Banking Regulations

U.S. Banking Regulations

Important Banking Rules And Requirements

• The Bank Secrecy Act
  
  Under the Bank Secrecy Act (BSA), financial institutions are required to assist U.S. government agencies in detecting and preventing money laundering, fraud, or terrorism.
  
  More Details On The Bank Secrecy Act


• Anti-Money Laundering And Suspicious Activity Reporting
  
  The purpose of the AML is to help detect and report suspicious activity such as money laundering, securities fraud, market manipulation, or terrorist financing.
  
  More Details On AML or SAR


• Call Reports
  
  Call Reports contains information about the bank's financial health, and must be filed by U.S. banks on a quarterly basis. The Call Report includes the bank's income statement, balance sheet, loan, deposit, and investment information, changes in the bank's capital, asset sale information, and several other areas re the bank's viability.
  
  More Details On Call Reports

Other Banking Regulations

• Reg B: Equal Credit Opportunity
  
  Regulation B requirements prohibit lenders from discriminating against credit applicants, establishes guidelines for gathering and evaluating credit information, and requires written notification when credit is denied


• Reg C: The Home Mortgage Disclosure Act
  
  Regulation C, aka The Home Mortgage Disclosure Act or commonly the "HMDA". Reg C and HMDA regulations requires financial institutions to maintain and annually disclose data about home purchases, home purchase pre-approvals, home improvement, and refinance applications involving one- to four-unit and multifamily dwellings
  
  More Details On HMDA


• Reg D: Reserve Requirements of Depository Institutions
  
  Regulation D sets uniform requirements for all depository institutions to maintain reserve balances either with their Federal Reserve Bank or as cash, as well as defines limitations on withdrawals from savings, money markets, and CDs


• Reg E: Electronic Fund Transfers
  
  What is Reg E? Regualtion E establishes the rights, liabilities, and responsibilities of parties in electronic funds transfers and protects consumers when they use such systems
  
  More Details On Reg E Compliance


• Reg G: S.A.F.E. Mortgage Licensing Act
  
  Regulation G, the Secure and Fair Enforcement for Mortgage Licensing Act (aka "SAFE") established requirements for the licensing and registration of all Mortgage Loan Originators through it NMLS Registry.
  
  More Details On SAFE and NMLS


• Reg J: Collection Of Checks And Other Items By Federal Reserve Banks And Funds Transfers Through Fedwire
  
  Regulation J governs the guidelines for the processing of checks and other cash instruments for Federal Reserve Banks, senders and payers of checks, and recipients and senders of Fedwire funds
  
  More Details On ACH and Wire Transfers


• Reg M: Consumer Leasing
  
  Regulation M implements the consumer leasing provisions of the Truth in Lending Act by requiring meaningful disclosure of leasing terms


• Reg V: Fair Credit Reporting
  
  The Fair Credit Reporting Act regulates the collection, sharing, and use of customer-credit information. The act allows consumers to obtain a copy of their credit report from credit bureaus that hold information on them, provides for consumers to dispute negative information held and sets time limits, after which negative information is suppressed. It requires that consumers be informed when negative information is added to their credit records, and when adverse action is taken based on a credit report.


• Reg Z: Truth In Lending
  
  Regulation Z real estaet, aka the Truth In Lending Act regulation Z or "TILA" prescribes uniform methods for computing the cost of credit, for disclosing credit terms, and for resolving errors on certain types of credit accounts. Regulation Z applies to the information that must be disclosed to a borrower prior to extending credit for loans, as well as what or how a financial institution can advertise.
  
  More Details On TRID and TILA


• Reg CC: Availability Of Funds And Collection Of Checks
  
  What is Reg CC? Reg CC governs the availability of funds deposited in checking accounts, when standard regulation cc holds and exception holds can be placed on checks deposited to checking accounts, the maximum length of time the money can be held, and the collection and return of checks
  
  More Details On Reg CC and Check Holds


• Reg DD: Truth In Savings
  
  Regulation DD, also know as "TISA", governs uniformity in the disclosure of terms and conditions regarding interest and fees when giving out information on or opening a new savings account.


• NACHA
  
  The National Automated Clearing House Association (NACHA) governs the roles and responsibilities of financial institutions and establishing clear guidelines for ACH transactions.
  
  For a copy of the NACHA ACH Rules, go to www.nacha.org. For training courses on ACH And Wire Transfers, go to ACH Training Courses


• TRID And RESPA Regulations
  
  TRID is the TILA / RESPA Integrated Disclosure Rule. FYI: TILA regulations refer to the Truth in Lending Act and RESPA regulations cover the Real Estate Settlement Procedures Act. TRID regulations cover the mortgage process and dictates what information lenders are required to provide to borrowers - and when they are required to provide it. TRID also regulates what fees and how much lenders can charge mortgage borrowers and how these fees can change over the course of the mortgage process
  
  More Details On TRID


• UDAAP
  
  Created by the Dodd-Frank Act and governed by the Consumer Financial Protection Bureau (CFPB), UDAAP is an acronym for unfair, deceptive, or abusive acts or practices by those who offer financial products or services to consumers. What is UDAAP? Specifically, UDAAP governs how you, your tellers, and your other branch staff handle certain situations, especially if it is a misleading representation, omission, act, or practice, or interferes with the ability of a consumer to understand a term or condition
  
  More Details On UDAAP

Find Other Mortgage And Banking Regulations