Pub. 7 2019 Issue 2

11 The Community Banker COMPLIANCE Q&A – SUMMER 2019 Compliance Q&A By Bill Showalter, Senior Consultant, Young & Associates, Inc. BSA. Q: A customer came into the bank and withdrew $10,000.00 in cash from her joint account. Her husband, the other joint owner of the account, came into the bank later the same day and cashed an on-us check (not drawn on any of their accounts) for $166. I have read the FAQ’s on withdrawals from a joint account but I don’t see any guidance on this situation. Does this prompt a Currency Transaction Report (CTR)? A: No. The withdrawal from the joint account did involve both wife and husband. However, the check cashing did not involve the account, which would have brought the wife into consideration on that transaction, and brought the total currency out to over $10,000. HMDA. Q: We have a second mortgage loan secured by the applicant’s primary residence with the entire amount of the loan going to purchase a vehicle. Is the purpose “other” for the Home Mortgage Disclosure Act (HMDA), or not HMDA reportable at all? If this is not an HMDA loan, what actually constitutes as “other”? I have seen only educational expenses referenced in the rule itself. A: Yes, this loan qualifies for HMDA reporting – it is a closed-end loan secured by a dwelling, and not an excluded transaction. And yes, the loan purpose would be reported as “Other” since it is not for home purchase, home improvement, refinancing, or cash-out refinancing. The education expenses example is just that, an example. The list in the commentary is not an exhaustive list of what constitutes a purpose that should be categorized as “other.” Reserve Requirements. Q: I believe I read somewhere that money debited from a saving account or a money market saving account and transferred to another bank account as part of an overdraft protection program or a program to maintain a minimum balance by way of a sweep does not count toward the limit of six withdrawals/transfers per month. Is this correct? A: No, that is not correct. There is a Federal Reserve Board Staff Opinion from 1992 that is still in force, and it states that these overdraft-protection transfers are subject to the limit. Debit transfers under any arrangement to sweep funds out of a savings or MMDA account in order to cover overdrafts on, or to maintain a minimum balance in, a checking account or other transaction account are subject to the six-per-month transaction limit in the Regulation D definition of “savings deposit.” TILA. Q: Our applicant has a sales contract providing that the seller is willing to give the buyer a credit of $6,400 if they can sell their home by a particular date. When we do the Loan Estimate, do we include this credit or do we leave it off and use