What is the regulatory definition for risk?
I have always been told that I can not place an exception hold on funds because the paying institution would not verify that. Is there information that verifies this?
Under Reg O, must a director disclose his role as a director of another bank as a related interest, even if this bank is outside of the metropolitan statistical area of the bank in which he is filling the questionnaire?
We do a lot of targeted marketing in our bank. Our operations and marketing departments have approached our compliance team with a proposal to market our overdraft service to customers who don't yet have the service, but have had checks returned for insufficient funds in the last six months. Currently, this service allows qualified customers' accounts to go overdrawn by from $200 to $300 provided they cover their overdrafts within fourteen days. We would market it in two layers, with an option for customers to accept basic coverage for checks and ACH items only, and another to accept coverage for checks, ACH and ATM/debit card transactions. We will include all the compliance disclosure, opt-in and confirmation requirements for card transactions required by Regulation E. Are there any compliance concerns related to targeting this marketing to that group of customers?
Extension of credit made to insiders must be on substantially the same terms and conditions as comparable credit extensions to comparable borrowers. How would our federal regulator, FDIC, be able to determine this when performing an exam? We want to ensure that this is not being done or ever will be.
Can a bank create a sweep account that sweeps an amount in excess of a maximum balance designated by the customer, create a sweep file and credit a GL (settlement account), and then instruct the system to send an e-mail to the customer? Once the e-mail is received, a messenger will physically come to the bank and hand the transfer instructions to a teller (the e-mail) to transfer the funds from the GL to the MMDA. When the DDA has insufficient funds, the opposite will happen. The system will sweep the amount necessary to bring the DDA back to the maximum balance designated by the customer, create a sweep file and then instruct the system to send an e-mail to the customer. Once the e-mail is received, a messenger will physically come to the bank and hand the transfer instructions (the e-mail) to the teller to debit the MMDA and transfer to the GL (settlement account) to satisfy the deficit balance. Is this a violation of Reg D?
Do the borrowers have to sign the Notice to Home Loan Applicant? This is with regard to home improvement loans or second mortgages. If the bank regulators come in to audit the lender that originated the loan, will a signed copy have to be in the file?
How do we determine that our HMDA error ratio is acceptable? Is there some guidance from the regulators that list acceptable percentages?
We have restricted a customer’s online access due to Reg D violations. Can we ever give him back his privileges?
I found while auditing a file, that a mortgage loan was disclosed as a 30 year product but the note and loan closed as a 5/1 ARM. I'm trying to determine my next course of action regarding this matter. Do I need to redisclose and book the loan as a 30 year fixed even though the note is a 5/1 ARM?