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: For the bank’s privacy notice, is the bank’s holding company considered an affiliate?

A: Reg P defines an affiliate as follows: "(1) Affiliate means any company that controls, is controlled by, or is under common control with another company." (Click here to read more.) Since the holding company has "control," they are an affiliate. This said, you'd only need to list the affiliate (including holding companies) with whom you're sharing information. If you do not share information with the holding company, then they do not need to be listed, but if you are sharing with them then they should be listed on your privacy notice.


Q: Can we waive the flood insurance on a real estate loan if the balance owed is $1,000 or less?

A: Unfortunately, if it's still technically required assuming the loan is still secured by a building in a special flood hazard area, and not subject to any exception. There's not a "de minimis" exception for the outstanding balance being low at this point. There is an exception for smaller loans, but it doesn't apply unless the original principal balance was $5,000 or less, plus the term would have to have been a year or less, so if that is your scenario then it would be possible to waive it. Otherwise, there is not an applicable exemption based on the current principal balance alone:  

"§339.4 Exemptions. 
The flood insurance requirement prescribed by §339.3 does not apply with respect to: 
(b) Property securing any loan with an original principal balance of $5,000 or less and a repayment term of one year or less; or"  (Click here to read more.)

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 and ask for the membership team. 


Did you know that a bank’s social media and advertising program should factor in consumer privacy and copyright laws?

  • Posting photos of bank customers online, within the bank or in advertising can be a privacy issue. 
  • Banks may want to instate a photo disclosure form prior to posting or sharing any customer photos. 
  • Minors in photos will need the consent of the parent or guardian prior to use. 


Did you know that there are specific disclosure requirements for electronic advertising?

  • Electronic advertising includes the bank’s website, third-party websites, and all social media. 
  • Triggering terms mentioned in an advertisement are words and phrases that allow consumers to compare products and additional disclosures may be required. 
  • Required disclosures must be one click away when a consumer finds the bank’s online advertising. 

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