Most Popular Lending Content
Is there a regulation that requires a loan to be priced 2% above a CD rate (if using the CD as collateral)?
04/07/2003
What is the regulation that discusses the requirement that a loan must be priced 2% above a CD rate if using the CD as collateral? I assume this is a Federal regulation, correct? Can we make the loan rate 2% BELOW the CD or deposit account rate?
Requiring All Owners Of Jointly Held Accounts Used As Collateral To Sign The Security Agreement
04/07/2003
We have a debate going on in our bank and would like some advice on the best course of action. Some are advocating that whenever a CD or savings account is pledged as collateral that is joint with right of survivorship, all owners of the deposit account must execute the assignment/pledge. Others are saying this is not feasible. The UCC for joint accounts seems to indicate that any party on a joint account can pledge it as security on a loan and other parties do not have recourse against the creditor IF the proper assignment or pledge has been used as the security instrument. The language is, however, ambiguous. There are definitely benefits to obtaining all account owners' signatures but it presents difficulty in obtaining them also.
Reg Z: Bounce Protection v. Regulation Z
04/01/2003
Bounce protection programs - those products put forward to banks as a significant generator of fee income - have come under the regulator's umbrella of concern.
COMPLIANCE CALENDAR
04/01/2003
APRIL
Using a Portion of a Town as your CRA Assessment Area
03/24/2003
We recently opened a new branch and must add the area to our defined lending area (assessment area). We live in a rural area and deal with BNA's. Can we use the BNA #'s to define this new area or must we use a whole town? Presently our CRA policy has towns and the BNA's listed. The new area borders on a very large town with various BNA #'s. We do not really want to include the whole town because we know we can not be competitive since most of the town is over banked. We are hoping to just list the surrounding BNA's.