Compliance Center » Financial Regulatory Compliance


Federal Reserve Regulations

Bank Bribery Act

Federal Regulation:

Bank Bribery Act Small_arrow_right

Summary:

The Act required that financial institution regulatory agencies issue guidelines to assist financial institutions in complying with the Bank Bribery Act. The guidelines encourage each institution to adopt a code of conduct or policies which should alert institution officials to the Bank Bribery Act, as well as to establish and enforce written policies on acceptable business practices. The code may specify appropriate exceptions to the general prohibition of accepting something of value in connection with bank business that management can defend as not amounting to having a corrupt influence on bank transactions. The code of conduct or policies should stress that a serious threat to the integrity of the bank occurs when its officials become involved in outside business interests or employment that give rise to a conflict of interest, especially should such conflicts evolve into corrupt transactions that are covered under the Bank Bribery Act.

Applicable Courses:

  • Bank Bribery Act
  • Ethics for Banks

Resources:

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Bank Protection Act

Federal Regulation:

Bank Protection Act Small_arrow_right

Summary:

The Act requires affected institutions to adopt appropriate security devices and procedures, reasonable in cost, to discourage robberies, burglaries, and larcenies and to assist in the identification and apprehension of persons who commit such acts. Section 208.61 of Regulation H implements section 3 of the Bank Protection Act.

Applicable Courses:

  • Office Security - Robbery, ATM Safety, and Bomb Threats

Resources:

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Bank Secrecy Act

Federal Regulation:

Bank Secrecy Act Small_arrow_right

Summary:

The Bank Secrecy Act (BSA) is implemented by regulation developed by the Department of Treasury. The BSA was designed to reduce the use of depository institutions as a means to disguise funds derived from illegal transactions. The BSA authorized the U.S. Treasury to require depositories to retain records of certain transactions so U.S. law enforcement authorities could investigate them. The BSA also authorized the Treasury to require that depositories and other organizations report financial transactions of certain kinds.

Applicable Courses:

  • Adult Financial Abuse
  • Bank Secrecy Act
  • Bank Secrecy Act for Deposit Operations Employees
  • Bank Secrecy Act for Lending Employees
  • Deposit Operations Regulations
  • Identity Red Flag Programs
  • Money Laundering
  • Teller Training

Resources:

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Check Clearing for the 21st Century Act

Federal Regulation:

Check Clearing for the 21st Century Act Small_arrow_right

Summary:

Makes it easier for banks to electronically transfer check images instead of physically transferring paper checks. Check 21 does not require banks to accept checks electronically, but it facilitates electronic transmission between banks by providing a way for banks that clear checks electronically to exchange information with those that do not.

Applicable Courses:

  • Cash Management Services
  • Expedited Funds Availability - Check 21
  • Check Clearing and Electronic Payment Systems

Resources:

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Dodd-Frank Wall Street Reform and Consumer Protection Act

Federal Regulation:

Dodd-Frank Wall Street Reform and Consumer Protection Act Small_arrow_right

Summary:

The Dodd-Frank Wall Street Reform and Consumer Protection Act was signed into law on July 21, 2010, and is expected to make sweeping reforms to not only the financial industry, but many other industries as well. It was made effective the next day, July 22, 2010, but implementing regulations have not yet been written.

The law is divided into sixteen titles, often with each title being read as its own individual Act. Not all of the titles will impact financial institutions. Of the titles that do affect financial institutions, some will have a greater impact than others. For this reason, it will be pertinent your financial institution designate one or more persons to monitor the changing environment with the Dodd-Frank Act. Further, with such a large piece of legislation, one can expect it will take months, if not years, to implement all the regulatory requirements mandated within the Act.

Applicable Courses:

  • Dodd-Frank Wall Street Reform and Consumer Protection Act (Dodd-Frank)

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Fair and Accurate Credit Transactions Act of 2003

Federal Regulation:

Fair and Accurate Credit Transactions Act of 2003 Small_arrow_right

Summary:

The Fair and Accurate Credit Transactions Act (FACT Act) amended the Fair Credit Reporting Act (FCRA) in December 2003. It includes many new provisions that impact the credit reporting system and the prevention of identity theft. It was designed to ensure that all citizens are treated fairly when they apply for a mortgage or other form of credit.

Applicable Courses:

  • Fair Credit Reporting Act (FACT Act)
  • Home Mortgage Processing and Compliance
  • Identity Red Flag Programs

Resources:

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Fair Credit Reporting Act

Federal Regulation:

Fair Credit Reporting Act Small_arrow_right

Summary:

Adopted to ensure confidentiality of consumer credit information. It prohibits disclosure of credit files except for specific purposes such as employment, insurance, and bona fide credit applications. It also requires credit bureaus to provide consumers with a copy of their credit report if requested. Procedures for disputing derogatory information in a credit report are also provided.

Applicable Courses:

  • Fair Credit Reporting Act (FACT Act)
  • Privacy of Consumer Financial Information (Reg. P)
  • Consumer Credit Lending Practices
  • Credit Reports, Scores and Counseling and Debt Management
  • Financial Institution Regulation

Resources:

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Fair Debt Collection Act

Federal Regulation:

Fair Debt Collection Act Small_arrow_right

Summary:

Passed by Congress to ensure that consumers are treated fairly by debt collectors. This law only covers debts collected by third-party collection agencies or by attorneys who regularly collect debts. The act prohibits abusive, deceptive and unfair collection practices, establishes a procedure for debt collection, and limits a collectorís contact with third parties.

Applicable Courses:

  • Collection Practices and Loan Workouts
  • Fair Debt Collection Practices
  • Consumer Credit Lending Practices
  • Financial Institution Regulation

Resources:

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Fair Housing Act

Federal Regulation:

Fair Housing Act Small_arrow_right

Summary:

The Fair Housing Act prohibits discrimination in housing because of: Race or color; National origin; Religion; Sex; Familial status (including children under the age of 18 living with parents or legal custodians; pregnant women and people securing custody of children under 18); and Handicap (Disability). The Fair Housing Act covers most housing. In some circumstances, the Act exempts owner-occupied buildings with no more than four units, single-family housing sold or rented without the use of a broker, and housing operated by organizations and private clubs that limit occupancy to members.

Applicable Courses:

  • Escrow Accounts and Disclosures
  • Fair Housing Act
  • Fair Lending Laws (FHA, ECOA, and Reg. B)
  • Home Mortgage Processing and Compliance
  • Uniform Residential Loan Application

Resources:

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Flood Hazard Act

Federal Regulation:

Flood Hazard Act Small_arrow_right

Summary:

The Congress passed the 1968 Flood Insurance Program to provide property owners with the opportunity to purchases flood insurance protection for structures and contents form the Federal Government through the National Flood Insurance Program (NFIP). This voluntary program was revised through the adoption of the Flood Disaster Protection Act of 1973 which mandated NFIP coverage for many properties. The act prohibited regulated lending institutions from making, increasing, extending or renewing any loan secured by improved real estate or located in Special Flood Hazard Areas (SFHAs). Congress again revised the law in 1994 with the passage of the National Flood Insurance Reform Act. The intent of the statute was to require that borrowers purchase flood insurance by directing federally regulated primary lenders and secondary market entities to: determine whether the structure offered as security for a loan is, or will be, located in a SFHA; document the determination of flood hazard status; require that flood insurance to the appropriate limit is obtained when necessary; during the term of the loan, ensure that flood insurance is maintained or added if the lender becomes aware that the property involved subsequently becomes part of a SFHA.

Applicable Courses:

  • National Flood Insurance Program
  • Home Mortgage Processing and Compliance

Resources:

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Gramm-Leach-Bliley Act

Federal Regulation:

Gramm-Leach-Bliley Act Small_arrow_right

Summary:

Protecting the privacy of consumer information held by "financial institutions" is at the heart of the financial privacy provisions of the Gramm-Leach-Bliley Financial Modernization Act of 1999. The GLB Act requires companies to give consumers privacy notices that explain the institutions' information-sharing practices. In turn, consumers have the right to limit some - but not all - sharing of their information.

Applicable Courses:

  • Adult Financial Abuse
  • Safeguarding Customer Information - Gramm-Leach-Bliley
  • Identity Red Flag Programs
  • Identity Theft
  • Privacy of Consumer Financial Information (Reg. P)

Resources:

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Identity Theft and Assumption Deterrence Act of 1998

Federal Regulation:

Identity Theft and Assumption Deterrence Act of 1998 Small_arrow_right

Summary:

The Identity Theft and Assumption Deterrence Act of 1998 (Identity Theft Act) makes it a federal crime when anyone knowingly transfers or uses, without lawful authority, a means of identification of another person with the intent to commit any federal unlawful activity.

Applicable Courses:

  • Check Fraud
  • Identity Theft

Resources:

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Interagency Statement on Retail Sales of Nondeposit Investment Products

Federal Regulation:

Interagency Statement on Retail Sales of Nondeposit Investment Products Small_arrow_right

Summary:

The objective of the guidelines contained in the interagency statement is to ensure that customers of depository institutions are clearly and fully informed of the nature of nondeposit investment products and the risks associated with investing in them. The guidelines apply to sales of nondeposit investment products such as mutual funds and annuities, as well as stocks and other investment products that are not insured by the FDIC.

Applicable Courses:

  • Nondeposit Investment Product Sales
  • Referral Techniques for Non-licensed Employees

Resources:

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Limitations of Interbank Liabilities - Regulation F

Federal Regulation:

Limitations of Interbank Liabilities - Regulation F Small_arrow_right

Summary:

Regulation F, Limitations on Interbank Liabilities, and is designed to establish limits on the financial transactions between financial institutions. This regulation was created to limit the risk the failure of a depository institution, such as a correspondent bank, would pose on a depository institution insured by the Federal Deposit Insurance Corporation (FDIC). This regulation applies to all depository institutions insured by the FDIC.

Applicable Courses:

  • Limitations on Interbank Liabilities - Regulation F

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Office of Foreign Assets Control (OFAC)

Federal Regulation:

Office of Foreign Assets Control (OFAC) Small_arrow_right

Summary:

The Office of Foreign Assets Control ("OFAC") of the U.S. Department of the Treasury administers and enforces economic and trade sanctions against targeted foreign countries, terrorism sponsoring organizations and international narcotics traffickers based on U.S. foreign policy and national security goals. OFAC acts under Presidential wartime and national emergency powers, as well as authority granted by specific legislation, to impose controls on transactions and freeze foreign assets under U.S. jurisdiction. Many of the sanctions are based on United Nations and other international mandates, are multilateral in scope, and involve close cooperation with allied governments.

Applicable Courses:

  • Office of Foreign Assets Control (OFAC)

Resources:

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Prohibition on Funding Unlawful Internet Gambling - Regulation GG

Federal Regulation:

Prohibition on Funding Unlawful Internet Gambling - Regulation GG Small_arrow_right

Summary:

The Unlawful Internet Gambling Enforcement Act (UIGEA) seeks to curtail unlawful Internet gambling transactions by requiring payment systems participants to establish policies and procedures to identify and block or otherwise prevent or prohibit their customers from engaging in those transactions. Regulation GG implements the UIGEA.

Applicable Courses:

  • Prohibition on Funding Unlawful Internet Gambling - Regulation GG

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Real Estate Settlement Procedures Act

Federal Regulation:

Real Estate Settlement Procedures Act Small_arrow_right

Summary:

The Real Estate Settlement Procedures Act of 1974 (RESPA) is a consumer protection statute. It requires lenders to give home mortgage borrowers an estimate of total charges prior to loan closing. Lenders are required to make a good faith effort of closing costs. RESPA also prohibits borrower kickbacks.

Applicable Courses:

  • Real Estate Settlement Procedures Act
  • Escrow Accounts and Disclosures
  • Financial Institution Regulation
  • Home Mortgage Processing and Compliance

Resources:

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Regulation A: Extensions of Credit by Federal Reserve Banks

Federal Regulation:

Regulation A: Extensions of Credit by Federal Reserve Banks Small_arrow_right

Summary:

Governs borrowing by depository institutions at the Federal Reserve discount window. The Federal Reserve discount window is available to any depository institution that maintains transaction accounts or non-personal time deposits. (Transaction accounts are defined to include checking accounts, NOW accounts, share draft accounts, savings accounts that allow automatic transfers or third party payments by automated teller machines, and accounts that permit more than a limited number of telephone or pre-authorized payments or transfers each month.) The regulation provides for lending under several programs.

  1. Adjustment credit is advanced for brief periods to help borrowers meet short-term needs for funds when their usual sources, including such special industry lenders as the Federal Home Loan Banks, are not reasonably available.
  2. Seasonal credit available to relatively small institutions that lack the access to national money markets and other funding sources needed to meet regularly recurring intra-yearly swings in funding needs.
  3. Extended credit may be available to assist an individual depository institution that is experiencing special difficulties arising from exceptional circumstances or a broad range of depository institutions that are experiencing severe liquidity strains. Extended credit is provided only after all other sources of funds have been exhausted and other responsible supervisory authorities have been consulted, and only where such lending is deemed to be in the public interest.
  4. Emergency credit may also be advanced to entities other than depository institutions in unusual and exigent circumstances where credit is not available from other sources and failure to provide credit would adversely affect the economy.

Applicable Courses:

  • Commercial Banks - An Introduction
  • Federal Reserve and Monetary Policy

Resources:

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Regulation B: Equal Credit Opportunity

Federal Regulation:

Regulation B: Equal Credit Opportunity Small_arrow_right

Summary:

Regulation B prohibits creditors from discriminating against credit applicants, establishes guidelines for gathering and evaluating credit information, and requires written notification when credit is denied. The regulation prohibits creditors from discrimination against applicants on the basis of age, race, color, religion, national origin, sex, marital status, or receipt of income from public assistance programs. Model credit application forms are provided in the regulation to facilitate compliance. By properly using these forms, creditors can be assured of being in compliance with the application requirements. The regulation also requires creditors to give applicants a written notification of rejection of an application, a statement of the applicant's rights under the Equal Credit Opportunity Act, and a statement either of the reasons for the rejection or of the applicant's right to request the reasons. Creditors who furnish credit information, when reporting information on married borrowers, must report information in the names of each spouse. The regulation establishes a special residential mortgage credit monitoring system for regulatory agencies by requiring that lenders ask for and note the race, national origin, sex, marital status, and age of residential mortgage applicants. The regulation covers all credit transactions (unlike other regulations that may cover only consumer credit), with some modifications applicable to certain classes of transactions.

Applicable Courses:

  • Consumer Lending Regulations
  • Fair Lending Laws (FHA, ECOA, and Reg. B)
  • Consumer Credit Lending Practices
  • Financial Institution Regulation
  • Home Mortgage Processing and Compliance

Resources:

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Regulation BB: Community Reinvestment

Federal Regulation:

Regulation BB: Community Reinvestment Small_arrow_right

Summary:

Regulation BB implements the Community Reinvestment Act (CRA) and is designed to encourage banks to help meet the credit needs of the communities. Under Regulation BB, each bank office must make available a statement for public inspection indicating, on a map, the communities served by that office and the type of credit the bank is prepared to extend within the communities served. The regulation requires each bank to maintain a file of public comments relating to its CRA statement. The Federal Reserve, in examining a bank, must assess its record in meeting the credit needs of the entire community, including low- and moderate-income neighborhoods, and must take account of the record in considering certain bank applications. In addition, the Act requires public disclosure of a bank's CRA rating and CRA performance evaluations.

Applicable Courses:

  • Community Reinvestment Act - Regulation BB
  • Consumer Credit Lending Practices
  • Financial Institution Regulation

Resources:

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Regulation C: Home Mortgage Disclosure

Federal Regulation:

Regulation C: Home Mortgage Disclosure Small_arrow_right

Summary:

Regulation C requires certain mortgage lenders to disclose data regarding their lending patterns. The regulation carries out the Home Mortgage Disclosure Act of 1975, providing citizens and public officials with data to help determine whether lenders are meeting the credit needs of their communities and complying with fair lending laws. The regulation applies to banks, savings and loans, credit unions and mortgage companies that have offices in Metropolitan Statistical Areas and that meet certain coverage criteria relating to asset size and volume of lending. These institutions must record and make available to the public data on mortgage loans that they originate or purchase and also on applications for such loans. In many instances, the race or national origin, gender, and income of the applicant must be reported as well as the location of the property and the type of loan. The Board may exempt from Regulation C any institution complying with substantially similar state laws.

Applicable Courses:

  • Fair Lending Laws (FHA, ECOA, and Reg. B)
  • Home Mortgage Disclosure Act (Reg. C)
  • Financial Institution Regulation
  • Uniform Residential Loan Application

Resources:

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Regulation CC: Availability of Funds and Collection of Checks

Federal Regulation:

Regulation CC: Availability of Funds and Collection of Checks Small_arrow_right

Summary:

Regulation CC implements the Expedited Funds Availability Act (EFA) and governs the availability of funds and the collection and return of checks. Regulation CC establishes availability schedules, as provided in the EFA, under which depository institutions must make funds deposited into transaction accounts available for withdrawal. The regulation also provides that depository institutions must disclose their funds availability policies to their customers. In addition, Regulation CC establishes rules designed to speed the collection and return of checks and imposes a responsibility on banks to return unpaid checks expeditiously. The provisions of Regulation CC govern all checks, not just those collected through the Federal Reserve System.

Applicable Courses:

  • Deposit Operations Regulations
  • Expedited Funds Availability - Regulation CC
  • Teller Training
  • Negotiable Instruments and Endorsements
  • New Account Representative Training

Resources:

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Regulation D: Reserve Requirements of Depository Institutions

Federal Regulation:

Regulation D: Reserve Requirements of Depository Institutions Small_arrow_right

Summary:

Regulation D relates to reserves that depository institutions are required to maintain for the purpose of facilitating the implementation of monetary policy by the Federal Reserve System. The dollar amount of a depository institution's reserve requirement is determined by applying the reserve ratios specified in the Federal Reserve Board's Regulation D to an institution's reservable liabilities. Reservable liabilities consist of net transaction accounts, nonpersonal time deposits, and eurocurrency liabilities.

Applicable Courses:

  • Deposit Operations Regulations
  • Federal Reserve and Monetary Policy
  • Liquidity Management for Depository Institutions

Resources:

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Regulation DD: Truth in Savings

Federal Regulation:

Regulation DD: Truth in Savings Small_arrow_right

Summary:

Regulation DD requires depository institutions to disclose the terms of deposit accounts to consumers. The regulation applies to consumer deposit accounts offered by depository institutions (except credit unions, which are governed by rules of the National Credit Union Administration). The major provisions of the regulation require institutions to: provide consumer account holders with written information about important terms of an account, including the annual percentage yield; provide fee and other information on any periodic statement sent to consumers; use certain methods to determine the balance on which interest is calculated; comply with special requirements when advertising deposit accounts.

Applicable Courses:

  • Advertising for Financial Institutions
  • Deposit Operations Regulations
  • Truth in Savings - Regulation DD
  • Financial Institution Regulation
  • New Account Representative Training
  • Teller Training

Resources:

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Regulation E: Electronic Fund Transfers

Federal Regulation:

Regulation E: Electronic Fund Transfers Small_arrow_right

Summary:

Regulation E establishes the rights, liabilities, and responsibilities of parties in electronic fund transfers (EFT) and protects consumers using EFT systems. Regulation E prescribes rules for the solicitation and issuance of EFT cards; governs consumers' liability for unauthorized electronic fund transfers (resulting, for example, from lost or stolen cards); requires institutions to disclose certain terms and conditions of EFT services; provides for documentation of electronic transfers (on periodic statements, for example); sets up a resolution procedure for errors; and covers notice of crediting and stoppage of preauthorized payments from a customer's account.

Applicable Courses:

  • Checking and Savings Accounts
  • Check Clearing and Electronic Payment Systems
  • Deposit Operations Regulations
  • Electronic Fund Transfer Act and Regulation E
  • Federal Reserve and Monetary Policy
  • Financial Institution Regulation
  • New Account Representative Training

Resources:

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Regulation H: Membership of State Banks in the Federal Reserve System

Federal Regulation:

Regulation H: Membership of State Banks in the Federal Reserve System Small_arrow_right

Summary:

Defines the requirements for membership of state-chartered banks in the Federal Reserve System; sets limitations on certain investments and requirements for certain types of loans; describes rules pertaining to securities-related activities; establishes the minimum ratios of capital to assets that banks must maintain and procedures for prompt corrective action when banks are not adequately capitalized; prescribes real estate lending and appraisal standards; sets out requirements concerning bank security procedures (section 208.61), suspicious-activity reports (section 208.62), and compliance with the Bank Secrecy Act (section 208.63); and establishes rules governing banks' ownership or control of financial subsidiaries.

Regulation H was expanded to include the requirement in the Gramm-Leach-Bliley Act (G-L-B Act) passed in November 1999 which directs federal banking agencies to jointly adopt consumer protection regulations that apply to retail sales practices, solicitations, advertising, or offers of any insurance product by a depository institution or any person that is engaged in such activities at an office of the institution or on behalf of the institution.

Applicable Courses:

  • Consumer Protections for Depository Institution Sales of Insurance
  • Bank Secrecy Act
  • Teller Training

Resources:

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Regulation M: Consumer Leasing

Federal Regulation:

Regulation M: Consumer Leasing Small_arrow_right

Summary:

Regulation M implements the consumer leasing provisions of the Truth in Lending Act. Regulation M applies to leases of personal property for more than 4 months for personal, family, or household use. It requires leasing companies to disclose in writing the cost of a lease, including a security deposit, monthly payments, license, registration, taxes and maintenance fees and, in the case of an open-end lease, whether a "balloon payment" may be applied. It also requires written disclosure of the terms of a lease, including insurance, guarantees, responsibility for servicing the property, standards for wear and tear, and any option to buy.

Applicable Courses:

  • Consumer Credit Lending Practices
  • Financial Institution Regulation

Resources:

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Regulation P: Privacy of Consumer Financial Information

Federal Regulation:

Regulation P: Privacy of Consumer Financial Information Small_arrow_right

Summary:

Implements the provisions of the Gramm-Leach-Bliley Act that prohibit a financial institution from disclosing nonpublic personal information to third parties that are not affiliated with the financial institution.

Applicable Courses:

  • Advertising for Financial Institutions
  • Privacy of Consumer Financial Information (Reg. P)
  • Safeguarding Customer Information - Gramm-Leach-Bliley
  • New Account Representative Training
  • Teller Training

Resources:

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Regulation S: Reimbursement for Providing Financial Records; Recordkeeping Requirements for Certain Financial Records

Federal Regulation:

Regulation S: Reimbursement for Providing Financial Records; Recordkeeping Requirements for Certain Financial Records Small_arrow_right

Summary:

Regulation S establishes the rates for reimbursement for financial institutions for providing customer records to federal agencies; and the recordkeeping requirements for funds transfers. Subpart A of Regulation S implements that section of the Right to Financial Privacy Act of 1978 requiring government authorities to pay a reasonable fee to financial institutions for providing financial records of individuals and small partnerships to Federal agencies. Subpart B implements the Annunzio-Wylie Anti-Money Laundering Act of 1992. It incorporates, by reference, the regulations codified at 31 CFR 103.33 issued jointly by Treasury and the Board to require banks to maintain records concerning the originators and beneficiaries of funds transfers handled by the bank.

Applicable Courses:

  • Rights to Financial Privacy Act

Resources:

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Regulation Z: Truth in Lending

Federal Regulation:

Regulation Z: Truth in Lending Small_arrow_right

Summary:

Regulation Z prescribes uniform methods of computing the cost of credit, disclosure of credit terms, and procedures for resolving errors on certain credit accounts. The credit provisions of the regulation apply to all persons who extend consumer credit more than 25 times a year or, in the case of consumer credit secured by real estate, more than 5 times a year. Consumer credit is generally defined as credit offered or extended to individuals for personal, family, or household purposes, where the credit is repayable in more than four installments or for which a finance charge is imposed. The major provisions of the regulation require lenders to: provide borrowers with meaningful, written information on essential credit terms, including the cost of credit expressed as an annual percentage rate (APR); respond to consumer complaints of billing errors on certain credit accounts within a specific period; identify credit transactions on periodic statements of open-end credit accounts; provide certain rights regarding credit cards; provide good faith estimations of disclosure information before consummation of certain residential mortgage transactions; provide "early" disclosure of credit terms to consumers interested in adjustable rate mortgages (ARMs) and home equity lines of credit; comply with special requirements when advertising credit.

Applicable Courses:

  • Advertising for Financial Institutions
  • Consumer Lending Regulations
  • Consumer Credit Lending Practices
  • Financial Institution Regulation
  • Home Mortgage Processing and Compliance
  • Truth in Lending for Loans Secured by Real Estate - Regulation Z

Resources:

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Right to Financial Privacy

Federal Regulation:

Right to Financial Privacy Small_arrow_right

Summary:

Right to Financial Privacy Act was designed to protect the confidentiality of personal financial records by creating a statutory Fourth Amendment protection for bank records. The Right to Financial Privacy Act states that "no Government authority may have access to or obtain copies of, or the information contained in the financial records of any customer from a financial institution unless the financial records are reasonably described" and:

  • the customer authorizes access
  • there is an appropriate administrative subpoena or summons
  • there is a qualified search warrant
  • there is an appropriate judicial subpoena or
  • there is an appropriate written request from an authorized government authority.

The statute prevents banks from requiring customers to authorize the release of financial records as a condition of doing business and states that customers have a right to access a record of all disclosures.

Applicable Courses:

  • Rights to Financial Privacy Act

Resources:

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Secure and Fair Enforcement for Mortgage Licensing Act - The S.A.F.E. Act

Federal Regulation:

Secure and Fair Enforcement for Mortgage Licensing Act - The S.A.F.E. Act Small_arrow_right

Summary:

The Secure and Fair Enforcement for Mortgage Licensing Act, The S.A.F.E. Act, is intended to improve the flow of information to and between regulators. It provides increased accountability and tracking of mortgage loan originators and enhances consumer protections. The S.A.F.E. Act also supports anti-fraud measures and provide consumers with easily accessible information free of charge regarding the employment and disciplinary history of their mortgage loan originator.

To achieve these goals, financial institutions must develop policies and procedures to cover nine elements of the Act. This includes identifying mortgage loan originators within the organization, training mortgage loan originators on their responsibilities under the Act and ensuring compliance with the provisions of the Act.

Applicable Courses:

  • Secure and Fair Enforcement for Mortgage Licensing Act - The S.A.F.E. Act

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Servicemembers Civil Relief Act of 2003

Federal Regulation:

Servicemembers Civil Relief Act of 2003 Small_arrow_right

Summary:

Under provisions of the Servicemembers Civil Relief Act of 2003, you may qualify for any or all of the following:

  • Reduced interest rate on mortgage payments.
  • Reduced interest rate on credit card debt.
  • Protection from eviction if your rent is $1,200 or less.
  • Delay of all civil court actions, such as bankruptcy, foreclosure or divorce proceedings.

In addition to the protections involving debt payments and civil litigation, the act guarantees service members the right to vote in the state of their home of record and protects them from paying taxes in two different states.

Most provisions of the act are automatic, but that those involving debt payments are not. Under the act, service members on active duty can have mortgage and credit card interest rates reduced to a fixed rate of 6 percent.

Applicable Courses:

  • Servicemembers Civil Relief Act

Resources:

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The Credit Card Accountability Responsibility and Disclosure Act of 2009

Federal Regulation:

The Credit Card Accountability Responsibility and Disclosure Act of 2009 Small_arrow_right

Summary:

The Truth in Lending Act (TILA), Title I of the Consumer Credit Protection Act, is aimed at promoting the informed use of consumer credit by requiring disclosures about its terms and costs. The law is implemented by the Federal Reserve Board's Regulation Z.

The purpose of the regulation is to promote the informed use of consumer credit by requiring disclosures about its terms and cost. The regulation also regulates certain credit card practices, and provides a means for fair and timely resolution of credit billing disputes.

The Credit Card Accountability Responsibility and Disclosure Act of 2009 (Credit Card Act) amended the TILA by including a number of specific prohibitions with the objective of establishing fair and transparent practices relating to the extension of credit under an open end consumer credit plan.

Applicable Courses:

  • Credit Card Act of 2009 - Amend Reg. Z

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Transactions Between Member Banks and Their Affiliates - Regulation W

Federal Regulation:

Transactions Between Member Banks and Their Affiliates - Regulation W Small_arrow_right

Summary:

Regulation W was issued to implement Sections 23A and 23B of the Federal Reserve Act. It establishes certain requirements for loans, purchases of assets, and certain other transactions between a member bank and its affiliates.

Section 23A is designed to protect banks from misuse in financial transactions with their affiliates. Section 23A attempts to accomplish this goal by imposing safeguards on all "covered transactions" between a bank and its affiliates. Section 23B applies restrictions and prohibitions on transactions and affiliates.

Applicable Courses:

  • Transactions Between Member Banks and Their Affiliates - Regulation W

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Uniform Commercial Code

Federal Regulation:

Uniform Commercial Code Small_arrow_right

Summary:

p>The Uniform Commercial Code (UCC) is a set of standardized state laws governing financial contracts. The code makes it easier for lenders to extend credit secured by personal property and it also clears up some ambiguities and differences in state laws. The UCC was adopted in 1950 by most states and the District of Columbia. The UCC is organized into articles. The articles are:

  • Article 1: General Provisions
  • Article 2: Sales
  • Article 2a: Leases
  • Article 3: Commercial Paper
  • Article 4: Bank Deposits and Collections
  • Article 4a: Funds Transfers
  • Article 5: Letters of Credit
  • Article 6: Bulk Transfers
  • Article 7: Warehouse Receipts and Other Documents of Title
  • Article 8: Investment Securities
  • Article 9: Secured Transactions; Sales of Accounts and Chattel Paper

Applicable Courses:

  • Check Fraud
  • Consumer Credit Lending Practices
  • Negotiable Instruments and Endorsements

Resources:

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Uniform Commercial Code Revised Article

Federal Regulation:

Uniform Commercial Code Revised Article Small_arrow_right

Summary:

Article 9 governs transactions involving the granting of credit secured by personal property and the sale of accounts and chattel paper. Revised Article 9 contains a number of new rules for secured transactions that affect a financial institution's procedures, systems, documentation, and the enforceability of security interests. Further, the scope of Revised Article 9 has been expanded to cover new types of collateral and new types of transactions. Revised Article 9 affects loan documentation and filing of security interests at origination and renewal, required notifications to debtors and creditors, and the identification of the interests of other creditors.

Applicable Courses:

  • UCC Revised Article 9 - Security Interests
  • Consumer Credit Lending Practices

Resources:

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USA Patriot Act of 2001

Federal Regulation:

USA Patriot Act of 2001 Small_arrow_right

Summary:

Congress passed the USA PATRIOT Act (the Act) in response to the terrorists' attacks of September 11, 2001. The Act gives federal officials greater authority to track and intercept communications, both for law enforcement and foreign intelligence gathering purposes. It vests the Secretary of the Treasury with regulatory powers to combat corruption of U.S. financial institutions for foreign money laundering purposes.It seeks to further close our borders to foreign terrorists and to detain and remove those within our borders. It creates new crimes, new penalties, and new procedural efficiencies for use against domestic and international terrorists.

Applicable Courses:

  • Bank Secrecy Act
  • Money Laundering

Resources:

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