Q&A

Answer: The FDIC has been criticizing Institution’s for not disclosing this possibility. Under Regulation DD, Institutions are required to disclose what can cause overdrafts. The typical language is: Overdraft fees apply to overdrafts created by check, in-person withdrawal, ATM withdrawal, or other electronic means. TCA recommends additional changes based on whether or not the Institution […]

Answer: HOPA’s rules apply to residential mortgage transactions. This is defined in HOPA as – 12 USC §4901(15) – a transaction consummated on or after the date that is 1 year after July 29, 1998 , in which a mortgage, deed of trust, purchase money security interest arising under an installment sales contract, or equivalent consensual

Answer: Since the source of funds originates with a check(s) being deposited, it would be a negotiable instrument cashed. The FinCEN XML User Guide for CTRs defines: Negotiable Instruments – All checks and drafts (including business, personal, bank, cashier’s and third-party), money orders, and promissory notes. For purposes of this FinCEN CTR, all traveler’s checks

Answer: There are two different timing requirements when closing an escrow account. If the customer requests that an escrow account be cancelled, then the Institution must provide and the customer must receive an escrow closing notice, three business days before the escrow account is closed. This means that if mailed to the customer, the account

Answer: A customer may waive delivery of an appraisal without a reason as long as the waiver is collected at least 3 business days prior to consummation or account opening. The Institution is permitted to offer every customer the opportunity to waive the delivery of the Appraisal and then follow what the customer decides. The

Answer: There is often confusion surrounding what does or does not qualify as a Community Development loan for your financial institution. To put it simply, a community development loan is a product that provides financing to support the credit needs and development of low- and moderate-income (LMI) communities. Community Development activities are generally defined as

Answer: There is not a one-size-fits-all frequency for tuning BSA/AML/OFAC systems. The frequency depends on several factors, including regulatory expectations, significant changes in business operations, risks, and system performance. However, Supervisory Guidance on Model Risk Management and best practices suggest the following guidelines for model tuning: Remember to document any tuning efforts – this gives

Answer: Since the property is being deeded over to the borrower, the borrower is essentially purchasing the property for what is remaining Yes. Although no new money is being advanced, this is a new HELOC that will allow a customer to redraw on funds from the line once the loan is paid down. The Right

Answer: It depends. If your customer is simply leasing out the space to the virtual currency kiosk owner/operator and collecting “rent” payments, the owner of the kiosk is the MSB, not your customer. The owners of the kiosk are required to register with FinCEN as an MSB. Your due diligence on your customer would be