Alabama Bank News

POA, CIP and Incarceration

Breaking, Compliance Q&A, Publications

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

Supreme Court Update for Banking and Financial Services Professionals

Breaking, Industry Reports, Legal

by Charles W. Prueter The United States Code — the collection of all bills passed by Congress and signed into law by the president — is comprised of 53 “titles,” each addressing a particular subject matter. They cover the waterfront — literally, as the ...Read More

Capitol Notes: Week 2 Recap

Breaking, Capitol Notes, Legal, Politics, Publications

MONTGOMERY, Ala., February 12, 2021 — The Alabama Legislature met for a second consecutive three-day week, meaning even though the 2021 session began just last week, it is now one-fifth complete. Week 2 saw the quick passage of three major pro-business priorities, the introduction ...Read More

Compliance Q&A: Residential Loan Considerations

Compliance Q&A, Publications

Q: We are getting requests from our lending team to give a residential loan to a borrower who is an LLC. Are there issues with this? A: Luckily if the borrower is an LLC or other legal entity, then the loan will not be ...Read More

Capitol Notes: Week 1 Update

Breaking, Capitol Notes, Politics, Publications

MONTGOMERY, Ala., Feb. 5, 2021 — The Alabama Legislature began its 2021 Regular Session at noon on Tuesday. Opening day normally starts with camaraderie between colleagues and ends with the pomp of the State of the State Address. Yet thanks to COVID-19, the State ...Read More

Compliance Q&A: Investment Properties and HMDA

Breaking, Compliance Q&A, Publications

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

Preview of the 2021 Legislative Session

Breaking, Capitol Notes, Politics, Publications

MONTGOMERY, Ala., Feb. 1, 2021 — The Alabama Legislature begins its 2021 Regular Session on Feb. 2. Thanks to the Alabama Constitution, everyone has known when this session would begin. But because of the coronavirus pandemic, no one really knows what will happen next. State ...Read More

Breaking, Compliance Q&A, Publications

Q: We have an applicant who is doing a cash-out refinancing. They stated they will use the funds for a purchase of another dwelling, but it is at an unknown, future date. Would this still make it a “Home Purchase” loan for HMDA purposes? ...Read More

Compliance Q&A: Flood Insurance Considerations

Breaking, Compliance Q&A, Publications

Q: If the bank is escrowing for flood insurance is there a regulatory requirement to also escrow for real estate taxes or can the bank waive it? A: The federal regulations only require you to escrow for taxes and hazard insurance if the loan ...Read More

COVID-19 Turns One: Lessons Learned from a Global Health Crisis

Breaking, Industry Reports

by Rob Nichols, American Bankers Association President & CEO As impossible as it is to believe, we have been living in a global pandemic for an entire year. What began as a headline from a distant corner of the world quickly became a worldwide ...Read More