Compliance Query
Tom Boswell-Healey
Associate Counsel/Compliance Consultant
tomb@minnbankers.com
What is my bank's reasonably expected market area (REMA)
As long as the bank's investigation has affirmed the consumer's
and how do examiners use REMA?
reported error the bank may provide the final notice in writing
Each bank's REMA is unique. Generically, REMA encompasses
or orally. If the bank provides the notice orally, then it is a best
the areas where the bank "actually marketed and provided
practice to note the date and method of the final notice on
credit and where it could reasonably be expected to have
a tracking sheet to demonstrate the bank's compliance with
marketed and provided credit." See Interagency Fair Lending
Regulation E requirements.
Examination Procedures p.32. REMA often expands upon on
the bank identified Community Reinvestment Act (CRA)
assessment area (AA). Examiners will determine REMA by
interviewing bank staff, reviewing branch locations, reviewing
the bank's marketing efforts, interviewing local brokers and
Ask the Agent
realtors, and by mapping and plotting the bank's originations
and applications. Examiners will also initially review the bank's
Connie Mack
CRA AA to determine if the bank has split census tracts
Senior Plan Administrator-
and/or counties or if adjacent census tracts are low-moderate
Dental and Insurance Agent
income or majority minority areas. REMA is developed as
conniem@minnbankers.com
part of a fair lending review and is primarily used to assess the
bank's redlining risk. The evaluation of redlining risk may
I heard that our MBA Life Plan is adding two benefits
include looking at whether the bank avoids extending credit in
beginning January 1, 2018 for Travel Assistance and
certain areas, targets certain areas with costlier products, offers
Funeral Planning and Concierge. Would you tell me more
different products in different areas, and avoids marketing
about these benefits?
loans in certain areas.
That's correct. The MBA Life Plan will include these two new
Do we have to provide a written notice when informing
benefits as part of our life plan:
consumers that their EFT error investigation is complete?
Travel Assistance ­ Help with pre-trip information such
No. Regulation E requires that the bank notify, orally or in
as immunizations, VISA/Passport requirements, exchange
writing, the consumer within three business after completing
rates, embassy/consular referral & travel/tourist advisories.
its investigation. This notification should include the fact that
Emergency personal services are also available including
any provisional credit has become final. However, if the bank
message relay, emergency travel arrangements, assistance with
determines that no error or a different error has occurred, then
lost or stolen luggage or possessions and legal assistance.
it must provide a written explanation. The written explanation
must include a description of the bank's findings and identify
Funeral Planning & Concierge ­ 24/7 advisor assistance with
the consumer's right to request any documents relied on in
funeral planning and access to a nationwide database that
making the bank's findings. In addition, if the bank is debiting
will provide a report of local funeral homes and their current
provisional credit, then the written explanation must include:
pricing and services to allow families the ability to negotiate
and avoid excessive expenses.
1. The date and amount of the debiting; and
For more information, please refer to "No Additional Cost
2. A statement that the bank will honor checks, drafts, and
Services" on the MBA's website under the Group Insurance
similar instruments payable to third parties or preauthorized
tab or contact Connie Mack, Sr. Plan Administrator/Insurance
transfers from the consumer's account (without overdraft-
Agent, at conniem@minnbankers.com.
related charges) for five business days after the written
explanation.
The bank must honor all items listed in the written explanation,
For a full list of MBA's insurance offerings, log on to minnbankers.
but only if the items would be paid if the provisional credit had
com and click on the "Group Insurance" button.
not been debited.
The Champion for Minnesota Bankers
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