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Bulletin C-04-2




TO: All Industrial Loan and Thrift Companies

SUBJECT: Routine Periodic Examinations

DATE: June 16, 2004

The department has recently received requests from the industry to better clarify the examination process.

The Department conducts periodic examinations of all companies registered or licensed with this Department and conducts special examinations on unlicensed entities. A supplement to the examination will be given to each company the date of examination. Basic information is requested concerning the type of loans, term, dollar amount, and certain information regarding insurance penetration and broker fees. A loan register of all applications taken is requested and a selection will be made from the loans closed, denied, extended and paid out. A repossession log must be kept active if applicable. The examiners will make a selection from this register and will request complete loan files. Files should contain the original application, security agreement, insurance certificate, truth in lending disclosures, note, and a copy of the previous loan if applicable. If this is a loan secured by real estate, files should include, but not limited to, a copy of the appraisal, note, truth in lending disclosure, HUD-l or HUD-l(a) documents, right of rescission, section 32 disclosure and copies of all checks issued for this loan. If the loan has been withdrawn or rejected, a copy of the Equal Credit Opportunity Act ("ECOA") adverse action notice should be attached to the application.

This bulletin is meant for informational purposes only and is not meant to be exhaustive in nature.

Any questions should be directed to the Department's Compliance Division in care of Nita Taylor, Director of Examinations or Mike Igney, Program Administrator at (615) 741-2236.

Fred R. Lawson