Bankers Alliance Compliance Corner

Editor's Note: The following was submitted by Bankers Alliance. LBA, through its subsidiary Louisiana Bankers Service Corporation, has partnered with Bankers Alliance to give banks access to three compliance-related programs. Click here for more information.

Q: We have a designated disaster area close by and were wondering which activities in these areas would qualify for Community Reinvestment Act Community Development?

A. There are a variety of activities relating to designated disaster areas that may qualify. Loans, investments/donations and services that revitalize or stabilize DDAs may be eligible for CRA consideration if the activities (1) help attract new or retain existing businesses or residents; and (2) are related to disaster recovery. For example, qualifying activities could include a loan to a business affected by the disaster that would otherwise have to close; an investment in a municipal bond that will rebuild essential community buildings that were destroyed by the disaster; providing financing for rebuilding needs; or delivering financial expertise to an organization providing housing for displaced residents. The activities must generally occur within 36 months of the disaster declaration to be eligible to receive consideration; however, the agencies can extend this period for exceptional situations, such as where there is a demonstrable need in a particular DDA that requires longer-term assistance. Banks subject to certificate of deposit evaluation are encouraged to monitor and document activities in DDAs that may be considered in their next CRA exam.  

Compliance Alliance offers a comprehensive suite of compliance management solutions. To learn how to put them to work for your bank, call (888) 353-3933 or email info@compliancealliance.com and ask for our Membership Team. 

Did you know that the loan number should be documented on all Promissory Notes? 

  • It is recommended that the loan number be documented to help ensure that files are kept organized.  
  • This will also allow for ease of access when locating files in the case of default or foreclosure.

Review Alliance, an independent group of compliance specialists offering banks deep-dive audits of their existing transactions, recommendations about program enhancements or guidance on future safety and soundness. Virtual Compliance Officer was added in 2020—a new shared service-model using bank-dedicated compliance officers; perfect for monitoring and guiding your bank remotely. To learn how to put them to work for your bank, call (833)-683-0701or email info@bankersalliance.org and ask for the Membership Team.

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Compliance Corner Archives

2022 Apr Compliance Corner

Posted on 4/22/2022
Check out recent Compliance Alliance questions of the week and Review Alliance Did You Know facts.