Compliance Q&A | Alabama Bank News

Compliance Q&A: Flood Certificate Considerations

Breaking, Compliance Q&A, Industry Reports, Publications

Question: Would we need to pull a flood certificate if we have knowledge that there is a grain bin on the lot we are financing? Answer: Assuming the grain bin meets the definition of a building for flood purposes, the interagency guidance on this ...Read More

Compliance Q&A: Loan Refinance Considerations

Breaking, Compliance Q&A, Publications

Question: We have two borrowers who are requesting to refinance a loan secured by one of the borrower’s principal residences, but the purpose of the cash out will be to pay off a lien on a different residence that is only in one of ...Read More

Compliance Alliance: Deposit Account Denials & Adverse Action Notices

Breaking, Compliance Q&A, Publications

Question: If the bank does not use any type of credit report when denying deposit accounts, are we required to provide an adverse action notice? Answer: If the bank did not use any type of credit report to deny the deposit account application, then ...Read More

Compliance Q&A: Publicly-traded Company & Beneficial Ownership

Compliance Q&A, Publications

Q. We have a publicly traded company that wants to open a checking account. I believe the company would be excluded from the beneficial ownership information, but would we still have to collect information for a controlling person? A. If the customer is a publicly traded ...Read More

Compliance Q&A: HELOC Promissory Note Considerations

Breaking, Compliance Q&A, Publications

QUESTION: Do we have to disclose the loan officer’s NMLS ID on the promissory note for a HELOC? ANSWER: While Regulation Z does have a specific requirement to include the NMLS ID on the promissory note, it excludes open-end credit which would include a ...Read More

Compliance Q&A: Closed-end Threshold for Partial Exemptions

Breaking, Compliance Q&A, Publications

QUESTION: What is the current closed-end threshold for partial exemptions? When does it change? ANSWER: The partial exemption closed-end threshold is currently 500 transactions in each of the two previous years and is not currently scheduled to change. There is currently a full reporting ...Read More

Compliance Alliance: Open-end Threshold for Partial Exemptions

Breaking, Compliance Q&A, Publications

Question: What is the current open-end threshold for partial exemptions? When does it change? Answer: The partial exemption open-end threshold is currently 500 transactions in each of the two previous years and is not currently scheduled to change. There is currently a full reporting ...Read More

Compliance Q&A: Advertising and RESPA Section 8 Considerations

Breaking, Compliance Q&A, Publications

Question: Can you give us some tips drafting an MSA for a joint advertising campaign to avoid a RESPA Section 8 issue? Answer: As I am sure you have found, “marketing services agreements” is definitely a hot topic. It is still unclear to what ...Read More

Compliance Q&A: Bank Travel Club Considerations

Breaking, Compliance Q&A, Publications

Question: We are considering an arrangement with our construction builder customers where they would get a set amount of “credit” (points) for every spec loan closed with us. The points would be eligible to apply discounts associated for an annual trip with the Bank’s ...Read More

Compliance Q&A: Access Device for a HELOC

Breaking, Compliance Q&A

Question: Can a bank provide an access device for a home equity line of credit (HELOC)? Answer: This is permissible, with several risk considerations for the bank. Under Regulation Z, § 1026.2(a)(15)(ii), a debit card that can access a HELOC is a credit card. ...Read More

Compliance Q&A Archive