Review Alliance: Did You Know?

  • Did you know it’s important for the bank to keep track of all active NOW Accounts?  Remember NOW accounts are not the same classification as business/commercial interest bearing transaction accounts.

    NOW Accounts can be maintained in the following:       

    o 1 or more individuals including sole proprietorships 

    o Not for profit organizations, operated primarily for religious, charitable, educational, political, philanthropic, or similar purpose. 

    o Officers, employees, or agents of public entities 

    o Funds held in the banks trust department 

  • Did you know- it’s imperative that banks send out updated privacy polices when they have changed? It’s also important to ensure the updated privacy policy has been added to the bank’s website, as well as posting the updated policy in your lobby . 

  • Did you know that that it’s important that your Regulation DD account statement description of fees verbiage must match the fee schedule description or even the product brochure of services for those same fees, to avoid customer confusion and avoiding of any UDAAP consequences. Small things such overdraft fee vs OD fee, this fee description should be exactly the same. UDAAP concerns can cause monetary penalties as well as reputational risk.

  • Did you know NACHA Rules require the ODFI to set and monitor exposure limits for each ACH Originator or Third-Party Sender?

    • Procedures should be in place to monitor entries originated across multiple settlement dates.
    • A best practice would be to set daily limits as well as per item limits.
    • The Bank’s ACH policy should include guidelines for when a limit is exceeded.
    • A verbal approval would be a violation of the Bank’s ACH policy if it is stated that written approval is required.
  • Did you know that discrepancies between account names on customer statements and account disclosures can lead to possible UDAAP concerns for the bank?

    • It is a best practice for the Bank to reconcile all names on account statements and disclosures to ensure they match.
    • In most cases, the Bank’s Core provider can easily make these changes.
  • Did you know that an appraisal disclosure is required when a transaction contains real property and is also a HPML and/or secured by a first lien on a dwelling?

    • A copy of all appraisals and other written valuations shall be provided to the applicants at no charge.
    • This copy should be provided promptly upon completion, or three business days prior to consummation (for closed-end credit) or at account opening (for open-end credit), whichever is earlier.
    • The applicant may waive the timing requirement stated in the Reg and agree to receive a copy at or before consummation or account opening, as long as the waiver is obtained at least three days prior to consummation or account opening.
  • Did you know that dates on applications not only effect timing for TRID but also Adverse Actions? LEs must be delivered within 3 days of the received application date even if the loan was denied.  The exception to this rule is if the loan was denied within the first 3 days.  If there is no received date this make timing difficult and could look like a potential violation.
  • Did you know that as a best practice it’s important to get updated loan applications at least annually?

This helps ensure the bank retains updated information for their customers

• Covers the bank by giving permissible purpose to pull credit

  • Did you know that reconciling monthly statements from Credit Reporting Agencies is a best practice to help ensure the bank is only utilizing the service for applicable credit requests? This practice can help ensure information is being obtained and used permissibly, as well as help ensure compliance with the Fair Credit Reporting Act. 

Hand in hand with that, also: 

Did you know that it’s a best practice to have your Credit Reporting Agency statement include the names of the customers that have credit pulled? This will help ensure all customers credit who is pulled has requested a bank product requiring a credit report.