All of this argues against merely using something like a statement message. There would not be room for the required language — and there is nothing in the rules that explicitly allow merely providing a web address (where the full notice may be accessed) as a substitute for the required notice. The best route would be to send revised privacy notices to affected consumers and provide them with the required opportunity to opt out of the sharing before the sharing with any affiliate commences. FOLLOW-UP Q: If there is no option to opt-out, could we just post the revised privacy notice on our website? FOLLOW-UP A: No, the rules require providing it in a manner that ensures that the consumer/ customer actually receives it. Generally, it is not considered reasonable to presume that all customers regularly access the bank’s website. TISA Q: We are going to migrate customers from their current accounts to our new accounts. In the change letter, do we need to state all the negatives such as maintenance fees increasing, a new paper statement fee, no free checks, and no free cashier’s checks? We will be sending the TISA account disclosure with the letter. A: The bank cannot simply rely on customers reading the account disclosures. Regulation DD provides that if a financial institution provides notice through revised account disclosures, the changed term must be highlighted in some manner. For example, financial institutions may note that a particular fee has been changed (also specifying the new amount) or use an accompanying letter that refers to the changed term. So, your cover letter will need to point customers to the changes that increase their costs (or reduce their earnings — interest rates). RESPA/TILA/PRIVACY Q: We are purchasing a small number of residential loans from another financial institution. We have confirmed that the selling bank will be sending out a Notice of Servicing Transfer Letter. Do we have to send out our own Notice of Servicing Transfer Letter as well? In addition, are there any other required notices that have to be sent to the borrowers — for example, our privacy notice, first payment coupons, etc.? A: Either separate mortgage servicing transfer notices, or one combined notice, may be sent — as long as the proper notice is given in the proper time, as required by Regulation X (RESPA). If the seller is not including your bank’s notice information in its notice, then your bank will have to send its own buyer’s notice. There is also a mortgage transfer notice required by Regulation Z since the bank is acquiring the loan itself, as well as the servicing of those loans. The bank’s privacy notice should also be sent since this is the beginning of these borrowers’ customer relationship with a new-to-them bank. Other notices or documents might be required by your state’s laws, but you need to check with your legal counsel on that issue. CRA/INTERSTATE BRANCHING Q: We have one branch in a neighboring state and the loan-to-deposit ratio for that branch was 33% at the end of 2022. The Section 109 Host State Loan to Deposit Ratio for that state, as of June 30, 2021, is 69%. NEBRASKA INDEPENDENT BANKER 19
RkJQdWJsaXNoZXIy MTg3NDExNQ==