Regs R Fun
Under the Lending Philosophy what is the Analyst required to focus on?
Requires the analyst to focus on the individual/business rather than the marketing source of the application.
Fill in the Blank
Impacts all financial products and marketing channels and the bank’s CIP must be ___________ and _____________ by the board.
Impacts all financial products and marketing channels and the bank’s CIP must be written and approved by the board.
Under SCRA Customers qualify to receive this rate by meeting this 4 things.
Account has to be opened prior to being called to active duty.
There must be a balance on the account when the customer receives the military orders.
Authorized users do not qualify.
The 6% rate remains on the account for as long as the customer is on active duty or until the balance is paid in full.
When Must Financial Institutions must file a Suspicious Activity Report (TRMS)?
when they "know, suspect, or have reason to suspect" that a crime has occurred or that a transaction is suspicious.
Fill in the blank: ________ _______ is a catch phrase for compliance with federal laws and regulations prohibiting discrimination.
Fair Lending
True Or False
FCRA Requires adverse action notification containing a statement of action, reason, source, name and address of creditor, name and address of the Office of the Comptroller of the Currency, and an ECOA notice.
False
Reg B – Equal Credit Opportunity Act
True or False:
Purpose of the USA Patriot act is to function as a law enforcement tool for identifying criminal activities.
False
What is "Redlining"
“Redlining” refers to the illegal practice of refusing to make residential loans or imposing more onerous terms to any loan because of the predominate race, national origin, etc. of the neighborhood in which the property is located.
DOUBLE PLAY!!!!!
Define Reg O
Addresses extensions of credit to insiders who could use their positions to get favorable rates and/or terms.
Requires financial institutions to provide a list of insiders and loans made to insiders to the regulatory agencies.
What disclosure Requires a clear and conspicuous disclosure statement.
Reg AA – Unfair and Deceptive Practices Act
Define Reg Z
Protects customers against inaccurate and unfair billing practices.
Requires that all costs for credit be disclosed to customers before they access their account and that customers be given the right to reject new terms.
Ensures that a customer receives a periodic statement in any month they have a balance.
Advises the customer of their rights in the event of inaccurate billing.
What Is Dirty Money vs Clean Money?
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Under the Lending Philosophy what is the Analyst required to focus on?
Requires the analyst to focus on the individual/business rather than the marketing source of the application.
Finish the Sentence: Impacts all financial products and marketing channels and the bank’s CIP must be ___________ and _____________ by the board.
Impacts all financial products and marketing channels and the bank’s CIP must be written and approved by the board.
Under SCRA Customers qualify to receive this rate by meeting this 4 things.
Account has to be opened prior to being called to active duty.
There must be a balance on the account when the customer receives the military orders.
Authorized users do not qualify.
The 6% rate remains on the account for as long as the customer is on active duty or until the balance is paid in full.
When Must Financial Institutions must file a Suspicious Activity Report (TRMS)?
when they "know, suspect, or have reason to suspect" that a crime has occurred or that a transaction is suspicious.
Fill in the blank: ________ _______ is a catch phrase for compliance with federal laws and regulations prohibiting discrimination.
is a catch phrase for compliance with federal laws and regulations prohibiting discrimination.
True/False
Requires adverse action notification containing a statement of action, reason, source, name and address of creditor, name and address of the Office of the Comptroller of the Currency, and an ECOA notice.
Reg B – Equal Credit Opportunity Act
True or False:
Purpose of the USA Patriot act is to function as a law enforcement tool for identifying criminal activities.
False
TRIPPLE PLAY:::
What is the definition of Disparate Treatment:
Treats applicants differently on one of the prohibited factors. Occurs more often in the treatment of individuals who are neither clearly well qualified nor clearly unqualified.
DOUBLE PLAY!!!!!
Define Reg O
Addresses extensions of credit to insiders who could use their positions to get favorable rates and/or terms.
Requires financial institutions to provide a list of insiders and loans made to insiders to the regulatory agencies.
Reg P Governs when and how financial institutions may share non-public information. What are the 7 items of the customer we must protect
application data, credit bureau information, employment data, account balance, credit line, transaction date, and payment history
What is Reg Z?
Protects customers against inaccurate and unfair billing practices.
Requires that all costs for credit be disclosed to customers before they access their account and that customers be given the right to reject new terms.
Ensures that a customer receives a periodic statement in any month they have a balance.
Advises the customer of their rights in the event of inaccurate billing.
What Is Dirty Money vs Clean Money?
Dirty Money: Funds gained from illegal activities, such as drug sales or stolen goods, that are laundered to appear legitimate.
Clean Money: Funds gained from legal activities such as charitable organizations, credit lines, and true businesses that are used for illegal activities, such as supporting terrorism.
Overt: _________________ on a _______ ________, such as a lender openly discriminating on a prohibited basis or a lender expressing, but not acting on, a discriminatory preference
Overt: Blatant discrimination on a prohibited basis, such as a lender openly discriminating on a prohibited basis or a lender expressing, but not acting on, a discriminatory preference
Under Reg P
what must Bank of America must Annually disclose?
Bank of America must annually disclose its privacy notice to all customers. This notice describes affiliate information sharing practices under FCRA and ability to opt-out. Discloses our procedures with respect to protecting confidentiality and security of information. Provides an opt-out notice.
What disclosure Requires a clear and conspicuous disclosure statement.
Reg AA – Unfair and Deceptive Practices Act
Fill in the Blank:
Balances the consumer’s________ _ _______with the creditor’s need for _________ ______ ________
Balances the consumer’s right to privacy with the creditor’s need for accurate credit information
A. Unfair
B. Abusive
C. Deceptive
A representation, omission or practice misleads (or is likely to mislead) the consumer
A consumer’s interpretation of the representation, omission or practice is considered reasonable under the circumstances
The misleading representation, omission or practice is material
C. Deceptive
What was The Community Reinvestment Act (CRA) is intended for?
The Community Reinvestment Act (CRA) is intended to encourage depository institutions to help meet the credit needs of the communities in which they operate, including low- and moderate-income neighborhoods, consistent with safe and sound banking operations. It was enacted by the Congress in 1977
What is Analyst Responsibility for Ensuring Compliance for Reg BB – Community Reinvestment Act
If we obtain Revenue and Years in Business (YIB)/Months in Business (MIB) information and do not update the corresponding fields in BLADeS or ICDP, or document a High Line Redistribution (HLR) for an approval that is not completed, the information will not report for CRA purposes causing a potential Reg BB break.
Name the 9 permissible reasons for pulling credit:
1. Credit Application
2. Court Order
3. Child Support Enforcement
4. Customer Request
5. Business Transaction
6. Assessment of Risk, Including Collections Efforts
7. Insurance Underwriting
8. Licensing
9. Employment
What is Required in the adverse action notification under FCRA?
the name, address, and toll-free number of the consumer reporting agency used to make the decision. The notice must also include a disclosure statement which provides a statement that the reporting agency did not make the decision, a notice of right to a free copy of their credit report within 60 days, and a notice of right to dispute accuracy or completeness of the credit report.
What does Reg BB require each institution do?
The Community Reinvestment Act (CRA) is intended to encourage depository institutions to help meet the credit needs of the communities in which they operate, including low- and moderate-income neighborhoods, consistent with safe and sound banking operations. It was enacted by the Congress in 1977.
The CRA requires that each insured depository institution’s record in helping meet the credit needs of its entire community be evaluated periodically. That record is taken into account in considering an institution’s application for deposit facilities, including mergers and acquisitions.
To be in compliance with the Community Reinvestment Act (CRA), it is imperative that all information captured on every application and account is accurate.
True or False: Reg B – Equal Credit Opportunity Act states Financial institutions are required to retain this information as long as the account is open and five years after the account is closed or deemed "Dormant."
Financial institutions are required to retain this information as long as the account is open and five years after the account is closed or deemed "Dormant."
What is defined as Abusive?
Materially interferes with the ability of a consumer to understand a term or condition of a Consumer Financial Product or Service or takes unreasonable advantage of:
A lack of understanding on the part of a consumer of the material risks, costs or conditions of the product or service
A consumer’s inability to protect their interests in selecting or using a product or service or the reasonable reliance by the consumer for a covered person to act in the interests of the consumer
Define Reg B Equal Credit Opportunity Act
Reg B – Equal Credit Opportunity Act
Ensures lenders respond to requests for credit within 30 days and maintain all records for 25 months (Keep approvals for 5 years per USPA).
Prohibits discrimination based on: race, marital status, color, public assistance, age, religion, telephone listing, gender, credit protection, and national origin.
Requires a total household income disclosure.
Stipulates that a creditor cannot suggest to an applicant who should be their guarantor.
Requires adverse action notification containing a statement of action, reason, source, name and address of creditor, name and address of the Office of the Comptroller of the Currency, and an ECOA notice.
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"Regs R 4 U" for 300
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What Is Dirty Money vs Clean Money?
Dirty Money: Funds gained from illegal activities, such as drug sales or stolen goods, that are laundered to appear legitimate.
Clean Money: Funds gained from legal activities such as charitable organizations, credit lines, and true businesses that are used for illegal activities, such as supporting terrorism.
Fill in the blank
Overt: _________________ on a _______ ________, such as a lender openly discriminating on a prohibited basis or a lender expressing, but not acting on, a discriminatory preference
Overt: Blatant discrimination on a prohibited basis, such as a lender openly discriminating on a prohibited basis or a lender expressing, but not acting on, a discriminatory preference
Under Reg P
what must Bank of America must Annually disclose?
Bank of America must annually disclose its privacy notice to all customers. This notice describes affiliate information sharing practices under FCRA and ability to opt-out. Discloses our procedures with respect to protecting confidentiality and security of information. Provides an opt-out notice.
Reg P Governs when and how financial institutions may share non-public information. What are the 7 items of the customer we must protect
application data, credit bureau information, employment data, account balance, credit line, transaction date, and payment history
Fill in the Blank:
Balances the consumer’s________ _ _______with the creditor’s need for _________ ______ ________
Balances the consumer’s right to privacy with the creditor’s need for accurate credit information
Multiple Choice
A. Unfair
B. Abusive
C. Deceptive
A representation, omission or practice misleads (or is likely to mislead) the consumer
A consumer’s interpretation of the representation, omission or practice is considered reasonable under the circumstances
The misleading representation, omission or practice is material
C. Deceptive
TRIPPLE PLAY:::
What is the definition of Disparate Treatment:
Treats applicants differently on one of the prohibited factors. Occurs more often in the treatment of individuals who are neither clearly well qualified nor clearly unqualified.
What is Analyst Responsibility for Ensuring Compliance for Reg BB – Community Reinvestment Act
If we obtain Revenue and Years in Business (YIB)/Months in Business (MIB) information and do not update the corresponding fields in BLADeS or ICDP, or document a High Line Redistribution (HLR) for an approval that is not completed, the information will not report for CRA purposes causing a potential Reg BB break.
Name the 9 permissible reasons for pulling credit:
1. Credit Application
2. Court Order
3. Child Support Enforcement
4. Customer Request
5. Business Transaction
6. Assessment of Risk, Including Collections Efforts
7. Insurance Underwriting
8. Licensing
9. Employment
What is Required in the adverse action notification under FCRA?
the name, address, and toll-free number of the consumer reporting agency used to make the decision. The notice must also include a disclosure statement which provides a statement that the reporting agency did not make the decision, a notice of right to a free copy of their credit report within 60 days, and a notice of right to dispute accuracy or completeness of the credit report.
What does Reg BB intended to do?
What does Reg BB Require each insured depository institution to do?
The Community Reinvestment Act (CRA) is intended to encourage depository institutions to help meet the credit needs of the communities in which they operate, including low- and moderate-income neighborhoods, consistent with safe and sound banking operations. It was enacted by the Congress in 1977.
The CRA requires that each insured depository institution’s record in helping meet the credit needs of its entire community be evaluated periodically. That record is taken into account in considering an institution’s application for deposit facilities, including mergers and acquisitions.
To be in compliance with the Community Reinvestment Act (CRA), it is imperative that all information captured on every application and account is accurate.
Verbatim: Define the USA Patriot Act
Signed into law by President Bush on October 26, 2001.
Reinforces the requirements of the Bank Secrecy Act.
Calls for new, specific, stringent guidelines that financial institutions must follow to assist with the war on terrorism.
Must know our customers by verifying:
1. Name
2. Social Security Number
3. Date of Birth
4. Physical Address
Two key areas: Section 326 Verification of Identification; Section 352 Anti-Money Laundering Programs
Verification of Identification
Effective 10/1/2003, seven mandatory items are required for customer identification:
1. Legal Name
2. Physical Street Address
3. Date of Birth
4. Tax ID Number – Social Security Number
5. Business Legal Name
6. Business Physical Address
7. EIN #
Financial institutions are required to retain this information as long as the account is open and five years after the account is closed or deemed “Dormant.”
Impacts all financial products and marketing channels and the bank’s CIP must be written and approved by the board.
Requires disclosures to the customer that the information is required by law.
Under UDAAP What is defined as Abusive?
Materially interferes with the ability of a consumer to understand a term or condition of a Consumer Financial Product or Service or takes unreasonable advantage of:
A lack of understanding on the part of a consumer of the material risks, costs or conditions of the product or service
A consumer’s inability to protect their interests in selecting or using a product or service or the reasonable reliance by the consumer for a covered person to act in the interests of the consumer
Define Reg B Equal Credit Opportunity Act:
Reg B – Equal Credit Opportunity Act
Ensures lenders respond to requests for credit within 30 days and maintain all records for 25 months (Keep approvals for 5 years per USPA).
Prohibits discrimination based on: race, marital status, color, public assistance, age, religion, telephone listing, gender, credit protection, and national origin.
Requires a total household income disclosure.
Stipulates that a creditor cannot suggest to an applicant who should be their guarantor.
Requires adverse action notification containing a statement of action, reason, source, name and address of creditor, name and address of the Office of the Comptroller of the Currency, and an ECOA notice.