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 loan that was locked at 7.25% and disclosed on the LE at 7.25% but mistakenly changed to 7% on the Initial CD and then corrected on the Final CD back to 7.25%. Does the bank need to honor the 7% or can the loan close with 7.25%?

A: Assuming that the loan was locked via a rate lock agreement, whether or not the bank would be required to honor the lower rate on the initial CD may come down to the language in the rate lock agreement. However, the regulation itself does directly address when rates are mistakenly disclosed which do not align with the bank's rate that was locked pursuant to a rate lock agreement. If the agreement does not address this, the bank may want to consider honoring the lower rate to mitigate against potential Unfair, deceptive or abusive acts and practices and/or contractual risks. Click here for more information.     

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 there are common red flags for financial elder abuse?  

  • Transaction pattern changes such as new spending patterns, adding new authorized users, non-typical ATM withdrawals and/or gaps in check numbers. 
  • Identity Theft and coercion indications such as address and account changes, consumer confusion and mail delivery changes for account statements. 
  • Behavioral changes such as asking about international wire transfer, confusion about finances and mention of lottery winnings. 

Review Alliance is 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 and ask for the membership team.

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