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BSA/AML/CIP/OFAC Forum
Looking at the FinCEN Critical Field Guide - you would include all instruments used in the reportable transactions.

In a more general note... it is our best practice that a business is not able to cash checks payable to the business (unless a sole proprietorship). They are able to deposit the checks and withdrawal available funds.
Deposits and Payments
Jump to new posts Re: Revoke final credit? by St. Matthew @ Yesterday at 09:31 PM

Hopping on this. two questions.

I am not advocating for ad hoc debiting a customer's account, but MUST we gain permission from a customer prior to debiting a merchant (double) credit?

Is a timeframe anyone would recommend for reversing the double credit? If we noticed the double credit 1 month after deposit, is that too far gone? 2 months? 2 years?
Deposits and Payments
Jump to new posts When does a change in terms become permanent? by BSAguy @ Yesterday at 09:18 PM

Wording out of 12 CFR 1005.8: A financial institution need not give prior notice if an immediate change in terms or conditions is necessary to maintain or restore the security of an account or an electronic fund transfer system. If the institution makes such a change permanent and disclosure would not jeopardize the security of the account or system, the institution shall notify the consumer in writing on or with the next regularly scheduled periodic statement or within 30 days of making the change permanent.

My question is when does a change in terms get considered to be permanent? Our initial disclosures state we have a $2,500/day limit on debit card transactions. In response to a wave of fraud, we've lowered the daily limits to combat the fraud. It's going on 3 weeks now that the limits have been lowered. I'm wondering when an examiner would say we have to disclose those changes. The commentary on this section doesn't address this.
Need to Remain Anonymous
Jump to new posts Lending question by Anonymous @ Yesterday at 08:57 PM

We made a loan to a borrower to build a pole barn on vacant land. (1st Mtg on the land.) This was not written as a construction loan. The proceeds funded the cost of the barn. They have now made another request to build a second pole barn on this property. (2nd Mortgage on the land). The lender was going to write this as a construction Loan. I am being asked if we have to payoff the first mortgage in order to complete the request for the second barn. Can anyone help me to answer why the first mortgage loan needs to be paid off before we make the second loan? My first thought was no it doesn't as long as it is within our lending policy guidelines. I have an uneasy feeling that details of what the borrower is going to do isn't being fully stated.

Although the lender has not stated as such, I think what is happening is that after the second barn is built, the customer is going to remodel the second pole barn into a primary residence. Our loan proceeds are going to be used to fund the cost of the second barn, not used to rehab the second pole barn. I am wondering if the lender is thinking construction loan for the barn because he knows that they are going to remodel the interior into a primary residence. Should this be the case, is there something I am missing?
HMDA
Jump to new posts Re: two kitchens one bath by InFairness, CRCM @ Yesterday at 08:24 PM

Originally Posted by CloudShape
That was my knee-jerk reaction as well, but in my conversation with the EIC, the EIC also said they would look for full size appliances in the kitchen area. In other words, a stove, not just a two burner plug-in unit for cooking. So I could probably argue with just a mini-fridge in one unit, it is not really a 'kitchen'.

But every exam team is different and what this EIC thinks is not necessarily what the next one will think so just trying to pick up some arguments support our position.

Thank you for your input.

There is no requirement in HMDA that kitchens have full-size appliances either. I would class the property as two units.
Need to Remain Anonymous
Jump to new posts Re: Restaurant Withdrawing Cash & Not Depositing Cash by Richard Insley @ Yesterday at 07:36 PM

Originally Posted by rlcarey
Send the account officer on a site visit.
Who knows? What might have shown up first as an AML warning flag could actually lead to a business development opportunity. If this customer's day-to-day banking needs have changed, maybe there's a better (and more profitable?) package of services the bank could supply.
BSA/AML/CIP/OFAC Forum
Jump to new posts Re: SAR late filing by rlcarey @ Yesterday at 06:51 PM

That would be documented in your internal files for the SAR I would think.
CRA
Jump to new posts Re: CRA Public File-Available on Bank's Website 4-1-24 by Antilles @ Yesterday at 06:44 PM

Thank you
New York
Jump to new posts Re: New York Attorney Review Requirements for Mortgage by Tiffany12345 @ Yesterday at 04:00 PM

Thanks again Randy I really appreciate this advice!
Need to Remain Anonymous
Jump to new posts Re: Promo Rate on Early Disclosures vs At Closing by rlcarey @ Yesterday at 03:55 PM

Discounted initial rates have to be reflected in the payment examples. I am not sure how you can ignore that in your early disclosures. Also, what is a HELOC Bridge Loan?
Lending Compliance
Jump to new posts Re: Borrower Paid Comp. by rgillette @ Yesterday at 03:48 PM

Infairness, that's correct.

Specifically on a $250K deal, the broker-owner sets the lender paid as 250 bps ($6250) and pays out 150 bps ($3750) to the individual loan officer. But if the loan officer is being shopped, wants to impress a realtor, or needs to be more competitive, they offer the borrower a borrower-paid option of 100 bps ($2500) where the broker-owner takes $1250, and the loan officer is paid $1250. Then the pricing is ~3/8th better on rate because the broker is giving up 150 bps in comp.

It seemed like a violation - and agreed on UDAAP/fair lending as well - varying a loan officer's comp on transaction terms. But it seems fairly commonplace from what I'm seeing with this broker, and seeing in recent broker forums where they're openly saying their comp agreements are similar to above. I guess I wanted to make sure I wasn't missing some change or some exception that is made that would allow brokers to pay their LO's this way.
CRA
Jump to new posts Re: CRA Policy by JWills, CRCM @ Yesterday at 03:07 PM

Thank you, Len.
CRA
Jump to new posts Re: HMDA LAR in public file by InFairness, CRCM @ Yesterday at 02:45 PM

Agree with Andy. The CFPB site has the historical HMDA. The only people that ever requested my public file were reporters looking to do a hit piece or community advocates looking for a bargaining point.
Deposits and Payments
Jump to new posts Re: Debit Cards by rlcarey @ 03/02/24 11:46 PM

If your contractual agreements support it - sure.
Ohio
Jump to new posts Re: Proper Account Titling for a DBA in Ohio by rlcarey @ 03/02/24 11:44 PM

https://www.irs.gov/businesses/small-businesses-self-employed/do-you-need-a-new-ein

Sole Proprietors
You will be required to obtain a new EIN if any of the following statements are true.

You are subject to a bankruptcy proceeding.
You incorporate.
You take in partners and operate as a partnership.
You purchase or inherit an existing business that you operate as a sole proprietorship.

You will not be required to obtain a new EIN if any of the following statements are true.

You change the name of your business.
You change your location and/or add other locations.
You operate multiple businesses.
BSA/AML/CIP/OFAC Forum
Jump to new posts Re: Corporate Resolution by rlcarey @ 03/02/24 11:35 PM

Dinged is not the problem. If you do not have valid corporate resolutions to support the account opening and the operation of the account, the bank is going to be liable for any and all activity that flows through the account. You need to engage your legal counsel and lock down this process.
Lending Compliance
Jump to new posts Re: LE Sec B and C oddball Misc fee by rlcarey @ 03/02/24 02:38 PM

No idea without knowing what the fee is for. You cannot label a fee as "Miscellaneous" as TRID requires that you specifically identity the service being provided.
Flood Compliance
Jump to new posts Re: Flood - Existing Loan and New Loan Request by MBTCompliance @ 03/02/24 01:55 PM

The new building now sits on the property that is held as collateral for Loan #1, though it was not there at the time Loan #1 was made. The new building is eligible for coverage.
Chat! - BOL Watercooler
Jump to new posts Re: Song Titles by Sheldon Hendrix @ 03/01/24 07:46 PM

Loving You - Pryda
Need to Remain Anonymous
Jump to new posts Processing Order on Disclosures by Anonymous @ 03/01/24 06:07 PM

I know this topic has been discussed previously, but would best practice be to not mention processing order at all in the TIS disclosure? I have seen others use vague language derived from the guidance (which is not a requirement) stating "Items may not be processed in the order in which they occurred..."

As there is no true requirement, we are proposing to not have any language related to processing order in the disclosure at all.
Lending Compliance
Thank you - appreciate that reminder.
Operations Compliance
Jump to new posts Re: FDIC Logo Changes - Digital Sign on ATMs by Compliance Poster @ 03/01/24 04:08 PM

If the ATM does not provide access to nondeposit products, must the new official digital sign also be on each transaction screen or screen relating to deposits? Or, must the digital sign be on each transaction screen or screen relating to deposits only if the ATM provides access to nondeposit products?
Lending Compliance
Jump to new posts Re: Reg O - Principal Shareholder by Nanda @ 03/01/24 03:39 PM

Thank you.
BSA/AML/CIP/OFAC Forum
Jump to new posts Re: Exempt Customer- CTR filed in error by banjo @ 02/29/24 11:01 PM

Another example to consider. Phase II exempt customers are only exempt from cash transactions conducted through their transaction accounts. So if one of these customers were to purchase a cashier's check with more than $10,000 cash, or exchange currency for currency, then we would have to file a CTR, but I don't see why that should revoke their exemption for cash transactions run through their account.
Lending Compliance
Jump to new posts Loan Notices - Returned Mail by BA13 @ 02/29/24 09:40 PM

Hello,
A question came up about returned mail for various loan notices and whether or not we could suspend sending them if we knew it would be returned. We have procedures in place for returned mail, updating our core system and trying to contact the borrower so this is more for those we cannot resolve. I don't think we can suspend for consumer RE loans as the rule seems straight forward that we must send as it states, "must be delivered or placed in the mail". I don't see a must provide unless _______ . Am I correct? As far as consumer non-RE, commercial or ag loans, I really don't know where to look. Regulation vs. state law?
Any guidance / source to research would be appreciated.
Thank you.
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