1. Have a written policy in place that describes how you will comply with Reg Z.
Your policy should include a description of how you will ensure that borrowers receive accurate information about their loan costs and terms, as well as how you will protect against discrimination in lending. It is also important to have a policy on how you will respond to borrower complaints.
2. Make sure all employees who deal with borrowers are familiar with Reg Z and your policy.
It is important for all employees who deal with borrowers to be familiar with Reg Z and your company's policy on compliance. This includes everyone from loan officers to customer service representatives.
3. Provide borrowers with a disclosure statement that accurately reflects the terms of their loan.
Your disclosure statement must accurately reflect the terms of the borrower's loan, including the interest rate, the total cost of the loan, and any fees or penalties associated with the loan.
4. Make sure borrowers receive accurate information about their loan costs and terms.
Borrowers should receive accurate information about their loan costs and terms, including the interest rate, the total cost of the loan, and any fees or penalties associated with the loan. This information should be disclosed in a clear and concise manner.
5. Protect against discrimination in lending.
Regulation Z prohibits lenders from discriminating against borrowers based on race, color, national origin, sex, marital status, religion, age, or receipt of public assistance.
6. Ensure that loans are properly documented.
Lenders must ensure that all loans are properly documented according to Regulation Z requirements. This includes documenting the terms of the loan agreement, as well as verifying the accuracy of any information on the credit application.
7. Verify the accuracy of the information on credit applications.
Any information on a credit application must be verified for accuracy before a loan is approved. This includes verifying the borrower's name, address, social security number, and employment history.
8. Make sure borrowers have the ability to repay their loans.
Borrowers must have the ability to repay their loans according to Regulation Z requirements. This means that lenders must take into account a borrower's income, assets, and debts when approving a loan application.
9. Respond to borrower complaints promptly and fairly.
Lenders must respond to any borrower complaints quickly and fairly in accordance with Regulation Z requirements. This includes providing the borrower with all relevant information about their loan, as well as a fair and equitable resolution of the complaint.
10. Keep records of your compliance efforts.
Regulation Z requires lenders to keep detailed records regarding their compliance efforts. These records should include copies of disclosure statements, documents pertaining to customer complaints, and other documents related to your lender's compliance activities.