CRCM Study Flash Cards Tier 1 Regulations - Non Reg Z

Reg DD - Truth in Savings - Advertising APY Triggering Words

APY as a trigger term: Spell out "annual percentage yield" at least once in the ad, Disclose it to 2 decimal places, If you have an interest rate in the ad, you must also have the APY, APY then triggers more disclosure

BSA- Enhanced Due Diligence (EDD)

Additional examination and cautionary measures aimed at identifying customers and confirming that their activities and funds are legitimate. Used for high-risk customers and is critical in understanding anticipated transactions and implementing a suspicious activity monitoring system that reduces risks

CRA - Community Development

Affordable housing for low- or moderate income (LMI) individuals or families. Community services targeted to LMI individuals. Activities that promote economic development by financing small businesses and farm Activities that revitalize or stabilize LMI, Distressed/Underserved and Designated Disaster Areas.

CRA - Strategic Plan

All institutions, no matter their size or business strategy, may take advantage of the strategic plan option, which allows an institution to develop a plan for meeting its CRA responsibilities, subject to approval by its supervisory agency.

Fair Housing Act - Coverage (Consumer and Commercial)

Anti-discrimination Rule - Prohibits discrimination on prohibited bases for dwelling-related transactions. Includes consumer and commercial loans. Not limited to 1- to 4-family dwellings. Prohibited bases include Handicap and familial status (e.g. Do you have kids?) are prohibited bases under FHA.

Identity Theft Prevention Program - Related Guidelines Address Changes

Assess the validity of address changes for consumer debit and credit card issuers. Address change followed by a request for a new card within 30 days - This maybe a red flag. What do you do? Notification requirements - validate the change. Cannot issue the additional card until validating the request.

Identity Theft Prevention Program - Definition and Coverage

Banks must have a written Identity Theft Prevention Program. Covers consumer purpose accounts. Program must address accounts where identify theft is most likely to occur.

CRA - Intermediate Small Banks (321 Million to 1284 Million)

Banks under the small bank lending test and a community development test consisting of its efforts in community development lending, investment, and services.

FCRA - Reg V - Risk-Based Pricing Notice

Based on credit report information, consumer is provided a risk-based pricing notice when the material terms offered a consumer are materially less favorable than the most favorable terms available to a substantial portion of consumers. You pay higher interest rate on loan because of negative items on credit report, but not a complete denial.

BSA- CIP (US Patriot Act) Recordkeeping

CIP must contain procedures for making and maintaining records of all information obtained Not necessarily actual copies of the documents themselves, just descriptions of the documents relied upon. Although federal law doesn't prohibit keeping copies, other laws might (e.g. state)

BSA- CIP (US Patriot Act) Lists

CIP must include procedures for determining whether the customer appears on any list of known or suspected terrorists or terrorist organizations issued by any Federal government agency and designated as such by Treasury" - Use OFAC list and policy and procedure

BSA- CIP (US Patriot Act) Notice to Customers

CIP must provide procedures to giving customer advance ORAL or WRITTEN notice that the Bank is requesting information to verify their identifies: BEFORE the account is opened and may be posted in lobby or website or part of account application.

FFIEC Joint Overdraft Guidance - Forbidden Practice - ATM and 1 Time Debit Card Transactions

CONDITION the payment of checks, ACH transactions and other types of transaction based on the consumer affirmatively consenting to the payment of ATM and one-time Debit card transactions OR DECLINE to pay checks, ACH transactions, and other types of transactions that overdraw the consumer's account because the consumer has not affirmatively consented to the institution's overdraft service for ATM and one-time debit card transactions.

BSA-CTR Exemptions: Automatically Exempt (Phase 1)

CTR Exemptions: Automatically Exempt Phase I: automatically eligible for an exemption.Other financial institutions (banks, credit unions, FRBs)Any entity performing governmental-type functions. Listed entities (including their subsidiaries) - listed on an Stock Exchange - Be careful of franchises

FCRA - Reg V - Fraud Alerts and Identity Theft Victims

Call credit reporting agency and place three types of alerts (one call initial alert, extended alert valid for 7 years triggered by identity theft report, or active duty alert). When these alerts are in place, the consumer is does not authorize any new credit or any new cards or increases in credit limits for existing unless the user follows reasonable policies and procedures to know requesters identity. If a identify theft victrum, consumer has right to received documentation and bank cannot re-pollute credit report - items must be removed.

BSA Currency Transaction Reporting (CTR) - More than 10,000

Cash-in or cash-out of more than $10,000 $10,000 exactly is not reportable (although it may be suspicious) Don't net against each other By the same person or for (on behalf of) the same person on any one business day May inform the person you are filing a CTR But gauge the reaction - suspicious? Structuring? If so, SAR

Reg DD - Truth in Savings - Change in Terms (30 Days)

Change in Terms - Must be given if adverse such as change in APY (Annual Percentage Yate) or a disclosed term. Must be 30 days in advance before the date of change.

OFAC - Duties and Responsibilities

Check parties against the names on the list or countries and block or reject offending - can be RISK-BASED. Automated screening. Looking for a Hit. If you have a match, you report to the Treasury within 10 DAYS done in writing or optional reporting form.

CFPB Complaints Escalation

Consumer complaints that raise legal issues involving the following must be categorized and escalated (including to Board and Senior Management): Potential consumer harm from UDAAP or discrimination, or other ""significant consumer harm"" Unauthorized product enrollment Account openings or upgrades (including addition of ancillary products) Improper sales practices Imminent foreclosures, or Other regulatory compliance issues

Reg DD - Truth in Savings - Coverage and General Disclosures

Consumer purpose, covers deposits accounts. Lender must determine purpose. Disclosures must be given at or before account opening OR upon customer request. It can be in writing or electronically if customer consents.

Flood Disaster Protection Act (FDPA) - Coverage Areas

Covers any loan secured by improved real estate or insurable mobile home. Collateral-dependent not purpose dependent. Improved Real Estate a building greater than 50% value is above ground OR Mobile Home (foundation, tied down, and connected to utilities). Construction - insurability begins one building rises above slab. Land is not insurable;

CRA - Wholesale and Limited Purpose Bank

Credit Card Companies, Mortgage Brokers, Bankers Bank, Non-retail, or other special banks under a community development test very similar to that of the intermediate small bank community development test.

FCRA - Reg V - Disclosure of Credit Scores

Credit Score - Numerical value or categorization derived from statistics or modeling used to predict the likelihood of certain credit behaviors. Upon Request by a consumer, the Bureau must provide current credit score and up to 4 Factors that negatively impact the credit. Key Factors are reasons that negatively affect credit score listed in order of importance.

FCRA - Reg FF - Medical Information

Creditors cannot use medical (Physical, mental, or behavioral health) information to determine a consumer's eligibility for credit unless of the type normally used in credit decisions (debts, expenses, etc.) such as medical collections.

Fair Debt Collection Practices Act - Restriction

Debt collectors CANNOT threaten prosecution, not allowed to contact debtors except to obtain information to the whereabouts of the debtor and the not allowed to CALL before 8AM and after 9PM.

FCRA - Reg V - Adverse Action

Denial of a loan or credit product based on wholly or partially due to information from a consumer report. If denial not based on consumer report, it could be Reg B Adverse action, but not Reg V FCRA Adverse Action. Provisions on sample adverse action form.

Reg DD - Truth in Savings - Advertising Versus Reg Z

Difference between Reg Z you do not have to spell out APR-just abbreviation. Don't have to APR to two decimal places. APY triggers more disclosures. Three types of media: Broadcast Media doesn't require as much content. In-Door requires more content. Reg Z has no differential

CRA Data Collection Reporting

Due March 1ST of following year (Same as HMDA) Small business and small farm loans Any business loan <$1 million; farm loan <$500,000 (size of the loan, not the business/farm) Loan amount categories in reporting Indicator if business has gross annual revenues of $1 million or less

BSA - Pouch Activity

Entails the use of a courier, carrier, or other agent that transports currency, monetary instruments, or other documents from outside the United States to a financial institution in the US.

FFIEC Joint Overdraft Guidance Timing (No Grandfathering)

Existing Account Holders: May not assess fees until OPT-IN Requirement met for accounts after August 15,2010. New Account Holders: Accounts opened after July 1 2010 are subject to Opt-Ins Requirement.

Identity Theft Prevention Program - Notice of Address Discrepancy

FCRA rule - Must form a reasonable belief that you know "the identity of the person to whom the consumer report pertains" - reconcile differences. CIP procedures appropriate for a new account. Only furnish an address to a credit bureau that you reasonably confirmed as accurate in new relationships.

Home Mortgage Disclosure Act (HDMA) - Thresholds for HMDA reporting and Coverage

FI Asset size More than $47 Million 1 Branch or Home Office in a Metropolitan Statistical Area (MSA) In Preceding calendar Year, originated or refinanced at least one home purpose loan secured by a first lien on 1-4 family dwelling Federally insurance, regulated or covered loan guaranteed by a federal agency or intended for sale by the institution to Fannie Me or Freddie Mac and originated in the 2 prior years: 25 Covered loans closed-ended mortgage or 500 covered open-line of credits (100 for 2020)

BSA - Non-Listed Business (Derived More than 50% of Gross Revenue) - Ineligible Business Activities

FinCEN also identified certain non-listed business activities that are ineligible for CTR exemption if the activities create more than 50% of its gross revenues: Auctioning of goods Chartering or operating ships, buses, or aircraft Engaging in gaming of any kind, such as selling lottery tickets Engaging in investment advisory or investment banking services Engaging in union activities Operating a pawn brokerage Operating real estate brokerage, title insurance activities, or real estate closings Practicing law, accounting, or medicine Purchasing or selling a motorized vehicle of any kind Serving as a financial institution, such as a check-cashing company

BSA (Monetary Instrument Record) - 3000 Or more in Cash

Financial institutions are required to keep that details customer purchases when there is a purchase of a monetary instrument for $3,000 or more in cash. A monetary instrument is a check, draft, cashier's check, money order, or traveler's checks. Required information about the instrument and the customer.

BSA - Money Services Businesses (MSBs) - Types and Examples

Financial services providers who are: Currency dealers or exchangers Check cashers Issuers of traveler's checks, money orders, or stored value Sellers or redeemers of traveler's checks, money orders, or stored value Money transmitters Conducts more than $1,000 in business with one person in one or more transactions in one category of activity in any one day Money transmitters have no activity threshold

Reg DD - Truth in Savings - Other Disclosures (Time Deposits)

For an automatically renewing time deposit, a notice before maturity (no post-maturity notice is required). If the term is under one year, the notice must contain when the new rate will be determined & a phone number. If the term is over one year, a complete new account disclosure is required (treat it like a new account)

FFIEC Joint Overdraft Guidance Opt-In Requirement Example

For example, if an institution's internal criteria would lead the institution to pay a check overdraft if the consumer had affirmatively consented to the institution's overdraft service for ATM and one-time debit card transactions, it must also apply the same criteria in a consistent manner in determining whether to pay the check overdraft if the consumer has not opted in.

Flood Disaster Protection Act (FDPA) - Participation in the NFIP

For flood insurance to be required, the community must participate in the National Flood Insurance Program (NFIP). If the community DOESN'T participate, no flood insurance is required by Regulation (Lender may still require it), you must still do the determination, complete SFHA, and give notice if the building is in a SFHA, and no government (FHA, VA, SBA, Freddie, Fannie) guaranteed loan can be made if the building is in a SFHA without flood insurance in place.

BSA - Funds Transfers Recordkeeping

Funds transfers include transmittals (such as wires) that instruct an institution to pay a certain amount of money to a recipient. Excluded: those under $3,000, covered by Reg. E, ACH, where both the originator and beneficiary are domestic financial institutions, securities brokers, or subs, government agency, or the same person using the same institution Record Retention Period: 5 years by originator's or beneficiary's or account number

Identity Theft Prevention Program - Program Elements

Identify relevant red flags and incorporate them into the program Detect red flags that have been incorporated into the program Respond appropriately to any red flags to prevent and mitigate identity theft Ensure program is updated periodically to reflect changes in risks. Must have periodic risk assessment of identity theft

FCRA - Reg V - Disclosure of Credit Scores NHLA

If a consumer wanted to apply for a 1 to 4 family residential real property for consumer purposes, a Notice to Home Loan Applicants (HHLA) must be provided by lender which contains standard language, credit score information and information on the agency that provided a credit score used.

Reg DD - Truth in Savings - Exempted Media (Television and Radio)

If an institution advertises through one of the following media, the advertisement does not need to include information required under certain section 230.8 rules, as outlined below: Exempted media a. Broadcast or electronic media, such as television or radio. However, the exemption does not extend to Internet and email advertisements. b. Outdoor media, such as billboards. c. Telephone response machines. However, solicitations for a tiered-rate account made through telephone-response machines must provide the annual percentage yields and the balance requirements applicable to each tier.

BSA - Beneficial Owner - Specific Parties

If bank intends to provide services to legal entity customers (corporations, limited and general partnerships, LLCs), have to: Ask who has ownership interests in the entity of 25% or more; and Ask who has ""significant management responsibility"" at the entity Gather CIP information on these individuals (up to 4 owners and 1 manager) and verify their identities

FCRA - Reg V - Sharing Information Opt-Out Provision (30 Day Wait)

If the Bank wants to share consumer report information with affiliates, the customer must be provided with proper opt-out notice before information is shared. The bank has 30 days after sending out notice. After that Bank information can be shared. Can send out Opt-out separately or include with other documentation such as Privacy notice.

Reg DD - Truth in Savings - ATM Notices

If you allow deposit holder to withdrawal more than their account, then you must provide a notice when completing a requested transaction would trigger an overdraft fee (or a general notice that O/D items will trigger a fee).

Home Mortgage Disclosure Act (HDMA)

Information reporting regulation around mortgage loans used by examiners for fair lending examinations. Application - Oral or written request for a covered loan that is made in accordance with procedures the Financial Institution uses for the type of credit requested. Up to Bank what consists an application. Prequalification are not reported. Secured by Dwelling.

Flood Disaster Protection Act (FDPA) - Monitoring and Contents

Insurance Policies should be monitored to ensure they are current not flood maps or loans already made. If purchase life of loan coverage, you hiring third party that maps change. If maps change, you have to require flood insurance if in flood zone. Are contents required to be insured? Yes, you do. Only if the building and the contents are taken as collateral.

Flood Disaster Protection Act (FDPA) - Determinations for Special Flood Hazard Area

Insurance is required if bank knows a structure securing a loan is located in a Special Flood Hazard Area (SFHA). Triggering events: determination must be made whenever a covered loan is Made, Increased, Renewed, or Extended (MIRE)

CRA -5 Regulatory Options

Large banks Small banks Intermediate small banks Wholesale and limited purpose bank Strategic plan

FCRA - Reg V - Prescreened Solicitations and 2 Separate Disclosures

Lenders can send credit criteria to credit bureau and the credit bureau can produce names of those that meet the criterial - These must be provided a "Firm offer of credit". When consumers receive pre-screened solicitation, lender must provide 2 separate disclosures: Short Form and Long Form.

Home Mortgage Disclosure Act (HDMA) - Reportable Applications

Loans and lines of credit must be dwelling-secured to be reportable. Dwelling - not limited to 1-4 residential. DWELLING

Home Mortgage Disclosure Act (HDMA) - Reportable Applications Test (3 options)

Loans are HMDA reportable if for HOME PURCHASE, REFINANCING (not a modification, new note or credit agreement), or HOME IMPROVEMENT LOANS (any part to improve dwelling or property) are secured by Dwelling not limited to 1-to 4 family for forth consumer (including HELOC) or commercial purpose.

BSA - Money Services Businesses (MSBs) Requirements

MSBs must register with Treasury Must re-register every 2 calendar years Registration renewal can be tracked online Minimum due diligence expectations when dealing with MSBs Confirm registration Basic BSA/AML risk assessment and enhanced due diligence

Information Security Provisions of GLBA/FFIEC Guidelines - Program Elements

Must be Board Approved/Overseen. Must contain the following elements: Program must contain internal controls, risk assessment, monitoring, and reporting to the board of directors: Safeguards, Training,Reporting to the Board at least annually,Regular testing by independent third party,Oversight of third party relationships,Procedures for disposal of information, etc.

Flood Disaster Protection Act (FDPA) - Force Placement and Escrow

Must force place a policy if borrower refuses (statutory duty) - 45 days from lapse (flexibility) and Send warning letter(s). Flood premiums must be escrowed when the loan is covered by RESPA (consumer purpose, secured by residential property). Exceptions for small lenders with assets less than $1 Billion. CMPs (Civil Money Penalties) under the FDPA are mandated for pattern or practice of violations - only need 1 violation can consistent a practice or pattern.

BSA - Other Requirements - Record of Non-estate Loans Greater than 10,000

Must record name and address of borrower, amount, purpose, and date of loan for BSA purposes.

BSA- Suspicious Activity Reporting Standards for Filing

No minimum amount if the suspect is an insider (employee, etc.) $5,000 if you know who the suspect is, $25,000 if you do not File only the SAR for suspicious cash activity if less than or equal to $10,000.Don't also file the CTR If the transaction in question ""has no business or apparent lawful purpose or is not the type of transaction that the particular customer would normally be expected to engage in""

Reg DD - Truth in Savings - Periodic statements

Not required under DD. But if you choose, certain information must be appear on it. If you send a statement periodically (quarterly) or more frequently, then you must follow DD. If less frequently (e.g. semiannually or annual), then it doesn't have to follow these rules.

OFAC - General Overview

OFAC is part of Treasury Department and administer sanctions program. Every institution not just banks must have a written OFAC (FINCEN- Regulator) program that includes policy, procedure, officer, training and certain list of prohibited countries and SDNs (specially designated nationals). Governs Prohibited transactions - BLOCK accounts and other property or REJECT unlicensed trade and financial transactions.

Fair Debt Collection Practices Act - Definition and Coverage

Only covers Debt Collectors Person or entity that uses the telephone, mail, or similar means in any business the principal purpose of which is to collect debts OWED TO OTHERS, or who regularly collects, or attempts to collect, debts owed to others. EXEMPTION: Officer or employee of the bank, in the name of the bank, collecting debts for the bank itself, or for the parent company, or for other companies in the holding company.

FFIEC Joint Overdraft Guidance Exclusions

Overdraft service is specific to ATM and one-time debit card transactions. It does not include any payment of overdrafts pursuant to a line of credit, transfer between accounts or credit accessible through a hybrid prepaid -credit card or negative balance on the prepaid asset feature.

Identity Theft Prevention Program - Red Flags Definition

Pattern, practices, and specific activity that indicates the possible existence of identity theft. SOURCES to derive Red Flags - 1)Experiences of Theft Incidents 2)Methods identified that affect identity theft risk 3) Supervisory Guidance list of examples of categories of Red Flags - should be relevant to each institution.

BSA - CTR Exemptions: Not-Listed

Phase II: business customers not listed on any exchange. Qualifications that must be met before the exemption can be granted Customer must have a ""transaction account"" Must be a customer for 2 months before exemption is permitted They must have frequent reportable transactions - 5 in a year Ongoing responsibilities. Must verify customer's eligibility annually. Document this fact somewhere in your records. Must maintain system of monitoring for suspicious transactions SAR policy and procedures

Guidance for Vendor Management/ Third Party Risk Process Phases

Planning, Due diligence and third-party selection , Contract negotiation, Ongoing monitoring (Site Visits) , Termination, Oversight and accountability, Documentation and reporting, and Independent reviews

BSA - Customer Due Diligence (CDD)

Predict with relative certainty the types of transactions in which a customer is likely to engage"" Is a know-your-customer policy, and should include instances of when a customer should be subjected to enhanced due diligence

Flood Disaster Protection Act (FDPA) - Insurance Requirements (Most Compliance problems)

Private policies may be accepted instead of NFIP policies as long as certain conditions are met. For Condos, there's RCBAP (Residential Condominium Building Association Policy. Insurance Minimums (you may require more): LEAST of the 3 - 1)100% of insurable value of building structure, 2) amount the loan (including senior liens), and 3) 250,000 for 1-4 family residential; $500,000 per commercial structure or 5+family residential structure. Most banks run into trouble because insurance doesn't meet minimal requirement.

Identity Theft Prevention Program - Administration and Procedures

Program must be initially approved by Board with periodic reports to Board, training of staff, and oversight of third party service providers. P&P must IDENTIFY relevant red flags, DETECT red flags, and RESPOND to ID Theft by mitigating identity theft (e.g. monitoring accounts, contact customer, change passwords, close accounts, SARS, etc.) or having reasonable basis that a RF doesn't mean risk of ID theft if detected.

Flood Disaster Protection Act (FDPA) - Notice of Special Flood Hazards

Provided when borrower must obtain insurance (property is in the flood hazard area) Escrow language Should be acknowledged in writing by the borrower Provided a reasonable time before closing (10 days?)

Flood Disaster Protection Act (FDPA) - Previous Determinations;

Reliance on a previous determination done on same property You can rely on a previous one if ALL of the following are true: Previous one is not more than 7 years old Previous determination was recorded on the standard form Flood zone has not changed since the original one was performed Same lender/same property rule Original determination must have been performed for your bank

CRA - Public File

Required information and reports CRA-related comments and complaints Any additional information bank wants considered For example, consumer loans File must be available in main office and Performance Evaluation (PE) in each branch Copies available on request within 5 days Poster in each lobby

BSA - Beneficial Owner General Rules

Requirement that banks collect and verify personal information of the real people (also known as beneficial owners) who own, control, and profit from companies when those companies open accounts.

Information Security Provisions of GLBA/FFIEC Guidelines

Requires banks to have a WRITTEN PROGRAM to: ENSURE security and confidentiality of customer information, PROTECT against any anticipated threats or hazards to the security or integrity of such information, and PROTECT against unauthorized access to or use of such records. Covers PII or Personal Identifiable Information or Covers all consumer and customer information.

Guidance for Vendor Management/ Third Party Risk

Requires that Bank has a compliance program to control third party risk. A third-party relationship is any business arrangement between the bank and another entity, by contract or otherwise

OFAC - Sanctions Programs

Sanctions can be country-specific - appear on SDNlist. Other sanctions programs, diamond trading, narcotics, arms control, terrorist. SDN list contains throughts of names of individuals and entities that change frequent. Banks must keep current list. Monitor changes on OFAC WEBSITE - banks can use third party to do screening.

CRA - Three Tests and Scores

Scores for each area and then composite (Outstanding, Satisfactory, Needs to Improve, Substantial NonCompliance) Lending - Mortgage, small business/farm loans, community development. Investment - Activities in the assessment area that benefit the community. Service - Extent and innovativeness of delivery channels. Small Banks tested on Lending in LMI areas, distribution

FCRA - Reg V - Prescreened Solicitation - Short and Long Form Requirements

Short Form is used on the first page and must be distinct text and larger than principal text on the page and no smaller than 12 point type. Long Form contains all the details and separate from the other information on the solicitations. No smaller than principal text and no smaller than 8 point text. Can be contained within the body of the solicitation itself.

CRA - Sizes of Banks in Scope

Small Bank - ( 2 prior Years Less than 321 million) Intermediate Small Bank - ( assets between 321 Million and 1,284 million) Large Bank - Greater than 1,284

OFAC - Exceptions

Some transactions may be allowed called licenses. 2 types of General and Specific. General is written into the law such as taking funds to pay service charges. Specific is for specific transactions, must contact OFCA to verify authenticity.

Flood Disaster Protection Act (FDPA) - Determination Form

Standard Flood Hazard Determination Form (SFHDF) Evidences the fact the determination was performed Must be in file before loan closes Doesn't have to be signed or even given to the borrower, but retained for as long as lender owns the loan

FFIEC Joint Overdraft Guidance - Notice

The Model Form A-9 I Appendix A shows that that it must including the following: 1)Description of overdraft service 2)Fees Imposed 3)Limits on Fees Charged 4)Disclosure of Opt-In Right and How to do so 5)Alternative Plans to covering overdrafts 6)Permitted Modifications and additional content.

FCRA - Reg V - Permissible Purpose

To obtain a consumer report, must have prior written permission, when used in connection with credit can be existing or prospective credit, when performing an account review or must have written permission for guarantors since the person has not applied for credit or initiated a transaction or for insurance purposes. If used for employment purposes, consumer provide advance permission and be provided a copy of the report used.

FCRA - Reg V - Sharing Information With Affiliates

Under FCRA sharing of information including any transactional information and credit reporting information. The affiliate that receives information (bank affiliate) cannot use it for a marketing solicitation unless the affiliate that does the sharing (bank) discloses to the consumer that their information may be shared with affiliates for such purposes, and provided with opt out notice.

Guidance for Vendor Management/ Third Party Risk Technology Service Providers

When Technology Service Providers are involved, the program must include risk assessments, due diligence and selection of service providers, incentive compensation review, oversight and monitoring of service providers, and business continuity and contingency plans.

Fair Housing Act - Logo

When advertising housing loans, must include Equal Housing Lender logo If verbal advertisement or promotional message, must state "Equal Housing Lender" verbally. Must say Equal Housing Lender or Equal Housing Opportunity.

FCRA - Reg V - Disclosing Negative Information to Bureau

When reporting negative information (e.g. Delinquency, Late payment, default) to a credit bureaus, you must provide written notice to that consumer either BEFORE or not later than 30 Days after furnishing information to credit bureau. Can send notice to everyone to fulfill the requirement or go provide with other notices - BUT CANNOT PROVIDE with TILA Disclosures. One notice is sufficient per account or consumer.

Regulation B - Adverse Action Form

Written adverse action form (consumer) Must be provided within 30 days of receipt of a "completed" application Counteroffer may be supplied with this. Encouraged to use the sample forms in the Reg B - Safe Harbor Provision. Not needed if the application is expressly withdrawn by the application before the credit decision is made within 30 day of submission.

Regulation B - Applications

""An oral or written request for an extension of credit" "Made in accordance with procedures established"... "for the type of credit requested". Only LEGALLY required for loans for the purchase or refinance of the borrowers primary residence and secured by it and for collection government monitoring information (GMI).

BSA - Information Sharing 314b (Sharing between FIs)

"314(b) voluntary information sharing Safe harbor protects groups of financial institutions when sharing information regarding possible terrorist financing or money laundering activities Must provide a notice to FinCEN (good for 1 year) that you're doing this

Reg DD - Truth in Savings - Bonus

"A "bonus" is something (cash, merchandise, etc.) given to a customer in connection with opening or maintaining an account. "Bonus rates on CDs" would be OK - does not trigger anything. Disclosure rule - Having a value of over $10. If you have to disclose how to get the Bonus. Advertising a bonus triggers the APY, which triggers more disclosures.

Regulation B - Adverse Action Large Business Applications (Within 60 Days)

"Business with annual gross revenues GREATER Than $1 million Notice (written or verbal) must be given within a "reasonable time" after adverse action taken Written statement of reasons for denial required only if the applicant makes a written request for such a statement within 60 days after the notice of adverse action

Reg DD - Truth in Savings - Advertising

"Don't use the word "profit" to represent interest. Be careful with advertising "free" or "no cost" accounts or terms.

Flood Disaster Protection Act (FDPA) - Determinations and Insurance Disagreements

"If borrower disagrees with determination, the borrower can ask FEMA to make a final determination. The maps always rule: FEMA must change the zone itself You see this by a LOMA(Letter of Map Amendment) or LOMR (Letter of Map Revision) on the FIRM. Flood zone discrepancies - Zone on bank's determination differs from that on the insurance policy - High-risk zone (bank) vs. low- or medium-risk zone (insurance co.) If not a Grandfathered policy or Preferred Risk Policy? Then send FEMA letter to insurance agent.

Guidance for Vendor Management/ Third Party Risk Steps to Avoid Risk

1) Conduct thorough due diligence 2) Review service providers policies, procedures, internal controls and training materials 3) Set clear expectations in the contract with compliance-related responsibilities 4) Establish internal controls and on-going monitoring 5) Prompt action to address any problems identified, including termination where appropriate. ALSO develop critical or High Risk service providers.

Reg DD - Truth in Savings - Account Servicing

2 allowable methods for paying interest - daily balance or average daily balance. Only pay interest on positive balance. You don't pay interest on negative balances, nor do you deduct interest which would make it a loan. Must disclose compounding and crediting, what they are and how they work. Dormancy/Inactivity Fee - disclose fees or what constitutes dormant or inactive.

BSA- CIP (US Patriot Act) Verify Identity - 2 Parts

2 parts to the identity verification process 1a. Obtaining the necessary information (the elements of identity) list none. Examples: Name, address, date of birth, identification number 1b. Verifying the information that has been received. Through documents or non-documentary means

BSA - Information Sharing 314a (Requests from Law Enforcement)

314(a) requests- Law enforcement agencies may contact FinCEN requesting that they solicit information from financial institutions. Each institution designates a contact person for this purpose.

BSA - Suspicious Activity Reporting General Requirements

5 Year Record Retention Period Requirement. Supporting documents are ""deemed to be filed"" along with the SAR Supplemental or additional SARs Continuing suspicious activity - re-file once every 90 days, restating details of the activity Board (or committee) must be notified that SAR has been filed - No specific format to do this - copies need not be provided (summaries are OK) You cannot inform the person on whom a SAR has been filed

FCRA - Reg V - Cover and Definition

A consumer report is any written, oral, or other communication of any information by a consumer reporting agency bearing on a consumer's creditworthiness, credit standing, credit capacity, character, general reputation, personal characteristics, or mode of living. DOES NOT apply to business transactions. Only Consumer.

FFIEC Joint Overdraft Guidance Opt-In Requirement

A financial institution may not access a fee or charge on consumer's account for paying an ATM or one-time debit card transaction UNLESS: 1) provides a written or electronic notice 2) provides a reasonable opportunity to affirmatively consent or opt-in 3) obtains the consumers affirmative consent 4) confirms the consumers consent in writing or electronic pursuant to E-SIGN act.

BSA - Politically Exposed Persons (PEPs)

A senior judicial or non-elected administrative official of a foreign government, or certain family members. Make sure you aren't unwittingly assisting in corrupt financial activities of PEPs