Loan payment from Savings

Posted By: Tessie

Loan payment from Savings - 12/20/11 08:44 PM

If we have it set up where a customers loan payment is made each month from a Savings Account(in the same bank) would this count as one of the six transfers?
Posted By: Doug Hendrickson

Re: Loan payment from Savings - 12/20/11 09:16 PM

No. Transfers for the purpose of repaying loans at the same bank are not covered by the regualation; they are unlimited.
Posted By: Tessie

Re: Loan payment from Savings - 12/21/11 07:15 PM

Thanks. Do you know off hand where I can find this in the regs? Have to go to a meeting regarding this.
Posted By: Doug Hendrickson

Re: Loan payment from Savings - 12/21/11 07:55 PM

I always use the easy reference chart in Bankers Tools:

http://www.bankersonline.com/tools/regdlimits_chart.html

The list in the second column (non-covered) are those that are unlimited and not subject to the limit of six(6).

I think the relevant citation is 204.2(d)(2), but I'm not absolutely certain.
Posted By: John Burnett

Re: Loan payment from Savings - 12/22/11 03:57 PM

That is the correct citation, Doug.