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: Can I issue an access device off of a HELOC?

A: While not prohibited, there are some risks to keep in mind. The main federal compliance issue is that debit cards issued for HELOCs are generally considered "credit cards" for Regulation Z purposes, subjecting them to the Regulation Z credit card provisions.  

Regulation Z's commentary to 12 CFR 1026.2(a)(15)-2(ii)(C) states that "if a line of credit can also be accessed by a card (such as a debit card), that card is a credit card for purposes of §1026.2(a)(15)(i)", meaning that the debit card falls under Regulation Z's definition of credit card. Click here for more information.  

Further, in accordance with 12 CFR 1026.12(d), since the debit card would be a credit card under Regulation Z, the bank would generally lose its right of offset under the regulation. 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 it is a best practice for all Mortgage Loan Originators to have their Nationwide Mortgage Licensing System identification number on their business cards and email signatures?  

  • The SAFE Act requires that an MLO provide their NMLS ID Number at initial contact with a consumer, which is typically in person or via email. 
  • Listing this number on business cards and email signatures provides documented evidence of the MLOs compliance with the SAFE Act. 

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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