COMPLIANCE Q&A SPRING 2024 Young & Associates provides banks and thrifts with support for their compliance programs, independent reviews and in-bank training, as well as a full menu of management consulting, loan review, IT consulting and policy systems. RESPA. Q: We are acquiring a bank at the end of May. This is my first time going through a merger. Are we, as the surviving institution, required to submit a short-year escrow account statement to the borrower within 60 days of the effective date of transfer under Regulation X (RESPA), 1024.17(i)(4)(ii), or do we only have to do this if something is changing, such as changing a disbursement date? Our loan department does not plan on changing anything and just transferring the accounts over. They would like to keep these loans on their current escrow analysis cycle. For example, if at the old bank the annual analysis was in March, then we plan to also do the annual analysis in March each year. A: RESPA requires that only the transferor (old servicer) must issue a short-year statement. The new servicer is not required to issue another short-year statement unless the new servicer is making changes (monthly payments, accounting methods, disbursement dates, etc.). ECOA. Q: We are refinancing a loan secured by some land. A single man had given a deed of trust (mortgage) on the land and every year renewed the line of credit using the land as security. He has married in the past year. His spouse is not on the loan. We are wondering whether the spouse should sign in some capacity upon renewal of this line of credit. A: It is possible that the spouse would need to sign some document to perfect the bank’s security interest. However, this is an issue that can vary by different state laws and, so, should be referred to the bank’s legal counsel for a determination. BSA. Q: Two sisters were joint owners of a checking account. The account was closed, and a cashier’s check was issued to the two sisters for the balance remaining in the account. The sisters decided to cash the check and split the proceeds. Both signed the back of the check, and both were present during the checkcashing process. How do we complete the Currency Transaction Report (CTR)? The instructions in CTR FAQ #24 seem to be relevant. This FAQ deals with a withdrawal from a joint account where you have knowledge that the withdrawal — or in our case, a check cashing — is being done on behalf of both individuals. If this applies to our case, which payee do we designate as the “person conducting transaction on own behalf — Item 2a” and as the “person on whose behalf transaction was conducted — Item 2c,” when both were present? A: A CTR filing deals only with the cash portion of any 16 Community Banker
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