Determining if a loan is business or consumer purpose is a basic but extremely important step in lending. It has been important for many years (Regulation Z was enacted in 1968!) yet banks still spend a great deal of time making the distinction.
This two hour webinar will show you how to make this key decision and put processes in place to get it right every time. Creation of a firm process will protect the bank from disclosure errors and regulatory violations, potential civil money penalties and legal risk (and save valuable time)!
Using examples, the webinar will review the rules and present ways to make the decision. Kathleen will walk you through problem scenarios such as:
- Does the type of collateral matter?
- Can a business entity borrow for a consumer purpose?
- What if the borrower is an individual?
- If the loan is determined to be consumer purpose under Regulation Z, is it also consumer purpose for other regulations?
- What is a personal investment vs a business investment?
- Is a refinance of a rental property a business purpose loan?
- Why should we care?
Business or Consumer Purpose, That Is the Question!
Questions and Answers