Gold Book Blog

What Do You Think?

Admin User — Tue, 24 Jan 2012 21:09:15 +0000

Lease Security Accounts
A lease security account is a statutory creation intended to hold deposits of rent security in escrow for the protection of landlords and tenants. In New York, the rule pertains to property rentals in a building with six or more family dwelling units and in New Jersey, the rule applies to landlords with 10 rental units or more.

In accordance with N.J.S.A. 46:8-19, a New Jersey landlord is no longer entitled to receive, as administration expenses, 1% interest on the balance in the account. The interest paid on the deposit amount belongs to the tenant.

According to the New York General Obligations Law Section 7-103, a lease security deposit must be placed at a New York banking organization in an interest bearing account, with the first 1% of interest earned on the account remitted to the landlord. The balance of the interest may be paid to the tenant or given as a credit against rent. The law states that the lease security deposit (usually 1 or 2 months of rent on a residential lease) must be placed in a “prevailing rate” account.

But what if your non-CD accounts are paying 1% or less? Does this mean the landlord gets all the interest on the account?

WE WANT TO KNOW WHAT YOU THINK!
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Mortgage Loan Escrow Accounts

Admin User — Tue, 17 Jan 2012 20:53:29 +0000

The General Obligations Law, the Banking Law and New York State Banking Board General Regulation Part 10 specifically requires a lender to pay 2% on mortgage loan escrow accounts. Institutions are expected to pay 2% on these accounts even if they offer other interest bearing accounts at 2% or less. It is important to remember that for mortgage loan escrow accounts, the customer is not a depositor but a borrower.

Banks require an escrow balance for the payment of taxes and insurance and to protect the lien against a tax foreclosure. The bank requires the deposit as an incident to the loan and the bank must pay the statutory rate (not the prevailing rate).

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What’s New: Bounce Protection Programs

Admin User — Tue, 10 Jan 2012 22:17:46 +0000

The Gold Book has been updated with expanded definitions for overdraft services as well as a summary of guidance for FDIC supervised institutions.

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FinCen Assesses Penalty for SAR Disclosure

Admin User — Mon, 09 Jan 2012 14:10:56 +0000

The Financial Crimes Network (FinCEN) has assessed a $25,000 civil money penalty against a California bank employee for violating Bank Secrecy (BSA) prohibitions against disclosing suspicious activity reports (“SARs”).

FinCEN determined that the employee violated the BSA by willfully disclosing the existence of a SAR to a person involved in the reported transaction.

Read more in the December 15, 2011 FinCEN announcement: http://www.fincen.gov/news_room/nr/pdf/20111215.pdf

Internet Authentication: Enhanced Expectations

Admin User — Mon, 09 Jan 2012 14:01:03 +0000

The FDIC, with the other FFIEC agencies, issued new guidance in June 2011, describing updated supervisory expectations regarding customer authentication, layered security, and other controls in an increasingly hostile online environment. Financial institutions are expected to comply with the guidance no later than January 1, 2012.

Read more here: Authentication for Internet Banking.

What’s New: Bank Size Criteria

Admin User — Thu, 17 Nov 2011 21:37:32 +0000

The Gold Book chapter Bank Size Criteria, has been updated to reflect the current regulations for the asset-size thresholds used to define “small bank” and “intermediate small bank” based on the annual percentage change in the Consumer Price Index.

For further information about how these revised asset-size thresholds are applied, see the CRA page on the Federal Financial Institutions Examination Council’s Web site at www.ffiec.gov/cra.

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What’s New: SAFE Act

Admin User — Mon, 14 Nov 2011 14:07:46 +0000

The Gold Book has been updated to include information about the Secure and Fair Enforcement for Mortgage Licensing Act (S.A.F.E. Act). See Lending Compliance and Consumer Loan Regulation.

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What’s New: New IRS Form 1099-K

Admin User — Wed, 02 Nov 2011 20:35:55 +0000

IRS Form 1099-K, Merchant Card and Third Party Network Payments has been added to the Reporting Compliance section in The Gold Book. This new form is required in 2012 for payment card and third-party network transactions that occurred in 2011.

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What’s New: ATM Design Standards

Admin User — Wed, 02 Nov 2011 14:44:35 +0000

The Gold Book has been updated for the new regulations under the Americans with Disabilities Act which requires new accessibility standards. The new regulations became effective March 15, 2011 and March 15, 2012 mandatory compliance date. See Americans with Disabilities Act for further information.

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Proposed Revisions to Flood Insurance Q & As

Admin User — Fri, 28 Oct 2011 19:43:53 +0000

The federal agencies that supervise banks, thrifts, and credit unions, and the Farm Credit System, published guidance last week that updates the Interagency Questions and Answers Regarding Flood Insurance that were most recently published on July 21, 2009 at 74 FR 35914-35947.

The guidance finalizes two questions and answers that had been previously proposed.

The agencies request comment on three additional proposed updates to questions and answers relating to force placement of flood insurance.

It is the intention of the agencies that, after public comment has been received and considered and the guidance has been adopted in final form, the agencies will issue a final update to the 2009 Interagency Questions and Answers Regarding Flood Insurance. The final update will continue to supplement other guidance or interpretations issued by the agencies and the Federal Emergency Management Agency.