10/27/2024
Overdrafts may be one issue, but what about a late fee waiver on a loan for bank director - would this be a violation of Reg. O?
03/19/2023
We have a board member who sits on the board of a condominium association, but does not receive any compensation to do so by the association. Would making a loan to the condominium association be considered a conflict of interest/Reg O violation? We are thinking not since they are serving on the condo association as a resident (condo owner) in the complex.
12/25/2022
Regarding (possible) ARM loan disclosures and terms, we effectively give employees a lower rate on their loan while they are employed here. What we do is disclose the fixed contract rate and they pay those scheduled payments. The system however, is programmed with the lower discounted employee rate and the loan just prepays and when paid long enough, pays off early.
If the borrower leaves our bank, we remove the discount from the system and revert to the contractual rate. The payment never changes except for the final payment which may then be less than scheduled.
Would this be considered an adjustable rate mortgage? Is this an acceptable way to handle employee loans?
12/04/2022
Under the new QM/ATR rules that take effect on Oct 1, 2022, when does a loan become HPML? Is it still based on the 1.5%-1st lien, 3.5%-2nd lien, or does it now go by the new thresholds in the price-based tiers, for instance, 1st lien is less than $68,908 has a 6.5% threshold between the APR & APOR?
11/13/2022
When a loan is made to a Limited Partnership and a high ranking bank officer is a limited partner, is this a trigger for Reg O and if so, how should this be documented for compliance with Reg O?
04/17/2022
Are state-chartered, non-FRB member banks subject to the reporting requirements of Reg O as relates to identifying related interests and the required annual report to the board of the outstanding amount of any credit that is secured by shares of the institution if the shares of the institution are not publicly traded?
11/22/2020
I work for a foreign bank that has branches in the US, with only one insured deposits branch.
Does Regulation O apply to a foreign bank as it does to a domestic branch?
Section § 215.1(b) reads:
(b) Purpose and scope--(1) This part governs any extension of credit made by
a member bank to an executive officer, director, or principal shareholder of
the member bank, of any company of which the member bank is a subsidiary, and
of any other subsidiary of that company. (2) This part also applies to any
extension of credit made by a member bank to a company controlled by such a
person, or to a political or campaign committee that benefits or is
controlled by such a person. (3) This part also implements the reporting
requirements of 12 U.S.C. 1817(k) concerning extensions of credit by a member
bank to its executive officers or principal shareholders (or to the related
interests of such persons). (4) Extensions of credit made to an executive
officer, director, or principal shareholder of a bank (or to a related
interest of such person) by a correspondent bank also are subject to
restrictions set forth in 12 U.S.C. 1972(2).
And member bank is defined as:
(j) Member bank means any banking institution that is a member of the
Federal Reserve System, including any subsidiary of a member bank. The term
does not include any foreign bank that maintains a branch in the United
States, whether or not the branch is insured (within the meaning of 12 U.S.C.
1813(s)) and regardless of the operation of 12 U.S.C. 1813(h) and 12 U.S.C.
1828(j)(3)(B).
However, section 12 U.S.C. 1828(j)(3)(B) reads:
(B) EXTENSIONS OF CREDIT TO OFFICERS, DIRECTORS, AND PRINCIPAL
SHAREHOLDERS.--Paragraph (2) shall not apply with respect to a foreign bank
solely because the foreign bank has an insured branch, but shall apply with
respect to the insured branch.
And I assume this last part applies to Reg W, right?
Will Reg O apply to the bank or not, or partially?
05/10/2020
Do the restrictions on loans to executive officers apply to PPP loans?
05/03/2020
How long will the Interim Final Rule (IFR) stay in place?
04/26/2020
When is the new Federal Reserve Interim Final Rule on PPP loans effective?