Form U4 specifically 14K

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Oct 20, 2009 5:24 pm

Had a question on the application of question 14K on the U4 (Disclosure Questions) and would appreciate any answers and if your answer is an opinion on based on experience / knowledge.

Question 14K (1) Within the past 10 years - have you made a compromise with creditors, filed a bankruptcy petition or been the subject of an involuntary bankruptcy petition?

My question to the forum, do you answer YES to any of the following:

1) a foreclosure
2) a short sale of your home
3) a loan modification

Oct 20, 2009 6:52 pm
dolphin:

Had a question on the application of question 14K on the U4 (Disclosure Questions) and would appreciate any answers and if your answer is an opinion on based on experience / knowledge.Question 14K (1) Within the past 10 years - have you made a compromise with creditors, filed a bankruptcy petition or been the subject of an involuntary bankruptcy petition?My question to the forum, do you answer YES to any of the following:1) a foreclosure2) a short sale of your home 3) a loan modification



I would say it is definitely yes in all your cases, not my opinion, its a fact.

Oct 20, 2009 6:56 pm

you want to make sure you answer yes to all of those for the quickest processing times. 

Oct 20, 2009 7:06 pm

not that I disagree (millionaire mind) but what is your support for answering yes to all three categorically?  If someone modified their loan where the principal remains the same but terms were adjusted (say term was extended from 30 to 40 years, interest rate reduced, etc...), would that be defined as a "compromise"? 

I get the short sale. 

I'm not sure about the foreclosure - doesn't sound like a compromise at all but I think one would have to answer the question of ADV about unsatisfied judgments / lien in the negative.  Just thinking out loud.

Oct 20, 2009 7:16 pm

Agree with dolphin, modification shouldn't matter. Not sure they would care about short sale, but might want to mention it.. But definitely forclosure...



Oct 20, 2009 7:20 pm

well a i'm pretty sure a short sale stays on your credit for 2 years, foreclosure is 3. I think in any case you will have to supply paperwork and explain why these things happened.

My friend back in FA training had a bear of a time about a bounced check he wrote like 4 years ago for $28.

Oct 20, 2009 7:24 pm

I think that is some crap. My former partner, Had 3 Credit cards in collections and he had no problems.

Oct 20, 2009 9:04 pm

On the loan modification you may have a point, If it was me I would disclose on the side of caution. If you couldn't pay the loan and they rewrote the terms, I would call that a compromise. Did you check with registration?

Oct 21, 2009 12:45 am

Who is registration?  Is that FINRA? or the state?  Not sure what you mean by "Did you check with registration?"

Oct 21, 2009 12:30 pm

He means your B/D's registration department.

Oct 21, 2009 12:44 pm
Wet_Blanket:

He means your B/D's registration department.

 
Good job WB.  And MillionaireMind is correct - you'll need your Reg Dept's guidance on this.
Oct 21, 2009 4:31 pm

Got a question about this too - i'm insurance licensed and going to do either Series 7/66 or 6 & 63, 65

This U4 question got me a little worried... I had a jacka$$ ex biz partner run up some ccards and i got stuck with the bills unknowingly, all in collections (3) and one did the civil filing to try to obtain judgement but they can't prove it as of now...

Anyway, how will this affect me?

Oct 22, 2009 8:23 am
gettingstarted:

Got a question about this too - i'm insurance licensed and going to do either Series 7/66 or 6 & 63, 65

This U4 question got me a little worried... I had a jacka$$ ex biz partner run up some ccards and i got stuck with the bills unknowingly, all in collections (3) and one did the civil filing to try to obtain judgement but they can't prove it as of now...

Anyway, how will this affect me?

 
You will have to report it on your U-4 and provide your firm with an explanation of what happened.  You may or may not get bonded.  Not to scare you, because it is really up to your firm (and possibly FINRA) but I would be concerned.
Oct 22, 2009 12:01 pm

I was going to tell you just don't report it(firms do credit checks they know what you owe) but with the civil thing(not sure what that is) you will probably have to list it.

Oct 22, 2009 1:09 pm

I am able to just settle the civil thing before it goes to any judgement so I guess I'll go ahead and do that to get it out of the way.

Squash1:

I was going to tell you just don't report it(firms do credit checks they know what you owe) but with the civil thing(not sure what that is) you will probably have to list it.

Oct 22, 2009 1:18 pm
gettingstarted:

I am able to just settle the civil thing before it goes to any judgement so I guess I'll go ahead and do that to get it out of the way.

 
You'll need to report that.
Oct 23, 2009 8:16 am

New to the board... it's great.  Here's a what-if question...  What happens if... AFTER you are hired and start training, your credit suffers, or even tanks because the start up salary is so small.  Can they/will they look at that in the future or is it that once you're in, you're in?  Thanks.

Oct 23, 2009 10:23 am
LeaseNoMore:

New to the board... it's great.  Here's a what-if question...  What happens if... AFTER you are hired and start training, your credit suffers, or even tanks because the start up salary is so small.  Can they/will they look at that in the future or is it that once you're in, you're in?  Thanks.

 
Most reputable firms run credit checks annually for FAs.  Some firms may not be concerned about low credit scores - as long as you didn't compromise on any debt obligations.  Some firms are very concerned about credit scores, with the thought of "if you can't manage your own money, how can you manage clients'".
 
Not saying I agree with it, but that's the world we live in.