09/12/2011
During our annual internal audit of Reg. O, we discovered that overdraft fees are being waived for the board of directors. The overdrafts were under $1,000 and the account was not consecutively overdrawn for 5 days or more. At first, we felt that we could defend this by proving that our BOD is in similar circumstances as other depositors that we waive overdraft fees for. Management has decided that proving these "similar circumstances" may not be a risk we want to take with examiners. How should we handle this violation? Should we have the board members that are in violation pay the fees that were waived? Or should we implement training and awareness to ensure this violation does not happen again?
05/23/2011
I have discoverd that my CSRs are placing holds on checks for one of our customers, sending or giving the notice. They are then waiting a day or so and calling the bank. If the check that they placed the hold on has cleared, they release the hold early. What are your thoughts? I believe they are at the very least circumventng our policies.
05/23/2011
The FDIC's Overdraft Supervisory Guidance says that institutions are expected to have procedures and policies in place by July 1, 2011. I am trying to understand if a fee is charged on the sixth occurrence, but waived three weeks later. Does an institution need to adjust the occurrence count back to five? Does waiving of the fee need to occur at the time it is charged for the overdraft?
04/18/2011
Do we have to have job specific training for BSA?
03/07/2011
Could you please settle a disagreement we’re having regarding MLOs as defined by the S.A.F.E. Act? All of our mortgage (as defined by the S.A.F.E. Act) underwriters receive only straight salary compensation. They receive no additional compensation, e.g. incentive pay, bonuses, commissions, based on the number of mortgages they underwrite or the rates and terms of those mortgages and they do not engage in any solicitation of mortgage loan business. All rates and terms are set by senior management. There are no rate spreads and all underwriters are bound by the set rates and terms. They engage in no negotiating of rates or terms with applicants. Although manufactured home underwriters are permitted to consider a written request from an applicant for a deviation from the posted terms, the granting of the requested term does not affect the underwriter’s compensation. Do you believe these underwriters would be considered MLOs as defined by the Act.
02/21/2011
Our bank compliance officer left last fall for another job. I am in charge of our electronic sign and need to find out where there is a clear/concise source of information that guides us in what we have to disclose on the sign for interest rates, terms, etc.
02/14/2011
What should an institution's general strategy be in implementing a Risk Management Program?
02/07/2011
What are the design features of an effective Risk Management Program (RMP)?
02/07/2011
What is the overall purpose of a Risk Management Program (RMP) in banking?
01/10/2011
I have a question concerning Reg E. We received an ATM fraud claim six months ago from a cardholder. We investigated and determined it was her roommate. She made an agreement with her roommate to pay the money back to her, so we denied it and reversed our provisional credit. Now she wants to reassert her claim because her roommate has not paid her back all the money. Since she decided she wanted to handle this in a civil matter with her roommate, we feel we should not have to reassert and pay the claim since we can not verify how much money was or wasn't paid back. Any input is greatly appreciated.