Compliance Q&A Archive

Q: What constitutes “demonstrable consent” when meeting ESign requirements? Are banks required to collect information that the consumer actually read the disclosure apart from just acknowledgement? A:  The statutory requirement can be found in 15 USC §7001, and reads as follows: “[T]he consumer— (i) ...Read More

Question: Bank XYZ has a Phase II Exemption customer that is no longer eligible for the CTR Exemption since they haven’t had 5 or more transactions over the CTR threshold in 2020. What do they need to do? Answer: Bank XYZ would need to ...Read More

Q: For a cashier’s check, and holds, under Reg. CC, isn’t the bank required to make the first $5,525 available by the next business day? A: Actually, Reg. CC allows the bank to combine the large deposit hold with a case-by-case hold. This would ...Read More

Q: Are money market accounts covered under Regulation CC? A:  Money market accounts, or MMDAs, are considered savings accounts and are not subject to Regulation CC. Reference: “a) Account. (1) Except as provided in paragraphs (a)(2) and (a)(3) of this section, account means a ...Read More

Q: In determining whether the bank reports a HELOC for HMDA purposes, does the bank need to consider denied, withdrawn and approved but not accepted HELOCs into the threshold of 200? A: The count is based on the number of open-end lines of credit ...Read More

Q: In a situation where a POA is opening a new account on behalf of a principal who is incarcerated, who must the bank CIP? A: Although this also depends on each state’s definition of legal capacity, the CIP Rule generally applies to “customers” ...Read More

Q: Our residential loan department is originating loans which are investment properties/non-owner occupied.  Would the bank be required to report the rate spread for HMDA purposes? A: If the bank has determined that the loan is not subject to Reg. Z because it is ...Read More