How do we address our examiner's questions regarding years of experience in compliance? Several members in our department have been in compliance for 1-2 years but have years of operational experience and compliance training, which should count towards their total experience, correct?
My question involves Section 202.6(b)(5) of Reg B. When calculating a loan applicant's income, should contributions being made to a retirement plan (401-K, for example) by the applicant be added back as income? An FDIC examiner recently told us that such income is discretionary and that not adding it back to income is a violation of Reg B. If this is true, what about individuals who are required to contribute to retirement plans each pay period, like teachers? In this example, is it truly discretionary income?
Should a bank ever go by a customer's "collected balance" when deciding to pay a check for a non-customer or to purchase a cashier's check? I was always taught not to go by that balance but to go by "available" because "collected" has to do with the different routing numbers on checks deposited. If you do not put a Reg CC hold on a check, isn't it against the regulation to not pay against that check even though you did not put a hold on the check and notify the customer of the hold? This has been the big discussion at our bank and this is the first bank I've worked at that even goes by this balance.
At one time we were not to copy drivers license and put them into the credit file. I understand a recent interagency agreement has changed that procedure. Do you have any knowledge of the change?
An Executive Officer of the bank is granted a Board-approved multiple-advance revolving line of credit on 01-01-06 for a one-year term in the amount of $25,000. On 07-01-06 the personal financial statement of the executive officer dated 07-01-05 is no longer considered current by bank underwriting standards. Are additional loan advances after 07-01-06 on the executive officer’s approved multiple-advance revolving line of credit that are within the $25,000 limit considered a violation of Regulation O 12 CFR 215.5 (d)(3) which indicates that any extension of credit by a member bank to any of its executive officers shall be preceded by the submission of a detailed current financial statement of the executive officer?