundividedsinterestsinsthesprincipalsamountsofsasloansthatsisssoldsbysasleadslender
stosa sparticipatingsinstitution
Whensdoessasparticipationsreceivesborrowersrights?s-sans--
IfsthesleadslendersissasSystemslender
Whatsissasloanssyndicationsdefinitionsundersborrowersrightss-sans--
Asmultislenderstransactionsinswhichseachsmembersofstheslendingssyndicateshassasdirectscont
ractualsrelationshipswithsthesborrowers(DosNOTsgetsborrowersrights)
Whenscansborrowersrightssbeswaived?s-sans--Secondarysmarketsandsnon-
qualifiedslenderssalessandsloanssyndications,sandsSBAsguaranteedsloans
Allswaiverssmustsbesdones___sands____.s-sans--Voluntarilysandsinswriting
LoanssalesstosFCAsInstitutions(can/cansnot)sbeswaivereds-sans--
Cansnot.sLoanssmadesbysqualifiedslenderssandsinterestsinssuchsloanssthatsaressoldstosothers
qualifiedslenderssaressubjectstosborrowersrights
Loansdesignatedsforssalesintosassecondarysmarkets(are/aresnot)sexemptsfromsborrowersrigh
ts?s-sans--
Are.sThesborrowersrightssprovisionsofsthesactsexemptssloanssdesignatedsforssalesintosasseco
ndarysmarketswhensdesignatedsforssalesatsthestimesthesloansissmadesandsactuallyssoldswithi
ns180sdays.
Ifsthesloansissnotssoldsintosassecondarysmarketsduringsthes180sdaysperiod,swhatshappenssons
thes181stsday?s-sans--Borrowersrightssreattachsonsthes181stsday
