DCW
Notice of Incomplete/Counter Offer
CIP/Red Flags
Secondary Market
Fair Lending
100

When denying a car loan due to LTV ratio, this needs to be included in the DCW file

What is NADA value?

100

This date is required to be provided in the Notice of Incomplete to the borrowers to be in compliance

What is date the documents must be provided by for further consideration/What is 10 days?

100

4 pieces of information that must be collected to be able to properly identify a new customer

What is name, street address, date of birth, and I.D. number?

100

Sometimes a coborrower does not need this, to be approved for secondary market

What is a credit score?

100

Giving a borrower a different rate than what is listed on the rate sheet or produced by Marksman for secondary market requires this

What is a 4-star approval?

200

Reg B requires a credit decision within this amount of time from the application date

What is 30 calendar days?

200

FCB Guidelines require a Notice of Incomplete to be provided within this amount of days of knowing additional documentation is required

What is within 15 days of knowing additional documentation is required?

200

A possible OFAC match on the credit bureau report requires the loan officer to do this

What is run OFAC through Premier?

200

DO recommendation that does not automatically result a denial, however may require additional documentation and manual underwriting

What is ‘refer with caution’?

200

This lending practice that relates to FCB rate/term sheet puts the bank at risk for Fair Lending violations

What is offering rate & terms different than stated on the rate sheet?

300

One of these three documents must be included in all DCW files regarding DTI (3 part answer)

What is LCW, 1008, or DO?

300

1/10/2022: Application date

2/10/2022: Counter offer of a creditworthy co-borrower extended to borrower. The issue with this timeline is

What is Reg B violation?

300

A FACTA alert appears on the credit bureau report with a specific phone number prior to extending credit requires this action to be taken (2 part answer)

What is call specific phone number and document red flag resolution?

300

Loan officers receiving DO recommendations other than ‘approve/eligible’ on secondary market loans should do this

What is consult secondary market to determine if they can proceed and if not, what the actual denial reasons are?

300

When applicants are treated differently based on a prohibited basis

What is disparate treatment?

400

Borrower with a DTI of 51.73% before the new payment is applied recieves this denial reason

What is excessive current $$ obligation in relation to income?

400

If documents requested are not provided by the date listed on the Notice of Incomplete, this is the action taken on the DCW worksheet

What is incomplete application?

400

An incorrect Date of Birth entered on a Credit Bureau Report requires this action (2 part answer)

What is verify the Date of Birth with the Driver's License provided by the applicant and document red flag resolution

400

When an applicant does not qualify for secondary market, this is the next step

What is review file for possible in-house counter offer?

400

The risk of making a credit decision based only on credit without fully reviewing compensating factors

What is Fair Lending Risk?

500

When denying a minority applicant, this action is required

What is second level review?