Branching into another state??? Questions.

Posted By: Snowgirl

Branching into another state??? Questions. - 06/10/14 11:41 PM

What are some things we need to think about before branching into another state? We currently only have branches in one state, so just wondering what all areas of the bank this will impact and what we need to think about before going this direction? Thank you for any guidance.
Posted By: osucpa

Re: Branching into another state??? Questions. - 06/11/14 01:08 PM

There are numerous. You need to become familiar with the labor laws in the state and various changes in usery laws. Just my opinion, you could have small changes in all areas of the bank.
Posted By: Pale Rider

Re: Branching into another state??? Questions. - 06/11/14 03:21 PM

You will get a CRA rating for each state.
Posted By: NotDoneYet

Re: Branching into another state??? Questions. - 06/11/14 08:30 PM

Consumer lending laws may be different, such as a late fee charge, common-law marriage status, how property is handled at death of a spouse.
If you don't have to worry about lending, how about escheat laws?
Posted By: Moman

Re: Branching into another state??? Questions. - 06/12/14 05:50 PM

There may be additional regulatory overlays, for instance, California has additional Privacy rules for consumer customers, and also additional language for the RESPA Transfer of Servicing statement. All depends on the State involved.
Posted By: 80's Lady

Re: Branching into another state??? Questions. - 06/12/14 07:17 PM

I would also look into what the BSA implications are. How high risk is the state/border you are branching into? You would have to be ready to allocate additional resources if your demographic changes to a much higher risk if it is not already.
Posted By: Snowgirl

Re: Branching into another state??? Questions. - 06/13/14 03:22 PM

Thanks everyone, I appreciate the information. I am praying that they do not go through with this as it is not only another state but a metropolitan area which we have never been in before so would be looking at HMDA as well - ugh!