II.

Consumer Compliance Examinations — FOCUS Violation Codes

Violation
Code Description

Consumer Compliance Examinations Violation Codes

Advertisement of Membership – Subpart A – Advertisement of Membership

ADV-MEM 328.2(a)

The Federal Deposit Insurance Act (12 U.S.C. §§ 1818, 1819(Tenth), and 1828(a)), as implemented by the
Advertisement of Membership rule, 12 C.F.R. § 328.2(a), requires a financial institution to display the
official sign continuously at each station or window where insured deposits are usually and normally
received in the institution’s principal place of business and in all its branches, except as permitted in §
328.2(a)(1)(ii), (a)(2), and (a)(3).

ADV-MEM 328.3(b)-(c)

The Federal Deposit Insurance Act (12 U.S.C. §§ 1818, 1819(Tenth), and 1828(a)), as implemented by the
Advertisement of Membership rule, 12 C.F.R. § 328.3(b) and (c), requires a financial institution to use the
official advertising statement, as defined in § 328.3(b), which shall be of such size and print to be clearly
legible. The official advertising statement shall be used, in all advertisements that either promote deposit
products and services or promote non-specific banking products and services offered by the institution,
except as provided in § 328.3(d).

ADV-MEM 328.3(e)

The Federal Deposit Insurance Act (12 U.S.C. §§ 1818, 1819(Tenth), and 1828(a)), as implemented by the
Advertisement of Membership rule, 12 C.F.R. § 328.3(e), prohibits a financial institution from including
the official advertising statement, or any other statement or symbol implying or suggesting the existence of
Federal deposit insurance, in any advertisement relating solely to non-deposit products and hybrid products.
In mixed advertisements, a financial institution must clearly segregate the official advertising statement as
provided in § 328.3(e)(4).

ADV-MEM 328.4

The Federal Deposit Insurance Act (12 U.S.C. §§ 1818, 1819(Tenth), and 1828(a)), as implemented by the
Advertisement of Membership rule, 12 C.F.R. § 328.4, prohibits a financial institution from receiving
deposits at any teller station or window where a noninsured institution receives deposits or similar
liabilities, except for deposits received at a Remote Service Facility.

Advertisement of Membership – Subpart B – False Advertising, Misrepresentation of Insured Status, and Misuse of
the FDIC’s Name or Logo

ADV-MEM 328.102(a)

The Federal Deposit Insurance Act (12 U.S.C. §§ 1818, 1819(Tenth), 1820(c) and 1828(a)), as
implemented by the Advertisement of Membership rule, 12 C.F.R. § 328.102(a), prohibits any person from
representing or implying that any Uninsured Financial Product is insured or guaranteed by the FDIC by
using FDIC-Associated Terms as part of any business name or firm name of any person; or, by using
FDIC-Associated Terms or Images as part of an advertisement, solicitation, or other publication or
dissemination as provided for in (a)(1) and (a)(2) as applicable under (a)(3).
[ADV-MEM 328.102(a)]

FDIC Consumer Compliance Examination Manual — November 2023 II-14.1

II. Consumer Compliance Examinations — FOCUS Violation Codes

Violation
Code Description

ADV-MEM 328.102(b)

The Federal Deposit Insurance Act (12 U.S.C. §§ 1818, 1819(Tenth), 1820(c) and 1828(a)), as
implemented by the Advertisement of Membership rule, 12 C.F.R. § 328.102(b), prohibits a person from
knowingly making a false or misleading representation about deposit insurance, as provided for in (b)(1)
through (b)(6) of this subsection.
[ADV-MEM 328.102(b)]

Branch Closing

BR-CLOSING 42(No Subsection)

Section 42 of the Federal Deposit Insurance Act of 1950 (12 U.S.C. § 1831r-1) requires that all insured
depository institutions adopt written policies for branch closings. Financial institutions are also required to
give notice to the appropriate federal agency and customers no later than 90 days before they close a
branch. The noticeprovided to the appropriate Federal banking agency must include a detailed statement of
the reasons for the decision to close the branch and statistical or other information in support of such
reasons. The notice provided to customers must be included in a regular account statement or a separate
mailing, and in the case of an interstate bank that proposes to close a branch in a low- or moderate-income
area, the notice must include the mailing address of the FDIC and a statement that comments on the
proposed closing may be mailed to the FDIC. Further, this section requires institutions to post a notice in a
conspicuous manner on the premises of the branch proposed to be closed not less than 30 days before the
proposed closing.

Children's Online Privacy Protection

COPPA 312.4(a)

The Children’s Online Privacy Protection Act of 1998 (15 U.S.C. § 6501 et seq.), as implemented by the
Children’s Online Privacy Protection Rule, 16 C.F.R. § 312.4(a), requires an operator to provide a notice
and obtain verifiable parental consent prior to collecting, using, or disclosing personal information from
children. The notice must be clearly and understandably written, complete, and must not contain unrelated,
confusing, or contradictory materials.

COPPA 312.4(b)-(d)

The Children’s Online Privacy Protection Act of 1998 (15 U.S.C. § 6501 et seq.), as implemented by the
Children’s Online Privacy Protection Rule, 16 C.F.R. § 312.4(b) through (d), requires an operator: to make
reasonable efforts to ensure that a parent of a child receives direct notice of the practices with regard to the
collection, use, or disclosure of personal information from children, including notice of any material change
in the collection, use, or disclosure practices to which the parent has previously consented as provided in §
312.4(b); to provide a direct notice to the parent that meets the content requirements of § 312.4(c); and to
post a prominent and clearly labeled link to an online notice of its information practices with regard to
children, on the home or landing page or screen of its Web site or online service, and at each area of the
Web site or online service where personal information is collected from children as prescribed by §
312.4(d).

II-14.2 FDIC Consumer Compliance Examination Manual — November 2023

 II. Consumer Compliance Examinations — FOCUS Violation Codes

Violation
Code Description

As set out in § 312.3, actual knowledge of a violation of this provision is considered an unfair and
deceptive act or practice under section 5 of the Federal Trade Commission Act (15 U.S.C. § 45(a)).

COPPA 312.5

The Children’s Online Privacy Protection Act of 1998 (15 U.S.C. § 6501 et seq.), as implemented by the
Children’s Online Privacy Protection Rule, 16 C.F.R. § 312.5, requires an operator to obtain verifiable
parental consent, as prescribed by § 312.5(b), before any collection, use, or disclosure of personal
information from children, and give the parent the option to consent to the collection and use of the child’s
personal information without consenting to disclosure of his or her personal information to third parties.

As set out in § 312.3, actual knowledge of a violation of this provision is considered an unfair and
deceptive act or practice under section 5 of the Federal Trade Commission Act (15 U.S.C. § 45(a)).

COPPA 312.6

The Children’s Online Privacy Protection Act of 1998 (15 U.S.C. § 6501 et seq.), as implemented by the
Children’s Online Privacy Protection Rule, 16 C.F.R. § 312.6, requires an operator to provide, upon request
of a parent whose child has provided personal information to a Web site or online service, a description of
specific types or categories of personal information collected; the opportunity, at any time, to refuse to
permit the operator’s further use or future online collection of information from that child and to direct the
operator to delete the child’s information; and a means of reviewing any personal information collected
from the child that is not unduly burdensome to the parent. The means employed by the operator must
ensure that the requester is a parent of the child, taking into account available technology.

As set out in § 312.3, actual knowledge of a violation of this provision is considered an unfair and
deceptive act or practice under section 5 of the Federal Trade Commission Act (15 U.S.C. § 45(a)).

COPPA 312.7

The Children’s Online Privacy Protection Act of 1998 (15 U.S.C. § 6501 et seq.), as implemented by the
Children’s Online Privacy Protection Rule, 16 C.F.R. § 312.7, prohibits an operator from conditioning a
child’s participation in a game, the offering of a prize, or another activity on the child’s disclosing more
personal information than is reasonably necessary to participate in such activity.

As set out in § 312.3, actual knowledge of a violation of this provision is considered an unfair and
deceptive act or practice under section 5 of the Federal Trade Commission Act (15 U.S.C. § 45(a)).

COPPA 312.8

The Children’s Online Privacy Protection Act of 1998 (15 U.S.C. § 6501 et seq.), as implemented by the
Children’s Online Privacy Protection Rule, 16 C.F.R. § 312.8, requires an operator to establish and
maintain reasonable procedures to protect the confidentiality, security, and integrity of personal
information collected from children. In addition, the operator must take reasonable steps to release
children’s personal information only to service providers and third parties who are capable of maintaining
the confidentiality, security, and integrity of such information, and who provide assurances that they will
maintain the information in such a manner.

FDIC Consumer Compliance Examination Manual — November 2023 II-14.3

II. Consumer Compliance Examinations — FOCUS Violation Codes

Violation
Code Description

As set out in § 312.3, actual knowledge of a violation of this provision is considered an unfair and
deceptive act or practice under section 5 of the Federal Trade Commission Act (15 U.S.C. § 45(a)).

COPPA 312.10

The Children’s Online Privacy Protection Act of 1998 (15 U.S.C. § 6501 et seq.), as implemented by the
Children’s Online Privacy Protection Rule, 16 C.F.R. § 312.10, requires an operator to retain personal
information collected online from a child for only as long as is reasonably necessary to fulfill the purpose
for which the information was collected, and to delete such information using reasonable measures to
protect against unauthorized access to, or use of, the information in connection with its deletion.

Community Reinvestment Act

CRA 345.41

The Community Reinvestment Act (12 U.S.C. § 2901 et seq.), as implemented by the FDIC Rules and
Regulations, 12 C.F.R. § 345.41, requires a financial institution to delineate one or more assessment areas
within which the FDIC evaluates the bank's record of helping to meet the credit needs of its community, in
accordance with the requirements of § 345.41(a) through (g), as applicable.

II-14.4 FDIC Consumer Compliance Examination Manual — November 2023

 II. Consumer Compliance Examinations — FOCUS Violation Codes

Violation
Code Description

CRA 345.42(a)-(b)

The Community Reinvestment Act (12 U.S.C. § 2901 et seq.), as implemented by the FDIC Rules and
Regulations, 12 C.F.R. § 345.42 (a) and (b), requires a financial institution to collect, and maintain in
machine readable form until the completion of its next CRA examination, the following data for each small
business or small farm loan originated or purchased:
(1) a unique number or symbol to identify the relevant loan file;
(2) the loan amount at origination;
(3) the loan location; and
(4) an indicator of whether the loan was to a business or farm with gross annual revenues of $1 million or
less.

A financial institution that is not a small bank and was not a small bank during the prior calendar year is
required to report annually by March 1 to the FDIC, the loan information detailed in § 345.42(b)(1) through
(b)(3) for the prior calendar year, in machine readable form.

CRA 345.42(g)

The Community Reinvestment Act (12 U.S.C. § 2901 et seq.), as implemented by the FDIC Rules and
Regulations, 12 C.F.R. § 345.42(g), requires a financial institution that is not a small bank and was not a
small bank during the prior calendar year to report to the FDIC annually by March 1 a list of each
assessment area showing the geographies within the area.

CRA 345.43(a)

The Community Reinvestment Act (12 U.S.C. § 2901 et seq.), as implemented by the FDIC Rules and
Regulations, 12 C.F.R. § 345.43(a), requires a financial institution to maintain a public file that includes the
following information:
(1) all written comments received from the public for the current year and each of the prior two calendar
years, along with the financial institution’s response specifically related to the bank’s performance in
helping to meet community credit needs;
(2) a copy of the public section of the most recent CRA Performance Evaluation, which must be placed in
the public file within 30 business days after receipt from the FDIC;
(3) a list of its branches, their street addresses and geographies;
(4) a list of branches opened or closed during the current year and each of the prior two calendar years,
their street addresses, and geographies;
(5) a list of services (including hours of operation, available loan and deposit products, and transaction
fees) generally offered and descriptions of material differences in the availability or cost of services at
branches, if any;
(6) a map of each assessment area showing the boundaries of the area and identifying the geographies
contained within the area, either on the map or in a separate list; and
(7) any other information the bank chooses.

CRA 345.43(b)(1)

The Community Reinvestment Act (12 U.S.C. § 2901 et seq.), as implemented by the FDIC Rules and
Regulations, 12 C.F.R. § 345.43(b)(1), requires a financial institution, that is not a small bank and was not a
small bank in the prior calendar year, to include in its public file, regarding consumer loans considered
under the lending test, information contained in § 345.43(b)(1)(i)(A) through (b)(1)(i)(C). A financial

FDIC Consumer Compliance Examination Manual — November 2023 II-14.5

II. Consumer Compliance Examinations — FOCUS Violation Codes

Violation
Code Description

institution, that is not a small bank and was not a small bank in the prior calendar year, is required to
include its CRA Disclosure Statement in the public file within three business days of its receipt from the
FDIC.

CRA 345.43(b)(2)

The Community Reinvestment Act (12 U.S.C. § 2901 et seq.), as implemented by the FDIC Rules and
Regulations, 12 C.F.R. § 345.43(b)(2), requires a financial institution that reports HMDA data, to include
in its public file a written notice that its HMDA Disclosure Statement may be obtained on the Consumer
Financial Protection Bureau’s (“Bureau’s”) Web site at www.consumerfinance.gov/hmda. In addition, a
financial institution that elected to have the FDIC consider the mortgage lending of an affiliate must
include in its public file the name of the affiliate and a written notice that the affiliate’s HMDA Disclosure
Statement may be obtained at the Bureau’s Web site. The financial institution must place the written
notice(s) in its public file within three business days after receiving notification from the Federal Financial
Institutions Examination Council that the disclosure statements are available.

CRA 345.43(b)(3)

The Community Reinvestment Act (12 U.S.C. § 2901 et seq.), as implemented by the FDIC Rules and
Regulations, 12 C.F.R. § 345.43(b)(3), requires a financial institution, that is a small bank or was a small
bank in the prior calendar year, to include its loan-to-deposit ratio for each quarter of the prior calendar
year in its public file. If the small financial institution has elected to be evaluated under the lending,
investment, and services tests, the small institution must also include the information required for other
banks as detailed in § 345.43(b)(1).

CRA 345.43(b)(4)

The Community Reinvestment Act (12 U.S.C. § 2901 et seq.), as implemented by the FDIC Rules and
Regulations, 12 C.F.R. § 345.43(b)(4), requires a financial institution that is approved to be assessed under
a strategic plan to include a copy of that plan in its public file.

CRA 345.43(b)(5)

The Community Reinvestment Act (12 U.S.C. § 2901 et seq.), as implemented by the FDIC Rules and
Regulations, 12 C.F.R. § 345.43(b)(5), requires a financial institution that received a less than satisfactory
rating during its most recent examination to include in its public file a description of its current efforts to
improve its performance in helping to meet the credit needs of its entire community. The financial
institution is required to update the description quarterly.

CRA 345.43(c)

The Community Reinvestment Act (12 U.S.C. § 2901 et seq.), as implemented by the FDIC Rules and
Regulations, 12 C.F.R. § 345.43(c), requires a financial institution to make all information in the public file
available for public inspection upon request and at no cost, at the main office and, if an interstate bank, at
one branch office in each state. A financial institution is also required to make available the following
information at each branch: (i) a copy of the public section of its most recent CRA Performance Evaluation
and a list of services provided by the branch, and (ii) all of the information in the public file relating to the
assessment area in which the branch is located within five calendar days of the request.

II-14.6 FDIC Consumer Compliance Examination Manual — November 2023

 II. Consumer Compliance Examinations — FOCUS Violation Codes

Violation
Code Description

CRA 345.43(d)

The Community Reinvestment Act (12 U.S.C. § 2901 et seq.), as implemented by the FDIC Rules and
Regulations, 12 C.F.R. § 345.43(d), requires a financial institution, upon request, to provide copies, either
on paper or in another form acceptable to the person making the request, of the information in its public
file. A reasonable fee may be charged that does not exceed the cost of copying and mailing (if applicable).

CRA 345.43(e)

The Community Reinvestment Act (12 U.S.C. § 2901 et seq.), as implemented by the FDIC Rules and
Regulations, 12 C.F.R. § 345.43(e), requires a financial institution to ensure that all applicable information
in its public file is current as of April 1 of each year, except as otherwise provided in this section.

CRA 345.44

The Community Reinvestment Act (12 U.S.C. § 2901 et seq.), as implemented by the FDIC Rules and
Regulations, 12 C.F.R. § 345.44, requires a financial institution to provide in the public lobby of its main
office and each of its branches, the appropriate public notice set forth in Appendix B of this part.

Consumer Leasing

C-LEASING 1013.3

The Consumer Leasing Act (15 U.S.C. §§ 1667-1667f), as implemented by Regulation M, 12 C.F.R. §
1013.3, requires a lessor to make the disclosures required by § 1013.4, as applicable. The disclosures
should be clear and conspicuous, in writing, and in a form the consumer may keep. The disclosures should
also meet the requirements outlined in § 1013.3(a) through (d) regarding form, segregation, timing,
language of disclosures, multiple lessors or lessees, and use of estimates.

C-LEASING 1013.4

The Consumer Leasing Act (15 U.S.C. §§ 1667-1667f), as implemented by Regulation M, 12 C.F.R. §
1013.4, requires the lessor to disclose the specific information outlined in § 1013.4(a) through (t), as
applicable.

C-LEASING 1013.5

The Consumer Leasing Act (15 U.S.C. §§ 1667-1667f), as implemented by Regulation M, 12 C.F.R. §
1013.5, requires a lessor to provide new disclosures when a consumer lease is renegotiated, or extended for
more than six months, except as permitted by § 1013.5(d).

C-LEASING 1013.7(b)

The Consumer Leasing Act (15 U.S.C. §§ 1667-1667f), as implemented by Regulation M, 12 C.F.R. §
1013.7(b), requires a financial institution to make clear and conspicuous advertising disclosures. If an
advertisement states any of the triggering terms in § 1013.7(d)(1) then the advertisement must contain the
additional disclosures prescribed by § 1013.7(d)(2), with an exception for merchandise tags in § 1013.7(e).
In addition, if the financial institution advertises through television or radio and states any of the triggering
terms in § 1013.7(d)(1), the financial institution must meet the requirements of § 1013.7(f).

FDIC Consumer Compliance Examination Manual — November 2023 II-14.7

II. Consumer Compliance Examinations — FOCUS Violation Codes

Violation
Code Description

C-LEASING 1013.8

The Consumer Leasing Act (15 U.S.C. §§ 1667-1667f), as implemented by Regulation M, 12 C.F.R. §
1013.8, requires a financial institution to retain evidence of compliance with Regulation M, other than the
advertising requirements under § 1013.7, for a period of not less than two years after the date the
disclosures are required to be made or an action is required to be taken.

Controlling the Assault of Non-Solicited Pornography and Marketing Act

CAN-SPAM 4(a)(1)

Section 4(a)(1) of the Controlling the Assault of Non-Solicited Pornography and Marketing Act of 2003
(18 U.S.C. § 1037(a)(1)-(5)), prohibits anyone who, in or affecting interstate or foreign commerce,
knowingly:
(1) accesses a protected computer without authorization, and intentionally initiates the transmission of
multiple commercial electronic mail messages from or through such computer;
(2) uses a protected computer to relay or retransmit multiple commercial electronic mail messages, with the
intent to deceive or mislead recipients, or any Internet access service, as to the origin of such messages;
(3) materially falsifies header information in multiple commercial electronic mail messages and
intentionally initiates the transmission of such messages;
(4) registers, using information that materially falsifies the identity of the actual registrant, for five or more
electronic mail accounts or online user accounts or two or more domain names, and intentionally initiates
the transmission of multiple commercial electronic mail messages from any combination of such accounts
or domain names; or
(5) falsely represents oneself to be the registrant or the legitimate successor in interest to the registrant of 5
or more Internet Protocol addresses, and intentionally initiates the transmission of multiple commercial
electronic mail messages from such addresses, or conspires to do so. Note, such person shall be punished
as provided in Section 4(b) of this Act.

CAN-SPAM 5(a)

Section 5(a) of the Controlling the Assault of Non-Solicited Pornography and Marketing Act of 2003 (15
U.S.C. § 7704(a)), prohibits a person from using false or misleading transmission information; using
deceptive subject headings; initiating e-mail messages that do not contain a functioning e-mail return
address or comparable mechanism; continuing to initiate commercial e-mail messages after receipt of a
request not to receive such messages; and initiating a commercial e-mail message unless the message
provides clear and conspicuous identification that the message is an advertisement or solicitation, a notice
of the opportunity to declinefurther messages, and a physical address of the sender.

CAN-SPAM 5(b)

Section 5(b) of the Controlling the Assault of Non-Solicited Pornography and Marketing Act of 2003 (15
U.S.C. § 7704(b)), prohibits a person from obtaining e-mail addresses, by using an automated means, from
an Internet Web site or proprietary online service operated by another person; obtaining e-mail addresses,
by using an automated means, that generates possible e-mail addresses; using automated means to register
for multiple e-mail accounts or online user accounts from which to transmit a commercial e-mail message;
and relaying or retransmitting a commercial e-mail message that is unlawful from a computer or computer
network without authorization.

II-14.8 FDIC Consumer Compliance Examination Manual — November 2023

 II. Consumer Compliance Examinations — FOCUS Violation Codes

Violation
Code Description

CAN-SPAM 5(d)

Section 5(d) of the Controlling the Assault of Non-Solicited Pornography and Marketing Act of 2003 (15
U.S.C. § 7704(d)), requires a person to place the marks or notices, as set forth in the Federal Trade
Commission’s regulation at 16 C.F.R. § 316.4, in the subject heading and the matter of the message that is
initially viewable to the recipient, on commercial e-mail messages containing sexually oriented material,
unless the recipient has given prior affirmative consent to receipt of the message as set forth in § (5)(d)(2)
of this Act.

CAN-SPAM 6(a)

Section 6(a) of the Controlling the Assault of Non-Solicited Pornography and Marketing Act of 2003 (15
U.S.C. § 7705(a)), prohibits a person from promoting, or allowing the promotion of, that person’s trade or
business, or goods, products, property, or services in a commercial e-mail message in violation of § 5(a)(1)
of this Act under the circumstances set forth in § 6(a)(1) through (a)(3) of this Act.

Electronic Fund Transfers Act/Regulation E – Subpart A – General

EFTA-A (no subsection)

Section 914 of the Electronic Fund Transfers Act (15 U.S.C. § 1693 et seq.) prohibits financial institutions
from entering into any writing or other agreement containing any provisions which constitute a waiver of
any consumer right conferred or cause of action created under the Electronic Fund Transfers Act.

EFTA-A 1005.4

The Electronic Fund Transfers Act (15 U.S.C. § 1693 et seq.), as implemented by Regulation E, 12 C.F.R.
§ 1005.4, requires a financial institution to provide clear and readily understandable disclosures, in writing,
and in a form the consumer may keep, except as permitted under part 1005.

EFTA-A 1005.5

The Electronic Fund Transfers Act (15 U.S.C. § 1693 et seq.), as implemented by Regulation E, 12 C.F.R.
§ 1005.5, requires a financial institution to only issue an access device to consumers in response to an oral
or written request, or as a renewal or substitution of an accepted access device previously issued, except as
permitted under § 1005.5(b).

EFTA-A 1005.6

The Electronic Fund Transfers Act (15 U.S.C. § 1693 et seq.), as implemented by Regulation E, 12 C.F.R.
§ 1005.6, requires a financial institution to only hold a consumer liable for unauthorized electronic fund
transfers if the disclosures under § 1005.7(b)(1), (b)(2), and (b)(3) have been provided. In addition,
financial institutions are prohibited from imposing liability on consumers outside of the prescribed
limitations and amounts set out in § 1005.6(b).

The Electronic Fund Transfers Act (15 U.S.C. § 1693 et seq.), as implemented by Regulation E, 12 C.F.R.
§ 1005.7, requires a financial institution to provide the disclosures at the time a consumer contracts for an
electronic fund transfer service or before the first electronic fund transfer involving the consumer’s

FDIC Consumer Compliance Examination Manual — November 2023 II-14.9

II. Consumer Compliance Examinations — FOCUS Violation Codes

Violation
Code Description

account. The financial institution must also disclose the content required under § 1005.7(b)(1) through
(b)(11), as applicable. Finally, § 1005.7(c) requires a financial institution to provide new disclosures if an
electronic fund transfer service is added to a consumer’s account having different terms and conditions than
those described in the initial disclosures.

EFTA-A 1005.8(a)

The Electronic Fund Transfers Act (15 U.S.C. § 1693 et seq.), as implemented by Regulation E, 12 C.F.R.
§ 1005.8(a), requires a financial institution, except as permitted in § 1005.8(a)(2), to mail or deliver a
written notice to the consumer at least 21 days before the effective date of any change in a term or
condition required to be disclosed under § 1005.7(b) if the change would result in increased fees, increased
liability, fewer types of available electronic fund transfers, or stricter limitations on the frequency or dollar
amount of transfers.

EFTA-A 1005.8(b)

The Electronic Fund Transfers Act (15 U.S.C. § 1693 et seq.), as implemented by Regulation E, 12 C.F.R.
§ 1005.8(b), requires a financial institution to mail or deliver to the consumer an error resolution notice
meeting the requirement of § 1005.8(b) at least once each calendar year or, alternatively, on or with each
periodic statement required by § 1005.9(b).

EFTA-A 1005.9(a)

The Electronic Fund Transfers Act (15 U.S.C. § 1693 et seq.), as implemented by Regulation E, 12 C.F.R.
§ 1005.9(a), requires a financial institution to make a receipt available to the consumer at the time an
electronic fund transfer is initiated at an electronic terminal, except for small-value transfers permitted in §
1005.9(e). The receipt shall set forth the following: the amount of the transfer; date; type of transfer; an
identifier for the consumer’s account or access device; the location of the terminal where the transfer was
initiated; and the name of any third party to/from whom funds are transferred, as applicable.

EFTA-A 1005.9(b)

The Electronic Fund Transfers Act (15 U.S.C. § 1693 et seq.), as implemented by Regulation E, 12 C.F.R.
§ 1005.9(b), requires a financial institution to send a periodic statement for each monthly cycle in which an
electronic fund transfer has occurred, or at least quarterly if no transfer has occurred. The periodic
statement must include the following, as applicable: transaction information, the account number, the
amount of any fees, the account balances, an address and telephone number for inquiries or notice of errors,
and a telephone number for preauthorized transfers. For prepaid accounts, a financial institution must also
disclose in the periodic statement the amount of any fees assessed against the prepaid account, whether for
electronic funds transfers or otherwise, as required by § 1005.18(c)(4) and must display a summary total of
all fees assessed for the prior calendar month and for the calendar year to date, as required by §
1005.18(c)(5).

For prepaid accounts, an institution may opt not to send a periodic statement, provided the institution
makes available to the consumer account history information in the manner provided under § 1005.18(c)(1)
or (c)(2) and the account history includes the information set forth in § 1005.18(c)(3) through (c)(5). If an
account history is not made available to the consumer in the manner provided under § 1005.18(c)(1) or
(c)(2), the institution must send the consumer the periodic statement with the information set forth under §§
1005.9(b), 1005.18(c)(4), and 1005.18(c)(5).

II-14.10 FDIC Consumer Compliance Examination Manual — November 2023

 II. Consumer Compliance Examinations — FOCUS Violation Codes

Violation
Code Description

EFTA-A 1005.9(c)

The Electronic Fund Transfers Act (15 U.S.C. § 1693 et seq.), as implemented by Regulation E, 12 C.F.R.
§ 1005.9(c), requires a financial institution to provide a periodic statement for passbook accounts if it does
not update the passbook upon presentation or enter on a separate document the amount and date of each
electronic fund transfer since the passbook was last presented. For accounts other than passbook accounts,
a financial institution is required to send a periodic statement at least quarterly.

EFTA-A 1005.10(a)

The Electronic Fund Transfers Act (15 U.S.C. § 1693 et seq.), as implemented by Regulation E, 12 C.F.R.
§ 1005.10(a), requires a financial institution to provide an oral or written notice or a readily available
telephone line to the consumer when a preauthorized electronic fund transfer is initiated to the consumer’s
account at least once every 60 days. The notice must be given within two business days after the
transaction has occurred. The telephone number must be included in the initial disclosure and on each
periodic statement. In addition, a financial institution shall credit the consumer’s account for the transfer as
of the date the funds are received.

EFTA-A 1005.10(b)

The Electronic Fund Transfers Act (15 U.S.C. § 1693 et seq.), as implemented by Regulation E, 12 C.F.R.
§ 1005.10(b), requires that preauthorized electronic fund transfers from a consumer’s account be authorized
only in writing, signed or authenticated by the consumer with a copy provided to the consumer.

EFTA-A 1005.10(c)

The Electronic Fund Transfers Act (15 U.S.C. § 1693 et seq.), as implemented by Regulation E, 12 C.F.R.
§ 1005.10(c), requires a financial institution to stop the payment of a preauthorized electronic fund transfer
from a consumer’s account when notified by the consumer in accordance with the requirements of §
1005.10(c)(1) and (c)(2).

EFTA-A 1005.10(d)

The Electronic Fund Transfers Act (15 U.S.C. § 1693 et seq.), as implemented by Regulation E, 12 C.F.R.
§ 1005.10(d), requires a financial institution or designated payee to send the consumer a written notice of
the amount and date of the preauthorized electronic fund transfer from a consumer’s account at least 10
days before the scheduled transfer date when the transfer will vary in amount from the previous transfer
under the same authorization or from the preauthorized amount.

EFTA-A 1005.10(e)

The Electronic Fund Transfers Act (15 U.S.C. § 1693 et seq.), as implemented by Regulation E, 12 C.F.R.
§ 1005.10(e), prohibits a financial institution from conditioning an extension of credit to a consumer on the
consumer’s repayment by preauthorized electronic fund transfers, except for the conditions noted under §
1005.10(e)(1). In addition, a financial institution is prohibited from requiring a consumer to establish an
account for the receipt of electronic fund transfers with a particular institution as a condition of
employment or receipt of a government benefit.

FDIC Consumer Compliance Examination Manual — November 2023 II-14.11

II. Consumer Compliance Examinations — FOCUS Violation Codes

Violation
Code Description

EFTA-A 1005.11(c)

The Electronic Fund Transfers Act (15 U.S.C. § 1693 et seq.), as implemented by Regulation E, 12 C.F.R.
§ 1005.11(c), requires a financial institution to investigate, determine whether an error occurred, report the
results to the consumer, and correct the error within the timeframes provided under this subsection (c).

EFTA-A 1005.11(d)

The Electronic Fund Transfers Act (15 U.S.C. § 1693 et seq.), as implemented by Regulation E, 12 C.F.R.
§ 1005.11(d), requires a financial institution, when it determines that no error occurred or that an error
occurred in a manner or amount different than described by the consumer, to provide a written explanation
of its findings and notify the consumer upon debiting the provisionally credited amount, as prescribed
under § 1005.11(d)(1) and (d)(2).

EFTA-A 1005.13(b)

The Electronic Fund Transfers Act (15 U.S.C. § 1693 et seq.), as implemented by Regulation E, 12 C.F.R.
§ 1005.13(b), requires that a financial institution retain evidence of compliance with the requirements of the
Act for a period of not less than two years from the date disclosures are required to be made or action is
required to be taken. In addition, any financial institution having actual notice that it is the subject of an
investigation or an enforcement proceeding by its enforcement agency regarding the Act shall retain the
records until final disposition of the matter.

EFTA-A 1005.16

The Electronic Fund Transfers Act (15 U.S.C. § 1693 et seq.), as implemented by Regulation E, 12 C.F.R.
§ 1005.16, requires that an automated teller machine operator may only impose a fee on a consumer for
initiating an electronic fund transfer or balance inquiry if a notice is provided that a fee will be imposed for
initiating an electronic fund transfer or a balance inquiry and the requirements under § 1005.16(c) and (d)
are met.

EFTA-A 1005.17(b)(1)

The Electronic Fund Transfers Act (15 U.S.C. § 1693 et seq.), as implemented by Regulation E, 12 C.F.R.
§ 1005.17(b)(1), prohibits a financial institution holding a consumer’s account from assessing a fee or
charge on a consumer’s account for paying an ATM or one-time debit card transaction under the
institution’s overdraft service unless the financial institution: provides the consumer with a written notice
(or if the consumer agrees, electronically) that is segregated from other information and describes the
institution’s overdraft service; provides the consumer a reasonable opportunity to affirmatively consent or
opt-in; obtains the consumer’s affirmative consent or opt-in; and provides the consumer with a
confirmation of the consumer’s consent in writing (or if the consumer agrees, electronically) informing the
consumer of the right to revoke such consent.

EFTA-A 1005.17(b)(2)

The Electronic Fund Transfers Act (15 U.S.C. § 1693 et seq.), as implemented by Regulation E, 12 C.F.R.
§ 1005.17(b)(2), prohibits a financial institution from conditioning the payment of any overdraft for checks,
ACH transactions, and other types of transactions on the consumer affirmatively consenting to the
institution’s payment of ATM and one-time debit card transactions; or declining to pay checks, ACH

II-14.12 FDIC Consumer Compliance Examination Manual — November 2023

 II. Consumer Compliance Examinations — FOCUS Violation Codes

Violation
Code Description

transactions, and other types of transactions that overdraw the consumer’s account because the consumer
has not affirmatively consented to the institution’s overdraft service for ATM and one-time debit card
transactions.

EFTA-A 1005.17(b)(3)

The Electronic Fund Transfers Act (15 U.S.C. § 1693 et seq.), as implemented by Regulation E, 12 C.F.R.
§ 1005.17(b)(3), requires a financial institution to provide the same account terms, conditions, and features
to consumers who do not affirmatively consent to the institution’s overdraft service for ATM and one-time
debit card transactions as those offered to consumers who affirmatively consent.

EFTA-A 1005.17(d)

The Electronic Fund Transfers Act (15 U.S.C. § 1693 et seq.), as implemented by Regulation E, 12 C.F.R.
§ 1005.17(d), requires a financial institution to provide a notice substantially similar to Model Form A-9
including the following items, as applicable: a brief description of the financial institution’s overdraft
service; the dollar amount of any fees or charges assessed for paying an ATM or one-time debit card
transaction; the maximum number of overdraft fees or charges that may be assessed; an explanation of the
consumer’s right to affirmatively consent to the payment of overdrafts for ATM and one-time debit card
transactions; any alternative plans for covering overdrafts mentioned in § 1005.17(d)(5).

EFTA-A 1005.17(f)

The Electronic Fund Transfers Act (15 U.S.C. § 1693 et seq.), as implemented by Regulation E, 12 C.F.R.
§ 1005.17(f), requires a financial institution to accept a consumer’s revocation of consent as soon as
reasonably practicable.

EFTA-A 1005.17(g)

The Electronic Fund Transfers Act (15 U.S.C. § 1693 et seq.), as implemented by Regulation E, 12 C.F.R.
§ 1005.17(g), requires a financial institution to consider a consumer’s opt-in or affirmative consent
effective until revoked by the consumer or the financial institution terminates the overdraft service.

EFTA-A 1005.18(b)(1)

The Electronic Fund Transfers Act (15 U.S.C. § 1693 et seq.), as implemented by Regulation E, 12 C.F.R.
§ 1005.18(b)(1), requires a financial institution to provide disclosures required under § 1005.18(b) before a
consumer acquires a prepaid account, except as permitted for prepaid accounts acquired in retail locations
and orally by telephone, provided that the financial institution complies with the conditions in §
1005.18(b)(1)(ii) or (b)(1)(iii).

EFTA-A 1005.18(b)(2);(b)(5)

The Electronic Fund Transfers Act (15 U.S.C. § 1693 et seq.), as implemented by Regulation E, 12 C.F.R.
§ 1005.18(b)(2), requires a financial institution to provide a short form disclosure setting forth the fees and
information listed in § 1005.18(b)(2)(i) through (b)(2)(xiv) for a prepaid account, as applicable.
Additionally, a financial institution providing a short form disclosure must also disclose additional
information as prescribed by § 1005.18(b)(5).

FDIC Consumer Compliance Examination Manual — November 2023 II-14.13

II. Consumer Compliance Examinations — FOCUS Violation Codes

Violation
Code Description

EFTA-A 1005.18(b)(3)

The Electronic Fund Transfers Act (15 U.S.C. § 1693 et seq.), as implemented by Regulation E, 12 C.F.R.
§ 1005.18(b)(3), requires a financial institution to make additional short form disclosures of variable and
third-party fees, when the amount disclosed pursuant to § 1005.18(b)(2)(i) through (b)(2)(vii) and (b)(2)(ix)
of this section could vary. A financial institution is also prohibited from disclosing any finance charges as
described in Regulation Z, 12 C.F.R. § 1026.4(b)(11), imposed in connection with a separate credit feature
accessible by a hybrid prepaid-credit card as defined in Regulation Z, 12 C.F.R. § 1026.61.

EFTA-A 1005.18(b)(4)

The Electronic Fund Transfers Act (15 U.S.C. § 1693 et seq.), as implemented by Regulation E, 12 C.F.R.
§ 1005.18(b)(4), requires a financial institution to provide a long form disclosure setting forth the fees and
information listed in § 1005.18(b)(4)(i) through (b)(4)(vii) for a prepaid account, as applicable.

EFTA-A 1005.18(b)(6)

The Electronic Fund Transfers Act (15 U.S.C. § 1693 et seq.), as implemented by Regulation E, 12 C.F.R.
§ 1005.18(b)(6), requires a financial institution to provide written disclosures in a form the consumer may
keep and in a tabular format, except as expressly permitted under this subsection.

EFTA-A 1005.18(b)(7)

The Electronic Fund Transfers Act (15 U.S.C. § 1693 et seq.), as implemented by Regulation E, 12 C.F.R.
§ 1005.18(b)(7), requires a financial institution to follow specific formatting requirements regarding the
grouping, ordering and segregation of information, as well as the prominence and size of the disclosures, as
set out in § 1005.18(b)(7)(i) through (b)(7)(iii).

EFTA-A 1005.18(b)(8)

The Electronic Fund Transfers Act (15 U.S.C. § 1693 et seq.), as implemented by Regulation E, 12 C.F.R.
§ 1005.18(b)(8), requires that fee names and other terms be used consistently across the disclosures.

EFTA-A 1005.18(b)(9)

The Electronic Fund Transfers Act (15 U.S.C. § 1693 et seq.), as implemented by Regulation E, 12 C.F.R.
§ 1005.18(b)(9), requires a financial institution to provide pre-acquisition disclosures in a foreign language
under circumstances outlined in § 1005.18(b)(9)(i), and provide the long form disclosures in English upon
request, as required by § 1005.18(b)(9)(ii).

EFTA-A 1005.18(c)

The Electronic Fund Transfers Act (15 U.S.C. § 1693 et seq.), as implemented by Regulation E, 12 C.F.R.
§ 1005.18(c), states that if a financial institution provides a periodic statement under § 1005.9(b) or the
periodic statement alternative under § 1005.18(c)(1), the institution must disclose any fees assessed against
the prepaid account and a summary total of all such fees in accordance with the requirements of §
1005.18(c)(4) and (c)(5).

II-14.14 FDIC Consumer Compliance Examination Manual — November 2023

 II. Consumer Compliance Examinations — FOCUS Violation Codes

Violation
Code Description

EFTA-A 1005.18(d)

The Electronic Fund Transfers Act (15 U.S.C. § 1693 et seq.), as implemented by Regulation E, 12 C.F.R.
§ 1005.18(d), requires a financial institution that has provided information under § 1005.18(c)(1) to modify
the initial disclosure provided under § 1005.7(b) for prepaid accounts by disclosing account access
information and a notice concerning error resolution, as permitted by § 1005.18(d)(1). The financial
institution must also provide an annual notice concerning error resolution, as permitted by § 1005.8(d)(2).

EFTA-A 1005.18(e)(1)

The Electronic Fund Transfers Act (15 U.S.C. § 1693 et seq.), as implemented by Regulation E, 12 C.F.R.
§ 1005.18(e)(1), requires a financial institution that has provided information under § 1005.18(c)(1) to
comply with the error resolution requirements of § 1005.6(b)(3), except that the 60-day period for reporting
unauthorized transfers begins on the earlier of: (i) the date the consumer electronically accesses the account
provided the account transaction history reflects the unauthorized transfer; or (ii) the date the financial
institution sends the consumer a written history of account transactions in which the unauthorized transfers
is first reflected.

EFTA-A 1005.18(e)(2)

The Electronic Fund Transfers Act (15 U.S.C. § 1693 et seq.), as implemented by Regulation E, 12 C.F.R.
§ 1005.18(e)(2), requires a financial institution that has provided information under § 1005.18(c)(1) to
comply with the requirements of § 1005.11 in response to an oral or written notice of an error from the
consumer that is received by the earlier of the following: (i) 60 days after the date the consumer
electronically accesses the account provided the account transaction history reflects the unauthorized
transfer; or (ii) 60 days after the date the financial institution sends the consumer a written history of
account transactions in which the unauthorized transfers is first reflected. A financial institution complies
with § 1005.18(e)(2)(i) if it investigates any oral or written error notices from the consumer received within
120 days after the transfer was credited or debited to the consumer’s account.

EFTA-A 1005.18(f)(1)

The Electronic Fund Transfers Act (15 U.S.C. § 1693 et seq.), as implemented by Regulation E, 12 C.F.R.
§ 1005.18(f)(1), requires a financial institution to include as part of the initial disclosure required in §
1005.7, all of the information required in its long form disclosure pursuant to § 1005.18(b)(4).

EFTA-A 1005.18(f)(3)

The Electronic Fund Transfers Act (15 U.S.C. § 1693 et seq.), as implemented by Regulation E, 12 C.F.R.
§ 1005.18(f)(3) requires a financial institution to disclose on the prepaid account device the name of the
financial institution, the Web site URL, and a telephone number a consumer can use to contact the financial
institution about the prepaid account.

EFTA-A 1005.18(g)

The Electronic Fund Transfers Act (15 U.S.C. § 1693 et seq.), as implemented by Regulation E, 12 C.F.R.
§ 1005.18(g), requires a financial institution to provide the same account terms, conditions, and features for
prepaid accounts with a covered separate credit feature accessible by a hybrid pre-paid card (defined by

FDIC Consumer Compliance Examination Manual — November 2023 II-14.15

II. Consumer Compliance Examinations — FOCUS Violation Codes

Violation
Code Description

Regulation Z, 12 C.F.R. § 1026.61), as it provides for prepaid accounts without such a credit feature,
except as provided in § 1005.18(g)(2).

EFTA-A 1005.19(b)

The Electronic Fund Transfers Act (15 U.S.C. § 1693 et seq.), as implemented by Regulation E, 12 C.F.R.
§ 1005.19(b), requires a financial institution to make submissions of prepaid account agreements to the
Consumer Financial Protection Bureau within 30 days after offering, amending, or ceasing to offer any
prepaid account agreement containing information prescribed in § 1005.19(b)(1)(i) through (b)(1)(iv), and
to meet the applicable requirements of § 1005.19(b)(2) and (b)(3) regarding amended or withdrawn
agreements. There is no violation if the financial institution falls under the de minimis or product testing
exceptions set out in § 1005.19(b)(4) and (b)(5), respectively.

EFTA-A 1005.19(c)

The Electronic Fund Transfers Act (15 U.S.C. § 1693 et seq.), as implemented by Regulation E, 12 C.F.R.
§ 1005.19(c), requires an issuer to post and maintain prepaid account agreements offered to the public on
its publicly available Web site. Posted agreements must conform to the form and content requirements of §
1005.19(b)(6), be in a prominent and readily accessible public location, and accessible without submitting
personally identifiable information. The agreements must be updated as frequently as is required for
submission to the Consumer Financial Protection Bureau under § 1005.19(b)(2).

EFTA-A 1005.19(d)

The Electronic Fund Transfers Act (15 U.S.C. § 1693 et seq.), as implemented by Regulation E, 12 C.F.R.
§ 1005.19(d), requires an issuer to make agreements for all open prepaid accounts available, as required by
§ 1005.19(d)(1)(i) and (d)(1)(ii), under the form and content requirements of § 1005.19(d)(2).

EFTA-A 1005.19(f)

The Electronic Fund Transfers Act (15 U.S.C. § 1693 et seq.), as implemented by Regulation E, 12 C.F.R.
§ 1005.19(f), requires an issuer to submit to the Consumer Financial Protection Bureau no later than May 1,
2019 all prepaid account agreements it offers as of April 1, 2019.

EFTA-A 1005.20(c)(1)-(2)

The Electronic Fund Transfers Act (15 U.S.C. § 1693 et seq.), as implemented by Regulation E, 12 C.F.R.
§ 1005.20(c)(1) and (c)(2), requires a financial institution to provide disclosures under § 1005.20 for gift
cards and gift certificates that are clear and conspicuous, in writing or electronically, and in a retainable
form, except disclosures required prior to purchase and disclosures on in-store signage, messages during
customer service calls, Web sites, and general advertising may be given orally.

EFTA-A 1005.20(c)(3)

The Electronic Fund Transfers Act (15 U.S.C. § 1693 et seq.), as implemented by Regulation E, 12 C.F.R.
§ 1005.20(c)(3), requires a financial institution to disclose to the consumer the information required by §
1005.20(d)(2), (e)(3), and (f)(1) prior to purchase of the gift certificate, store gift card, or general-use
prepaid card. The fees, and the terms and conditions of expiration, required to be disclosed prior to
purchase, cannot be changed after purchase.

II-14.16 FDIC Consumer Compliance Examination Manual — November 2023

 II. Consumer Compliance Examinations — FOCUS Violation Codes

Violation
Code Description

EFTA-A 1005.20(c)(4)

The Electronic Fund Transfers Act (15 U.S.C. § 1693 et seq.), as implemented by Regulation E, 12 C.F.R.
§ 1005.20(c)(4), requires a financial institution to disclose to the consumer the information required by §
1005.20(a)(4)(iii), (d)(2), (e)(3), and (f)(2) on the gift certificate or gift card or in the case of a loyalty,
award, or promotional gift card, on the card, code, or other device.

EFTA-A 1005.20(d);(e)

The Electronic Fund Transfers Act (15 U.S.C. § 1693 et seq.), as implemented by Regulation E, 12 C.F.R.
§ 1005.20(d) and (e), prohibits the imposition of a dormancy, inactivity, or service fee on a gift certificate,
store gift card, or general-use prepaid card except under the conditions in § 1005.20(d)(1) through (d)(3),
and prohibits the sale or issuance of a gift certificate, store gift card, or general-use prepaid card with an
expiration date unless the conditions in § 1005.20(e)(1) through (e)(4) are met.

EFTA-A 1005.20(f)

The Electronic Fund Transfers Act (15 U.S.C. § 1693 et seq.), as implemented by Regulation E, 12 C.F.R.
§ 1005.20(f), requires a financial institution to provide the following disclosures in connection with a gift
certificate, store gift card, or general-use prepaid card, as applicable: the type and amount of fee, and
conditions under which the fee may be imposed on or with the certificate or card; and a toll-free telephone
number and Web site, if maintained, that the consumer can use to obtain information about fees described
in § 1005.20(d)(2) and (f)(1) that must be disclosed on the certificate or card.

Electronic Fund Transfers Act/Regulation E – Subpart B – Requirements for Remittance Transfers

EFTA-B 1005.31(a)

The Electronic Fund Transfers Act (15 U.S.C. § 1693 et seq.), as implemented by Regulation E, 12 C.F.R.
§ 1005.31(a), requires a financial institution to provide clear and conspicuous disclosures that are
retainable. Disclosures may be provided in writing, electronically, or orally pursuant to the conditions in §
1005.31(a)(2) through (a)(4). Electronic and oral disclosures for mobile application or text message
transactions may be provided pursuant to the conditions in § 1005.31(a)(5) and need not be retainable.

EFTA-B 1005.31(b)-(c)

The Electronic Fund Transfers Act (15 U.S.C. § 1693 et seq.), as implemented by Regulation E, 12 C.F.R.
§ 1005.31(b), requires a financial institution to provide a pre-payment disclosure, receipt or a single
combined disclosure (as an alternative to the pre-payment disclosure and receipt), and the long form error
resolution and cancellation notice that satisfy applicable content requirements contained in § 1005.31(b)(1)
through (b)(4). The disclosures must meet the specific format requirements under § 1005.31(c)(1) through
(c)(4), as applicable, regarding grouping, proximity, prominence and size, and segregation.

EFTA-B 1005.31(d)

The Electronic Fund Transfers Act (15 U.S.C. § 1693 et seq.), as implemented by Regulation E, 12 C.F.R.
§ 1005.31(d), requires a financial institution to describe estimated disclosures with the term “estimated” or

FDIC Consumer Compliance Examination Manual — November 2023 II-14.17

II. Consumer Compliance Examinations — FOCUS Violation Codes

Violation
Code Description

a substantially similar term in close proximity to the estimated term or terms, to the extent the use of an
estimated term or amount is permitted by § 1005.32.

EFTA-B 1005.31(e)

The Electronic Fund Transfers Act (15 U.S.C. § 1693 et seq.), as implemented by Regulation E, 12 C.F.R.
§ 1005.31(e), requires that the pre-payment disclosure and receipt, or a combined disclosure, be provided to
the sender within the timing requirements prescribed under § 1005.31(e)(1) and (e)(2), except as permitted
under § 1005.36(a) for transfers scheduled before the date of a transfer.

EFTA-B 1005.31(f)

The Electronic Fund Transfers Act (15 U.S.C. § 1693 et seq.), as implemented by Regulation E, 12 C.F.R.
§ 1005.31(f), requires that disclosures be accurate when a sender makes a payment for the remittance
transfer, except to the extent estimates are permitted by § 1005.32 or the transfer is scheduled before the
date of a transfer in accordance with the requirements of § 1005.36.

EFTA-B 1005.31(g)

The Electronic Fund Transfers Act (15 U.S.C. § 1693 et seq.), as implemented by Regulation E, 12 C.F.R.
§ 1005.31(g), requires that the disclosures be made in English and, if applicable, either in the foreign
languages used by the remittance transfer provider to advertise the transfer services or the foreign language
used by the remittance transfer sender to conduct the transaction, as prescribed by § 1005.31(g)(1)(i) and
(g)(1)(ii). Oral, mobile application, or text message disclosures must meet requirements of §
1005.31(g)(2).

EFTA-B 1005.32(a)

The Electronic Fund Transfers Act (15 U.S.C. § 1693 et seq.), as implemented by Regulation E, 12 C.F.R.
§ 1005.32(a), prohibits a financial institution from using estimates for the amounts required in §
1005.31(b)(1)(iv) through (b)(1)(vii) to be disclosed under § 1005.31(b)(1) through (b)(3) and §
1005.36(a)(1) and (a)(2) unless the institution cannot determine the exact amounts for reasons beyond its
control; it is an insured institution; and the transfer is sent from the sender’s account with the institution.
This subsection expires on July 21, 2020.

EFTA-B 1005.32(b)

The Electronic Fund Transfers Act (15 U.S.C. § 1693 et seq.), as implemented by Regulation E, 12 C.F.R.
§ 1005.32(b), prohibits financial institutions from using estimates for transfers to certain countries,
transfers scheduled before the date of the transfer, and disclosures of non-covered third-party fees and taxes
collected by a person other than the provider, for the amounts required to be disclosed under §
1005.31(b)(1)(iv) through (b)(1)(vii), unless the conditions for applicable permanent exceptions under §
1005.32(b)(1) through (b)(3) are met.

EFTA-B 1005.32(c)

The Electronic Fund Transfers Act (15 U.S.C. § 1693 et seq.), as implemented by Regulation E, 12 C.F.R.
§ 1005.32(c), requires that the use of estimates in remittance disclosures by insured institutions must be
based on a specific approach or approaches regarding the exchange rate, the transfer amount in the currency

II-14.18 FDIC Consumer Compliance Examination Manual — November 2023

 II. Consumer Compliance Examinations — FOCUS Violation Codes

Violation
Code Description

in which the funds will be received, covered third-party fees, and the amount of currency that will be
received by thedesignated recipient, except as otherwise permitted by § 1005.32(c).

EFTA-B 1005.32(d)

The Electronic Fund Transfers Act (15 U.S.C. § 1693 et seq.), as implemented by Regulation E, 12 C.F.R.
§ 1005.32(d), requires a financial institution to use estimates for transfers scheduled before the date of
transfer that are based on the exchange rate, or where applicable, the estimated exchange rate, using the
estimation methodologies under § 1005.32(c)(1), or the estimation methodology that the provider would be
permitted to use in providing disclosures to a sender requesting such a remittance transfer to be made on
the same day.

EFTA-B 1005.33(b)

The Electronic Fund Transfers Act (15 U.S.C. § 1693 et seq.), as implemented by Regulation E, 12 C.F.R.
§ 1005.33(b), requires a financial institution to meet the timing and content requirements with respect to
any oral or written notice of error that is received no later than 180 days after the date of availability of the
remittance transfer, enables the provider to identify the sender’s and recipient’s contact information, and
the remittance transfer to which the notice of error applies, and indicates why the sender believes an error
exists, as prescribed by § 1005.33(b)(1)(i) through (b)(1)(iii). When a notice of error is based on
documentation, additional information, or clarification that the sender previously requested, the sender’s
notice of error is timely if received within the prescribed timeframes required by § 1005.33(b)(2).

EFTA-B 1005.33(c)-(d)

The Electronic Fund Transfers Act (15 U.S.C. § 1693 et seq.), as implemented by Regulation E, 12 C.F.R.
§ 1005.33(c), requires a financial institution to investigate promptly and determine whether an error
occurred, report the results to the sender, correct theerror and provide the appropriate remedy within the
prescribed timeframes provided by § 1005.33(c). If the financial institution determines that no error
occurred or a different error occurred, it must provide an explanation of the results of the investigation and
the copies of the documents on which it relied in making its error determination, as required by §
1005.33(d)(1) and (d)(2).

EFTA-B 1005.33(g)

The Electronic Fund Transfers Act (15 U.S.C. § 1693 et seq.), as implemented by Regulation E, 12 C.F.R.
§ 1005.33(g), requires a financial institution to develop and maintain written policies and procedures to
ensure compliance with error resolution requirements applicable to remittance transfers and the retention of
documentation related to error investigations. Such error resolution documentation retention policies and
procedures must conform to the minimum requirements of § 1005.33(g)(2).

EFTA-B 1005.34

The Electronic Fund Transfers Act (15 U.S.C. § 1693 et seq.), as implemented by Regulation E, 12 C.F.R.
§ 1005.34, requires a financial institution to follow procedures for oral or written requests to cancel a
remittance transfer, as prescribed by § 1005.34(a)(1) and (a)(2), except as provided in § 1005.36(c)
regarding cancellation of transfers scheduled before the date of the transfer. The financial institution must
also comply with the requirements of § 1005.34(b) regarding time limits and amount of refunds.

FDIC Consumer Compliance Examination Manual — November 2023 II-14.19

II. Consumer Compliance Examinations — FOCUS Violation Codes

Violation
Code Description

EFTA-B 1005.36(a)-(b)

The Electronic Fund Transfers Act (15 U.S.C. § 1693 et seq.), as implemented by Regulation E, 12 C.F.R.
§ 1005.36, requires a financial institution to provide timely, accurate (except to the extent estimates are
permitted by § 1005.32), and updated disclosures and receipts, as required by § 1005.36(a) and (b), for a
one-time transfer scheduled five or more business days before the date of transfer, or for the first in a series
of preauthorized remittance transfers and each subsequent preauthorized transfer.

EFTA-B 1005.36(c)

The Electronic Fund Transfers Act (15 U.S.C. § 1693 et seq.), as implemented by Regulation E, 12 C.F.R.
§ 1005.36(c), requires a financial institution to comply with any oral or written request to cancel any
remittance transfer scheduled by the sender at least three business days before the date of the transfer,
provided that the request enables the provider to identify the sender’s contact information, the particular
transfer to be cancelled, and is received within the timeframe prescribed by § 1005.36(c)(2).

EFTA-B 1005.36(d)

The Electronic Fund Transfers Act (15 U.S.C. § 1693 et seq.), as implemented by Regulation E, 12 C.F.R.
§ 1005.36(d), requires a financial institution to provide the additional disclosures for any subsequent
transfers in a series of preauthorized remittance transfers required by § 1005.36(d)(1)(i) and (d)(1)(ii). The
financial institution must also meet the applicable timing, notice, format, and accuracy requirements
prescribed by § 1005.36(d)(2) through (d)(4).

Electronic Signatures Act

E-SIGN 101(c)(1)(A)-(C)

Section § 101(c)(1)(A) through (C) of the Electronic Signatures in Global and National Commerce Act (15
U.S.C. § 7001), allows a financial institution to use an electronic record to satisfy any statute, regulation, or
rule of law requiring that such information be provided in writing, provided the following conditions are
met:
(A) the consumer has affirmatively consented and has not withdrawn such consent;
(B) the consumer, prior to consenting, is provided with a clear and conspicuous statement informing the
consumer of the following: their right to have the record provided in paper or nonelectronic form and to
withdraw consent to have the record provided electronically along with any conditions, consequences or
fees of such withdrawal; whether the consent applies to a particular transaction or categories of records; the
procedures the consumer must use to withdraw consent and to update information needed to contact the
consumer electronically; and how the consumer can obtain a paper copy of an electronic record and
whether there are any fees; and
(C) prior to consenting, the consumer is provided a statement of the hardware and software requirements
for accessing and retaining electronic records; and the consumer confirms their consent electronically in a
manner that reasonably demonstrates that the consumer can access information in the electronic form used
to provide the information that is the subject of the consumer’s consent.

E-SIGN 101(c)(1)(D)

Section § 101(c)(1)(D) of the Electronic Signatures in Global and National Commerce Act (15 U.S.C. §
7001), requires that, after a consumer consents in accordance with § 101(c)(1)(A) and if a financial

II-14.20 FDIC Consumer Compliance Examination Manual — November 2023

 II. Consumer Compliance Examinations — FOCUS Violation Codes

Violation
Code Description

institution changes hardware and software needed to access or retain electronic records that create a
material risk that the consumer will not be able to access or retain a subsequent electronic record that was
the subject of the consent, the financial institution provide the consumer with a statement of the revised
hardware and software requirements for accessing and retaining electronic records and of the consumer’s
right to withdraw consent without the imposition of any fee, condition or consequence that was not
disclosed under § 101(c)(1)(B)(i). The financial institution must again also comply with the requirements
of § 101(c)(1)(C).

E-SIGN 101(d)

Section 101(d) of the Electronic Signatures in Global and National Commerce Act (15 U.S.C. § 7001),
requires a financial institution to maintain electronic records that accurately reflect the information set forth
in the contract or other records and that remain accessible to all persons who are entitled to access by
statute, regulation, or rule of law for the period required by such statute, regulation, or rule of law, in a form
that is capable of being accurately reproduced for later reference, unless theexception in § 101(d)(2)
applies.

Equal Credit Opportunity Act

ECOA 1002.4(a)-(b) AGE

The Equal Credit Opportunity Act (15 U.S.C. § 1691 et seq.), as implemented by Regulation B, 12 C.F.R. §
1002.4(a) and (b), prohibits a creditor from discriminating against or discouraging an applicant in any
aspect of a credit transaction on the basis of age, providing that the applicant has the capacity to enter into a
binding contract.

ECOA 1002.4(a)-(b) CCPA

The Equal Credit Opportunity Act (15 U.S.C. § 1691 et seq.), as implemented by Regulation B, 12 C.F.R. §
1002.4(a) and (b), prohibits a creditor from discriminating against or discouraging an applicant in any
aspect of a credit transaction on the basis of the fact that the applicant has in good faith exercised any right
under the Consumer Credit Protection Act or any state law upon which an exemption has been granted by
the Consumer Financial Protection Bureau.

ECOA 1002.4(a)-(b) MARITAL-STATUS

The Equal Credit Opportunity Act (15 U.S.C. § 1691 et seq.), as implemented by Regulation B, 12 C.F.R. §
1002.4(a) and (b), prohibits a creditor from discriminating against or discouraging an applicant in any
aspect of a credit transaction on the basis of marital status.

ECOA 1002.4(a)-(b) PUBLIC-ASSIST

The Equal Credit Opportunity Act (15 U.S.C. § 1691 et seq.), as implemented by Regulation B, 12 C.F.R. §
1002.4(a) and (b), prohibits a creditor from discriminating against or discouraging an applicant in any
aspect of a credit transaction on the basis of the fact that all or part of the applicant’s income derives from
any public assistance program.

FDIC Consumer Compliance Examination Manual — November 2023 II-14.21

II. Consumer Compliance Examinations — FOCUS Violation Codes

Violation
Code Description

ECOA 1002.4(a)-(b); 6(b)(9) COLOR

The Equal Credit Opportunity Act (15 U.S.C. § 1691 et seq.), as implemented by Regulation B, 12 C.F.R.
§§ 1002.4(a), (b), and 1002.6(b)(9), prohibits a creditor from discriminating against or discouraging an
applicant in any aspect of a credit transaction on the basis of color, or except as otherwise provided by law,
considering color in any aspect of a credit transaction.

ECOA 1002.4(a)-(b); 6(b)(9) N-ORIG

The Equal Credit Opportunity Act (15 U.S.C. 1691 et seq.), as implemented by Regulation B, 12 C.F.R. §
1002.4(a), § 1002.4(b), and § 1002.6(b)(9), prohibits a creditor from discriminating against or discouraging
an applicant in any aspect of a credit transaction based on national origin, or except as otherwise provided
by law, considering national origin in any aspect of a credit transaction.

ECOA 1002.4(a)-(b); 6(b)(9) RACE

The Equal Credit Opportunity Act (15 U.S.C. § 1691 et seq.), as implemented by Regulation B, 12 C.F.R.
§§ 1002.4(a), (b), and 1002.6(b)(9), prohibits a creditor from discriminating against, or discouraging an
applicant in any aspect of a credit transaction on the basis of race or, except as otherwise provided by law,
considering race in any aspect of a credit transaction

ECOA 1002.4(a)-(b); 6(b)(9) REL

The Equal Credit Opportunity Act (15 U.S.C. § 1691 et seq.), as implemented by Regulation B, 12 C.F.R.
§§ 1002.4(a), (b), and 1002.6(b)(9), prohibits a creditor from discriminating against or discouraging an
applicant in any aspect of a credit transaction on the basis of religion, or except as otherwise provided by
law, considering religion in any aspect of a credit transaction.

ECOA 1002.4(a)-(b); 6(b)(9) SEX

The Equal Credit Opportunity Act (15 U.S.C. 1691 et seq.), as implemented by Regulation B, 12 C.F.R. §
1002.4(a), § 1002.4(b), and § 1002.6(b)(9), prohibits a creditor from discriminating against or discouraging
an applicant in any aspect of a credit transaction based on sex, or except as otherwise provided by law,
considering sex in any aspect of a credit transaction.

ECOA 1002.4(c)

The Equal Credit Opportunity Act (15 U.S.C. § 1691 et seq.), as implemented by Regulation B, 12 C.F.R. §
1002.4(c), requires the creditor to take a written application for dwelling-related types of credit covered by
§ 1002.13(a).

ECOA 1002.4(d)

The Equal Credit Opportunity Act (15 U.S.C. § 1691 et seq.), as implemented by Regulation B, 12 C.F.R. §
1002.4(d), requires a creditor to provide written disclosures or other information required by this part, in a
clear and conspicuous manner and, except for the disclosures required by §§ 1002.5 and 1002.13, in a form
the applicant may retain. The written disclosures required by this part may be provided to the applicant in
electronic form, subject to compliance with the consumer consent and other applicable provisions of the
Electronic Signatures in Global and National Commerce Act (E-Sign Act) (15 U.S.C. § 7001 et seq.).

II-14.22 FDIC Consumer Compliance Examination Manual — November 2023

 II. Consumer Compliance Examinations — FOCUS Violation Codes

Violation
Code Description

ECOA 1002.4(e)

The Equal Credit Opportunity Act (15 U.S.C. § 1691 et seq.), as implemented by Regulation B, 12 C.F.R. §
1002.4(e), requires a creditor that provides disclosures in languages other than English, to make the
disclosures available in English upon request.

ECOA 1002.5(a)(2)

The Equal Credit Opportunity Act (15 U.S.C. § 1691 et seq.), as implemented by Regulation B, 12 C.F.R. §
1002.5(a)(2), requires a creditor to collect information for monitoring purposes as required by § 1002.13
for credit secured by the applicant's dwelling.

ECOA 1002.5(b)-(d)

The Equal Credit Opportunity Act (15 U.S.C. § 1691 et seq.), as implemented by Regulation B, 12 C.F.R. §
1002.5(b) through (d) prohibits a creditor from:
(1) inquiring about the race, color, religion, national origin, or sex of an applicant or any other person in
connection with a credit transaction, except as permitted in §§ 1002.5(b)(1) and (b)(2), or 1002.8 in the
case of a special purpose credit program;
(2) requesting any information concerning an applicant’s spouse or former spouse, except as permitted in §
1002.5(c)(2);
(3) requesting the marital status of a person applying for individual, unsecured credit, except as permitted
in § 1002.5(d)(1) (for credit other than individual, unsecured, a creditor may inquire about the applicant’s
marital status, but must only use the terms "married," "unmarried," and "separated");
(4) inquiring as to whether income stated in an application is derived from alimony, child support, or
separate maintenance payments, except as permitted in § 1002.5(d)(2); or
(5) requesting information about birth control practices, intentions concerning the bearing or rearing of
children, or capability to bear children, except as permitted in § 1002.5(d)(3).

ECOA 1002.6(b)(1)-(4)

The Equal Credit Opportunity Act (15 U.S.C. § 1691 et seq.), as implemented by Regulation B, 12 C.F.R. §
1002.6(b)(1) through (b)(4), prohibits a creditor from:
(1) using a prohibited basis in any system of evaluating the creditworthiness of applicants, except as
permitted by the Act and part 1002;
(2) taking into account an applicant’s age (provided the applicant has the capacity to enter into a binding
contract), or whether an applicant’s income derives from any public assistance program, except as
permitted by § 1002.6(b)(2)(ii) through (b)(2)(iv);
(3) making assumptions or using aggregate statistics relating to the likelihood that any category of persons
will bear or rear children or will, for that reason, receive diminished or interrupted income in the future,
when evaluating an applicant’s creditworthiness; or
(4) taking into account whether there is a telephone listing in the name of an applicant for consumer credit
when evaluating the applicant’s creditworthiness.

ECOA 1002.6(b)(5)

The Equal Credit Opportunity Act (15 U.S.C. § 1691 et seq.), as implemented by Regulation B, 12 C.F.R. §
1002.6(b)(5), prohibits a creditor from discounting or excluding income of an applicant or the spouse of the
applicant because of a prohibited basis or because the income is derived from part-time employment, or

FDIC Consumer Compliance Examination Manual — November 2023 II-14.23

II. Consumer Compliance Examinations — FOCUS Violation Codes

Violation
Code Description

from an annuity, pension, or other retirement benefit, and requires the creditor to consider alimony, child
support or separate maintenance payments as income to the extent they are likely to be consistently made.

ECOA 1002.6(b)(6)

The Equal Credit Opportunity Act (15 U.S.C. § 1691 et seq.), as implemented by Regulation B, 12 C.F.R. §
1002.6(b)(6), requires a creditor that considers credit history when evaluating the creditworthiness of
similarly qualified applicants for a similar type and amount of credit, to consider the credit history of
accounts that the applicant and spouse are permitted to use or for which both are contractually liable, and to
consider information presented by the applicant that tends to indicate the credit history being considered
does not accurately reflect the applicant's creditworthiness. This section further requires the creditor to
consider the credit history of any account reported in the name of the applicant's spouse or former spouse
that the applicant can demonstrate accurately reflects the applicant's creditworthiness.

ECOA 1002.6(b)(8)

The Equal Credit Opportunity Act (15 U.S.C. § 1691 et seq.), as implemented by Regulation B, 12 C.F.R. §
1002.6(b)(8), requires a creditor to evaluate married and unmarried applicants by the same standards. This
section also prohibits a creditor from treating applicants differently based on the existence, absence, or
likelihood of a marital relationship between the parties, when evaluating joint applications.

ECOA 1002.7(c)(1)

The Equal Credit Opportunity Act (15 U.S.C. § 1691 et seq.), as implemented by Regulation B, 12 C.F.R. §
1002.7(c)(1), prohibits a creditor, with regards to an existing open-end account, from requiring
reapplication except as provided in § 1002.7(c)(2), changing the terms of the account, or terminating the
account on the basis of the applicant reaching a certain age or retiring, or on the basis of a change in the
applicant’s name or marital status, unless there is evidence of the applicant’s inability or unwillingness to
repay.

ECOA 1002.7(d)(1); (d)(5)-(6)

The Equal Credit Opportunity Act (15 U.S.C. § 1691 et seq.), as implemented by Regulation B, 12 C.F.R. §
1002.7(d)(1), (d)(5), and (d)(6), prohibits a creditor from:
(1) requiring the signature of an applicant's spouse or other person (other than a joint applicant) on any
credit instrument, if the applicant qualifies under the creditor's standards of creditworthiness for the amount
and terms of the credit requested;
(2) deeming the submission of a joint financial statement or other evidence of jointly held assets as an
application for joint credit; requiring the applicant’s spouse be the additional party (cosigner, guarantor,
endorser, or similar party), when the personal liability of an additional party is necessary to support the
extension of credit requested by the applicant; and
(3) imposing requirements upon an additional party that the creditor is prohibited from imposing upon an
applicant under this section.

ECOA 1002.7(d)(2)

The Equal Credit Opportunity Act (15 U.S.C. § 1691 et seq.), as implemented by Regulation B, 12 C.F.R. §
1002.7(d)(2), states that, if an applicant requests unsecured credit and relies in part upon property that the
applicant owns jointly with another person to satisfy a creditor’s standards of creditworthiness, a creditor

II-14.24 FDIC Consumer Compliance Examination Manual — November 2023

 II. Consumer Compliance Examinations — FOCUS Violation Codes

Violation
Code Description

may require the signature of the joint owner of property only on the instrument(s) necessary, or reasonably
believed to be necessary, under the law of the state in which the property is located, to enable the creditor
to reach the property being relied upon in the event of the death or default of the applicant.

ECOA 1002.7(e)

The Equal Credit Opportunity Act (15 U.S.C. § 1691 et seq.), as implemented by Regulation B, 12 C.F.R. §
1002.7(e), prohibits a creditor from refusing to extend credit or terminating an account because credit life,
health, accident, disability, or other credit-related insurance is not available on the basis of the applicant's
age.

ECOA 1002.9(a)(1)

The Equal Credit Opportunity Act (15 U.S.C. § 1691 et seq.), as implemented by Regulation B, 12 C.F.R.
§1002.9(a)(1), requires a creditor to notify an applicant of action taken on a credit application within
prescribed time limits.

ECOA 1002.9(a)(2); (b)(2)

The Equal Credit Opportunity Act (15 U.S.C. § 1691 et seq.), as implemented by Regulation B, 12 C.F.R. §
1002.9(a)(2) and (b)(2), requires a creditor to provide an applicant against whom adverse action is taken, a
written notice that contains a statement of the action taken; the name and address of the creditor; a
statement of the provisions of section 701(a) of the Act; the name and address of the Federal agency that
administers compliance with respect to the creditor; and either a statement of specific reasons for the action
taken, or a disclosure of the applicant’s right to a statement of specific reasons within 30 days, if the
statement is requested within 60 days of the creditor’s notification, along with the name, address, and
telephone number of the person or office where the statement of reasons may be obtained. The statement
of reasons for adverse action required by this section, must be specific and indicate the principal reason(s)
for adverse action.

ECOA 1002.9(a)(3)

The Equal Credit Opportunity Act (15 U.S.C. § 1691 et seq.), as implemented by Regulation B, 12 C.F.R. §
1002.9(a)(3), requires a creditor to notify business credit applicants of action taken on a credit application
and sets out the notification requirements for businesses with gross revenues of $1 million or less (in the
preceding fiscal year) and businesses with gross revenues in excess of $1 million (in the preceding fiscal
year).

ECOA 1002.9(c)

The Equal Credit Opportunity Act (15 U.S.C. § 1691 et seq.), as implemented by Regulation B, 12 C.F.R. §
1002.9(c), requires a creditor, within 30 days of receipt of an incomplete application, to either notify an
applicant of action taken in accordance with § 1002.9(a) or request the information necessary to complete
the application, designating a reasonable period of time for the applicant to provide the information, and
informing the applicant that failure to provide the information requested will result in no further
consideration.

FDIC Consumer Compliance Examination Manual — November 2023 II-14.25

II. Consumer Compliance Examinations — FOCUS Violation Codes

Violation
Code Description

ECOA 1002.9(g)
The Equal Credit Opportunity Act (15 U.S.C. § 1691 et seq.), as implemented by Regulation B, 12 C.F.R. §
1002.9(g), requires each creditor taking adverse action to comply with this section, directly or through a
third party, when an application is made on behalf of an applicant to more than one creditor and no credit is
offered, or if the applicant does not expressly accept or use any credit offered. A notice given by a third
party shall disclose the identification of each creditor on whose behalf the adverse action notice is given.

ECOA 1002.10(a)-(b)

The Equal Credit Opportunity Act (15 U.S.C. § 1691 et seq.), as implemented by Regulation B, 12 C.F.R. §
1002.10(a) and (b), requires the creditor to designate new accounts to reflect the participation of both
spouses, if the applicant's spouse is permitted to use or is contractually liable on the account (other than as a
guarantor, surety, endorser, or similar party). In addition, creditors are required to designate existing
accounts to reflect participation by both spouses, within 90 days after receiving a written request to do so
from one of the spouses. Further, this section requires a creditor that furnishes credit information to a
consumer reporting agency on accounts designated to reflect the participation of both spouses, to furnish
the credit information in a manner that will enable the consumer reporting agency to provide access to the
information in the name of either participating spouse.

ECOA 1002.10(c)

The Equal Credit Opportunity Act (15 U.S.C. § 1691 et seq.), as implemented by Regulation B, 12 C.F.R. §
1002.10(c), requires that if, in response to an inquiry, a creditor furnishes credit information on an account
designated to reflect participation of both spouses, the creditor shall furnish the information in the name of
the spouse about whom the information is requested.

ECOA 1002.11(c)

The Equal Credit Opportunity Act (15 U.S.C. § 1691 et seq.), as implemented by Regulation B, 12 C.F.R. §
1002.11(c), prohibits a creditor fromaggregating or otherwise combining accounts for the purpose of
determining permissible finance charges or loan ceilings under any Federal or state law if married
applicants voluntarily apply for and obtain individual accounts with the same creditor.

ECOA 1002.12(b)(1)-(7)

The Equal Credit Opportunity Act (15 U.S.C. § 1691 et seq.), as implemented by Regulation B, 12 C.F.R. §
1002.12(b)(1) through (b)(7) requires a creditor to retain certain records for prescribed timeframes for
consumer and business applications, existing accounts, other applications, investigation or enforcement
proceedings for alleged violation of the Act or this part, self-testing, and prescreened credit solicitations.

ECOA 1002.13(a)-(c)

The Equal Credit Opportunity Act (15 U.S.C. § 1691 et seq.), as implemented by Regulation B, 12 C.F.R. §
1002.13(a) through (c), requires a creditor to request prescribed data on an application for the purchase or
refinancing of a dwelling that is occupied or to be occupied by the applicant as a principal residence. If the
applicant(s) chooses not to provide the information or any part of it, this section requires the creditor to
note this on the form and to the extent possible, note the prescribed data on the basis of visual observation
or surname. Further, this section requires a creditor to advise the applicant(s) that the information is being
requested by the Federal Government for the purpose of monitoring compliance with Federal statutes and

II-14.26 FDIC Consumer Compliance Examination Manual — November 2023

 II. Consumer Compliance Examinations — FOCUS Violation Codes

Violation
Code Description

that if the applicant(s) chooses not to provide the information, the creditor is required to document the
prescribed data based on visual observation or surname.

ECOA 1002.14(a)(1)-(4)

The Equal Credit Opportunity Act (15 U.S.C. § 1691 et seq.), as implemented by Regulation B, 12 C.F.R. §
1002.14(a)(1) through (a)(4), requires a creditor to provide an applicant, at no charge, a copy of all
appraisals and other written valuations developed in connection with an application for credit that is to be
secured by a first lien on a dwelling, whether the credit is extended or denied, or the application is
incomplete or withdrawn, within prescribed timeframes. A creditor may not provide the required copies of
appraisals and other written valuations in electronic formunless the consumer consents and the creditor
complies with other applicable provisions of the E-Sign Act (15 U.S.C. § 7001 et seq.). Further, this
section requires a creditor, to mail or deliver to an applicant a notice in writing of the applicant’s right to
receive a copy of all written appraisals developed in connection with the application, within prescribed
timeframes.

Expedited Funds Availability Act/Regulation CC

EFAA 229.10

The Expedited Funds Availability Act (12 U.S.C. § 4001 et seq.), as implemented by Regulation CC, 12
C.F.R. § 229.10, requires a financial institution to make available for withdrawal cash deposits made in
person to an employee of the bank, electronic payments, and certain check deposits not later than the
business day after the banking day on which the bank received the deposit. The financial institution must
make available for withdrawal funds deposited in an account by cash not made in person to an employee of
the bank and checks not deposited in person not later than the second business day after the banking day on
which the funds are deposited. In addition, the financial institution must make the lesser of the applicable
dollar amount provided in § 229.10(c)(1)(vii)(A) or the customer’s daily aggregate deposits of checks not
subject to the next-day availability rules under § 229.10(c)(1)(ii) through (vi) available on the next business
day.

As a condition to making the funds available for withdrawal in accordance with this section, the financial
institution may require the use of a special deposit slip or envelope for certain checks. If the institution
requires the use of such special deposit slip, § 229.10(c)(3)(ii) requires the financial institution to either
provide the special deposit slip or deposit envelope to its customers or inform them of how the special
deposit slip or envelope may be prepared or obtained. Financial institutions must make the special deposit
slip or envelope reasonably available.

EFAA 229.12

The Expedited Funds Availability Act (12 U.S.C. § 4001 et seq.), as implemented by Regulation CC, 12
C.F.R. § 229.12(b), requires a financial institution to make funds deposited in an account for local and
certain other checks available for withdrawal not later than the second business day following the banking
day on which funds are deposited. The Federal Reserve Board of Governors adopted check-processing
requirements that have effectively eliminated the distinction in the requirements for the availability of
funds for withdrawal between local and non-local checks. Thus, local and nonlocal checks should be
treated the same in terms of funds availability under Regulation CC except as permitted in
§ 229.12(d) through (f).

FDIC Consumer Compliance Examination Manual — November 2023 II-14.27

II. Consumer Compliance Examinations — FOCUS Violation Codes

Violation
Code Description

EFAA 229.13

The Expedited Funds Availability Act (12 U.S.C. § 4001 et seq.), as implemented by Regulation CC, 12
C.F.R. § 229.13, requires a financial institution to follow certain procedures for exceptions related to new
accounts, large deposits, redeposited checks, repeated overdrafts, reasonable cause to doubt collectability,
and emergency conditions as prescribed by § 229.13(a) through (f). When the financial institution extends
the time of deposits subject to exceptions in § 229.13(b) through (e), the financial institution must provide
the depositor with a notice in accordance with § 229.13(g)(1) through (g)(4). The financial institution must
also retain a record of each notice provided pursuant to the reasonable cause exception under § 229.13(e)
with a brief statement of the facts giving rise to the financial institution’s reason to doubt the collectability
of the check in accordance with § 229.13(g)(5). Finally, § 229.13(h) requires that, if a financial institution
imposes one of the exceptions in § 229.13(b) through (f), the times periods may be extended only in
accordance with the "reasonable period of time" parameters outlined in § 229.13(h)(1) through (h)(4).

EFAA 229.14

The Expedited Funds Availability Act (12 U.S.C. § 4001 et seq.), as implemented by Regulation CC, 12
C.F.R. § 229.14, requires a financial institution to begin to accrue interest on funds deposited into interest-
bearing accounts no later than the business day on which the financial institution receives provisional credit
for the funds.

EFAA 229.15(a)-(b)

The Expedited Funds Availability Act (12 U.S.C. § 4001 et seq.), as implemented by Regulation CC, 12
C.F.R. § 229.15 (a) and (b), requires a financial institution to provide disclosures clearly and conspicuously
in writing. The disclosures must be in a form the consumer can keep apart from the exceptions in §
229.15(a) (these exceptions are otherwise covered in § 229.18). The disclosures shall be grouped together
and not contain information unrelated to the disclosures required by subpart B of Regulation CC. In
addition, the disclosure must contain uniform references to the day of availability.

EFAA 229.16(a)-(c)

The Expedited Funds Availability Act (12 U.S.C. § 4001 et seq.), as implemented by Regulation CC, 12
C.F.R. § 229.16(a) through (c), requires a financial institution to provide a disclosure before opening a new
account and upon request as required by §§ 229.17 and 229.18(d), describing the financial institution’s
policy as to when funds deposited in an account are available for withdrawal, reflecting the policy followed
by the financial institution in “most cases.” The specific availability policy disclosure must include, as
applicable, the items listed under § 229.16(b)(1) through (b)(5). A financial institution that has a policy of
making deposited funds available for withdrawal sooner than required must meet the disclosure and notice
requirements of § 229.16(c).

EFAA 229.17

The Expedited Funds Availability Act (12 U.S.C. § 4001 et seq.), as implemented by Regulation CC, 12
C.F.R. § 229.17, requires a financial institution to provide a potential customer with the applicable specific
availability policy disclosure in § 229.16 before opening a new account.

II-14.28 FDIC Consumer Compliance Examination Manual — November 2023

 II. Consumer Compliance Examinations — FOCUS Violation Codes

Violation
Code Description

EFAA 229.18

The Expedited Funds Availability Act (12 U.S.C. § 4001 et seq.), as implemented by Regulation CC, 12
C.F.R. § 229.18, requires a financial institution to provide additional disclosures on preprinted deposit
slips, at locations where employees accept consumer deposits, on automated teller machines, and upon
request, as required by § 229.18(a) through (d). In addition, the financial institution must send a notice to
consumers regarding changes in policy pursuant to the timeframes prescribed under § 229.18(e).

EFAA 229.19(a)-(b)

The Expedited Funds Availability Act (12 U.S.C. § 4001 et seq.), as implemented by Regulation CC, 12
C.F.R. § 229.19(a) and (b), requires that a financial institution follow certain availability schedules for
funds mailed to the depository institution; funds deposited at an ATM, night depository, lock box, or
similar facility; or funds deposited at a staffed facility or contractual branch if such deposits are made by
certain times.

EFAA 229.19(f)

The Expedited Funds Availability Act (12 U.S.C. § 4001 et seq.), as implemented by Regulation CC, 12
C.F.R. § 229.19(f), requires a financial institution to establish procedures to ensure that it complies with the
requirements of Subpart A of Regulation CC, and must provide each employee who performs duties subject
to the requirements of Subpart A with a statement of the procedures applicable to that employee.

EFAA 229.21(g)

The Expedited Funds Availability Act (12 U.S.C. § 4001 et seq.), as implemented by Regulation CC, 12
C.F.R. § 229.21(g), requires a financial institution to retain evidence of compliance with the requirements
imposed by Subpart A for at least two years.

EFAA 229.51(b)

The Expedited Funds Availability Act (12 U.S.C. § 4001 et seq.), as implemented by Regulation CC, 12
C.F.R. § 229.51(b), requires a financial institution that is the reconverting bank to ensure that a substitute
check bears all indorsements applied by parties that previously handled the check in any form for forward
collection or return; identifies the converting financial institution in a manner that preserves any previous
reconverting-financial institution’s identifications; and identifies the financial institution that truncated the
original check.

EFAA 229.52

The Expedited Funds Availability Act (12 U.S.C. § 4001 et seq.), as implemented by Regulation CC, 12
C.F.R. § 229.52, requires that a financial institution that transfers, presents, or returns a substitute check (or
a paper or electronic representation of a substitute check) for which it receives consideration, warrants to
the parties listed under § 229.52(b) that: the substitute check meets the requirements for legal equivalence
outlined under § 229.51(a)(1) and (a)(2); and no financial institution will receive presentment or return of,
or otherwise be charged for, the substitute check, the original check, or a paper or electronic representation
of the substitute check such that that person will be asked to make a payment based on a check that it has
already paid. Under § 229.52(b), a financial institution that rejects a check submitted for deposit or returns

FDIC Consumer Compliance Examination Manual — November 2023 II-14.29

II. Consumer Compliance Examinations — FOCUS Violation Codes

Violation
Code Description

a substitute check to its customers provides these warrants regardless of whether or not the bank received
consideration.

EFAA 229.53

The Expedited Funds Availability Act (12 U.S.C. § 4001 et seq.), as implemented by Regulation CC, 12
C.F.R. § 229.53(a), requires a financial institution that transfers, presents, or returns a substitute check or a
paper or electronic representation of a substitute check for which it receives consideration, to indemnify the
recipient and any subsequent recipient for any loss incurred by any recipient of a substitute check if that
loss occurred due to the receipt of a substitute check instead of the original check. In addition, the financial
institution must meet the indemnity amount requirements under § 229.53(b).

EFAA 229.54(b)

The Expedited Funds Availability Act (12 U.S.C. § 4001 et seq.), as implemented by Regulation CC, 12
C.F.R. § 229.54(b), requires a financial institution to ensure that if the consumer cannot submit his or her
claim by the time specified under § 229.54(b)(1)(i) because of extenuating circumstances, the financial
institution shall extend the 40-calendar-day period by an additional reasonable amount of time. In addition,
if the consumer fails to provide all the required information under § 229.54(b)(2)(i), the financial institution
must inform the consumer that the claim is not complete and identify the information that is missing. The
financial institution holding the account subject to the consumer’s claim may require the consumer to
submit the information required by § 229.54(b)(3) in writing and, if so, the financial institution must follow
the requirements of § 229.54(b)(3)(i) through (b)(3)(iii).

EFAA 229.54(c)-(e)

The Expedited Funds Availability Act (12 U.S.C. § 4001 et seq.), as implemented by Regulation CC, 12
C.F.R. § 229.54(c), requires a financial institution in evaluating a consumer’s claim to follow the
procedures outlined under § 229.54(c)(1) through (c)(4) regarding recrediting the consumer’s account,
sending the consumer notice, recrediting a pending investigation, and reversing the recredit, as appropriate.
The financial institution must also meet next-day availability requirements under § 229.54(d)(1), unless it
meets the safeguard exceptions provided by § 229.54(d)(2), in which case the financial institution may not
impose an overdraft fee with respect to drafts drawn by the consumer on such recredited funds until the
timeframe prescribed under § 229.54(d)(3). In addition, the financial institution must meet the notice
requirements of § 229.54(e) regarding recredits, invalid claims, and reversal of recredits.

EFAA 229.57(a)-(b)

The Expedited Funds Availability Act (12 U.S.C. § 4001 et seq.), as implemented by Regulation CC, 12
C.F.R. § 229.57(a) and (b), requires a financial institution to provide a brief disclosure to consumer
customers that describes that a substitute check is the legal equivalent of an original check and the
consumer recredit rights that apply when a consumer in good faith believes that a substitute check was not
properly charged to his or her account. The financial institution must provide the disclosures according to
requirements under § 229.57(b) to consumers who receive paid checks with periodic account statements
and consumers who receive substitute checks on an occasional basis.

II-14.30 FDIC Consumer Compliance Examination Manual — November 2023

 II. Consumer Compliance Examinations — FOCUS Violation Codes

Violation
Code Description

Fair Credit Reporting Act/Regulation V

FCRA 604(b)(2)-(3)

Section 604(b)(2) and (3) of the Fair Credit Reporting Act (15 U.S.C. § 1681b(b)(2) and (3)), requires the
user of a consumer report for employment purposes to disclose in writing to the consumer, before the report
is procured or caused to be procured, that a consumer report may be obtained for employment purposes.
The user of such consumer reports must obtain the consumer's written authorization to procure the
consumer report. Additionally, before taking any adverse action, based in whole or in part on the consumer
report, this section requires the user of a consumer report to provide the consumer a copy of the report and
a written description of the rights of the consumer under the Act.

FCRA 604(f)

Section 604(f) of the Fair Credit Reporting Act (15 U.S.C. § 1681b(f)), prohibits the user of a consumer
report from using or obtaining a consumer report for any purpose other than a purpose for which the
consumer report is authorized to be furnished and that purpose is certified in accordance with the Act.

FCRA 604(g)(2); 1022.30(b)

Section 604(g)(2) of the Fair Credit Reporting Act (15 U.S.C. § 1681b(g)(2)), as implemented by
Regulation V, 12 C.F.R. § 1022.30(b), prohibits a creditor from obtaining or using medical information
pertaining to a consumer in connection with any determination of the consumer’s eligibility, or continued
eligibility, for credit, except as provided in § 604(g)(3)(C) of the Fair Credit Reporting Act or § 1022.30(d)
of Regulation V.

FCRA 605(g)

Section 605(g) of the Fair Credit Reporting Act (15 U.S.C. § 1681c(g)) prohibits any person that accepts
credit or debit cards for the transaction of business from printing more than the last 5 digits of the card
number or the expiration date upon any receipt provided to the cardholder at the point of the sale or
transaction. This prohibition applies only to electronically printed receipts and not to transactions in which
the sole means of recording a credit card or debit card account number is by handwriting or by an imprint
or copy of the card.

FCRA 605A(h)(1)(B)

Section 605A(h)(1)(B) of the Fair Credit Reporting Act (15 U.S.C. § 1681c-1(h)(1)(B)), prohibits a
prospective user of a consumer report that includes an initial fraud alert or an active duty alert in
accordance with this section, from establishing a new credit plan or extension of credit, other than under an
open-end credit plan (as defined in § 103(j) of the Truth in Lending Act (15 U.S.C. § 1602(j)), in the name
of the consumer, or issuean additional card on an existing credit account requested by a consumer, or grant
any increase in credit limit on an existing credit account requested by a consumer, unless the user utilizes
reasonable policies and procedures to form a reasonable belief that the user knows the identity of the person
making the request. If a consumer requesting the fraud or active duty alert has specified a telephone
number to be used for identity verification purposes, before authorizing any new credit plan or extension in
the name of such consumer, a user of such consumer report must contact the consumer using that telephone

FDIC Consumer Compliance Examination Manual — November 2023 II-14.31

II. Consumer Compliance Examinations — FOCUS Violation Codes

Violation
Code Description

number or take such other reasonable steps to verify the consumer's identity and confirm that the
application for a new credit plan is not the result of identity theft.

FCRA 606(a)-(b)

Section 606(a) and (b) of the Fair Credit Reporting Act (15 U.S.C. § 1681d(a) and (b)), prohibits any
person from procuring or requesting an investigative consumer report to be prepared unless it is disclosed
to the consumer in writing that an investigative consumer report may be made and that the consumer has a
right to request additional disclosures as provided under the Act. This disclosure is required to be mailed,
or otherwise delivered, not later than three days after the date on which the report was first requested, and
must include a written summary of the rights of the consumer prepared pursuant to § 609(c) of the Fair
Credit Reporting Act (15 U.S.C. § 1681g(c)).

The person, who procures or requests the investigative consumer report, must certify to the consumer
reporting agency that the disclosures under this section were made within prescribed timeframes and that it
will comply with the requirements related to requests for additional information from the consumer. If the
consumer submits a request for additional information in the manner provided under this section, the
person who procures or requests the investigative consumer report must mail or otherwise deliver a
complete and accurate written disclosure of the nature and scope of the investigation requested to the
consumer not later than five days after the date on which the request for the disclosure was received from
the consumer or the report was first requested, whichever is the later.

FCRA 607(e)(1)-(2)

Section 607(e)(1) and (e)(2) of the Fair Credit Reporting Act (15 U.S.C. § 1681e(e)(1)–(2)), prohibits any
person from procuring a consumer report for purposes of reselling the report (or any information in the
report) unless the person:
(1) discloses to the credit reporting agency that furnished the report the identity of the end user of the
report;
(2) certifies the permissible purpose for which the report is being furnished;
(3) certifies the report will be used for no other purposes; and
(4) takes reasonable steps to ensure that the identifications and certifications are accurate before the
information is sold.

FCRA 609(e)(1)-(2)

Section 609(e)(1) and (e)(2) of the Fair Credit Reporting Act (15 U.S.C. § 1681g(e)(1)-(2)), requires that,
within 30 days of receiving a written request from an alleged victim of identity theft, a business entity that
has otherwise entered into a commercial transaction for consideration with a person who has allegedly
made unauthorized use of a victim’s identity, must provide a copy of all documents and transaction records,
evidencing any transaction alleged to be the result of identity theft to: (A) the victim; (B) any Federal,
State, or local government law enforcement agency or officer specified by the victim in such a request; or
(C) any law enforcement agency investigating the identity theft and authorized by the victim to take receipt
of records provided under this subsection.

Prior to providing any documents or records required under § 609(e)(1) (15 U.S.C. § 1681g(e)(1)), the
business entity must comply with the verification of identity and claim requirements under § 609(e)(2) (15
U.S.C. § 1681g(e)(2)), unless the business entity, at its discretion, otherwise has a high degree of
confidence that it knows the identity of the victim making the request.

II-14.32 FDIC Consumer Compliance Examination Manual — November 2023

 II. Consumer Compliance Examinations — FOCUS Violation Codes

Violation
Code Description

FCRA 609(g)(1)

Section 609(g)(1) of the Fair Credit Reporting Act (15 U.S.C. § 1681g(g)(1)), requires any person, who
makes or arranges loans and who uses a consumer credit score as defined in subsection (f) of this section in
connection with an application for a consumer closed-end or open-end loan that is secured by a 1 to 4 unit
residential real property, to provide the credit score and certain other information required by subsection (f)
of this section including the "NOTICE TO THE HOME LOAN APPLICANT," as soon as is reasonably
practicable.

FCRA 615(a)

Section 615(a) of the Fair Credit Reporting Act (15 U.S.C. § 1681m(a)), requires the user of a consumer
report to provide oral, written, or electronic notice of any adverse action taken against a consumer, if such
action is based in whole or in part on any information contained in the consumer report. The notice must
contain all of the following:
(1) the name, address, and telephone number of the consumer reporting agency (including a toll-free
number established by the agency if the agency compiles and maintains files on consumers on a nationwide
basis) that furnished the report, and a statement that the consumer reporting agency did not make the
decision to take the adverse action and is unable to provide the consumer the specific reasons why the
adverse action was taken;
(2) an advisement of the consumer’s right to obtain a free copy of a consumer report within the specified 60
day time period, and to dispute with a consumer reporting agency the accuracy or completeness of any
information in a consumer report furnished by the agency; and
(3) a written or electronic disclosure of a numerical score as defined in § 609(f)(2)(A) (15 U.S.C. §
1681g(f)(2)(A)), that was used by the person taking any adverse action based in whole or in part on any
information in a consumer report, and the information as set forth in subparagraphs (B) through (E) of §
609(f)(1) (15 U.S.C. § 1681g(f)(1)).

FCRA 615(b)(1)

Section 615(b)(1) of the Fair Credit Reporting Act (15 U.S.C. § 1681m(b)(1)), requires that, whenever
credit for personal, family, or household purposes is denied or the cost increased based on information
received from a third party other than a consumer reporting agency, a creditor must disclose the nature of
the third-party information within a reasonable period of time of a written request from the consumer.

FCRA 615(d); 1022.54

Section 615(d) of the Fair Credit Reporting Act (15 U.S.C. § 1681m(d)) and § 1022.54 of Regulation V, 12
C.F.R. § 1022.54, require the user of a consumer report, in connection with any credit or insurance
transaction that is not initiated by the consumer and that consists of a firm offer of credit or insurance, to
provide, with each written solicitation made to the consumer, a clear and conspicuous statement containing
the information set forth in § 615(d)(1)(A) through (E) of the Fair Credit Reporting Act (15 U.S.C. §
1681m(d)(1)(A)-(E)), including, but not limited to, the following: that information contained in the
consumer’s credit report was used in connection with the transaction; that the consumer received the offer
because the consumer satisfied the criteria for the offer; and that the consumer may prohibit information in
the consumer’s credit file from being used in unsolicited credit or insurance offers in the future. The user
must also provide a prescreen opt-out notice in both a short form and a long form, which must be in the
same language as the offer of credit or insurance. The notices must be clear and conspicuous and simple

FDIC Consumer Compliance Examination Manual — November 2023 II-14.33

II. Consumer Compliance Examinations — FOCUS Violation Codes

Violation
Code Description

and easy to understand, and must conform to the requirements set forth in 12 C.F.R. § 1022.54(c)(1) and
(c)(2).

FCRA 615(g)

Section 615(g) of the Fair Credit Reporting Act (15 U.S.C. § 1681m(g)), requires a debt collector acting on
behalf of a third party that is a creditor or other user of a consumer report, is notified that any information
relating to a debt that the debt collector is attempting to collect may be fraudulent or may be the result of
identity theft, that person must:
(1) notify the third party that the information may be fraudulent or may be the result of identity theft; and
(2) upon request of the consumer to whom the debt purportedly relates, provide to the consumer all
information to which the consumer would otherwise be entitled if the consumer were not a victim of
identity theft, but wished to dispute the debt under provisions of law applicable to that person.

FCRA 623(a)(1)-(5); (8); 1022.42

Section 623(a)(1) through (a)(5) and § 623(a)(8) of the Fair Credit Reporting Act (15 U.S.C. § 1681s-2(a)),
requires furnishers of information to consumer reporting agencies to provide accurate information relating
to the consumer, and to follow certain procedures set forth in § 623(a), as applicable, to correct and update
such information. Further, § 1022.42 of Regulation V, 12 C.F.R. § 1022.42, requires a financial institution
that meets the definition of "furnisher" to establish and implement reasonable written policies and
procedures regarding the accuracy and integrity of the information relating to consumers that it furnishes to
a consumer reporting agency. Each furnisher must consider and appropriately incorporate the guidelines in
Appendix E of Regulation V in developing its policies and procedures, and must periodically review its
policies and procedures and update them as necessary to ensure their continued effectiveness.

FCRA 623(a)(6)

Section 623(a)(6) of the Fair Credit Reporting Act (15 U.S.C. § 1681s-2(a)(6)), requires furnishers of
information to consumer reporting agencies to have in place reasonable procedures to respond to any
notification it receives from a consumer reporting agency regarding information resulting from identity
theft to prevent that furnisher from refurnishing such blocked information under § 605B (15 U.S.C. §
1681c-2). In addition, if a consumer properly submits an identity theft report to the furnisher of
information, that furnisher may not furnish such information that purports to relate to the consumer to any
consumer reporting agency, unless the furnisher subsequently knows or is informed by the consumer that
the information is correct.

FCRA 623(a)(7)

Section 623(a)(7) of the Fair Credit Reporting Act (15 U.S.C. § 1681s-2(a)(7)), requires any financial
institution that extends credit, and regularly and in the ordinary course of business furnishes information to
a nationwide consumer reporting agency, to provide a notice to customers in writing, when negative
information about the customer is provided to the nationwide consumer reporting agency. This notice must
be provided before negative information is furnished, or within 30 days after furnishing the negative
information. After the notice is provided, a financial institution may submit additional negative
information to a nationwide consumer reporting agency with respect to the same transaction, extension of
credit, account, or customer without providing additional notice to the customer. A financial institution is
not liable for failing to provide the required notice if, at the time of the failure, the financial institution

II-14.34 FDIC Consumer Compliance Examination Manual — November 2023

 II. Consumer Compliance Examinations — FOCUS Violation Codes

Violation
Code Description

maintained reasonable policies and procedures to comply with the requirements of this section or
reasonably believed it was prohibited by law from contacting the consumer.

FCRA 623(b); 1022.43

Section 623(b) of the Fair Credit Reporting Act (15 U.S.C. § 1681s-2(b)), requires furnishers of
information to consumer reporting agencies to follow certain procedures set forth in § 623(b) upon notice
of a dispute with regard to the completeness or accuracy of any information provided to a consumer
reporting agency. Further, § 1022.43 of Regulation V, 12 C.F.R. § 1022.43, requires a financial institution
that meets the definition of "furnisher" and that receives a direct dispute from a consumer to conduct a
reasonable investigation of the direct dispute if it relates to the information specified in § 1022.43(a)(1)
through (a)(4), unless specifically exempted by § 1022.43(b). The financial institution must conduct the
investigation in accordance with the requirements in § 1022.43(e). If the financial institution determines
that the dispute is frivolous or irrelevant, it must notify the consumer of that determination not later than
five business days after making the determination, by mail or, if authorized by the consumer for that
purpose, by any other means available to the furnisher. The notice must include the reasons for such
determination and identify any information required to investigate the disputed information.

FCRA 1022.21(a)(1);24(a);25(a)

The Fair Credit Reporting Act (15 U.S.C. § 1681 et seq.), as implemented by Regulation V, 12 C.F.R. §§
1022.21(a)(1), 1022.24(a), and 1022.25(a), prohibits a financial institution, unless an exception set forth in
§ 1022.21(c) applies, from using eligibility information about a consumer that the institution receives from
an affiliate, to make a solicitation for marketing purposes to the consumer, unless:
(i) It is clearly and conspicuously disclosed to the consumer in writing or, if the consumer agrees,
electronically, in a concise notice that the institution may use eligibility information about that consumer
received from an affiliate to make solicitations for marketing purposes to the consumer;
(ii) The consumer is provided a reasonable and simple opportunity and method to “opt out,” or prohibit the
institution from using eligibility information to make solicitations for marketing purposes to the consumer;
and
(iii) The consumer has not opted out.

FCRA 1022.21(a)(3)

The Fair Credit Reporting Act (15 U.S.C. § 1681 et seq.), as implemented by Regulation V, 12 C.F.R. §
1022.21(a)(3), requires that the notice in § 1022.21(a)(1) be provided:
(i) By an affiliate that has or has previously had a pre-existing business relationship with the consumer; or
(ii) As part of a joint notice from two or more members of an affiliated group of companies, provided that
at least one of the affiliates on the joint notice has or has previously had a pre-existing business relationship
with the consumer.

FCRA 1022.22(a)(5)
The Fair Credit Reporting Act (15 U.S.C. § 1681 et seq.), as implemented by Regulation V, 12 C.F.R. §
1022.22(a)(5), requires a financial institution to give a consumer a new opt-out notice if, after all
continuing relationships with the financial institution or its affiliate(s) are terminated, the consumer
subsequently establishes another continuing relationship with the financial institution or its affiliate(s) and
the consumer’s eligibility information is to be used to make a new solicitation. Thenew opt-out notice
must apply, at a minimum, to eligibility information obtained in connection with the new continuing
relationship. Consistent with § 1022.22(b), the consumer’s decision not to opt out after receiving the new

FDIC Consumer Compliance Examination Manual — November 2023 II-14.35

II. Consumer Compliance Examinations — FOCUS Violation Codes

Violation
Code Description

opt-out notice would not override a prior opt-out election by the consumer that applies to eligibility
information obtained in connection with a terminated relationship, regardless of whether the new opt-out
notice applies to eligibility information obtained in connection with the terminated relationship.

FCRA 1022.22(b)

The Fair Credit Reporting Act (15 U.S.C. § 1681 et seq.), as implemented by Regulation V, 12 C.F.R. §
1022.22(b), requires that the election of a consumer to opt out must be effective for a period of at least five
years beginning when the consumer's opt-out election is received and implemented, unless the consumer
revokes the opt-out in writing or, if the consumer agrees, electronically.

FCRA 1022.23(a)(1)

The Fair Credit Reporting Act (15 U.S.C. § 1681 et seq.), as implemented by Regulation V, 12 C.F.R. §
1022.23(a)(1), requires that an opt-out notice be clear, conspicuous, and concise, and accurately disclose
the information detailed in § 1022.23(a)(1)(i) through (a)(1)(viii).

FCRA 1022.23(a)(2)

The Fair Credit Reporting Act (15 U.S.C. § 1681 et seq.), as implemented by Regulation V, 12 C.F.R. §
1022.23(a)(2), requires that if two or more consumers jointly obtain a product or service, the opt-out notice
must explain how an opt-out direction by a joint consumer will be treated. An opt-out direction by a joint
consumer may be treated as applying to all of the associated joint consumers, or each joint consumer may
be permitted to opt out separately. If each joint consumer is permitted to opt out separately, one of the joint
consumers must be permitted to opt out on behalf of all joint consumers and the joint consumers must be
permitted to exercise their separate rights to opt out in a single response. Further, it is impermissible to
require all joint consumers to opt out before implementing any opt-out direction.

FCRA 1022.26(a)

The Fair Credit Reporting Act (15 U.S.C. § 1681 et seq.), as implemented by Regulation V, 12 C.F.R. §
1022.26(a), requires the opt-out notice be provided so that each consumer can reasonably be expected to
receive actual notice.

FCRA 1022.27(a)-(d)

The Fair Credit Reporting Act (15 U.S.C. § 1681 et seq.), as implemented by Regulation V, 12 C.F.R. §
1022.27(a) through (d), prohibits solicitations based on eligibility information an institution receives from
an affiliate to a consumer who previously opted out after the expiration of the opt-out period unless the
consumer has been given a renewal notice that complies with the requirements of §§ 1022.24 through
1022.26, a reasonable and simple method to renew the opt-out, and the consumer does not opt out, or an
exception of § 1022.21(c) applies. The renewal notice must be provided by the affiliate that provided the
previous opt-out notice, or its successor, or as part of a joint renewal notice from two or more members of
an affiliated group of companies, or their successors, that jointly provided the previous opt-out notice. The
renewal opt-out notice must be clear, conspicuous, and concise, accurately disclose the required
information listed in §1022.27(b)(1) through (b)(8), and follow the timing requirements noted in §
1022.7(c). The opt-out period may not be shortened by sending a renewal notice to the consumer before
expiration of the opt-out-period, even if the consumer does not renew the opt-out.

II-14.36 FDIC Consumer Compliance Examination Manual — November 2023

 II. Consumer Compliance Examinations — FOCUS Violation Codes

Violation
Code Description

FCRA 1022.31(b)

The Fair Credit Reporting Act (15 U.S.C. § 1681 et seq.), as implemented by Regulation V, 12 C.F.R. §
1022.31(b), prohibits a person from disclosing medical information about a consumer, received from a
consumer reporting agency or its affiliate, to any other person, except as necessary to carry out the purpose
for which the information was initially disclosed, or as otherwise permitted by statute, regulation, or order.

FCRA 1022.72(a)-(d)

The Fair Credit Reporting Act (15 U.S.C. § 1681 et seq.), as implemented by Regulation V, 12 C.F.R. §
1022.72(a) through (d), requires a person to provide a risk-based pricing notice to a consumer, as
determined under § 1022.72(a) and (b), in the form and manner required by this subpart unless an exception
set forth in § 1022.74 applies. Additionally, such a person must provide a risk-based pricing notice to a
consumer in the form and manner required by this subpart if the person uses a consumer report in
connection with a review of credit that has been extended to the consumer, and based in whole or in part on
the consumer report, the annual percentage rate is increased.

FCRA 1022.73(a)

The Fair Credit Reporting Act (15 U.S.C. § 1681 et seq.), as implemented by Regulation V, 12 C.F.R. §
1022.73(a), requires the risk-based pricing notice required by § 1022.72(a) or (c) to include the information
specified in § 1022.73 (a)(1)(i) through (a)(1)(ix), and the risk-based pricing notice required by §
1022.72(d) to include the information specified in paragraphs § 1022.73(a)(2)(i) through (a)(2)(ix).

FCRA 1022.73(b)-(c)

The Fair Credit Reporting Act (15 U.S.C. § 1681 et seq.), as implemented by Regulation V, 12 C.F.R. §
1022.73(b) and (c), requires that the risk-based pricing notice required by § 1022.72(a), (c), or (d), be clear
and conspicuous; and provided to the consumer in oral, written, or electronic form. Such a notice shall be
provided in accordance with the timing requirements specified in § 1022.73(c)(1) through (c)(3).

FCRA 1022.75(a)

The Fair Credit Reporting Act (15 U.S.C. § 1681 et seq.), as implemented by Regulation V, 12 C.F.R. §
1022.75(a), states that a consumer is entitled to receive no more than one risk-based pricing notice under §
1022.72(a) or (c), or one notice under § 1022.74(d), (e), or (f), for each grant, extension, or other provision
of credit; however, a risk-based pricing notice must be provided whenever theconditions set forth in §
1022.72(d) have been met, even if a consumer has previously received a risk-based pricing notice in
connection with a grant, extension, or other provision of credit.

FCRA 1022.75(b)

The Fair Credit Reporting Act (15 U.S.C. § 1681 et seq.), as implemented by Regulation V, 12 C.F.R. §
1022.75(b), requires the person to whom a credit obligation is initially payable, to provide the risk-based
pricing notice described in § 1022.74(a) or (c), or satisfy the requirements for, and provide the notice
required under one of the exceptions in § 1022.74(d), (e), or (f), even if that person immediately assigns the
credit agreement to a third party and is not the source of funding for the credit.

FDIC Consumer Compliance Examination Manual — November 2023 II-14.37

II. Consumer Compliance Examinations — FOCUS Violation Codes

Violation
Code Description

FCRA 1022.75(c)

The Fair Credit Reporting Act (15 U.S.C. § 1681 et seq.), as implemented by Regulation V, 12 C.F.R. §
1022.75(c), requires a person to provide a risk-based pricing notice to each consumer in a transaction
involving two or more consumers who are granted, extended, or otherwise provided credit in order to
satisfy the requirements of § 1022.72(a) or (c), or the exceptions in § 1022.74(d), (e), or (f). Whether the
consumers have the same address or not, the person must provide a separate notice to each consumer, if a
notice includes a credit score(s). Each separate notice must contain only the credit score(s) of the consumer
to whom the notice is provided, and not the credit score(s) of the other consumer. If the consumers have
the same address, and the notice does not include a credit score(s), a person may satisfy the requirements of
§ 1022.75(c)(1) by providing a single notice addressed to both consumers.

FCRA 1022.82(c)

The Fair Credit Reporting Act (15 U.S.C. § 1681 et seq.), as implemented by Regulation V, 12 C.F.R. §
1022.82(c), requires a user of consumer reports to develop and implement reasonable policies and
procedures designed to enable the user to form a reasonable belief that a consumer report relates to the
consumer about whom it has requested the report, when the user receives a notice of address discrepancy.

FCRA 1022.82(d)

The Fair Credit Reporting Act (15 U.S.C. § 1681 et seq.), as implemented by Regulation V, 12 C.F.R. §
1022.82(d), requires a user to develop and implement reasonable policies and procedures for furnishing an
address for the consumer that the user has reasonably confirmed is accurate to the consumer reporting
agency from whom it received the notice of address discrepancy when the user:
(i) can form a reasonable belief that the consumer report relates to the consumer;
(ii) establishes a continuing relationship with the consumer; and
(iii) regularly and in the ordinary course of business furnishes information to the consumer reporting
agency from which the notice of address discrepancy was obtained.

Further, the policies and procedures must provide that the user will furnish the consumer's address to the
consumer reporting agency as part of the information it regularly furnishes for the reporting period in
which it establishes a relationship with the consumer.

FCRA 334.91(c)

The Fair Credit Reporting Act (15 U.S.C. § 1681 et seq.), as implemented by part 334 of the FDIC Rules
and Regulations, 12 C.F.R. § 334.91(c), requires a card issuer to establish and implement reasonable
policies and procedures to assess the validity of a change of address if it receives notification of a change of
address for a consumer's debit or credit card account and, within a short period of time afterwards (during
at least the first 30 days after it receives notification), the card issuer receives a request for an additional or
replacement card for the same account. Under these circumstances, the card issuer may not issue an
additional or replacement card, until the card issuer:
(1) notifies the cardholder of the request at the cardholder’s former address or by other means of
communication that the card issuer and the cardholder have previously agreed to, and provides the
cardholder with a reasonable means of reporting incorrect address changes; or
(2) otherwise assesses the validity of the change of address in accordance with its policies and procedures
that the cardholder has established pursuant to § 334.90 of this part.

II-14.38 FDIC Consumer Compliance Examination Manual — November 2023

 II. Consumer Compliance Examinations — FOCUS Violation Codes

Violation
Code Description

FCRA 334.91(e)

The Fair Credit Reporting Act (15 U.S.C. § 1681 et seq.), as implemented by part 334 of the FDIC Rules
and Regulations, 12 C.F.R. § 334.91(e), requires that any written or electronic notice the card issuer
provides must be clear and conspicuous and provided separately from its regular correspondence with the
cardholder.

Fair Debt Collection Practices Act

FDCPA 1006.6(b)

The Fair Debt Collection Practices Act (15 U.S.C. 1692 et seq.), as implemented by Regulation F, 12
C.F.R. § 1006.6(b), prohibits a debt collector, except as permitted under § 1006.6(b)(2)(i) or (ii) and §
1006.6(b)(4), from communicating or attempting to communicate with a consumer in connection with the
collection of any debt at unusual or inconvenient times or places as described under § 1006.6(b)(1), when
represented by an attorney as described under § 1006.6(b)(2), and at the consumer’s place of employment
as described under § 1006.6(b)(3).

FDCPA 1006.6(c)

The Fair Debt Collection Practices Act (15 U.S.C. 1692 et seq.), as implemented by Regulation F, 12
C.F.R. § 1006.6(c), prohibits a debt collector, except as specified in § 1006.6(c)(2), from communicating or
attempting to communicate further with a consumer, if the consumer notifies the debt collector in writing
that the consumer refuses to pay a debt or that the consumer wants the debt collector to cease further
communication with the consumer.

FDCPA 1006.6(d)

The Fair Debt Collection Practices Act (15 U.S.C. 1692 et seq.), as implemented by Regulation F, 12
C.F.R. § 1006.6(d), prohibits a debt collector from communicating with any person other than those
specified by § 1006.6(d)(1)(i) through (d)(1)(vi) in connection with the collection of any debt, unless an
exception applies under § 1006.6(d)(2). In addition, debt collectors must maintain reasonable procedures
for email and text message communications as required by § 1006.6(d)(3) through (d)(5).

FDCPA 1006.6(e)]

The Fair Debt Collection Practices Act (15 U.S.C. 1692 et seq.), as implemented by Regulation F, 12
C.F.R. § 1006.6(e), requires a debt collector who communicates or attempts to communicate with a
consumer electronically in connection with the collection of a debt, to provide a clear and conspicuous
statement describing a reasonable and simple method by which the consumer can opt out of further
electronic communications or attempts to communicate to an e-mail address, other electronic-medium
address, or telephone number. The debt collector may not require, directly or indirectly, that the consumer,
in order to opt out, pay any fee to the debt collector or provide any information other than the consumer’s
opt-out preferences and the email address, telephone number for text messages, or other electronic-medium
address subject to the opt-out request.

FDIC Consumer Compliance Examination Manual — November 2023 II-14.39

II. Consumer Compliance Examinations — FOCUS Violation Codes

Violation
Code Description

FDCPA 1006.10

The Fair Debt Collection Practices Act (15 U.S.C. 1692 et seq.), as implemented by Regulation F, 12
C.F.R. § 1006.10, requires a debt collector to follow the form and content of communication requirements
specified by § 1006.10(b) and the frequency of communication requirements specified by § 1006.10(c),
when communicating with a person other than the consumer for the purpose of acquiring location
information about a consumer.

FDCPA 1006.14

The Fair Debt Collection Practices Act (15 U.S.C. 1692 et seq.), as implemented by Regulation F, 12
C.F.R. § 1006.14, prohibits a debt collector from engaging in any conduct where the natural consequence
of which is to harass, oppress, or abuse any person in connection with the collection of a debt, including,
but not limited to, the conduct described in § 1006.14(b) through (h).

FDCPA 1006.18(a)-(d)

The Fair Debt Collection Practices Act (15 U.S.C. 1692 et seq.), as implemented by Regulation F, 12
C.F.R. § 1006.18(a) through (d), prohibits a debt collector from using any false, deceptive, or misleading
representation or means in connection with the collection of any debt, including, but not limited to, the
conduct described in § 1006.18(b) through (d).

FDCPA 1006.18(e)

The Fair Debt Collection Practices Act (15 U.S.C. 1692 et seq.), as implemented by Regulation F, 12
C.F.R. § 1006.18(e), requires a debt collector, except as permitted in § 1006.18(e)(3), to make the
disclosures under § 1006.18(e)(1) for initial communications with the consumer and § 1006.18(e)(2) for
subsequent communications with the consumer. As required by § 1006.18(e)(4), a debt collector must
make the disclosures required under § 1006.18(e)(1) and (e)(2) in the same language(s) used for the rest of
the communication in which the debt collector conveyed the disclosures. Any translation of the disclosures
a debt collector uses must be complete and accurate.

FDCPA 1006.18(f)

The Fair Debt Collection Practices Act (15 U.S.C. 1692 et seq.), as implemented by Regulation F, 12
C.F.R. § 1006.18(f), requires that if a debt collector uses an assumed name when communicating or
attempting to communicate with a person, the assumed name must be used by the employee consistently
and the debt collector must be able to readily identify any employee using an assumed name.

FDCPA 1006.22

The Fair Debt Collection Practices Act (15 U.S.C. 1692 et seq.), as implemented by Regulation F, 12
C.F.R. § 1006.22, prohibits a debt collector from using unfair or unconscionable means to collect or
attempt to collect any debt, including but not limited to, the conduct described in § 1006.22(b) through (f).

FDCPA 1006.26(b)

The Fair Debt Collection Practices Act (15 U.S.C. 1692 et seq.), as implemented by Regulation F, 12
C.F.R. § 1006.26(b), prohibits a debt collector from bringing or threatening to bring a legal action against a

II-14.40 FDIC Consumer Compliance Examination Manual — November 2023

 II. Consumer Compliance Examinations — FOCUS Violation Codes

Violation
Code Description

consumer to collect a time-barred debt. This paragraph (b) does not apply to proofs of claim filed in
connection with a bankruptcy proceeding.

FDCPA 1006.30(a)

The Fair Debt Collection Practices Act (15 U.S.C. 1692 et seq.), as implemented by Regulation F, 12
C.F.R. § 1006.30(a), prohibits a debt collector, except as permitted in § 1006.30(a)(2), from furnishing
information about the debt to a consumer reporting agency before the debt collector takes the actions
described in § 1006.30(a)(1)(i) or (a)(1)(ii).

FDCPA 1006.30(b)

The Fair Debt Collection Practices Act (15 U.S.C. 1692 et seq.), as implemented by Regulation F, 12
C.F.R. § 1006.30(b), prohibits a debt collector, except as provided in § 1006.30(b)(2), from selling,
transferring for consideration, or placing for collection a debt if the debt collector knows or should know
that the debt has been paid or settled or discharged in bankruptcy.

FDCPA 1006.30(c)

The Fair Debt Collection Practices Act (15 U.S.C. 1692 et seq.), as implemented by Regulation F, 12
C.F.R. § 1006.30(c), requires that if a consumer makes any single payment to a debt collector with respect
to multiple debts owed by the consumer to the debt collector, the debt collector: (1) must not apply the
payment to any debt that is disputed by the consumer; and (2) if applicable, must apply the payment in
accordance with the consumer’s directions.

FDCPA 1006.30(d)

The Fair Debt Collection Practices Act (15 U.S.C. 1692 et seq.), as implemented by Regulation F, 12
C.F.R. § 1006.30(d), requires a debt collector who brings a legal action against a consumer, other than to
enforce an interest in real property securing the consumer’s debt, to bring such action only in the judicial
district or similar legal entity in which the consumer signed the contract sued upon or in which the
consumer resides at the commencement of the action.

FDCPA 1006.30(e)

The Fair Debt Collection Practices Act (15 U.S.C. 1692 et seq.), as implemented by Regulation F, 12
C.F.R. § 1006.30(e), prohibits a debt collector fromdesigning, compiling, and furnishing any form that the
debt collector knows would be used to cause a consumer to falsely believe that a person other than the
consumer’s creditor is participating in collecting, or attempting to collect, a debt that the consumer
allegedly owes to the creditor.

FDCPA 1006.34

The Fair Debt Collection Practices Act (15 U.S.C. 1692 et seq.), as implemented by Regulation F, 12
C.F.R. § 1006.34, requires a debt collector, except as provided in § 1006.34(a)(2), to provide a consumer
with the validation information required by § 1006.34(c) either by sending the consumer a validation notice
in a manner prescribed by § 1006.42, or by providing the validation information orally in the initial
communication notice. As required under § 1006.34(d), the validation information under paragraph (c) of
this section must be clear and conspicuous.

FDIC Consumer Compliance Examination Manual — November 2023 II-14.41

II. Consumer Compliance Examinations — FOCUS Violation Codes

Violation
Code Description

FDCPA 1006.38

The Fair Debt Collection Practices Act (15 U.S.C. 1692 et seq.), as implemented by Regulation F, 12
C.F.R. § 1006.38, prohibits a debt collector from engaging in any collection activities or communications
that overshadow or are inconsistent with the disclosure of the consumer’s rights to dispute the debt and to
request the name and address of the original creditor. If the consumer requests information about the
original creditor in writing and within the validation period, a debt collector must cease collection of the
debt until the debt collector satisfies the requirements of § 1006.38(c)(1) or (c)(2). If the consumer disputes
the debt in writing and within the validation period, the debt collector must cease collection of the debt or
any disputed portion of the debt until the debt collector satisfies § 1006.38(d)(2)(i) or (ii).

FDCPA 1006.42

The Fair Debt Collection Practices Act (15 U.S.C. 1692 et seq.), as implemented by Regulation F, 12
C.F.R. § 1006.42, requires a debt collector, except as provided for under § 1006.42(a)(2), who sends
disclosures required by the Act and this part in writing or electronically must do so in a manner that is
reasonably expected to provide actual notice, and in a form that the consumer may keep and access later.
To comply with § 1006.42(a), a debt collector must comply with the requirements of § 1006.42(b) for
certain disclosures sent electronically.

FDCPA 1006.100

The Fair Debt Collection Practices Act (15 U.S.C. 1692 et seq.), as implemented by Regulation F, 12
C.F.R. § 1006.100, requires a debt collector, except as permitted under § 1006.100(b), to retain records that
are evidence of compliance or noncompliance with the FDCPA and this part starting on the date the debt
collector begins collection activity on a debt until three years after the debt collector’s last collection
activity on the debt.

Fair Housing Act

FHA 338.3

The Fair Housing Act (42 U.S.C. §§ 3601-3619), as implemented by the FDIC’s Fair Housing regulations,
12 C.F.R. § 338.3, requires an FDIC-supervised institution that advertises loans covered by the Fair
Housing Act to prominently indicate in its advertising that it makes such loans without regard to race,
color, religion, national origin, sex handicap, or familial status. An FDIC-supervised institution may satisfy
this requirement by including the Equal Housing Lender or Equal Housing Opportunity logotype and
legend in written advertisements and the statement "Equal Housing Lender" or "Equal Opportunity Lender"
in oral advertisements. Further, this section prohibits the use of words, symbols, models or other forms of
communication that express, imply, or suggest a discriminatory preference or policy of exclusion in
violation of the provisions of the Fair Housing Act or the Equal Credit Opportunity Act.

FHA 338.4

The Fair Housing Act (42 U.S.C. §§ 3601-3619), as implemented by the FDIC’s Fair Housing regulations,
12 C.F.R. § 338.4, requires FDIC-supervised institutions that make loans covered by the Fair Housing Act
to display the Equal Housing Lender or Equal Housing Opportunity poster, which conforms to size and text
specifications, in a central location within the FDIC-insured institution where deposits are received or loans

II-14.42 FDIC Consumer Compliance Examination Manual — November 2023

 II. Consumer Compliance Examinations — FOCUS Violation Codes

Violation
Code Description

covered by the Fair Housing Act are made. The poster must be clearly visible to the general public
entering the area where the poster is displayed.

FHA 338.9

The Fair Housing Act (42 U.S.C. §§ 3601-3619), as implemented by the FDIC’s Fair Housing regulations,
12 C.F.R. § 338.9, requires a bank which refers any applicants to a controlled entity as defined in §
338.6(b), and which purchases any home loans originated by the controlled entity, to require the controlled
entity to enter into a written agreement with the bank. The agreement must provide that the entity will: (a)
comply with the requirements of §§ 338.3, 338.4 and 338.7, and, if otherwise subject to Regulation C (12
C.F.R. part 1003), also comply with § 338.8; (b) open its books and records to examination by the FDIC;
and (c) comply with all instructions and orders issued by the FDIC with respect to its loan practices.

FHA 100.110(b) COLOR

The Fair Housing Act (42 U.S.C. §§ 3601-3619), as implemented by the Department of Housing and Urban
Development’s Fair Housing regulations, 24 C.F.R. § 100.110(b), prohibits any person or entity engaged in
residential real estate-related transactions from discriminating against any person in making available such
a transaction, or in the terms or conditions of such a transaction, because of color.

FHA 100.110(b) FAM-STATUS

The Fair Housing Act (42 U.S.C. §§ 3601-3619), as implemented by the Department of Housing and Urban
Development’s Fair Housing regulations, 24 C.F.R. § 100.110(b), prohibits any person or entity engaged in
residential real estate-related transactions from discriminating against any person in making available such
a transaction, or in the terms or conditions of such a transaction, because of familial status.

FHA 100.110(b) HANDICAP

The Fair Housing Act (42 U.S.C. §§ 3601-3619), as implemented by the Department of Housing and Urban
Development’s Fair Housing regulations, 24 C.F.R. § 100.110(b), prohibits any person or entity engaged in
residential real estate-related transactions from discriminating against any person in making available such
a transaction, or in the terms or conditions of such a transaction, because of handicap.

FHA 100.110(b) N-ORIG

The Fair Housing Act (42 U.S.C. §§ 3601-3619), as implemented by the Department of Housing and Urban
Development’s Fair Housing regulations, 24 C.F.R. § 100.110(b), prohibits any person or entity engaged in
residential real estate-related transactions from discriminating against any person in making available such
a transaction, or in the terms or conditions of such a transaction, because of national origin.

FHA 100.110(b) RACE

The Fair Housing Act (42 U.S.C. §§ 3601-3619), as implemented by the Department of Housing and Urban
Development’s Fair Housing regulations, 24 C.F.R. § 100.110(b), prohibits any person or entity engaged in
residential real estate-related transactions from discriminating against any person in making available such
a transaction, or in the terms or conditions of such a transaction, because of race.

FDIC Consumer Compliance Examination Manual — November 2023 II-14.43

II. Consumer Compliance Examinations — FOCUS Violation Codes

Violation
Code Description

FHA 100.110(b) RELIGION

The Fair Housing Act (42 U.S.C. §§ 3601-3619), as implemented by the Department of Housing and Urban
Development’s Fair Housing regulations, 24 C.F.R. § 100.110(b), prohibits any person or entity engaged in
residential real estate-related transactions from discriminating against any person in making available such
a transaction, or in the terms or conditions of such a transaction, because of religion.

FHA 100.110(b) SEX

The Fair Housing Act (42 U.S.C. §§ 3601-3619), as implemented by the Department of Housing and Urban
Development’s Fair Housing regulations, 24 C.F.R. § 100.110(b), prohibits any person or entity engaged in
residential real estate-related transactions from discriminating against any person in making available such
a transaction, or in the terms or conditions of such a transaction, because of sex.

FHA 100.120(a) COLOR

The Fair Housing Act (42 U.S.C. §§ 3601-3619), as implemented by the Department of Housing and Urban
Development’s Fair Housing regulations, 24 C.F.R. § 100.120(a), prohibits any person or entity engaged in
residential real estate-related transactions from discriminating against any person in making available loans
or other financial assistance for a dwelling, because of color. Prohibited discrimination includes, but is not
limited to, the practices described in § 100.120(b)(1) through (b)(4).

FHA 100.120(a) FAM-STATUS

The Fair Housing Act (42 U.S.C. §§ 3601-3619), as implemented by the Department of Housing and Urban
Development’s Fair Housing regulations, 24 C.F.R. § 100.120(a), prohibits any person or entity engaged in
residential real estate-related transactions from discriminating against any person in making available loans
or other financial assistance for a dwelling, because of familial status. Prohibited discrimination includes,
but is not limited to, the practices described in § 100.120(b)(1) through (b)(4).

FHA 100.120(a) HANDICAP

The Fair Housing Act (42 U.S.C. §§ 3601-3619), as implemented by the Department of Housing and Urban
Development’s Fair Housing regulations, 24 C.F.R. § 100.120(a), prohibits any person or entity engaged in
residential real estate-related transactions from discriminating against any person in making available loans
or other financial assistance for a dwelling, because of handicap. Prohibited discrimination includes, but is
not limited to, the practices described in § 100.120(b)(1) through (b)(4).

FHA 100.120(a) N-ORIG

The Fair Housing Act (42 U.S.C. §§ 3601-3619), as implemented by the Department of Housing and Urban
Development’s Fair Housing regulations, 24 C.F.R. § 100.120(a), prohibits any person or entity engaged in
residential real estate-related transactions from discriminating against any person in making available loans
or other financial assistance for a dwelling, because of national origin. Prohibited discrimination includes,
but is not limited to, the practices described in § 100.120(b)(1) through (b)(4).

II-14.44 FDIC Consumer Compliance Examination Manual — November 2023

 II. Consumer Compliance Examinations — FOCUS Violation Codes

Violation
Code Description

FHA 100.120(a) RACE

The Fair Housing Act (42 U.S.C. §§ 3601-3619), as implemented by the Department of Housing and Urban
Development’s Fair Housing regulations, 24 C.F.R. § 100.120(a), prohibits any person or entity engaged in
residential real estate-related transactions from discriminating against any person in making available loans
or other financial assistance for a dwelling, because of race. Prohibited discrimination includes, but is not
limited to, the practices described in § 100.120(b)(1) through (b)(4).

FHA 100.120(a) RELIGION

The Fair Housing Act (42 U.S.C. §§ 3601-3619), as implemented by the Department of Housing and Urban
Development’s Fair Housing regulations, 24 C.F.R. § 100.120(a), prohibits any person or entity engaged in
residential real estate-related transactions from discriminating against any person in making available loans
or other financial assistance for a dwelling, because of religion. Prohibited discrimination includes, but is
not limited to, the practices described in § 100.120(b)(1) through (b)(4).

FHA 100.120(a) SEX

The Fair Housing Act (42 U.S.C. §§ 3601-3619), as implemented by the Department of Housing and Urban
Development’s Fair Housing regulations, 24 C.F.R. § 100.120(a), prohibits any person or entity engaged in
residential real estate-related transactions from discriminating against any person in making available loans
or other financial assistance for a dwelling, because of sex. Prohibited discrimination includes, but is not
limited to, the practices described in § 100.120(b)(1) through (b)(4).

FHA 100.125(a) COLOR

The Fair Housing Act (42 U.S.C. §§ 3601-3619), as implemented by the Department of Housing and Urban
Development’s Fair Housing regulations, 24 C.F.R. § 100.125(a), prohibits any person or entity engaged in
the purchasing of loans or other debts or securities which support the purchase, construction, improvement,
repair or maintenance of a dwelling, or which are secured by residential real estate, from refusing to
purchase such loans, debts, or securities, or imposing different terms or conditions for such purchases
because of color. Unlawful conduct under this section includes, but is not limited to, conduct described in
§ 100.125(b)(1) through (b)(3).

FHA 100.125(a) FAM-STATUS

The Fair Housing Act (42 U.S.C. §§ 3601-3619), as implemented by the Department of Housing and Urban
Development’s Fair Housing regulations, 24 C.F.R. § 100.125(a), prohibits any person or entity engaged in
the purchasing of loans or other debts or securities which support the purchase, construction, improvement,
repair or maintenance of a dwelling, or which are secured by residential real estate, from refusing to
purchase such loans, debts, or securities, or imposing different terms or conditions for such purchases
because of familial status. Unlawful conduct under this section includes, but is not limited to, conduct
described in § 100.125(b)(1) through (b)(3).

FHA 100.125(a) HANDICAP

The Fair Housing Act (42 U.S.C. §§ 3601-3619), as implemented by the Department of Housing and Urban
Development’s Fair Housing regulations, 24 C.F.R. § 100.125(a), prohibits any person or entity engaged in
the purchasing of loans or other debts or securities which support the purchase, construction, improvement,

FDIC Consumer Compliance Examination Manual — November 2023 II-14.45

II. Consumer Compliance Examinations — FOCUS Violation Codes

Violation
Code Description

repair or maintenance of a dwelling, or which are secured by residential real estate, from refusing to
purchase such loans, debts, or securities, or imposing different terms or conditions for such purchases
because of handicap. Unlawful conduct under this section includes, but is not limited to, conduct described
in § 100.125(b)(1) through (b)(3).

FHA 100.125(a) N-ORIG

The Fair Housing Act (42 U.S.C. §§ 3601-3619), as implemented by the Department of Housing and Urban
Development’s Fair Housing regulations, 24 C.F.R. § 100.125(a), prohibits any person or entity engaged in
the purchasing of loans or other debts or securities which support the purchase, construction, improvement,
repair or maintenance of a dwelling, or which are secured by residential real estate, from refusing to
purchase such loans, debts, or securities, or imposing different terms or conditions for such purchases
because of national origin. Unlawful conduct under this section includes, but is not limited to, conduct
described in § 100.125(b)(1) through (b)(3).

FHA 100.125(a) RACE

The Fair Housing Act (42 U.S.C. §§ 3601-3619), as implemented by the Department of Housing and Urban
Development’s Fair Housing regulations, 24 C.F.R. § 100.125(a), prohibits any person or entity engaged in
the purchasing of loans or other debts or securities which support the purchase, construction, improvement,
repair or maintenance of a dwelling, or which are secured by residential real estate, from refusing to
purchase such loans, debts, or securities, or imposing different terms or conditions for such purchases
because of race. Unlawful conduct under this section includes, but is not limited to, conduct described in §
100.125(b)(1) through (b)(3).

FHA 100.125(a) RELIGION

The Fair Housing Act (42 U.S.C. §§ 3601-3619), as implemented by the Department of Housing and Urban
Development’s Fair Housing regulations, 24 C.F.R. § 100.125(a), prohibits any person or entity engaged in
the purchasing of loans or other debts or securities which support the purchase, construction, improvement,
repair or maintenance of a dwelling, or which are secured by residential real estate, from refusing to
purchase such loans, debts, or securities, or imposing different terms or conditions for such purchases
because of religion. Unlawful conduct under this section includes, but is not limited to, conduct described
in § 100.125(b)(1) through (b)(3).

FHA 100.125(a) SEX

The Fair Housing Act (42 U.S.C. §§ 3601-3619), as implemented by the Department of Housing and Urban
Development’s Fair Housing regulations, 24 C.F.R. § 100.125(a), prohibits any person or entity engaged in
the purchasing of loans or other debts or securities which support the purchase, construction, improvement,
repair or maintenance of a dwelling, or which are secured by residential real estate, from refusing to
purchase such loans, debts, or securities, or imposing different terms or conditions for such purchases
because of sex. Unlawful conduct under this section includes, but is not limited to, conduct described in §
100.125(b)(1) through (b)(3).

FHA 100.130(a) COLOR

The Fair Housing Act (42 U.S.C. §§ 3601-3619), as implemented by the Department of Housing and Urban
Development’s Fair Housing regulations, 24 C.F.R. § 100.130(a), prohibits any person or entity engaged in

II-14.46 FDIC Consumer Compliance Examination Manual — November 2023

 II. Consumer Compliance Examinations — FOCUS Violation Codes

Violation
Code Description

the making of loans or in the provision of other financial assistance relating to loans covered by the Fair
Housing Act from imposing different terms or conditions for the availability of such loans or other
financial assistance because of color. Unlawful conduct under this section includes, but is not limited to,
conduct described in § 100.130(b)(1) through (b)(5).

FHA 100.130(a) FAM-STATUS

The Fair Housing Act (42 U.S.C. §§ 3601-3619), as implemented by the Department of Housing and Urban
Development’s Fair Housing regulations, 24 C.F.R. § 100.130(a), prohibits any person or entity engaged in
the making of loans or in the provision of other financial assistance relating to loans covered by the Fair
Housing Act from imposing different terms or conditions for the availability of such loans or other
financial assistance because of familial status. Unlawful conduct under this section includes, but is not
limited to, conduct described in § 100.130(b)(1) through (b)(5).

FHA 100.130(a) HANDICAP

The Fair Housing Act (42 U.S.C. §§ 3601-3619), as implemented by the Department of Housing and Urban
Development’s Fair Housing regulations, 24 C.F.R. § 100.130(a), prohibits any person or entity engaged in
the making of loans or in the provision of other financial assistance relating to loans covered by the Fair
Housing Act from imposing different terms or conditions for the availability of such loans or other
financial assistance because of handicap. Unlawful conduct under this section includes, but is not limited
to, conduct described in § 100.130(b)(1) through (b)(5).

FHA 100.130(a) N-ORIG

The Fair Housing Act (42 U.S.C. §§ 3601-3619), as implemented by the Department of Housing and Urban
Development’s Fair Housing regulations, 24 C.F.R. § 100.130(a), prohibits any person or entity engaged in
the making of loans or in the provision of other financial assistance relating to loans covered by the Fair
Housing Act from imposing different terms or conditions for the availability of such loans or other
financial assistance because of national origin. Unlawful conduct under this section includes, but is not
limited to, conduct described in § 100.130(b)(1) through (b)(5).

FHA 100.130(a) RACE

The Fair Housing Act (42 U.S.C. §§ 3601-3619), as implemented by the Department of Housing and Urban
Development’s Fair Housing regulations, 24 C.F.R. § 100.130(a), prohibits any person or entity engaged in
the making of loans or in the provision of other financial assistance relating to loans covered by the Fair
Housing Act from imposing different terms or conditions for the availability of such loans or other
financial assistance because of race. Unlawful conduct under this section includes, but is not limited to,
conduct described in § 100.130(b)(1) through (b)(5).

FHA 100.130(a) RELIGION

The Fair Housing Act (42 U.S.C. §§ 3601-3619), as implemented by the Department of Housing and Urban
Development’s Fair Housing regulations, 24 C.F.R. § 100.130(a), prohibits any person or entity engaged in
the making of loans or in the provision of other financial assistance relating to loans covered by the Fair
Housing Act from imposing different terms or conditions for the availability of such loans or other

FDIC Consumer Compliance Examination Manual — November 2023 II-14.47

II. Consumer Compliance Examinations — FOCUS Violation Codes

Violation
Code Description

financial assistance because of religion. Unlawful conduct under this section includes, but is not limited to,
conduct described in § 100.130(b)(1) through (b)(5).

FHA 100.130(a) SEX

The Fair Housing Act (42 U.S.C. §§ 3601-3619), as implemented by the Department of Housing and Urban
Development’s Fair Housing regulations, 24 C.F.R. § 100.130(a), prohibits any person or entity engaged in
the making of loans or in the provision of other financial assistance relating to loans covered by the Fair
Housing Act from imposing different terms or conditions for the availability of such loans or other
financial assistance because of sex. Unlawful conduct under this section includes, but is not limited to,
conduct described in § 100.130(b)(1) through (b)(5).

Flood Insurance Act

FLOOD 339.3(a)

The Flood Disaster Protection Act of 1973 (42 U.S.C. §§ 4001-4129), as implemented by part 339 of the
FDIC Rules and Regulations, 12 C.F.R. § 339.3(a), prohibits an FDIC-supervised institution from making,
increasing, extending, or renewing a designated loan secured by a building, a mobile home, or personal
property unless the underlying security is covered by flood insurance for the term of the loan. Further, the
amount of insurance must be at least equal to the lesser of the outstanding principal balance of the
designated loan or the maximum limit of coverage available for the particular type of property securing the
loan.

FLOOD 339.3(c)

The Flood Disaster Protection Act of 1973 (42 U.S.C. §§ 4001-4129), as implemented by part 339 of the
FDIC Rules and Regulations, 12 C.F.R. § 339.3(c), requires that, effective July 1, 2019, an institution must
accept private flood insurance, as defined in § 339.2, in satisfaction of the flood insurance purchase
requirement in § 339.3(a) if the policy meets the coverage requirements in § 339.3(a). The institution may
accept a policy that is not issued under the NFIP and that does not meet the definition of private flood
insurance if the policy meets the requirements under § 339.3(c)(3)(i) through (c)(3)(iv). Additionally, the
institution may accept a plan issued by a mutual aid society, as defined in
§ 339.2, if the plan meets the requirements under § 339.3(c)(4)(i) through (c)(4)((iv).

FLOOD 339.5(a)

The Flood Disaster Protection Act of 1973 (42 U.S.C. §§ 4001-4129), as implemented by part 339 of the
FDIC Rules and Regulations, 12 C.F.R. § 339.5(a), requires an FDIC-supervised institution, or a servicer
acting on its behalf, to require the escrow of all premiums and fees for any flood insurance required under §
339.3(a) for any designated loan secured by residential improved real estate or a mobile home that is made,
increased, extended, or renewed on or after January 1, 2016, except as provided by § 339.5(a)(2) or
339.5(c).

If, at any time during the term of a designated loan, it is determined that an exception under § 339.5(a)(2)
does not apply, then the FDIC-supervised institution or its servicer must require the escrow of all premiums
and fees for any flood insurance required under § 339.3(a) as soon as reasonably practicable. The flood
insurance premiums and fees are required to be deposited in an escrow account on behalf of the borrower.

II-14.48 FDIC Consumer Compliance Examination Manual — November 2023

 II. Consumer Compliance Examinations — FOCUS Violation Codes

Violation
Code Description

This escrow account will be subject to escrow requirements adopted pursuant to § 10 of the Real Estate
Settlement Procedures Act of 1974 (12 U.S.C. § 2609). Following receipt of a notice from the
Administrator of FEMA or other provider of flood insurance that premiums are due, the FDIC-supervised
institution, or servicer acting on its behalf, must pay the amount owed to the insurance provider from the
escrow account by the premium due date.

FLOOD 339.5(b)

The Flood Disaster Protection Act of 1973 (42 U.S.C. §§ 4001-4129), as implemented by part 339 of the
FDIC Rules and Regulations, 12 C.F.R. § 339.5(b), requires an FDIC-supervised institution, or servicer
acting on its behalf, to mail or deliver a written notice that informs the borrower that the FDIC-supervised
institution is required to escrow all premiums and fees for required flood insurance. The notice must be
provided for all loans for which an FDIC-supervised institution is required to escrow under § 339.5(a), or
339.5(c)(2), or may be required to escrow under § 339.5(a)(3), and must be provided with the notice
required under § 339.9, using language that is substantially similar to model clauses on the escrow
requirement in Appendix A of part 339.

FLOOD 339.5(c)(2)

The Flood Disaster Protection Act of 1973 (42 U.S.C. §§ 4001-4129), as implemented by part 339 of the
FDIC Rules and Regulations, 12 C.F.R. § 339.5(c)(2), requires an FDIC-supervised institution that
previously qualified for the exception in § 339.5(c)(1), but no longer qualifies because it had assets of $1
billion or more for two consecutive calendar year ends, to escrow premiums and fees for flood insurance
pursuant to § 339.5(a) for any designated loan made, increased, extended, or renewed on or after July 1 of
the first calendar year of changed status.

FLOOD 339.5(d)

The Flood Disaster Protection Act of 1973 (42 U.S.C. §§ 4001-4129), as implemented by part 339 of the
FDIC Rules and Regulations, 12 C.F.R. § 339.5(d), requires an FDIC-supervised institution, or a servicer
acting on its behalf, to offer and make available to the borrower the option to escrow all premiums and fees
for any flood insurance required under § 339.3 for any loan secured by residential improved real estate or a
mobile home that is outstanding on January 1, 2016, or July 1 of the first calendar year in which the FDIC-
supervised institution has had a change in status pursuant to § 339.5(c)(2), unless the loan or FDIC-
supervised institution qualifies for an exception from the escrow requirement under § 339.5(d)(1).

Further, an FDIC-supervised institution, or servicer acting on its behalf, is required to mail or deliver to the
borrower no later than June 30, 2016, or September 30 of the first calendar year in which the institution has
had a change in status pursuant to § 339.5(c)(2), a notice in writing, or electronically if agreed to by the
borrower, informing the borrower of the option to escrow all premiums and fees for any required flood
insurance and the methods by which the borrower may request the escrow. Such notice must be provided
for any loan subject to § 339.5(d), using language similar to the model clause in Appendix B of part 339.
An FDIC-supervised institution or servicer is required to begin escrowing premiums and fees for flood
insurance as soon as reasonably practicable after receipt of the borrower's request to escrow.

FLOOD 339.6

The Flood Disaster Protection Act of 1973 (42 U.S.C. §§ 4001-4129), as implemented by part 339 of the
FDIC Rules and Regulations, 12 C.F.R. § 339.6, requires an FDIC-supervised institution to use the

FDIC Consumer Compliance Examination Manual — November 2023 II-14.49

II. Consumer Compliance Examinations — FOCUS Violation Codes

Violation
Code Description

standard flood hazard determination form developed by the Administrator of FEMA when determining
whether the building or mobile home offered as collateral for a loan is or will be located in a special flood
hazard area in which flood insurance is available. Further, the FDIC-supervised institution is required to
retain a copy of the completed standard flood hazard determination form, in either hard copy or electronic
form, for the period of time the institution owns the loan.

FLOOD 339.7(a) FP-NOTICE

The Flood Disaster Protection Act of 1973 (42 U.S.C. §§ 4001-4129), as implemented by part 339 of the
FDIC Rules and Regulations, 12 C.F.R. § 339.7(a), requires an FDIC-supervised institution, or a servicer
acting on its behalf, that determines at any time during the term of a designated loan that the building or
mobile home and any personal property securing the designated loan is not covered by flood insurance or is
covered by flood insurance in an amount less than the amount required by § 339.3, to notify the borrower to
obtain flood insurance, at the borrower's expense, in an amount at least equal to the amount required under
§339.3 for the remaining term of the loan.

FLOOD 339.7(a) FP-INSURANCE

The Flood Disaster Protection Act of 1973 (42 U.S.C. §§ 4001-4129), as implemented by part 339 of the
FDIC Rules and Regulations, 12 C.F.R. § 339.7(a), requires an FDIC-supervised institution, or a servicer
acting on its behalf, to purchase insurance on the borrower's behalf if the borrower fails to obtain flood
insurance within 45 days after the FDIC-supervised institution or its servicer notifies the borrower of the
need to obtain flood insurance, at the borrower's expense, in an amount at least equal to the amount
required under §339.3 for the remaining term of the loan. The FDIC-supervised institution or its servicer
may charge the borrower for the cost of premiums and fees incurred in purchasing the insurance, including
premiums or fees incurred for coverage beginning on the date on which flood insurance coverage lapsed or
did not provide a sufficient coverage amount.

FLOOD 339.7(b)(1)

The Flood Disaster Protection Act of 1973 (42 U.S.C. §§ 4001-4129), as implemented by part 339 of the
FDIC Rules and Regulations, 12 C.F.R. § 339.7(b)(1), requires that within 30 days of receipt of a
confirmation of a borrower’s existing flood insurance coverage, an FDIC-supervised institution or its
servicer must: (i) notify the insurance provider to terminate any insurance purchased by the institution or its
servicer under § 339.7(a); and (ii) refund to the borrower all premiums and any related fees paid by the
borrower for any insurance purchased by the institution or its servicer under § 339.7(a) during any period
during which the borrower's flood insurance coverage and the insurance coverage purchased by the
institution or its servicer were each in effect.

FLOOD 339.8

The Flood Disaster Protection Act of 1973 (42 U.S.C. §§ 4001-4129), as implemented by part 339 of the
FDIC Rules and Regulations, 12 C.F.R. § 339.8, allows an FDIC-supervised institution or a servicer acting
on its behalf, to charge a reasonable fee for determining whether the building or mobile home securing the
loan is located or will be located in a special flood hazard area, if the determination meets one of the
conditions under § 339.8(b)(1) through (b)(4).

II-14.50 FDIC Consumer Compliance Examination Manual — November 2023

 II. Consumer Compliance Examinations — FOCUS Violation Codes

Violation
Code Description

FLOOD 339.9

The Flood Disaster Protection Act of 1973 (42 U.S.C. §§ 4001-4129), as implemented by part 339 of the
FDIC Rules and Regulations, 12 C.F.R. § 339.9, requires an FDIC-supervised institution to furnish a
written notice to the borrower and to the servicer in all cases whether or not flood insurance is available
under the Act for the collateral securing the loan, when making, increasing, extending, or renewing a loan
secured by a building or mobile home located or to be located in a designated special flood hazard area.
The written notice must include the information detailed in § 339.9(b)(1) through (b)(6); follow the timing
of, record of receipt for, and the alternative methods of providing the notice as provided in 339.9(c) through
(e). A financial institution will be considered in compliance with the requirement for notice to the
borrower under this section by providing a written notice containing the language presented in Appendix A.

FLOOD 339.10

The Flood Disaster Protection Act of 1973 (42 U.S.C. §§ 4001-4129), as implemented by part 339 of the
FDIC Rules and Regulations, 12 C.F.R. § 339.10, requires an FDIC-supervised institution to notify the
Administrator of FEMA or designee in writing of the identity of the servicer of the loan, when the
institution makes, increases, extends, renews, sells, or transfers a loan secured by a building or mobile
home located or to be located in a special flood hazard area. Further, the institution is required to notify the
Administrator of FEMA or designee of any change in the servicer of a loan described in this section, within
60 days after the effective date of change.

Garnishment of Accounts Containing Federal Benefits

GARNISHMNT 212.4

The Garnishment of Accounts Containing Federal Benefit Payments rule, 31 C.F.R. § 212.4, requires a
financial institution, prior to taking any other action related to a garnishment order issued against a debtor,
and no later than two business days following receipt of the order, to examine the order to determine if the
United States or a State child support enforcement agency has attached or included a Notice of Right to
Garnish Federal Benefits, as set forth in Appendix B to this part. If the Notice of Right to Garnish Federal
Benefits is attached or included, then the financial institution must follow its otherwise customary
procedures for handling the order, and if the Notice of Right to Garnish Federal Benefits is not attached or
included, then the financial institution must follow the procedures in §§ 212.5 and 212.6.

GARNISHMNT 212.5

The Garnishment of Accounts Containing Federal Benefit Payments rule, 31 C.F.R. § 212.5, requires a
financial institution to perform an account review when it is served a garnishment order issued against a
debtor within the timeframes prescribed by § 212.5(a)(1) and (a)(2). The financial institution must then
follow procedures in § 212.6 if the benefit payment was deposited during the lookback period as noted
under § 212.5(c). If the benefit payment was not deposited during that period, the financial institution must
follow its otherwise customary procedures. The financial institution must perform an account review
according to the requirements of § 212.5(d) through (f) without consideration for any other attributes of the
account or the garnishment order, including but not limited to § 212.5(d)(1) through (d)(6). The financial
institution must perform the account review prior to taking any other actions related to the garnishment
order that may affect funds in the account, and, perform the review separately for each account in the name
of an account holder.

FDIC Consumer Compliance Examination Manual — November 2023 II-14.51

II. Consumer Compliance Examinations — FOCUS Violation Codes

Violation
Code Description

GARNISHMNT 212.6

The Garnishment of Accounts Containing Federal Benefit Payments rule, 31 C.F.R. § 212.6, requires a
financial institution to adhere to the rules and procedures prescribed in § 212.6(a) through (h) if an account
review shows that a benefit agency deposited a benefit payment into an account during the lookback period.

GARNISHMNT 212.7

The Garnishment of Accounts Containing Federal Benefit Payments rule, 31 C.F.R. § 212.7, requires a
financial institution to issue the notice to account holder, as required by § 212.6(e), in cases where a benefit
agency deposited a benefit payment into an account during the lookback period, where the balance in the
account on the date of account review was above zero dollars and the bank established a protected amount,
and where there are funds in the account in excess of the protected amount. In addition, the financial
institution must follow the content, delivery, and timing requirements under § 212.7(b), (e), and (f) when
providing the notice to the account holder named in the garnishment order.

GARNISHMNT 212.11(b)

The Garnishment of Accounts Containing Federal Benefit Payments rule, 31 C.F.R. § 212.11(b), requires a
financial institution to maintain records of account activity and actions taken in response to a garnishment
order, sufficient to demonstrate compliance, for a period of not less than two years from the date on which
the financial institution receives the garnishment order.

Home Mortgage Disclosure Act/Regulation C – Data Reported Beginning in 2018

HMDA 1003.4(a)

The Home Mortgage Disclosure Act (12 U.S.C. § 2801 et seq.), as implemented by Regulation C, 12
C.F.R. § 1003.4(a), requires a nonexempt financial institution to collect data regarding applications for
covered loans received, originated, and purchased for each calendar year. An institution shall collect data
regarding requests under a preapproval program, as defined in § 1003.2(b)(2), only if the preapproval
request is denied, approved but not accepted, or results in the origination of a home purchase loan. The
data collected must include all the information listed in § 1003.4(a)(1) through (a)(38).

HMDA 1003.4(b)

The Home Mortgage Disclosure Act (12 U.S.C. § 2801 et seq.), as implemented by Regulation C, 12
C.F.R. § 1003.4(b), requires financial institutions to collect data about the ethnicity, race, and sex of the
applicant or borrower in the manner provided in Appendix B to Regulation C.

HMDA 1003.4(e)

The Home Mortgage Disclosure Act (12 U.S.C. § 2801 et seq.), as implemented by Regulation C, 12
C.F.R. § 1003.4(e), requires nonexempt banks and savings associations that are required to report data on
small business, small farm, and community development lending under the Community Reinvestment Act
to also collect the information required by § 1003.4(a)(9)(ii) for property located outside Metropolitan
Statistical Areas and Metropolitan Divisions in which the institution has a home or branch office, or outside
any Metropolitan Statistical Area.

II-14.52 FDIC Consumer Compliance Examination Manual — November 2023

 II. Consumer Compliance Examinations — FOCUS Violation Codes

Violation
Code Description

HMDA 1003.4(f)

The Home Mortgage Disclosure Act (12 U.S.C. § 2801 et seq.), as implemented by Regulation C, 12
C.F.R. § 1003.4(f), requires a financial institution to record the data collected pursuant to this section on a
loan/application register within 30 calendar days after the end of the calendar quarter in which final action
is taken.

HMDA 1003.5(a)

The Home Mortgage Disclosure Act (12 U.S.C. § 2801 et seq.), as implemented by Regulation C, 12
C.F.R. § 1003.5(a), requires a nonexempt financial institution to send its complete loan/application register
in an electronic format to the appropriate Federal agency, as defined by § 1003.5(a)(4), by March 1
following the calendar year for which the loan data are compiled. A nonexempt subsidiary of a bank or
savings association must complete a separate loan/application register, which it must submit, directly or
through its parent, to the appropriate Federal agency for the subsidiary's parent by March 1 following the
calendar year for which the loan data are compiled. This annual submission must include the information
specified in § 1003.5(a)(3)(i) through (a)(3)(vii) and must be certified as accurate and complete by an
authorized representative of the financial institution with knowledge of the data. The institution shall retain
a copy of its loan/application register for at least three years. Procedures for the submission of data are
available at www.consumerfinance.gov/hmda.

HMDA 1003.5(b)(2)-(d)

The Home Mortgage Disclosure Act (12 U.S.C. § 2801 et seq.), as implemented by Regulation C, 12
C.F.R. § 1003.5(b)(2) through (d), requires a financial institution to provide a written notice that clearly
conveys that the institution's HMDA disclosure statement and modified loan/application register may be
obtained on the CFPB's Web site at www.consumerfinance.gov/hmda. These notices must be made
available to the public during normal business hours, upon request, at the institution's home office, and each
branch office, physically located in each Metropolitan Statistical Area and each Metropolitan Division.
The notice regarding the institution's HMDA disclosure statement must be made available no later than
three business days after receiving notice from the FFIEC that the disclosure statement is available and
must be available to the public for a period of five years. The notice related to the institution's modified
loan/application register must be made available during the calendar year following the year for which the
data was collected and must be made available to the public for a period of three years.

HMDA 1003.5(e)

The Home Mortgage Disclosure Act (12 U.S.C. § 2801 et seq.), as implemented by Regulation C, 12
C.F.R. § 1003.5(e), requires a financial institution to post a general notice about the availability of its
HMDA data in the lobby of its home office and of each branch office physically located in each
Metropolitan Statistical Area and each Metropolitan Division. This notice must clearly convey that the
institution's HMDA data is available on the CFPB's Web site at www.consumerfinance.gov/hmda.

Homeowners Protection Act

HPA 3(a)-(g)

Section 3 of the Homeowner’s Protection Act of 1998 (12 U.S.C. § 4902(a)-(g)), requires a mortgage
servicer to cancel private mortgage insurance (PMI) when the borrower submits a request in writing to the

FDIC Consumer Compliance Examination Manual — November 2023 II-14.53

II. Consumer Compliance Examinations — FOCUS Violation Codes

Violation
Code Description

servicer, has a good payment history, is current on payments, and meets certain previously established
qualifications. Additionally, the servicer is required to terminate PMI on the earliest date that both: (1) the
mortgage principal is scheduled to reach 78% of the original value of the secured property; and (2) the
borrower is current on mortgage payments.

For high-risk non-conforming loans, the servicer is required to terminate borrower-paid PMI when the
mortgage principal is scheduled to reach 77% of the original value of the secured property. This section
also prohibits the servicer from requiring PMI beyond the first day of the month immediately following the
date that is the midpoint of the loan’s amortization period if the loan payments are current, and prohibits
additional payments or premiums for PMI 30 days after the insurance is cancelled or terminated.

The servicer must return all unearned PMI premiums to the borrower within 45 days after canceling or
terminating PMI coverage. Further, if there is a modification of the terms or conditions of a loan, the
cancellation date, termination date, or final termination date must be recalculated to reflect the modified
terms and conditions.

HPA 4(a)(1)-(2)

Section 4(a)(1) and (2) of the Homeowner’s Protection Act of 1998 (12 U.S.C. § 4903(a)(1)-(2)), requires
initial disclosures in writing at the time of consummation for non-exempt residential mortgage transactions
that will require private mortgage insurance. Specific information is required on the initial disclosures for
fixed rate and adjustable rate residential mortgage transactions, as detailed in § 4903(a)(1)(A) and §
4903(a)(1)(B), respectively, detailing the borrower’s rights to cancel this private mortgage insurance.
Further, at the time the transaction is consummated, a written notice must be provided for high-risk
residential mortgage transactions that states private mortgage insurance will not be required beyond the
midpoint of the loan’s amortization schedule, if the loan payments are current on that date.

HPA 4(a)(3)

Section 4(a)(3) of the Homeowner’s Protection Act of 1998 (12 U.S.C. § 4903(a)(3)), requires annual
written statements for residential mortgage transactions that require private mortgage insurance (PMI). The
annual statement must set forth the borrower's rights to cancellation or termination of the PMI and must
identify the servicer’s mailing address and telephone number so the borrower may contact the server to
determine if the borrower may cancel the PMI.

HPA 5(a)

Section 5(a) of the Homeowner’s Protection Act of 1998 (12 U.S.C. § 4904(a)), requires the servicer to
notify the borrower in writing not later than 30 days after the private mortgage insurance (PMI) is cancelled
or terminated. The notice shall disclose that the PMI has terminated and the borrower no longer has PMI,
and that no further premiums, payments, or other fees are due or payable by the borrower in connection
with the PMI.

HPA 5(b)(1)-(2)

Section 5(b)(1) and (2) of the Homeowner’s Protection Act of 1998 (12 U.S.C. § 4904(b)(1) and (2)),
requires the servicer to provide a written notice to the borrower if a mortgage servicer determines that a
mortgage will not qualify for cancellation or termination of private mortgage insurance. The notice shall

II-14.54 FDIC Consumer Compliance Examination Manual — November 2023

 II. Consumer Compliance Examinations — FOCUS Violation Codes

Violation
Code Description

disclose the grounds on which the determination was made. If an appraisal was used, the servicer must
give the results of the appraisal to the borrower.

With respect to the denial of a requested cancellation, the notice required under this section must be
provided not later than 30 days following the later of: (1) the date the borrower's request for cancellation is
received; or (2) the date on which the borrower satisfies any evidence or certification requirements. If the
requirements of an automatic termination are not met, the notice is due not later than 30 days after the
scheduled termination date.

HPA 6(c)(1)

Section 6(c)(1) of the Homeowner’s Protection Act of 1998 (12 U.S.C. § 4905(c)(1)), requires, in a
residential mortgage transaction involving lender-paid mortgage insurance, that the written notice
containing information specified under this section be provided not later than the date of the loan
commitment. The written notice provided to the borrower must explain certain unique features of lender-
paid mortgage insurance, including how this type of insurance differs from borrower-paid mortgage
insurance, a generic analysis of the advantages and disadvantages of each typeof mortgage insurance over
a 10-year period assuming prevailing interest and property appreciation rates, and the potential Federal tax
implications of lender-paid mortgage insurance.

HPA 6(c)(2)

Section 6(c)(2) of the Homeowner’s Protection Act of 1998 (12 U.S.C. § 4905(c)(2)), requires, in a
residential mortgage transaction involving lender-paid mortgage insurance, that a written notice be
provided to the borrower not later than 30 days after the termination date that would apply in the case of
borrower paid mortgage insurance. The notice must indicate that the borrower may wish to review
financing options that could eliminate the requirement for private mortgage insurance.

HPA 7(No Subsection)

Section 7 of the Homeowner’s Protection Act of 1998 (12 U.S.C. § 4906), prohibits the imposition of fees
or other costs on any borrower with respect to any disclosure or notification requirements of this chapter.

Homeownership Counseling Act

HCA 106(c)(5)

Section 106(c)(5) of the Housing and Urban Development Act of 1968 (12 U.S.C. § 1701x(c)(5)), requires
a creditor of a loan to notify any eligible homeowner who fails to pay any amount by the due date of the
availability of homeownership counseling. Such notification must be provided within 45 days of
delinquency and in a manner approved by the Secretary of Housing and Urban Development. Additionally,
prospective creditors must provide such a notice to any applicant for a mortgage described in section
106(c)(4) (12 U.S.C. § 1701x(c)(4)). These notices must comply with the requirements in §
106(c)(5)(A)(ii)(I) through (c)(5)(A)(ii)(V) (12 U.S.C. § 1701x(c)(5)(A)(ii)(I) through (V)).

Such requirements include, but are not limited to:

(a) notifying the homeowner or applicant of any homeownership counseling offered by the creditor or
prospective creditor;

FDIC Consumer Compliance Examination Manual — November 2023 II-14.55

II. Consumer Compliance Examinations — FOCUS Violation Codes

Violation
Code Description

(b) notifying the homeowner or prospective applicant of homeownership counseling offered by nonprofit
organizations or provide a toll-free number where this information can be obtained; and
(c) notifying the homeowner by a statement or notice, written in plain English by the Secretary of Housing
and Urban Development, explaining the mortgage and foreclosure rights of servicemembers, and the
dependents of such servicemembers, under the Servicemembers Civil Relief Act (50 U.S.C. § 3901 et seq.),
including the toll-free military one source number to call if servicemembers, or their dependents, require
further assistance.

Military Lending Act

MLA 232.4(a)

The Military Lending Act (10 U.S.C. § 987), as implemented by part 232 of the Department of Defense
regulations, 32 C.F.R. § 232.4(a), prohibits a creditor from imposing a Military Annual Percentage Rate
except as:
1) agreed to under the terms of the credit agreement or promissory note;
2) authorized by applicable State or Federal law; and
3) not specifically prohibited by this part.

MLA 232.4(b)

The Military Lending Act (10 U.S.C. § 987), as implemented by part 232 of the Department of Defense
regulations, 32 C.F.R. § 232.4(b), prohibits a creditor from imposing a Military Annual Percentage Rate
greater than 36 percent in connection with a covered extension of consumer credit that is closed-end credit
or in any billing cycle for open-end credit.

MLA 232.4(c)

The Military Lending Act (10 U.S.C. § 987), as implemented by part 232 of the Department of Defense
regulations, 32 C.F.R. § 232.4(c), requires a creditor to calculate the Military Annual Percentage Rate for
covered closed-end and open-end credit transactions as specified under by § 232.4(c)(1) through (c)(2).

MLA 232.5(b)(2)(B)

The Military Lending Act (10 U.S.C. § 987), as implemented by part 232 of the Department of Defense
regulations, 32 C.F.R. § 232.5(b)(2)(B), prohibits a creditor or an assignee from, directly or indirectly,
obtaining any information from any database maintained by the Department of Defense, at any time after a
consumer has entered into a transaction or established an account involving an extension of credit, to
ascertain whether a consumer had been a covered borrower as of the date of that transaction or as of the
date that account was established.

MLA 232.6

The Military Lending Act (10 U.S.C. § 987), as implemented by part 232 of the Department of Defense
regulations, 32 C.F.R. § 232.6, requires a creditor to provide disclosures, as specified in § 232.6(a)(1)
through (a)(3), to a covered borrower before or at the time the borrower becomes obligated on the
extension of consumer credit, including any consumer credit originated or extended through the internet, or
establishes an account for the consumer credit. The disclosures must be provided in writing in a form that

II-14.56 FDIC Consumer Compliance Examination Manual — November 2023

 II. Consumer Compliance Examinations — FOCUS Violation Codes

Violation
Code Description

the covered borrower can keep and must also be provided orally as specified in § 232.6(d)(2)(ii) and
(d)(2)(iii).

MLA 232.8

The Military Lending Act (10 U.S.C. § 987), as implemented by part 232 of the Department of Defense
regulations, 32 C.F.R. § 232.8, prohibits a creditor from extending consumer credit to a covered borrower
with certain terms or features or under the circumstances described in § 232.8(a) through (h). Among other
requirements, this section prohibits creditors from:
(1) rolling over, renewing, refinancing, or consolidating any consumer credit extended to the covered
borrower by the same creditor with the proceeds of other consumer credit;
(2) requiring a covered borrower to waive the covered borrower’s right to legal recourse under any State or
Federal law, including any provision of the Servicemembers Civil Relief Act;
(3) requiring a covered borrower to submit to arbitration;
(4) requiring as a condition for the extension of credit that the covered borrower establish an allotment to
repay the obligation; or
(5) prohibiting a covered borrower from prepaying the consumer credit or charging a prepayment penalty
for prepaying all or part of the obligation.

Non Deposit Products – Custodial Holdings of Government Securities by Depository Institutions

NDP-GOV-SC 450.4(a)

The Securities Exchange Act of 1934 (15 U.S.C. § 78o-5(b)(1)(A), (b)(4), (b)(5)(B)), as implemented by
the Custodial Holdings of Government Securities by Depository Institutions rule, 17 C.F.R. § 450.4(a),
requires a financial institution to observe the requirements outlined in § 450.4(a)(1) through (a)(6) with
respect to its holdings of government securities for customer accounts.

NDP-GOV-SC 450.4(b)(1)

The Securities Exchange Act of 1934 (15 U.S.C. § 78o-5(b)(1)(A), (b)(4), (b)(5)(B)), as implemented by
the Custodial Holdings of Government Securities by Depository Institutions rule, 17 C.F.R. § 450.4(b)(1),
requires a financial institution to issue a confirmation or a safekeeping receipt containing specific
information for each security held for a customer according to § 450.4(b)(1), except as provided by §
450.4(b)(2).

NDP-GOV-SC 450.4(c)

The Securities Exchange Act of 1934 (15 U.S.C. § 78o-5(b)(1)(A), (b)(4), (b)(5)(B)), as implemented by
the Custodial Holdings of Government Securities by Depository Institutions rule, 17 C.F.R. § 450.4(c),
requires a financial institution to maintain records of government securities held for customers, keep such
records separate and distinct from other records, and meet requirements of § 450.4(c)(1) through (c)(5).

NDP-GOV-SC 450.4(d)

The Securities Exchange Act of 1934 (15 U.S.C. § 78o-5(b)(1)(A), (b)(4), (b)(5)(B)), as implemented by
the Custodial Holdings of Government Securities by Depository Institutions rule, 17 C.F.R. § 450.4(d),
requires a financial institution to conduct counts of government securities held for customers in both

FDIC Consumer Compliance Examination Manual — November 2023 II-14.57

II. Consumer Compliance Examinations — FOCUS Violation Codes

Violation
Code Description

definitive and book-entry form at least annually and to reconcile such counts with customer account
records, according to the requirements of § 450.4(d)(1) through (d)(3).

NDP-GOV-SC 450.4(e)

The Securities Exchange Act of 1934 (15 U.S.C. § 78o-5(b)(1)(A), (b)(4), (b)(5)(B)), as implemented by
the Custodial Holdings of Government Securities by Depository Institutions rule, 17 C.F.R. § 450.4(e),
requires a financial institution to treat a government securities broker or dealer as a customer with respect
to securities by such government securities broker or dealer in a Segregated Account as defined in §
403.4(f)(1) and separate from other securities held for the account of the government securities broker or
dealer.

NDP-GOV-SC 450.4(f)

The Securities Exchange Act of 1934 (15 U.S.C. § 78o-5(b)(1)(A), (b)(4), (b)(5)(B)), as implemented by
the Custodial Holdings of Government Securities by Depository Institutions rule, 17 C.F.R. § 450.4(f),
requires a financial institution to preserve the records required by § 450.4(c) and (d)(3) for not less than six
years with the first two years being in an easily accessible place.

Non-Deposit Products - Broker/Dealer Rules & Exemptions - Regulation R

NDP-REG-R 3(a)(4)

Section 3(a)(4) of the Securities and Exchange Act of 1934 (15 U.S.C. 78c(a)(4)(B)(i)-(xi)), prohibits a
bank from conducting securities transactions without registering with the Securities and Exchange
Commission unless such activities meet certain conditions described in the enumerated exceptions in §
3(a)(4)(B)(i) through (a)(4)(B)(xi).

NDP-REG-R 218.701(a)

The Securities Exchange Act of 1934 (15 U.S.C. 78c(a)(4)(F)), as implemented by Regulation R, 12 C.F.R.
§ 218.701(a), prohibits a financial institution from paying a referral fee to a financial institution employee
for referring a high net worth customer or institutional customer to a broker or dealer with which the
financial institution has a contractual or other written agreement pursuant to § 3(a)(4)(B)(i) of the Act,
unless the financial institution is a registered broker/dealer or falls under one of the enumerated exceptions
under 12 C.F.R. § 218.700, and meets the requirements of § 218.701(a)(1) through (a)(3).

NDP-REG-R 218.701(b)

The Securities Exchange Act of 1934 (15 U.S.C. 78c(a)(4)(F)), as implemented by Regulation R, 12 C.F.R.
§ 218.701(b), requires a financial institution that provides the disclosure pursuant to § 218.701(a)(2)(i) or
(a)(3)(i) to disclose, clearly and conspicuously the name of the broker or dealer, and that the bank employee
participates in an incentive compensation program under which the bank employee may receive a fee of
more than a nominal amount for referring the customer to the broker or dealer and that payment of this fee
may be contingent on whether the referral results in a transaction with the broker or dealer.

II-14.58 FDIC Consumer Compliance Examination Manual — November 2023

 II. Consumer Compliance Examinations — FOCUS Violation Codes

Violation
Code Description

NDP-REG-R 218.741(a)

The Securities Exchange Act of 1934 (15 U.S.C. 78c(a)(4)(F)), as implemented by Regulation R, 12 C.F.R.
§ 218.741(a), prohibits a financial institution from engaging in transactions on behalf of a customer in
securities issued by money market funds unless the financial institution is a registered broker/dealer or
meets the conditions under § 218.741(a)(1)-(2).

Non-Deposit Products - Consumer Protection in Sales of Insurance

NDP-INS 343.30(a)-(c)

The Federal Deposit Insurance Act (12 U.S.C §§ 1819(a)(Seventh), 1819(a)(Tenth), and 1831x), as
implemented by the Consumer Protection in Sales of Insurance rule, 12 C.F.R. § 343.30(a) through (c),
prohibits the financial institution from: engaging in any practice that would lead a consumer to believe that
an extension of credit is conditional upon the purchase of an insurance product or annuity from the
institution or any of its affiliates, or an agreement by the consumer not to obtain, or a prohibition on the
consumer from obtaining, an insurance product or annuity from an unaffiliated entity; engaging in any
misleading practice or advertisement with respect to the sale of insurance products, as specified by the
items enumerated in § 343.30(b)(1) through (b)(3); and discriminating in the sale of insurance products
based on the applicant or insured being a victim of domestic violence, as prohibited by § 343.30(c).

NDP-INS 343.40(a)

The Federal Deposit Insurance Act (12 U.S.C §§ 1819(a)(Seventh), 1819(a)(Tenth), and 1831x), as
implemented by the Consumer Protection in Sales of Insurance rule, 12 C.F.R. § 343.40(a), requires the
financial institution, with the initial purchase of an insurance product or annuity by a consumer, to disclose
to the consumer, except to the extent the disclosure would not be accurate, that the insurance product or
annuity is not a deposit or other obligation of, or guaranteed by the institution or an affiliate of the
institution; the insurance product or annuity is not insured by the FDIC or any other agency of the United
States, the institution, or an affiliate of the institution; and in the case of an insurance product or annuity
that involves an investment risk, that there is investment risk associated with the product, including the
possible loss of value.

NDP-INS 343.40(b)

The Federal Deposit Insurance Act (12 U.S.C §§ 1819(a)(Seventh), 1819(a)(Tenth), and 1831x), as
implemented by the Consumer Protection in Sales of Insurance rule, 12 C.F.R. § 343.40(b), requires the
financial institution, in the case of an application for credit in connection with which an insurance product
or annuity is solicited, offered, or sold, to disclose that the institution may not condition an extension of
credit on either the consumer’s purchase of an insurance product or annuity from the institution or any of
its affiliates or the consumer’s agreement not to obtain, or a prohibition on the consumer from obtaining an
insurance product or annuity from an unaffiliated entity.

NDP-INS 343.40(c)

The Federal Deposit Insurance Act (12 U.S.C §§ 1819(a)(Seventh), 1819(a)(Tenth), and 1831x), as
implemented by the Consumer Protection in Sales of Insurance rule, 12 C.F.R. § 343.40(c), requires the
financial institution to provide the disclosures required by § 343.40(a) orally and in writing before the
completion of the initial sale of an insurance product or annuity; and the disclosures required by §

FDIC Consumer Compliance Examination Manual — November 2023 II-14.59

II. Consumer Compliance Examinations — FOCUS Violation Codes

Violation
Code Description

343.40(b) be provided orally and in writing at the time the consumer applies for an extension of credit with
which an insurance product or annuity is solicited, offered, or sold, except pursuant to § 343.40(c)(2) and
(c)(3). The disclosures required by § 343.40(a) and (b) may also be provided electronically instead of on
paper if the consumer affirmatively consents to receiving electronic disclosures and the disclosures are
provided in a format that a consumer may retain or obtain later. If the disclosure is provided by electronic
media, then oral disclosure is not required. In addition, the disclosures required by this section must be
meaningful, conspicuous, simple, direct, readily understandable, designed to call attention to the nature and
significance of the information provided, and meaningful as prescribed by § 343.40(c)(5) and (c)(6). The
bank must also obtain consumer acknowledgment as outlined in § 343.40(c)(7).

NDP-INS 343.40(d)

The Federal Deposit Insurance Act (12 U.S.C §§ 1819(a)(Seventh), 1819(a)(Tenth), and 1831x), as
implemented by the Consumer Protection in Sales of Insurance rule, 12 C.F.R. § 343.40(d), requires the
disclosures described in § 343.40(a) be in advertisements and promotional materials for insurance products
or annuities unless the advertisements and promotional materials are of a general nature describing or
listing the services or products offered by the institution.

NDP-INS 343.50(a)-(b)

The Federal Deposit Insurance Act (12 U.S.C §§ 1819(a)(Seventh), 1819(a)(Tenth), and 1831x), as
implemented by the Consumer Protection in Sales of Insurance rule, 12 C.F.R. § 343.50(a) and (b),
requires: (1) a financial institution, to the extent practicable, keep the area where the institution conducts
transactions involving insurance products or annuities physically segregated from areas where retail
deposits are routinely accepted from the general public, identify the areas where insurance product or
annuity sales activities occur, and clearly delineate and distinguish those areas where the institution’s retail
deposit-taking activities occur; and (2) that any person who accepts deposits from the public in an area
where such transactions are routinely conducted in the institution, may refer a consumer who seeks to
purchase an insurance product or annuity to a qualified person who sells that product only if the person
making the referral receives no more than a one-time, nominal fee of a fixed dollar amount for each referral
that does not depend on whether the referral results in a transaction.

NDP-INS 343.60

The Federal Deposit Insurance Act (12 U.S.C §§ 1819(a)(Seventh), 1819(a)(Tenth), and 1831x), as
implemented by the Consumer Protection in Sales of Insurance rule, 12 C.F.R. § 343.60, prohibits a
financial institution from permitting any person to sell or offer for sale any insurance product or annuity in
any part of its office or on its behalf, unless the person is at all times appropriately qualified and licensed
under applicable State insurance licensing standards with regard to the specific products being sold or
recommended.

Non-Deposit Products – Protection of Customer Securities and Balances

NDP-SEC-BL 403.5(c)(1)-(2)

The Securities Exchange Act of 1934 (15 U.S.C § 78o-5(a)(5), (b)(1)(A), (b)(4)), as implemented by the
Protection of Customer Securities and Balances rule, 17 C.F.R. § 403.5(c)(1) and (c)(2), requires a financial
institution to:

II-14.60 FDIC Consumer Compliance Examination Manual — November 2023

 II. Consumer Compliance Examinations — FOCUS Violation Codes

Violation
Code Description

(1) determine the quantity and issue of securities on each business day that are required to be, but are not,
in the financial institution’s possession or control and, as appropriate, bring such securities into possession
or control, by: (i) promptly obtaining the release of any lien, charge, or other encumbrance against the
securities; (ii) promptly obtaining the return of any securities loaned; (iii) promptly taking steps to obtain
possession or control of securities failed to be received for more than 30 calendar days, or in the case of
mortgage-backed securities, for more than 60 calendar days; or (iv) promptly taking steps to buy securities
as necessary to the extent of any shortage of securities in possession or control that cannot be resolved as
required by the above procedures; and
(2) prepare and maintain a current and detailed description of the procedures and internal controls that the
financial institution utilizes to comply with the possession or control requirements of § 403.5(c), which
must be made available upon request to the financial institution’s appropriate regulatory agency.

NDP-SEC-BL 403.5(d)(1)

The Securities Exchange Act of 1934 (15 U.S.C § 78o-5(a)(5), (b)(1)(A), (b)(4)), as implemented by the
Protection of Customer Securities and Balances rule, 17 C.F.R. § 403.5(d)(1), requires a financial
institution that retains custody of securities that are the subject of a repurchase agreement between the
financial institution and a counterparty to:
(i) obtain the repurchase agreement in writing;
(ii) confirm in writing the specific securities that are the subject of a repurchase transaction;
(iii) advise the counterparty that the funds held by the financial institution pursuant to a repurchase
transaction are not a deposit and not insured by the FDIC;
(iv) if the counterparty agrees to grant the financial institution the right to substitute securities, include in
the written repurchase agreement the provision by which the financial institution retains the right to
substitute securities;
(v) if the counterparty agrees to grant the financial institution the right to substitute securities, include the
required disclosure statement, which must be prominently displayed in the written repurchase agreement
immediately preceding the provision governing the right to substitution; and,
(vi) maintain possession or control of securities that are the subject of the agreement in accordance with §
450.4(a), except when exercising its right of substitution in accordance with the provisions of the
agreement and § 403.5(d)(1)(iv).

NDP-SEC-BL 403.5(d)(2)(i)

The Securities Exchange Act of 1934 (15 U.S.C § 78o-5(a)(5), (b)(1)(A), (b)(4)), as implemented by the
Protection of Customer Securities and Balances rule, 17 C.F.R. § 403.5(d)(2)(i), requires a financial
institution which retains custody of securities that are the subject of a repurchase agreement between the
financial institution and a counterparty to include the required information in the confirmation, unless the
institution is subject to the exceptions set forth in § 403.5(d)(3).

Non-Deposit Products – Recordkeeping and Confirmation Requirements for Securities Transactions

NDP-RECORD 344.2(b)

The Federal Deposit Insurance Act (12 U.S.C. §§ 1817, 1818, and 1819(a)(Tenth)) and the Dodd-Frank
Wall Street Reform and Consumer Protection Act (12 U.S.C. § 5412), as implemented by the
Recordkeeping and Confirmation Requirements for Securities Transactions rule, 12 C.F.R. § 344.2(b),
requires FDIC-supervised institutions effecting securities transactions for customers to maintain, directly or
indirectly, effective systems of records and controls regarding their customer securities transactions to

FDIC Consumer Compliance Examination Manual — November 2023 II-14.61

II. Consumer Compliance Examinations — FOCUS Violation Codes

Violation
Code Description

ensure safe and sound operations. In addition, the records and systems maintained must reflect clearly and
accurately the information required under Part 344 and provide an adequate basis for an audit.

NDP-RECORD 344.4

The Federal Deposit Insurance Act (12 U.S.C. §§ 1817, 1818, and 1819(a)(Tenth)) and the Dodd-Frank
Wall Street Reform and Consumer Protection Act (12 U.S.C. § 5412), as implemented by the
Recordkeeping and Confirmation Requirements for Securities Transactions rule, 12 C.F.R. § 344.4,
requires FDIC-supervised institutions effecting securities transactions for customers to maintain the
following records for at least three years: chronological records; account records; order tickets; records of
broker/dealer; and notifications, as prescribed by § 344.(a)(1) through (a)(5).

NDP-RECORD 344.5

The Federal Deposit Insurance Act (12 U.S.C. §§ 1817, 1818, and 1819(a)(Tenth)) and the Dodd-Frank
Wall Street Reform and Consumer Protection Act (12 U.S.C. § 5412), as implemented by the
Recordkeeping and Confirmation Requirements for Securities Transactions rule, 12 C.F.R. § 344.5,
requires FDIC-supervised institutions effecting securities transactions for customers to give or send, by
mail, facsimile, or other means of electronic transmission, to the customer at or before completion of the
transaction either a broker/dealer’s confirmation or a written notification, as prescribed by § 344.5(a) and
(b).

NDP-RECORD 344.6

The Federal Deposit Insurance Act (12 U.S.C. §§ 1817, 1818, and 1819(a)(Tenth)) and the Dodd-Frank
Wall Street Reform and Consumer Protection Act (12 U.S.C. § 5412), as implemented by the
Recordkeeping and Confirmation Requirements for Securities Transactions rule, 12 C.F.R. § 344.6,
requires an FDIC-supervised institution to use the alternative notification procedures, as prescribed by §
344.6(a) through (f), if the transaction is effected for: notification by agreement; trust accounts; agency
accounts; cash management sweep accounts; collective investment fund accounts; and periodic plan
accounts.

NDP-RECORD 344.7(a)

The Federal Deposit Insurance Act (12 U.S.C. §§ 1817, 1818, and 1819(a)(Tenth)) and the Dodd-Frank
Wall Street Reform and Consumer Protection Act (12 U.S.C. § 5412), as implemented by the
Recordkeeping and Confirmation Requirements for Securities Transactions rule, 12 C.F.R. § 344.7(a),
requires all contracts, except for those in § 344.7(b) or (c), effected or entered into by an FDIC-supervised
institution that provide for the purchase or sale of a security (other than an exempted security as defined in
15 U.S.C. § 78c(a)(12), government or municipal security, commercial paper, bankers’ acceptances, or
commercial bills), to provide for completion of the transaction within the number of business days in the
standard settlement cycle followed by registered broker dealers in the United States, unless otherwise
agreed to by the parties at the time of the transaction.

NDP-RECORD 344.8

The Federal Deposit Insurance Act (12 U.S.C. §§ 1817, 1818, and 1819(a)(Tenth)) and the Dodd-Frank
Wall Street Reform and Consumer Protection Act (12 U.S.C. § 5412), as implemented by the

II-14.62 FDIC Consumer Compliance Examination Manual — November 2023

 II. Consumer Compliance Examinations — FOCUS Violation Codes

Violation
Code Description

Recordkeeping and Confirmation Requirements for Securities Transactions rule, 12 C.F.R. § 344.8,
requires an FDIC-supervised institution effecting securities transactions for customers to establish written
policies and procedures, as prescribed by § 344.8(a)(1) through (a)(4).

NDP-RECORD 344.9(a)

The Federal Deposit Insurance Act (12 U.S.C. §§ 1817, 1818, and 1819(a)(Tenth)) and the Dodd-Frank
Wall Street Reform and Consumer Protection Act (12 U.S.C. § 5412), as implemented by the
Recordkeeping and Confirmation Requirements for Securities Transactions rule, 12 C.F.R § 344.9(a),
requires FDIC-supervised institution officers and employees who make investment recommendations or
decisions for the accounts of customers; participate in the determination of such recommendations or
decisions; or in connection with their duties, obtain information concerning which securities are being
purchased or sold or recommend such action, report to the FDIC-supervised institution within 30 calendar
days after the end of the calendar quarter, all transactions in securities made by them or on their behalf in
which they have a beneficial interest. The report must identify the securities purchased or sold, the dates of
the transactions, and whether the transactions were purchases or sales, except as provided by § 344.9(b).

OTHER-LAWS

OTHER-LAWS Uncoded-Uncoded

For use with uncoded violations. Insert relevant regulatory citation information.

Preservation of Consumers' Claims and Defenses

PCCD 433.2

The Preservation of Consumers’ Claims and Defenses rule (Holder-in-Due-Course Rule), 16 C.F.R. §
433.2, prohibits a financial institution, in connection with any sale or lease of goods or services to
consumers, from taking or receiving a consumer credit contract, or accepting, as full or partial payment for
such sale or lease, the proceeds of any purchase money loans, unless the contract contains the required
notice provisions in at least ten point, bold face, type. Such violations are considered unfair and deceptive
acts or practices under section 5 of the Federal Trade Commission Act (15 U.S.C. § 45(a)).

Privacy of Consumer Financial Information/Regulation P

PRIVACY 1016.4

The Gramm-Leach-Bliley Act, Title V, Privacy (15 U.S.C. § 6801 et seq.), as implemented by Regulation
P, 12 C.F.R. § 1016.4(a), requires a financial institution to provide a clear and conspicuous initial notice
that accurately reflects the financial institution’s privacy policies to customers and consumers. The
financial institution must provide the notice to a customer not later than when it establishes a customer
relationship, except as provided by § 1016.4(e), and to a consumer before the financial institution discloses
any nonpublic personal information about the consumer to any nonaffiliated third party, if the financial
institution makes such a disclosure other than as authorized by §§ 1016.14 and 1016.15. In addition, the
financial institution must deliver the initial privacy notice in accordance with § 1016.9.

FDIC Consumer Compliance Examination Manual — November 2023 II-14.63

II. Consumer Compliance Examinations — FOCUS Violation Codes

Violation
Code Description

PRIVACY 1016.5

The Gramm-Leach-Bliley Act, Title V, Privacy (15 U.S.C. § 6801 et seq.), as implemented by Regulation
P, 12 C.F.R. § 1016.5(a), requires a financial institution to provide a clear and conspicuous notice to
customers, except as permitted by § 1016.9(e), that accurately reflects the financial institution’s privacy
policies and practices not less than annually during the continuation of the customer relationship, and to
deliver the notice in accordance with § 1016.9.

PRIVACY 1016.6

The Gramm-Leach-Bliley Act, Title V, Privacy (15 U.S.C. § 6801 et seq.), as implemented by Regulation
P, 12 C.F.R. § 1016.6, requires a financial institution that provides the initial, annual, and revised privacy
notices under §§ 1016.4, 1016.5, and 1016.8, to include the information outlined under § 1016.6(a)(1)
through (a)(9). In addition, the institution must meet the requirements of § 1016.6(b) through (e) regarding
nonaffiliated third parties, categories of nonpublic personal information, the short-form initial notice with
opt-out notice for non-customers, and future disclosures.

PRIVACY 1016.7

The Gramm-Leach-Bliley Act, Title V, Privacy (15 U.S.C. § 6801 et seq.), as implemented by Regulation
P, 12 C.F.R. § 1016.7, requires a financial institution that provides an opt out notice under § 1016.10(a) to
provide a clear and conspicuous notice to each of the financial institution’s consumers that accurately
explains the right to opt out. The notice must state that the financial institution discloses or reserves the
right to disclose nonpublic personal information about the consumer to a nonaffiliated third party; that the
consumer has the right to opt out; and a reasonable means by which the consumer may exercise the opt out
right. In addition, the financial institution must provide an initial notice if it provides the opt out notice
later than required in accordance with § 1016.4; an opt out notice explaining how the financial institution
will treat an opt out direction by a joint consumer, if it chooses to issue such notices; allow consumers to
exercise the right to opt out at any time; and deliver the opt out notice in accordance with § 1016.7(c), (d),
(h), and (j). This violation code presumes that the notice and opt-out exceptions set out at § 1016.14 and
§ 1016.15 do not apply.

PRIVACY 1016.8

The Gramm-Leach-Bliley Act, Title V, Privacy (15 U.S.C. § 6801 et seq.), as implemented by Regulation
P, 12 C.F.R. § 1016.8, prohibits a financial institution from disclosing directly, or through an affiliate, any
nonpublic personal information about a consumer to a nonaffiliated party other than as described in the
initial notice that the financial institution provided to that consumer under § 1016.4, unless the following
requirements are met: the financial institution provided a clear and conspicuous revised notice that
accurately described its policies and practices; the financial institution provided to the consumer a new opt
out notice; the financial institution has given the consumer a reasonable opportunity before information is
disclosed to the nonaffiliated third party to opt out of the disclosure; and the consumer does not opt out. In
addition, the institution must deliver a revised privacy notice in accordance with § 1016.9.

PRIVACY 1016.10(a)(1)

The Gramm-Leach-Bliley Act, Title V, Privacy, (15 U.S.C. § 6801 et seq.), as implemented by Regulation
P, 12 C.F.R. § 1016.10(a)(1), prohibits a financial institution from disclosing directly, or through an
affiliate, any nonpublic personal information about a consumer to a nonaffiliated third party unless the

II-14.64 FDIC Consumer Compliance Examination Manual — November 2023

 II. Consumer Compliance Examinations — FOCUS Violation Codes

Violation
Code Description

following requirements are met: the financial institution provides to the consumer an initial notice as
required by § 1016.4 and an opt out notice as required by § 1016.7; the financial institution gives the
consumer a reasonable opportunity before disclosing the information to the nonaffiliated third party to opt
out of the disclosure; and the consumer does not opt out.

PRIVACY 1016.11

The Gramm-Leach-Bliley Act, Title V, Privacy (15 U.S.C. § 6801 et seq.), as implemented by Regulation
P, 12 C.F.R. § 1016.11, requires the financial institution that received nonpublic personal information from
a nonaffiliated financial institution under an exception in §§ 1016.14 or 1016.15, to limit the disclosure and
use of that information in accordance with § 1016.11(a)(1)(i) through (iii). The disclosure and use of
nonpublic personal information received from a nonaffiliated financial institution outside an exception in
§§ 1016.14 or 1016.15 must be in accordance with § 1016.11(b)(1)(i) through (iii). If the financial
institution discloses nonpublic personal information to a nonaffiliated third party under or outside of an
exception, the third party may disclose and use that information only as prescribed by § 1016.11(c) and (d),
respectively.

PRIVACY 1016.12(a)

The Gramm-Leach-Bliley Act, Title V, Privacy (15 U.S.C. § 6801 et seq.), as implemented by Regulation
P, 12 C.F.R. § 1016.12(a), prohibits a financial institution, except as permitted in § 1016.12(b), from
disclosing directly, or through an affiliate, other than to a consumer reporting agency, an account number or
similar form of access number or access code for a consumer’s credit card account, deposit account, share
account, or transaction account to any nonaffiliated third party for use in telemarketing, direct mail
marketing, or other marketing through electronic mail to the consumer.

Prohibition Against Use of Interstate Branches Primarily for Deposit Production

IBBEA 369(No Subsection)

Section 109 of the Riegle-Neal Interstate Banking and Branching Efficiency Act of 1994 (12 U.S.C. §
1835a), as implemented by part 369 of the FDIC Rules and Regulations, 12 C.F.R. part 369, prohibits a
bank from using any authority to engage in interstate branching pursuant to the Interstate Act, or any
amendment made by the Interstate Act to any other provision of law, primarily for the purpose of deposit
production.

Protecting Tenants at Foreclosure Act

PTFA 702(a)(1)

Section 702(a)(1) of the Protecting Tenants at Foreclosure Act of 2009 (12 U.S.C. § 5520 note), requires a
financial institution to send a notice to vacate to any bona fide tenant at least 90 days before the effective
date of such notice in the case of any foreclosure on a federally-related mortgage loan or on any dwelling or
residential real property. The Act originally expired at the end of 2014, but was restored effective June 23,
2018.

FDIC Consumer Compliance Examination Manual — November 2023 II-14.65

II. Consumer Compliance Examinations — FOCUS Violation Codes

Violation
Code Description

PTFA 702(a)(2)

Section 702(a)(2) of the Protecting Tenants at Foreclosure Act of 2009 (12 U.S.C. § 5520 note), requires a
financial institution to honor the existing lease for renters until the end of the lease term in the case of any
foreclosure on a federally-related mortgage loan or on any dwelling or residential real property under any
bona fide lease. An institution may terminate a lease effective on the date of sale of the unit to a purchaser
who will occupy the unit as a primary residence, subject to the receipt by the tenant of the 90 day notice
required under § 702(a)(1). The Act originally expired at the end of 2014, but was restored effective June
23, 2018.

Real Estate Settlement Procedures Act/Regulation X – Subpart B – Mortgage Settlement and Escrow Accounts

RESPA-B 1024.6

The Real Estate Settlement Procedures Act (12 U.S.C. § 2601 et seq.), as implemented by Regulation X, 12
C.F.R. § 1024.6, requires the lender to provide a copy of the special information booklet for applicable
loans to at least one of the applicants, as set forth in, and subject to the exceptions outlined under, §
1024.6(a)(1) through (a)(3). Unless specifically permitted in § 1024.6(b) through (d), no changes can be
made to the special information booklet.

RESPA-B 1024.7(a)

The Real Estate Settlement Procedures Act (12 U.S.C. § 2601 et seq.), as implemented by Regulation X, 12
C.F.R. § 1024.7(a), requires a lender to provide the applicant with a good faith estimate in accordance with
the requirements of § 1024.7(a)(1) through (a)(5), except as otherwise provided in § 1024.7(a), (b), or (h).

A violation of § 1024.7(a) also constitutes a violation of § 5 of RESPA (12 U.S.C. § 2604).

RESPA-B 1024.7(c)

The Real Estate Settlement Procedures Act (12 U.S.C. § 2601 et seq.), as implemented by Regulation X, 12
C.F.R. § 1024.7(c), requires the estimate of the charges and terms for all settlement services, unless
specifically excepted under § 1024.7(c), to be available for at least 10 business days from when the good
faith estimate is provided.

A violation of § 1024.7(c) also constitutes a violation of § 5 of RESPA (12 U.S.C. § 2604).

RESPA-B 1024.7(d)

The Real Estate Settlement Procedures Act (12 U.S.C. § 2601 et seq.), as implemented by Regulation X, 12
C.F.R. § 1024.7(d), requires the loan originator to prepare the good faith estimate in accordance with the
requirements of § 1024.7 and the instructions set forth in Appendix C.

A violation of § 1024.7(d) also constitutes a violation of § 5 of RESPA (12 U.S.C. § 2604).

II-14.66 FDIC Consumer Compliance Examination Manual — November 2023

 II. Consumer Compliance Examinations — FOCUS Violation Codes

Violation
Code Description

RESPA-B 1024.7(e)

The Real Estate Settlement Procedures Act (12 U.S.C. § 2601 et seq.), as implemented by Regulation X, 12
C.F.R. § 1024.7(e), requires that, except as provided in § 1024.7(f), the charges at settlement be in
accordance with the tolerance limits outlined under § 1024.7(e)(1) through (e)(3).

A violation of § 1024.7(e) also constitutes a violation of § 5 of RESPA (12 U.S.C. § 2604). However, as
specified in § 1024.7(i), any charges at settlement that exceed the charges listed on the good faith estimate
by more than the permitted tolerances under § 1024.7(e) constitute a tolerance violation, which can be
cured by the loan originator by reimbursing to the borrower, at settlement or within 30 calendar days after
settlement, the amount by which the tolerance was exceeded.

RESPA-B 1024.7(f)

The Real Estate Settlement Procedures Act (12 U.S.C. § 2601 et seq.), as implemented by Regulation X, 12
C.F.R. § 1024.7(f), requires a loan originator to be bound to the settlement charges and terms listed on the
good faith estimate, within the tolerances provided in § 1024.7(e), unless a revised good faith estimate is
provided prior to settlement, or the good faith estimate becomes invalid pursuant to any of the
circumstances set forth in § 1024.7(f)(1) through (f)(6). The loan originator must document and retain the
reason for providing the revised good faith estimate for no less than 3 years after settlement.

RESPA-B 1024.8(a)

The Real Estate Settlement Procedures Act (12 U.S.C. § 2601 et seq.), as implemented by Regulation X, 12
C.F.R. § 1024.8(a), requires the settlement agent to use the HUD-1 or HUD-1A, as appropriate, for every
RESPA-covered transaction, unless its use is specifically exempted under § 1024.8(a).

A violation of § 1024.8(a) also constitutes a violation of § 4 of RESPA (12 U.S.C. § 2603).

RESPA-B 1024.8(b)

The Real Estate Settlement Procedures Act (12 U.S.C. § 2601 et seq.), as implemented by Regulation X, 12
C.F.R. § 1024.8(b), requires the settlement agent to complete the HUD-1 or HUD-1A, in accordance with
the instructions set forth in Appendix A. The loan originator must transmit all information necessary to
complete the HUD-1 or HUD-1A to the settlement agent. The settlement agent shall state the actual
charges paid by the borrower and seller, as applicable, under § 1024.8(b)(1), or use the average charge for a
settlement service under § 1024.8(b)(2).

A violation of § 1024.8(b) also constitutes a violation of § 4 of RESPA (12 U.S.C. § 2603). However, as
specified in § 1024.8(c), an inadvertent or technical error in completing the HUD-1 or HUD-1A would not
be deemed a violation of § 4 of RESPA if a revised form, as appropriate, is provided in accordance with the
requirements of § 1024.8 within 30 calendar days after settlement.

RESPA-B 1024.9

The Real Estate Settlement Procedures Act (12 U.S.C. § 2601 et seq.), as implemented by Regulation X, 12
C.F.R. § 1024.9, requires that if the HUD-1 or HUD-1A is reproduced, changes and insertions specified
under § 1024.9(a) and (b) must be made in accordance with the requirements of those subsections. Section

FDIC Consumer Compliance Examination Manual — November 2023 II-14.67

II. Consumer Compliance Examinations — FOCUS Violation Codes

Violation
Code Description

1024.9(c) allows other deviations for the HUD-1 or HUD-1A if receipt of written approval is obtained from
the Consumer Financial Protection Bureau.

RESPA-B 1024.10

The Real Estate Settlement Procedures Act (12 U.S.C. § 2601 et seq.), as implemented by Regulation X, 12
C.F.R. § 1024.10, requires the settlement agent to provide the HUD-1 or HUD-1A, in accordance with the
requirements outlined in § 1024.10(a) through (c), unless the exemption under (d) applies. The lender must
retain the completed HUD-1 or HUD-1A and related documents in accordance with the recordkeeping
requirements of § 1024.10(e).

RESPA-B 1024.12

The Real Estate Settlement Procedures Act (12 U.S.C. § 2601 et seq.), as implemented by Regulation X, 12
C.F.R. § 1024.12, prohibits the imposition of a fee for the preparation and distribution of the HUD-1 or
HUD-1A settlement statement, escrow account statements required by § 10 of RESPA (12 U.S.C. § 2609),
or statements required by the Truth in Lending Act (15 U.S.C. § 1601 et seq.).

RESPA-B 1024.14

The Real Estate Settlement Procedures Act (12 U.S.C. § 2601 et seq.), as implemented by Regulation X, 12
C.F.R. § 1024.14, prohibits the splitting of charges, and providing or accepting of any kickbacks, referral
fees, or other things of value, as outlined in § 1024.14(b) through (d), unless allowed under § 1024.14(g).
All documents provided pursuant to § 1024.14 must be retained for five years from the date of execution.

A violation of § 1024.14 also constitutes a violation of § 8 of RESPA (12 U.S.C. § 2607).

RESPA-B 1024.15

The Real Estate Settlement Procedures Act (12 U.S.C. § 2601 et seq.), as implemented by Regulation X, 12
C.F.R. § 1024.15, requires an affiliated business arrangement to satisfy the conditions outlined in §
1024.15(b). All documents provided pursuant to § 1024.15 must be retained for five years after the date of
execution.

A violation of § 1024.15 also constitutes violations of § 8 of RESPA (12 U.S.C. § 2607) and of 12 C.F.R. §
1024.14.

RESPA-B 1024.17(c)

The Real Estate Settlement Procedures Act (12 U.S.C. § 2601 et seq.), as implemented by Regulation X, 12
C.F.R. § 1024.17(c), requires that a servicer meet the requirements for escrow accounts, as applicable, in
accordance with the requirements under § 1024.17(c)(1) through (c)(9).

RESPA-B 1024.17(e)

The Real Estate Settlement Procedures Act (12 U.S.C. § 2601 et seq.), as implemented by Regulation X, 12
C.F.R. § 1024.17(e), requires a new servicer to provide the borrower with an initial escrow account
statement within 60 days of the date of servicing transfer if either the monthly payment amount or the

II-14.68 FDIC Consumer Compliance Examination Manual — November 2023

 II. Consumer Compliance Examinations — FOCUS Violation Codes

Violation
Code Description

accounting method used is changed. The new servicer must comply with the requirements set forth in §
1024.17(e)(1) and (e)(2).

RESPA-B 1024.17(f)

The Real Estate Settlement Procedures Act (12 U.S.C. § 2601 et seq.), as implemented by Regulation X, 12
C.F.R. § 1024.17(f), requires the servicer to conduct an escrow account analysis to determine whether a
surplus, shortage, or deficiency exists as provided under § 1024.17(f)(1). Depending on the outcome, the
servicer shall meet the timing and other requirements for surpluses, shortages, and deficiencies outlined in
§ 1024.17(f)(2) through (f)(4) and provide the required notice of shortage or deficiency as required under §
1024.17(f)(5).

RESPA-B 1024.17(g)

The Real Estate Settlement Procedures Act (12 U.S.C. § 2601 et seq.), as implemented by Regulation X, 12
C.F.R. § 1024.17(g), requires the servicer to provide an initial escrow account statement to the borrower at
settlement or within 45 calendar days of settlement. The initial escrow account statement must include the
required information, as outlined in § 1024.17(g)(1), and if applicable, within the timeframe outlined in §
1024.17(g)(2).

RESPA-B 1024.17(h)

The Real Estate Settlement Procedures Act (12 U.S.C. § 2601 et seq.), as implemented by Regulation X, 12
C.F.R. § 1024.17(h), requires, under (h)(1), that the format and completion of the initial escrow account
statement be as set forth in Public Guidance Documents entitled “Initial Escrow Account Disclosure
Statement – Format” and “Initial Escrow Account Disclosure Statement – Example” and, in accordance
with the requirements of (h)(3), that the payees on initial escrow account statements be sufficiently
identified.

RESPA-B 1024.17(i)

The Real Estate Settlement Procedures Act (12 U.S.C. § 2601 et seq.), as implemented by Regulation X, 12
C.F.R. § 1024.17(i), requires the servicer to submit an annual escrow account statement to the borrower, in
accordance with the form, timing, and content requirements of this section unless the exception in §
1024.17(i)(2) applies. A servicer is required to follow the short year statement requirements under §
1024.17(i)(4), as applicable.

RESPA-B 1024.17(k)

The Real Estate Settlement Procedures Act (12 U.S.C. § 2601 et seq.), as implemented by Regulation X, 12
C.F.R. § 1024.17(k), requires the servicer to pay disbursements for property taxes and hazard insurance in a
timely manner in accordance with the requirements of (k)(1) through (k)(5).

RESPA-B 1024.17(l)

The Real Estate Settlement Procedures Act (12 U.S.C. § 2601 et seq.), as implemented by Regulation X, 12
C.F.R. § 1024.17(l), requires the servicer to follow the specified requirements for noting discretionary
payments made as part of a monthly mortgage payment on initial and annual escrow account statements.

FDIC Consumer Compliance Examination Manual — November 2023 II-14.69

II. Consumer Compliance Examinations — FOCUS Violation Codes

Violation
Code Description

RESPA-B 1024.20

The Real Estate Settlement Procedures Act (12 U.S.C. § 2601 et seq.), as implemented by Regulation X, 12
C.F.R. § 1024.20, requires a lender, mortgage broker, or dealer that receives an application, or information
sufficient to complete an application, to provide the loan applicant with a clear and conspicuous written list
of homeownership counseling organizations that provide relevant counseling services in the loan
applicant's location and to follow the timing and delivery requirements of § 1024.20(a), unless an
exemption applies under § 1024.20(c). For a federally related mortgage loan that is a home equity line of
credit subject to Regulation Z, 12 C.F.R. § 1026.40, a lender or mortgage broker may comply with the
requirements in either § 1024.20(a) or 12 C.F.R. § 1026.40(b).

Real Estate Settlement Procedures Act/Regulation X – Subpart C – Mortgage Servicing

RESPA-C 1024.32(a)

The Real Estate Settlement Procedures Act (12 U.S.C. § 2601 et seq.), as implemented by Regulation X, 12
C.F.R. § 1024.32(a), requires the mortgage servicing disclosures to be made clearly and conspicuously, in
writing, and in a form that a recipient may keep. If the optional notice with acknowledgement form is
provided to a successor in interest, the notice must be provided in accordance with the requirements of §
1024.32(c).

RESPA-C 1024.33(a)

The Real Estate Settlement Procedures Act (12 U.S.C. § 2601 et seq.), as implemented by Regulation X, 12
C.F.R. § 1024.33(a), requires that for reverse mortgage transactions, a lender, mortgage broker, or dealer,
as applicable, must provide a servicing disclosure statement that states whether the servicing of the
mortgage loan may be assigned, sold, or transferred to another person at any time. The disclosure must be
provided within three days, excluding legal public holidays, Saturdays, and Sundays.
RESPA-C 1024.33(b)

The Real Estate Settlement Procedures Act (12 U.S.C. § 2601 et seq.), as implemented by Regulation X, 12
C.F.R. § 1024.33(b), requires each transferor servicer and transferee servicer to provide to the borrower a
notice of transfer for any assignment, sale, or transfer of the servicing of the mortgage loan, unless
specifically excluded in § 1024.33(b)(2). The notice must adhere to the timing requirements outlined in §
1024.33(b)(3) and the content requirements outlined in § 1024.33(b)(4).

RESPA-C 1024.33(c)

The Real Estate Settlement Procedures Act (12 U.S.C. § 2601 et seq.), as implemented by Regulation X, 12
C.F.R. § 1024.33(c), requires that during the 60-day period beginning on the effective date of transfer, a
payment may not be treated as late for any purpose if the former servicer, rather than the new servicer,
receives payment on or before the applicable due date (including any grace period allowed under the
mortgage loan instrument). If payment is received incorrectly by the former servicer, the former transferor
servicer must promptly adhere to the requirements outlined in §1024.33(c)(2)(i) or (c)(2)(ii).

RESPA-C 1024.34(b)

The Real Estate Settlement Procedures Act (12 U.S.C. § 2601 et seq.), as implemented by Regulation X, 12
C.F.R. § 1024.34(b), requires a servicer to return to the borrower any amounts within the servicer’s control

II-14.70 FDIC Consumer Compliance Examination Manual — November 2023

 II. Consumer Compliance Examinations — FOCUS Violation Codes

Violation
Code Description

that remain in an escrow account within 20 days (excluding legal public holidays, Saturdays, and Sundays)
of a borrower’s payment of a mortgage loan in full. The servicer may credit funds to a new escrow account
if the requirements outlined in § 1024.34(b)(2) are met.

RESPA-C 1024.35(a)-(d)

The Real Estate Settlement Procedures Act (12 U.S.C. § 2601 et seq.), as implemented by Regulation X, 12
C.F.R. § 1024.35(a) through (d), requires a servicer to comply with the error resolution procedures in §
1024.35 when any written notice from the borrower is received that asserts an error, as outlined in §
1024.35(b), and that includes the name of the borrower, information that enables the servicer to identify the
borrower’s mortgage loan account, and the error the borrower believes has occurred. The servicer must
provide contact information for borrowers to assert errors in accordance with the requirements under §
1024.35(c), and must provide to the borrower a written response acknowledging receipt of the notice of
error, within five days (excluding legal public holidays, Saturdays, and Sundays), after receiving the error
notice as required under § 1024.35(d).

RESPA-C 1024.35(e)

The Real Estate Settlement Procedures Act (12 U.S.C. § 2601 et seq.), as implemented by Regulation X, 12
C.F.R. § 1024.35(e), requires a servicer to investigate and respond to a notice of error as outlined in §
1025.35(e), except as provided in § 1024.35(f) and (g).

RESPA-C 1024.35(g)(2)

The Real Estate Settlement Procedures Act (12 U.S.C. § 2601 et seq.), as implemented by Regulation X, 12
C.F.R. § 1024.35(g)(2), requires a servicer to notify the borrower in writing within 5 days (excluding legal
public holidays, Saturdays, and Sundays) after the servicer reasonably determines that the notice of error is
duplicative, overbroad, or untimely as provided in § 1024.35(g)(1). The notice must indicate the basis
upon which the servicer has made such determination.

RESPA-C 1024.35(h)

The Real Estate Settlement Procedures Act (12 U.S.C. § 2601 et seq.), as implemented by Regulation X, 12
C.F.R. § 1024.35(h), prohibits a servicer from charging a fee or requiring a borrower to make any payment
that may be owed on a borrower’s account, as a condition of responding to a notice of error.

RESPA-C 1024.35(i)

The Real Estate Settlement Procedures Act (12 U.S.C. § 2601 et seq.), as implemented by Regulation X, 12
C.F.R. § 1024.35(i), prohibits a servicer from furnishing adverse information to any consumer reporting
agency regarding any payment that is the subject of the notice of error for 60 days after receipt of a notice
of error.

RESPA-C 1024.36(a)-(c)

The Real Estate Settlement Procedures Act (12 U.S.C. § 2601 et seq.), as implemented by Regulation X, 12
C.F.R. § 1024.36(a) through (c), requires a servicer to comply with the request for information procedures
in § 1024.36 when any written request for information from the borrower is received that includes the name
of the borrower, information that enables the servicer to identify the borrower’s mortgage loan account, and

FDIC Consumer Compliance Examination Manual — November 2023 II-14.71

II. Consumer Compliance Examinations — FOCUS Violation Codes

Violation
Code Description

states the information the borrower is requesting. The servicer must adhere to the contact information
requirements outlined in § 1024.36(b) for borrowers to use to request information and must provide to the
borrower a written response acknowledging receipt of the request, within five days (excluding legal public
holidays, Saturdays, and Sundays), after receiving the request for information as required under §
1024.36(c).

RESPA-C 1024.36(d)

The Real Estate Settlement Procedures Act (12 U.S.C. § 2601 et seq.), as implemented by Regulation X, 12
C.F.R. § 1024.36(d), requires a servicer to investigate and respond to an information request as outlined in
§ 1025.36(d)(1) through (d)(3), except as provided in § 1024.36(e) and (f).

RESPA-C 1024.36(f)(2)

The Real Estate Settlement Procedures Act (12 U.S.C. § 2601 et seq.), as implemented by Regulation X, 12
C.F.R. § 1024.36(f)(2), requires a servicer to notify the borrower in writing within 5 days (excluding legal
public holidays, Saturdays, and Sundays) after the servicer reasonably determines that the request is
duplicative, confidential, proprietary or privileged, irrelevant, overbroad, or untimely. The notice must
indicate the basis under § 1026.36(f)(1) upon which the servicer has made such determination.

RESPA-C 1024.36(g)

The Real Estate Settlement Procedures Act (12 U.S.C. § 2601 et seq.), as implemented by Regulation X, 12
C.F.R. § 1024.36(g), prohibits a servicer from charging a fee or requiring a borrower to make any payment
that may be owed, as a condition of responding to an information request, unless permitted in §
1024.36(g)(2).

RESPA-C 1024.36(i)

The Real Estate Settlement Procedures Act (12 U.S.C. § 2601 et seq.), as implemented by Regulation X, 12
C.F.R. § 1024.36(i), requires a servicer to treat the potential successors in interest as a borrower for the
purposes of the requirements of § 1024.36(c) through (g) and to adhere to the written request requirements
as outlined in § 1024.36(i).

RESPA-C 1024.37(b)

The Real Estate Settlement Procedures Act (12 U.S.C. § 2601 et seq.), as implemented by Regulation X, 12
C.F.R. § 1024.37(b), prohibits a servicer from assessing a premium charge or fee related to force-placed
insurance on a borrower, unless the servicer has a reasonable basis to believe that the borrower has failed to
comply with the mortgage loan contract's requirement to maintain hazard insurance.

RESPA-C 1024.37(c)

The Real Estate Settlement Procedures Act (12 U.S.C. § 2601 et seq.), as implemented by Regulation X, 12
C.F.R. § 1024.37(c), prohibits the servicer from assessing the borrower any premium charge or fee related
to force-placed insurance until the delivery requirements outlined in § 1024.37(c)(1) have been met. The
first written force-placed insurance notice required by § 1024.37(c)(1)(i) must contain the information
outlined in § 1024.37(c)(2). The information in § 1024.37(c)(2)(iv), (vi), and (ix)(A) and (ix)(B) must be

II-14.72 FDIC Consumer Compliance Examination Manual — November 2023

 II. Consumer Compliance Examinations — FOCUS Violation Codes

Violation
Code Description

in bold text, except that the information about the physical address of the borrower's property may be set in
regular text. The servicer is prohibited from including any information other than the information required
by § 1024.37(c)(2) and the mortgage loan account number.

RESPA-C 1024.37(d)

The Real Estate Settlement Procedures Act (12 U.S.C. § 2601 et seq.), as implemented by Regulation X, 12
C.F.R. § 1024.37(d), requires a servicer to deliver or place in the mail a written reminder notice at least 15
days before a premium charge or fee related to force-placed insurance. A servicer may not deliver or place
in the mail the reminder notice until at least 30 days after providing the first written notice required by §
1024.37(c)(1)(i). If certain information is not received by the servicer after delivering the written reminder
notice required by § 1024.37(c)(1)(i), the servicer must providea notice containing the information
outlined in § 1024.37(d)(2)(i) or (d)(2)(ii), as applicable. The information in § 1024.37(d)(2)(i)(B) and
(d)(2)(i)(D), must be in bold text and the information in § 1024.37(d)(2)(i)(C) must be as outlined in §
1024.37(c)(3). The servicer is prohibited from including any information other than the information
required by § 1024.37(d)(2)(i) or (d)(2)(ii), and the mortgage loan account number.

RESPA-C 1024.37(e)

The Real Estate Settlement Procedures Act (12 U.S.C. § 2601 et seq.), as implemented by Regulation X, 12
C.F.R. § 1024.37(e), prohibits the servicer from assessing the borrower any premium charge or fee related
to renewing or replacing force-placed insurance, until the written notice requirements outlined in §
1024.37(e) have been met. The written renewal notice required by § 1024.37(e)(1)(i) must contain the
information outlined in § 1024.37(e)(2). The information in § 1024.37(e)(2)(iv), (vi)(B), and (vii)(A)
through (C) must be in bold text, except that the information about the physical address of the borrower's
property may be set in regular text. The servicer is prohibited from including any information in the
written notice, other than the information required by § 1024.37(e)(2) and the mortgage loan account
number. The servicer must provide the written renewal notice before each anniversary of purchasing force-
placed insurance on a borrower’s property.

RESPA-C 1024.37(f)

The Real Estate Settlement Procedures Act (12 U.S.C. § 2601 et seq.), as implemented by Regulation X, 12
C.F.R. § 1024.37(f), requires a servicer to use a class of mail not less than first-class mail, if the notices
required by § 1024.37(c)(1)(i), (c)(1)(ii), or (e)(1) are mailed.

RESPA-C 1024.37(g)

The Real Estate Settlement Procedures Act (12 U.S.C. § 2601 et seq.), as implemented by Regulation X, 12
C.F.R. § 1024.37(g), requires a servicer to adhere to the cancellation requirements outlined in § 1024.37(g),
within 15 days of receiving evidence that the borrower has had in place hazard insurance coverage that
complies with the loan contract’s requirements to maintain hazard insurance.

RESPA-C 1024.37(h)

The Real Estate Settlement Procedures Act (12 U.S.C. § 2601 et seq.), as implemented by Regulation X, 12
C.F.R. § 1024.37(h), requires that all charges related to force-placed insurance assessed to a borrower, by

FDIC Consumer Compliance Examination Manual — November 2023 II-14.73

II. Consumer Compliance Examinations — FOCUS Violation Codes

Violation
Code Description

or through the servicer, must be bona fide and reasonable, except for charges subject to State regulation and
charges authorized by the Flood Disaster Protection Act of 1973.

RESPA-C 1024.38(a)

The Real Estate Settlement Procedures Act (12 U.S.C. § 2601 et seq.), as implemented by Regulation X, 12
C.F.R. § 1024.38(a), requires a servicer to maintain policies and procedures that are reasonably designed to
achieve the objectives set forth in § 1024.38(b).

RESPA-C 1024.38(c)

The Real Estate Settlement Procedures Act (12 U.S.C. § 2601 et seq.), as implemented by Regulation X, 12
C.F.R. § 1024.38(c), requires a servicer to retain records that document actions taken with respect to a
borrower’s mortgage loan account until one year after the date a mortgage loan is discharged or servicing
of a mortgage loan is transferred. For each mortgage loan serviced, the servicer must maintain the
documents and data outlined in § 1024.38(c)(2)(i) through (c)(2)(v), in a manner that facilitates compiling
such documents and data into a servicing file within five days.

RESPA-C 1024.39(a)

The Real Estate Settlement Procedures Act (12 U.S.C. § 2601 et seq.), as implemented by Regulation X, 12
C.F.R. § 1024.39(a), requires a servicer to establish or make good faith efforts to establish live contact with
a delinquent borrower no later than the 36th day of a borrower’s delinquency and again no later than 36
days after each payment due date so long as the borrower remains delinquent, unless exempt by §
1024.39(c) or (d). Promptly after establishing live contact with a borrower, the servicer must inform the
borrower about the availability of loss mitigation options, if appropriate.

RESPA-C 1024.39(b)

The Real Estate Settlement Procedures Act (12 U.S.C. § 2601 et seq.), as implemented by Regulation X, 12
C.F.R. § 1024.39(b), requires the servicer to provide to a delinquent borrower written notices in accordance
with the timing requirements of § 1024.29(b)(1) and the content requirements of § 1024.29(b)(2), unless
exempt by § 1024.39(c) or (d).

RESPA-C 1024.39(c)

The Real Estate Settlement Procedures Act (12 U.S.C. § 2601 et seq.), as implemented by Regulation X, 12
C.F.R. § 1024.39(c), requires the servicer to comply with modified early intervention written notice
requirements when the conditions of § 1024.39(c)(1)(ii) are not met and any borrower on the mortgage loan
is a debtor in bankruptcy. The modified early intervention written notice must comply with the content and
timing requirements in § 1024.39(c)(1)(iii). A previously exempt servicer must resume compliance with §
1024.39(a) and (b) after the next payment due date that follows the earliest of the events outlined in §
1024.39(c)(2)(i), unless exempt by § 1024.39(c)(2)(ii).

RESPA-C 1024.39(d)

The Real Estate Settlement Procedures Act (12 U.S.C. § 2601 et seq.), as implemented by Regulation X, 12
C.F.R. § 1024.39(d), requires a servicer to comply with the modified early intervention written notice

II-14.74 FDIC Consumer Compliance Examination Manual — November 2023

 II. Consumer Compliance Examinations — FOCUS Violation Codes

Violation
Code Description

requirements outlined in § 1024.39(d), if the servicer is a debt collector under the Fair Debt Collections
Practices Act (FDCPA) and the borrower has invoked FDCPA cease communication protections.

RESPA-C 1024.40

The Real Estate Settlement Procedures Act (12 U.S.C. § 2601 et seq.), as implemented by Regulation X, 12
C.F.R. § 1024.40, requires a servicer to maintain policies and procedures that facilitate continuity of
contact between the borrower and servicer and are reasonably designed to achieve the objectives set forth
in § 1024.40(a). The servicer must maintain policies and procedures reasonably designed to ensure that
servicer personnel assigned to a delinquent borrower perform the functions outlined in § 1024.40(b).

RESPA-C 1024.41(b)

The Real Estate Settlement Procedures Act (12 U.S.C. § 2601 et seq.), as implemented by Regulation X, 12
C.F.R. § 1024.41(b), requires a servicer to exercise reasonable diligence in obtaining documents and
information to complete a loss mitigation application and adhere to the review and determination of
protection requirements outlined in § 1024.41(b)(2) and (b)(3).

RESPA-C 1024.41(c)

The Real Estate Settlement Procedures Act (12 U.S.C. § 2601 et seq.), as implemented by Regulation X, 12
C.F.R. § 1024.41(c), requires a servicer to evaluate complete loss mitigation applications in accordance
with the requirements of § 1024.41(c)(1), and to evaluate incomplete loss mitigation applications in
accordance with the requirements of § 1024.41(c)(2). Within 5 days (excluding legal public holidays,
Saturdays, and Sundays) of receiving a borrower’s complete loss mitigation application, the servicer must
provide written notice to the borrower containing the information outlined in § 1024.41(c)(3)(i), unless
exempt by § 1024.41(c)(3)(ii). For information that is not in the borrower’s control, the servicer must
adhere to the requirements in § 1024.41(c)(4).

RESPA-C 1024.41(d)

The Real Estate Settlement Procedures Act (12 U.S.C. § 2601 et seq.), as implemented by Regulation X, 12
C.F.R. § 1024.41(d), requires that if the servicer denies a complete loss mitigation application for any trial
or permanent loan modification option, the notice provided to the borrower pursuant to § 1024.41(c)(1)(ii)
must also state the servicer's specific reason(s) for denying each trial or permanent loan modification
option, and, if applicable, that the borrower was not evaluated on other criteria.

RESPA-C 1024.41(e)

The Real Estate Settlement Procedures Act (12 U.S.C. § 2601 et seq.), as implemented by Regulation X, 12
C.F.R. § 1024.41(e), requires a servicer offering a loss mitigation option to provide the borrower the
prescribed time to accept or reject the option, as outlined in § 1024.41(e).

RESPA-C 1024.41(f)

The Real Estate Settlement Procedures Act (12 U.S.C. § 2601 et seq.), as implemented by Regulation X, 12
C.F.R. § 1024.41(f), prohibits a servicer (including a small servicer) from making the first notice or filing
required by applicable law for any judicial or non-judicial foreclosure process unless the requirements of §

FDIC Consumer Compliance Examination Manual — November 2023 II-14.75

II. Consumer Compliance Examinations — FOCUS Violation Codes

Violation
Code Description

1024.41(f)(1) are met. If a borrower submits a complete loss mitigation application during the pre-
foreclosure review period, the servicer must not make the first notice or filing required by applicable law,
unless the servicer satisfies the requirements of § 1024.41(f)(2).

RESPA-C 1024.41(g)

The Real Estate Settlement Procedures Act (12 U.S.C. § 2601 et seq.), as implemented by Regulation X, 12
C.F.R. § 1024.41(g), prohibits a servicer from moving for foreclosure judgement or order of sale, or
conducting a foreclosure sale, if a borrower submits a complete loss mitigation application within the
prescribed timeframe, unless one of the actions in § 1024.41(g) has occurred.

RESPA-C 1024.41(h)

The Real Estate Settlement Procedures Act (12 U.S.C. § 2601 et seq.), as implemented by Regulation X, 12
C.F.R. § 1024.41(h), requires that a servicer permit a borrower to appeal the denial of a loss mitigation
application (trial or permanent), if the complete loss mitigation application was received during the
prescribed timeframe. The servicer must abide by the required deadline in § 1024.41(h)(2), the
independent evaluation requirements in § 1024.41(h)(3), and the appeal determination notification
requirements outlined in § 1024.41(h)(4).

RESPA-C 1024.41(j)

The Real Estate Settlement Procedures Act (12 U.S.C. § 2601 et seq.), as implemented by Regulation X, 12
C.F.R. § 1024.41(j), prohibits a small servicer from moving for foreclosure judgement or order of sale, or
conducting a foreclosure sale under § 1024.41(f)(1), if a borrower is performing pursuant to the terms of an
agreement on a loss mitigation option.

RESPA-C 1024.41(k)

The Real Estate Settlement Procedures Act (12 U.S.C. § 2601 et seq.), as implemented by Regulation X, 12
C.F.R. § 1024.41(k), requires that if the servicing of a mortgage loan is transferred when a loss mitigation
application is pending, the transferee servicer must comply with the loss mitigation procedures under §
1024.41 based on the date the transferor servicer received the loss mitigation application, and must follow
the timing requirements, notice requirements, and procedures outlined in § 1024.41(k).

Resolution and Receivership Rules – Sweep Account Disclosures

SWEEP-REPO 360.8(e)

The Federal Deposit Insurance Act (12 U.S.C. § 1821(d) and (e)), as implemented by the Resolutions and
Receivership rules, 12 C.F.R. § 360.8(e), requires a financial institution to prominently disclose in writing
to sweep account customers (at least annually) whether their swept funds are deposits within the meaning
of 12 U.S.C. § 1813(l). If the funds are not deposits, the institution must further disclose the status such
funds would have if the institution failed. The disclosure requirements imposed under this provision do not
apply under certain listed exceptions.

II-14.76 FDIC Consumer Compliance Examination Manual — November 2023

 II. Consumer Compliance Examinations — FOCUS Violation Codes

Violation
Code Description

Right To Financial Privacy Act

RTFPA 1103(a)-(b)

Section 1103(a) and (b) of the Right to Financial Privacy Act of 1978 (12 U.S.C. § 3401 et seq.), prohibits
a financial institution from providing to any Government authority access to or copies of, or the
information contained in, the financial records of any customer, except in accordance with the provisions of
the Act, and from releasing the financial records of a customer until the Government authority seeking such
records certifies in writing to the financial institution that it has complied with the applicable provisions of
the Act.

RTFPA 1104(No Subsection)

Section 1104 of the Right to Financial Privacy Act of 1978 (12 U.S.C. § 3401 et seq.), prohibits a financial
institution from requiring a customer’s authorization of disclosure of his or her financial records to the
Government as a condition of doing business with the financial institution. In addition, the financial
institution must keep a record of all instances in which a customer’s financial records were disclosed to the
Government authority, and upon a customer’s request, the financial institution must give the customer a
copy of the record kept for such instances, as prescribed by § 1104(c).

RTFPA 1111(No Subsection)

Section 1111 of the Right to Financial Privacy Act of 1978 (12 U.S.C. § 3401 et seq.), requires a financial
institution, upon request by a Government authority, to assemble the records requested upon receipt of a
request for financial records by a Government authority under §§ 1105 and 1107, and to prepare to deliver
the records to the Government authority upon receipt of the certificate pursuant to
§ 1103(b).

RTFPA 1113(h)(6)

Section 1113(h)(6) of the Right to Financial Privacy Act of 1978 (12 U.S.C. § 3401 et seq.), requires a
financial institution to keep a notation of each disclosure of a customer’s financial records to a Government
authority in connection with the Government authority’s consideration or administration of assistance to the
customer in the form of a Government loan, loan guaranty, or loan insurance program. In addition, the
financial institution must permit the customer to inspect this information upon request.

Secure and Fair Enforcement for Mortgage Licensing Act

SAFE-ACT 1007.103(a)

The Secure and Fair Enforcement for Mortgage Licensing Act of 2008 (12 U.S.C. § 5101 et seq.), as
implemented by Regulation G, 12 C.F.R. § 1007.103(a), requires each bank employee who acts as a
mortgage loan originator to register with the Nationwide Mortgage Licensing System and Registry
(Registry), obtain a unique identifier, and maintain registration in accordance with the requirements of this
part. A bank that employs one or more individuals who act as a residential mortgage originator is required
to have each such employee comply with the registration requirements of this part. The bank must ensure
an employee who is subject to the registration requirements does not act as a residential loan originator
unless such employee is registered with the Registry. Further, a bank employee who previously registered,

FDIC Consumer Compliance Examination Manual — November 2023 II-14.77

II. Consumer Compliance Examinations — FOCUS Violation Codes

Violation
Code Description

according to the requirements set forth in § 1007.103(a), before the employee becomes subject to this part
at the current bank, is required to meet the conditions in § 1007.103(a)(4)(A) through (D) are met.

The conditions outlined in § 1007.103(a)(4)(i)(A), (a)(i)(C), and (a)(i)(D) must be met when registered or
licensed mortgage loan originators become bank employees as a result of an acquisition, consolidation,
merger, or reorganization. These requirements must be met within 60 days from the effective date of the
acquisition, merger, or reorganization.

SAFE-ACT 1007.103(b)

The Secure and Fair Enforcement for Mortgage Licensing Act of 2008 (12 U.S.C. § 5101 et seq.), as
implemented by Regulation G, 12 C.F.R. § 1007.103(b), requires mortgage loan originators who are
registered with the Nationwide Mortgage Licensing System and Registry to maintain their registration in
accordance with the requirements of § 1007.103(b)(1) through (b)(3).

SAFE-ACT 1007.103(d)

The Secure and Fair Enforcement for Mortgage Licensing Act of 2008 (12 U.S.C. § 5101 et seq.), as
implemented by Regulation G, 12 C.F.R. § 1007.103(d), requires a bank to require each employee who is a
mortgage loan originator to submit to the Nationwide Mortgage Licensing System and Registry the
registration information under § 1007.103 (d)(1)(i) through (d)(1)(ix). Alternatively, the bank may
delegate an employee to submit the information on the covered employee’s behalf provided this individual
does not act as a mortgage loan originator. Further, this section requires a bank employee registering,
renewing, or updating his or her registration as a mortgage loan originator to provide the appropriate
authorizations and attestation of the registration.

SAFE-ACT 1007.103(e)

The Secure and Fair Enforcement for Mortgage Licensing Act of 2008 (12 U.S.C. § 5101 et seq.), as
implemented by Regulation G, 12 C.F.R. § 1007.103(e), requires a bank to submit to the Nationwide
Mortgage Licensing System and Registry, the information concerning the covered financial institution’s
record as specified in § 1007.103(e)(1)(i) through (e)(1)(iv); and the employee information under §
1007.103(e)(2).

SAFE-ACT 1007.104

The Secure and Fair Enforcement for Mortgage Licensing Act of 2008 (12 U.S.C. § 5101 et seq.), as
implemented by Regulation G, 12 C.F.R. § 1007.104, requires a bank that employs one or more mortgage
loan originators to adopt and follow written procedures designed to assure compliance with § 1007.104.
These policies and procedures must be appropriate to the nature, size, complexity, and scope of the
mortgage lending activities of the bank, and apply only to those employees acting within the scope of their
employment. At a minimum, these policies and procedures must include the information specified in §
1007.104(a) through (i) of this section.

SAFE-ACT 1007.105

The Secure and Fair Enforcement for Mortgage Licensing Act of 2008 (12 U.S.C. § 5101 et seq.), as
implemented by Regulation G, 12 C.F.R. § 1007.105, requires a bank to make the unique identifier(s) of its
registered mortgage loan originator(s) available to consumers in a manner and method practicable to the

II-14.78 FDIC Consumer Compliance Examination Manual — November 2023

 II. Consumer Compliance Examinations — FOCUS Violation Codes

Violation
Code Description

institution. Further, a registered mortgage loan originator must provide his or her unique identifier to a
consumer: (1) upon request; (2) before acting as a mortgage loan originator; and (3) through the
originator’s initial written communication with a consumer, whether on paper or electronically.

Servicemember's Civil Relief Act

SCRA 108(No Subsection)

Section 108 of the Servicemembers Civil Relief Act of 2003 (50 U.S.C. § 3919), prohibits a creditor from
taking certain adverse actions against a servicemember due to the servicemember exercising his/her rights
under the Servicemembers Civil Relief Act. Such adverse actions include, but are not limited to denying or
revoking credit, changing the terms of an existing credit arrangement, or refusing to grant credit to the
servicemember in substantially the amount or on substantially the terms requested.

SCRA 207(a)-(b)

Section 207(a) and (b) of the Servicemembers Civil Relief Act of 2003 (50 U.S.C. § 3937(a)-(b)), requires
a creditor to reduce the interest rate on a servicemember’s obligations, or of a servicemember and spouse
jointly, incurred prior to entry into military service, to no more than 6 percent for the duration of the
servicemember’s military service, upon receipt of written notice and a copy of the servicemember’s
military orders or another appropriate indicator of military service. A creditor that reduces the interest rate
on a servicemember’s obligations, or a servicemember and spouse jointly, is required to forgive interest in
excess of 6 percent, and to reduce any periodic payment due from a servicemember by the amount of
interest forgiven. The interest rate reduction must be applied retroactively to the date on which the
servicemember is called to military service. Note that for mortgage loans, trust deeds, or other security in
the nature of a mortgage, § 2203(b) of the Housing and Economic Recovery Act of 2008, extends the 6
percent interest rate cap to one year after the end of the period of military service.

SCRA 302(a)

Section 302(a) of the Servicemembers Civil Relief Act of 2003 (50 U.S.C. § 3952(a)), prohibits a creditor
from rescinding or terminating contracts by a servicemember, after that servicemember enters active-duty
military service, for the purchase, lease, or bailment of real or personal property (including a motor vehicle)
for a breach of terms occurring before or during military service, without a court order, if the
servicemember has paid a deposit or installment prior to entry into military service. A creditor is also
prohibited from repossessing the property of a servicemember after the servicemember enters active-duty
military service due to a breach of terms occurring before or during military service without a court order,
if the servicemember has paid a deposit or installment prior to entry into military service.

SCRA 303(a)-(c)

Section 303(a) through (c) of the Servicemembers Civil Relief Act of 2003 (50 U.S.C. § 3953(a)-(c)),
prohibits the sale, foreclosure, or seizure of real or personal property due to a breach of an obligation by a
servicemember during the period of military service or within one year thereafter, except if: (1) a court
order has been granted, or (2) the sale, foreclosure or seizure of property is made pursuant to an agreement
as provided in § 107 of the Servicemembers Civil Relief Act (50 U.S.C. § 3918). The prohibition only
applies to obligations that originated prior to the servicemember's entry into military service for which the
servicemember is still obligated, and is secured by a mortgage, trust deed, or other security instrument.

FDIC Consumer Compliance Examination Manual — November 2023 II-14.79

II. Consumer Compliance Examinations — FOCUS Violation Codes

Violation
Code Description

SCRA 305(d);(f)

Section 305(d) and (f) of the Servicemembers Civil Relief Act of 2003 (50 U.S.C. § 3955(d) and (f)),
requires that:
(1) in the case of a lease, as described in § 305(b)(1) of the Servicemembers Civil Relief Act (50 U.S.C. §
3955(b)(1)), termination of the lease under § 305(a) (50 U.S.C. 3955(a)) is effective 30 days after the next
due date for rent following the day that the written notice described in § 305(c) of the Servicemembers
Civil Relief Act (50 U.S.C. § 3955(c)), is delivered; and
(2) the creditor refund rent or lease amounts paid in advance for a period after the effective date of the lease
termination. Such refund must be made within 30 days of the effective date of the termination of the lease.

SCRA 306(a)

Section 306(a) of the Servicemembers Civil Relief Act of 2003 (50 U.S.C. § 3957(a), prohibits a creditor
from exercising any right or option obtained under an assignment of the servicemember’s life insurance
policy during the period of military service or within one year thereafter, without a court order. The
prohibition pertains to assignments which occurred prior to the servicemembers entry into military service
and is subject to the exceptions specified in § 306(b) of the Servicemembers Civil Relief Act (50 U.S.C. §
3957(b)).

Telephone Consumer Protection Act/ Miscellaneous Rules Relating to Common Carriers

TCPA-MRCC 64.1200(a)

The Communications Act of 1934, as amended by the Telephone Consumer Protection Act (47 C.F.R. §
227) and as implemented by the Miscellaneous Rules Relating to Common Carriers 47 C.F.R. §
64.1200(a), prohibits any person or entity from: initiating any telephone call (other than a call made for
emergency purposes or made with the prior express consent of the called party) using an automatic
telephone dialing system or an artificial or pre-recorded voice to any emergency telephone line, telephone
line of any guest room or patient room, or to any telephone number assigned to a paging service, except as
provided by § 64.1200(a)(2); initiating any telephone call to any residential line using an artificial or pre-
recorded voice to deliver a message without the prior express written consent of the called party unless the
call meets the conditions prescribed in § 64.1200(a)(3)(i)-(v); using a telephone facsimile machine,
computer, other device to send an unsolicited advertisement to a telephone facsimile machine unless the
call meets the conditions prescribed in § 64.1200(a)(4)(i)-(vi); using an automatic telephone dialing system
in such a way that two or more telephone lines of a multi-line business are engaged simultaneously;
disconnecting an unanswered telemarketing call prior to at least 15 seconds or four (4) rings; abandoning
more than three percent of all telemarketing calls that are answered live by a person and not following the
abandonment-related requirements of § 64.1200(a)(7)(i)-(iv); and using any technology to dial any
telephone number for the purpose of determining whether the line is a facsimile or voice line.

TCPA-MRCC 64.1200(b)

The Communications Act of 1934, as amended by the Telephone Consumer Protection Act (47 U.S.C. §
227) and as implemented by the Miscellaneous Rules Relating to Common Carriers, 47 C.F.R. §
64.1200(b), require that all artificial or pre-recorded voice telephone messages state clearly at the beginning
of the message the identity of the business, individual, or other entity responsible for initiating the call;
state clearly during or after the message the telephone number (other than that of the auto dialer or pre-

II-14.80 FDIC Consumer Compliance Examination Manual — November 2023

 II. Consumer Compliance Examinations — FOCUS Violation Codes

Violation
Code Description

recorded message player that placed the call) of the business, other entity, or individual subject to the
conditions in § 64.1200(b)(2); and provide an automated, interactive voice- and/or key press-activated opt-
out mechanism for the called person to make a do-not-call request subject to the conditions of §
64.1200(b)(3).

TCPA-MRCC 64.1200(c)

The Communications Act of 1934, as implemented by the Telephone Consumer Protection Act (47 U.S.C.
§ 227) and as implemented by the Miscellaneous Rules Relating to Common Carriers, 47 C.F.R. §
64.1200(c), prohibits any person or entity from initiating any telephone solicitation to: any residential
telephone subscriber before 8 a.m. or after 9 p.m. (local time of the called party’s location); or a residential
telephone subscriber who has registered his or her telephone number on the national do-not-call registry of
persons who do not wish to receive telephone solicitations that is maintained by the Federal Government,
unless the person or entity meets requirements under § 64.1200(c)(2)(i)-(iii).

TCPA-MRCC 64.1200(d)

The Communications Act of 1934, as implemented by the Telephone Consumer Protection Act (47 U.S.C.
§ 227) and as implemented by the Miscellaneous Rules Relating to Common Carriers, 47 C.F.R. §
64.1200(d), prohibit a person or entity from initiating any call for telemarketing purposes to a residential
telephone subscriber unless such person or entity has instituted procedures for maintaining a list of persons
who request not to receive telemarketing calls made by or on behalf of that person or entity. The
procedures must meet the following minimum standards: written policy; training of personnel engaged in
telemarketing; recording and disclosing do-not-call requests; identification of sellers and telemarketers;
affiliated persons or entities, and the maintenance of do-not-call lists.

TCPA-MRCC 68.1604(a)

The Communications Act of 1934, as amended by the Telephone Consumer Protection Act (47 U.S.C. §
227), and as implemented by theMiscellaneous Rules Relating to Common Carriers, 47 C.F.R. §
64.1604(a), prohibits any person or entity within or outside the United States, if the recipient is within the
United States, in connection with any voice service or text messaging service to knowingly cause, directly
or indirectly, any caller identification service to transmit or display misleading or inaccurate caller
identification information with the intent to defraud, cause harm, or wrongfully obtain anything of value.

TCPA-MRCC 68.318(d)

The Communications Act of 1934, as amended by the Telephone Consumer Protection Act (47 U.S.C. §
227), and as implemented by the Federal Communications Commission rules, 47 CFR § 68.318(d), makes
it unlawful for any person within the United States to usea computer or other electronic device to send any
message via telephone facsimile machine unless such message clearly contains in a margin at the top or
bottom of each transmitted page or on the first page of the transmission, the date and time it is sent and an
identification of the business, other entity, or individual sending the message and the telephone number of
the sending machine or of such business, other entity or individual. Other requirements as outlined in
68.318(d), must also be met if applicable.

FDIC Consumer Compliance Examination Manual — November 2023 II-14.81

II. Consumer Compliance Examinations — FOCUS Violation Codes

Violation
Code Description

Truth in Lending Act/Regulation Z – Subpart B – Open-End Credit

TILA-B 1026.5(a)

The Truth-in-Lending Act (15 U.S.C. § 1601 et seq.), as implemented by Regulation Z, 12 C.F.R. §
1026.5(a), requires the creditor to make the disclosures required for open-end credit clearly and
conspicuously in writing, and in a form the consumer may keep, except as provided in § 1026.5(a)(ii)(A)-
(B).

TILA-B 1026.5(b)

The Truth-in-Lending Act (15 U.S.C. § 1601 et seq.), as implemented by Regulation Z, 12 C.F.R. §
1026.5(b), requires the creditor to provide the disclosures required for open-end credit within the timelines
set forth in § 1026.5(b)(1) through (b)(4).

TILA-B 1026.5(c)

The Truth-in-Lending Act (15 U.S.C. § 1601 et seq.), as implemented by Regulation Z, 12 C.F.R. §
1026.5(c), requires that the open-end credit disclosures provided by the creditor reflect the terms of the
legal obligation between the parties. If any information necessary for accurate disclosure is unknown to the
creditor, it shall make the disclosure based on the best information reasonably available and shall state
clearly that the disclosure is an estimate.

TILA-B 1026.6(a)

The Truth-in-Lending Act (15 U.S.C. § 1601 et seq.), as implemented by Regulation Z, 12 C.F.R. §
1026.6(a), requires the creditor to provide the consumer account opening disclosures for home equity plans
secured by a dwelling under § 1026.40, that disclose the items listed under § 1026.6(a), to the extent
applicable.

TILA-B 1026.6(b)

The Truth-in-Lending Act (15 U.S.C. § 1601 et seq.), as implemented by Regulation Z, 12 C.F.R. §
1026.6(b), requires the creditor to provide the account opening disclosures in § 1026.6(b) for open-end
plans other than home equity plans secured by a dwelling under § 1026.40.

TILA-B 1026.7(a)

The Truth-in-Lending Act (15 U.S.C. § 1601 et seq.), as implemented by Regulation Z, 12 C.F.R. §
1026.7(a), requires the creditor to provide the consumer a periodic statement for home equity plans secured
by a dwelling under § 1026.40, that discloses the information outlined under § 1026.7(a), as applicable.

TILA-B 1026.7(a); 108(e)

The Truth-in-Lending Act (15 U.S.C. § 1601 et seq.), as implemented by Regulation Z, 12 C.F.R. §
1026.7(a), requires the creditor to provide the consumer a periodic statement for home equity plans secured
by a dwelling under § 1026.40, that discloses the information outlined under § 1026.7(a), as applicable.

II-14.82 FDIC Consumer Compliance Examination Manual — November 2023

 II. Consumer Compliance Examinations — FOCUS Violation Codes

Violation
Code Description

Section 108(e)(1) and (e)(2) of the Truth in Lending Act (12 U.S.C. § 1607(e)), requires the FDIC to notify
creditors in cases where an annual percentage rate or finance charge was inaccurately disclosed and to
make monetary adjustments to the accounts of consumers in cases where the annual percentage rate or
finance charge has been understated by more than the allowed tolerances as a result of a clear and
consistent pattern or practice of violations, gross negligence, or a willful violation which was intended to
mislead the person to whom the credit was extended, unless an exception under this section applies.

TILA-B 1026.7(b)

The Truth-in-Lending Act (15 U.S.C. § 1601 et seq.), as implemented by Regulation Z, 12 C.F.R. §
1026.7(b), requires the creditor to provide the consumer with a periodic statement for open-end plans other
than home equity plans secured by a dwelling under § 1026.40, that discloses the information outlined in §
1026.7(b), as applicable.

TILA-B 1026.8

The Truth-in-Lending Act (15 U.S.C. § 1601 et seq.), as implemented by Regulation Z, 12 C.F.R. § 1026.8,
requires the creditor to identify credit transactions on or with the first periodic statement that reflects the
transaction, by furnishing the information in § 1026.8(a) or (b), as applicable.

TILA-B 1026.9(a)

The Truth-in-Lending Act (15 U.S.C. § 1601 et seq.), as implemented by Regulation Z, 12 C.F.R. §
1026.9(a), requires the creditor to comply with the subsequent disclosure requirements for furnishing the
statement of billing rights as outlined under § 1026.9(a)(1) pertaining to the annual statement.

TILA-B 1026.9(b)

The Truth-in-Lending Act (15 U.S.C. § 1601 et seq.), as implemented by Regulation Z, 12 C.F.R. §
1026.9(b), requires the creditor to comply with the disclosure requirements for supplemental credit access
devices and additional features as provided in § 1026.9(b)(1) through (b)(3).

TILA-B 1026.9(c)

The Truth-in-Lending Act (15 U.S.C. § 1601 et seq.), as implemented by Regulation Z, 12 C.F.R. §
1026.9(c), requires the creditor to follow the change in terms requirements provided in § 1026.9(c)(1) and
(c)(2), as applicable.

TILA-B 1026.9(d)

The Truth-in-Lending Act (15 U.S.C. § 1601 et seq.), as implemented by Regulation Z, 12 C.F.R. §
1026.9(d), requires any person, other than the card issuer, who imposes a finance charge at the time of
honoring a consumer’s credit card, to disclose the amount of that finance charge prior to its imposition.

FDIC Consumer Compliance Examination Manual — November 2023 II-14.83

II. Consumer Compliance Examinations — FOCUS Violation Codes

Violation
Code Description

TILA-B 1026.9(e)

The Truth-in-Lending Act (15 U.S.C. § 1601 et seq.), as implemented by Regulation Z, 12 C.F.R. §
1026.9(e), requires the card issuer, upon renewal of a credit or charge card, to follow the disclosure
requirements provided in § 1026.9(e)(1) and (e)(2).

TILA-B 1026.9(f)

The Truth-in-Lending Act (15 U.S.C. § 1601 et seq.), as implemented by Regulation Z, 12 C.F.R. §
1026.9(f), requires the card issuer to comply with the disclosure requirements for changes in the credit card
account insurance provider as provided in § 1026.9(f)(1) through (f)(3).

TILA-B 1026.9(g)

The Truth-in-Lending Act (15 U.S.C. § 1601 et seq.), as implemented by Regulation Z, 12 C.F.R. §
1026.9(g), requires the creditor to comply with the requirements for increases in rates due to delinquency or
default, or as a penalty as provided in § 1026.9(g)(1) through (g)(3) for home equity plans not subject to the
requirements of § 1026.40.

TILA-B 1026.9(h)

The Truth-in-Lending Act (15 U.S.C. § 1601 et seq.), as implemented by Regulation Z, 12 C.F.R. §
1026.9(h), requires the creditor to comply with the requirements pertaining to the consumer’s rejection of
certain significant changes in terms as provided in § 1026.9(h)(1) and (h)(2).

TILA-B 1026.10

The Truth-in-Lending Act (15 U.S.C. § 1601 et seq.), as implemented by Regulation Z, 12 C.F.R. §
1026.10, requires the creditor to follow the payment crediting requirements for open-end credit as provided
in § 1026.10(a) through (f).

TILA-B 1026.11

The Truth-in-Lending Act (15 U.S.C. § 1601 et seq.), as implemented by Regulation Z, 12 C.F.R. §
1026.11, requires the creditor to follow the requirements for treatment of open-end credit balances and for
account termination as provided in § 1026.11(a) through (c).

TILA-B 1026.13

The Truth-in-Lending Act (15 U.S.C. § 1601 et seq.), as implemented by Regulation Z, 12 C.F.R. §
1026.13, requires the creditor to follow the billing error resolution requirements for open-end credit as
provided in § 1026.13(c) through (g).

TILA-B 1026.12

The Truth-in-Lending Act (15 U.S.C. § 1601 et seq.), as implemented by Regulation Z, 12 C.F.R. §
1026.12, requires the creditor to follow the special credit card provisions as provided in § 1026.12(a)
through (f).

II-14.84 FDIC Consumer Compliance Examination Manual — November 2023

 II. Consumer Compliance Examinations — FOCUS Violation Codes

Violation
Code Description

TILA-B 1026.15(b)

The Truth-in-Lending Act (15 U.S.C. § 1601 et seq.), as implemented by Regulation Z, 12 C.F.R. §
1026.15(b), requires that in any transaction or occurrence subject to rescission, a creditor shall deliver two
copies of the notice of the right to rescind to each consumer entitled to rescind (one copy to each if the
notice is delivered in electronic form in accordance with the consumer consent and other applicable
provisions of the E-Sign Act). The notice shall identify the transaction or occurrence, and clearly and
conspicuously disclose the information as provided in § 1026.15(b)(1) through (b)(5).

TILA-B 1026.15(c)

The Truth-in-Lending Act (15 U.S.C. § 1601 et seq.), as implemented by Regulation Z, 12 C.F.R. §
1026.15(c), prohibits a creditor from disbursing any money other than in escrow, performing any services,
or delivering any materials until after the rescission period has expired and thecreditor is reasonably
satisfied that the consumer has not rescinded, unless a consumer waives the right to rescind under §
1026.15(e).

TILA-B 1026.15(d)(2)

The Truth-in-Lending Act (15 U.S.C. § 1601 et seq.), as implemented by Regulation Z, 12 C.F.R. §
1026.15(d)(2), requires that within 20 calendar days after receipt of a notice of rescission from a consumer,
the creditor shall return any money or property that has been given to anyone in connection with the
transaction and shall take any action necessary to reflect the termination of the security interest.

TILA-B 1026.16(a)-(c)

The Truth-in-Lending Act (15 U.S.C. § 1601 et seq.), as implemented by Regulation Z, 12 C.F.R. §
1026.16(a) through (c), requires that if an advertisement for open-end credit states specific credit terms, it
shall state only those that actually are or will be arranged or offered by the creditor, and if certain terms are
advertised as described in § 1026.16(b), additional disclosures must be made as provided in §
1026.16(b)(1) and (b)(2). Catalogs or other multiple-page advertisements and electronic advertisements
shall comply with § 1026.16(c)(2), as applicable.

TILA-B 1026.16(d)

The Truth-in-Lending Act (15 U.S.C. § 1601 et seq.), as implemented by Regulation Z, 12 C.F.R. §
1026.16(d), requires home-equity plan advertisements to adhere to additional requirements as provided in §
1026.16(d)(1) through (d)(6).

TILA-B 1026.16(f)

The Truth-in-Lending Act (15 U.S.C. § 1601 et seq.), as implemented by Regulation Z, 12 C.F.R. §
1026.16(f), prohibits an advertisement for open-end credit from referring to an annual percentage rate as
“fixed,” or using a similar term, unless the advertisement also specifies a time period that the rate will be
fixed and will not increase during that period, or if no such time period is provided, that the rate will not
increase while the plan is open.

FDIC Consumer Compliance Examination Manual — November 2023 II-14.85

II. Consumer Compliance Examinations — FOCUS Violation Codes

Violation
Code Description

TILA-B 1026.16(g)

The Truth-in-Lending Act (15 U.S.C. § 1601 et seq.), as implemented by Regulation Z, 12 C.F.R. §
1026.16(g), requires additional disclosures for promotional rates and fees advertised for open-end (not
home-secured) credit plans, as provided in § 1026.16(g)(3) and (4).

TILA-B 1026.16(h)(3)-(4)

The Truth-in-Lending Act (15 U.S.C. § 1601 et seq.), as implemented by Regulation Z, 12 C.F.R. §
1026.16(h)(3) and (4), requires additional disclosures for advertisements of deferred interest open-end
credit plans not subject to § 1026.40.

Truth in Lending Act/Regulation Z – Subpart C – Closed-End Credit

TILA-C 1026.17(a)

The Truth in Lending Act (15 U.S.C. § 1601 et seq.), as implemented by Regulation Z, 12 C.F.R. §
1026.17(a), requires the creditor to make the disclosures for closed-end credit required by Subpart C,
except as required by § 1026.19(e), (f), and (g), clearly, conspicuously, grouped together or segregated as
required, in writing and in a form the consumer may keep. The terms "finance charge" and "annual
percentage rate," when required to be disclosed under § 1026.18(d) and (e), together with a corresponding
amount or percentage rate, must be more conspicuous than other disclosures, except the creditor’s identity
under § 1026.18(a). For private education loan disclosures, the term "annual percentage rate" and the
corresponding percentage rate must be less conspicuous than the term "finance charge" and corresponding
amount under § 1026.18(d), the interest rate under § 1026.47(b)(1)(i) and (c)(1), and the notice of the right
to cancel under § 1026.47(c)(4).

TILA-C 1026.17(b)

The Truth in Lending Act (15 U.S.C. § 1601 et seq.), as implemented by Regulation Z, 12 C.F.R. §
1026.17(b), requires the creditor to make disclosures for closed-end credit, before consummation of the
transaction, except for the disclosures required by § 1026.19(e), (f), and (g) and § 1026.20(e). The timing
of disclosures under § 1026.17(b) may be delayed for transactions covered under § 1026.17(g) and (h), and
other special timing requirements apply for certain other transactions as specified under § 1026.17(b).

TILA-C 1026.17(c)

The Truth in Lending Act (15 U.S.C. § 1601 et seq.), as implemented by Regulation Z, 12 C.F.R. §
1026.17(c), requires the creditor to provide disclosures that reflect the terms of the legal obligation between
the parties, and to adhere to the basis of disclosures and the use of estimates as required by § 1026.17(c)(2)
through (c)(5).

TILA-C 1026.17(f)

The Truth in Lending Act (15 U.S.C. § 1601 et seq.), as implemented by Regulation Z, 12 C.F.R. §
1026.17(f), requires that when disclosures are given before consummation and a subsequent event makes
them inaccurate, the creditor must re-disclose any changed term unless the term was based on an estimate
and labeled as such, or all changed terms if the disclosed annual percentage rate varies by more than the

II-14.86 FDIC Consumer Compliance Examination Manual — November 2023

 II. Consumer Compliance Examinations — FOCUS Violation Codes

Violation
Code Description

tolerance allowed by § 1026.22(a). This re-disclosure requirement does not apply to private education loan
disclosures made in compliance with § 1026.47.

TILA-C 1026.18(a)-(c)

The Truth in Lending Act (15 U.S.C. § 1601 et seq.), as implemented by Regulation Z, 12 C.F.R. §
1026.18(a) through (c), requires a creditor to disclose the information related to the creditor’s identity,
amount financed, and the itemization of amount financed, as applicable, for each closed-end transaction
other than mortgage transactions subject to § 1026.19(e) and (f).

TILA-C 1026.18(d)

The Truth in Lending Act (15 U.S.C. § 1601 et seq.), as implemented by Regulation Z, 12 C.F.R. §
1026.18(d), requires the creditor to accurately disclose the “finance charge,” using that term, for each
closed-end credit transaction other than mortgage transactions subject to § 1026.19(e) and (f). The
disclosure must include a brief description such as “the dollar amount the credit will cost you” and shall be
treated as accurate if the amount disclosed as the finance charge satisfies § 1026.18(d)(1)(i) or (d)(1)(ii) for
mortgage loans and § 1026.18(d)(2) for other credit transactions.

TILA-C 1026.18(d); 108(e)

The Truth in Lending Act (15 U.S.C. § 1601 et seq.), as implemented by Regulation Z, 12 C.F.R. §
1026.18(d), requires the creditor to accurately disclose the “finance charge,” using that term, for each
closed-end credit transaction other than mortgage transactions subject to § 1026.19(e) and (f). The
disclosure must include a brief description such as “the dollar amount the credit will cost you” and shall be
treated as accurate if the amount disclosed as the finance charge for mortgage loans satisfies §
1026.18(d)(1)(i) or (d)(1)(ii) and for other credit transactions, if it satisfies § 1026.18(d)(2).

Section 108(e)(1) and (e)(2) of the Truth in Lending Act (12 U.S.C. § 1607(e)), requires the FDIC to notify
creditors in cases where the finance charge was inaccurately disclosed and to make monetary adjustments
to the accounts of consumers in cases where the finance charge has been understated by more than the
allowed tolerances as a result of a clear and consistent pattern or practice of violations, gross negligence, or
a willful violation which was intended to mislead the person to whom the credit was extended, unless an
exception under this section applies.

TILA-C 1026.18(e)

The Truth in Lending Act (15 U.S.C. § 1601 et seq.), as implemented by Regulation Z, 12 C.F.R. §
1026.18(e), requires the creditor to disclose the “annual percentage rate,” using that term, for each
applicable closed-end credit transaction other than mortgage transactions subject to § 1026.19(e) and (f).
The disclosure must include a brief description such as “the cost of your credit as a yearly rate.”

TILA-C 1026.18(e)-108(e)

The Truth in Lending Act (15 U.S.C. § 1601 et seq.), as implemented by Regulation Z, 12 C.F.R. §
1026.18(e), requires the creditor to disclose the “annual percentage rate,” using that term, for each
applicable closed-end credit transaction other than mortgage transactions subject to § 1026.19(e) and (f).
The disclosure must include a brief description such as “the cost of your credit as a yearly rate.”

FDIC Consumer Compliance Examination Manual — November 2023 II-14.87

II. Consumer Compliance Examinations — FOCUS Violation Codes

Violation
Code Description

Section 108(e)(1) and (e)(2) of the Truth in Lending Act (12 U.S.C. § 1607(e)), requires the FDIC to notify
creditors in cases where the annual percentage rate was inaccurately disclosed and to make monetary
adjustments to the accounts of consumers in cases where the annual percentage rate has been understated
by more than the allowed tolerances as a result of a clear and consistent pattern or practice of violations,
gross negligence, or a willful violation which was intended to mislead the person to whom the credit was
extended, unless an exception under this section applies.

TILA-C 1026.18(f)

The Truth in Lending Act (15 U.S.C. § 1601 et seq.), as implemented by Regulation Z, 12 C.F.R. §
1026.18(f), requires a creditor to disclose the information outlined in § 1026.18(f)(1) for applicable variable
rate transactions, other than for mortgage transactions subject to § 1026.19(e) and (f), or as provided in §
1026.18(f)(3). The creditor must disclose the information outlined in § 1026.18(f)(2) if the annual
percentage rate may increase after consummation for transactions secured by the consumer’s principal
dwelling that have terms greater than one year.

TILA-C 1026.18(g)-(j)

The Truth in Lending Act (15 U.S.C. § 1601 et seq.), as implemented by Regulation Z, 12 C.F.R. §
1026.18(g) through (j), requires a creditor to disclose the information related to the payment schedule, total
of payments, any demand feature, and total sales price, as applicable, for each closed-end transaction other
than mortgage transactions subject to § 1026.19(e) and (f).

TILA-C 1026.18(k)-(m)

The Truth in Lending Act (15 U.S.C. § 1601 et seq.), as implemented by Regulation Z, 12 C.F.R. §
1026.18(k) through (m), requires a creditor to disclose the information related to any prepayment penalty,
late payment charge, and security interest, as applicable, for each closed-end transaction other than
mortgage transactions subject to § 1026.19(e) and (f).

TILA-C 1026.18(n)-(o)

The Truth in Lending Act (15 U.S.C. § 1601 et seq.), as implemented by Regulation Z, 12 C.F.R. §
1026.18(n) and (o), requires a creditor to disclose information related to insurance, debt cancellation, and
certain security interest charges, as applicable, for each closed-end transaction other than mortgage
transactions subject to § 1026.19(e) and (f). Under § 1026.18(n), creditors must disclose the items required
by § 1026.4(d) in order to exclude certain insurance premiums and debt cancellation fees from the finance
charge. Under § 1026.18(o), creditors must make disclosures required by § 1026.4(e) in order to exclude
from the finance charge certain fees prescribed by law or certain premiums for insurance in lieu of
perfecting a security interest.

TILA-C 1026.18(p)-(r)

The Truth in Lending Act (15 U.S.C. § 1601 et seq.), as implemented by Regulation Z, 12 C.F.R. §
1026.18(p) through (r), requires a creditor to disclose the information related to the contract document,
assumption policy, and required deposit, as applicable, for each closed-end transaction other than mortgage
transactions subject to § 1026.19(e) and (f).

II-14.88 FDIC Consumer Compliance Examination Manual — November 2023

 II. Consumer Compliance Examinations — FOCUS Violation Codes

Violation
Code Description

TILA-C 1026.18(s)

The Truth in Lending Act (15 U.S.C. § 1601 et seq.), as implemented by Regulation Z, 12 C.F.R. §
1026.18(s), requires that for closed-end transactions secured by real property or a dwelling, the creditor
must disclose specific information about the interest rate and payments, other than for transactions that are
subject to § 1026.19(e) and (f). The disclosures must be in accordance with the form requirements of §
1026.18(s)(1), the interest rate requirements of § 1026.18(s)(2), the payment requirements of §
1026.18(s)(3) through (s)(5), and the special disclosure requirements of § 1026.18(s)(6).

TILA-C 1026.18(t)

The Truth in Lending Act (15 U.S.C. § 1601 et seq.), as implemented by Regulation Z, 12 C.F.R. §
1026.18(t), requires that for a closed-end transaction secured by real property or a dwelling, the creditor
must disclose a “No-guarantee-to-refinance” statement, other than for transactions that are subject to §
1026.19(e) and (f). The statement must be in a form substantially similar to Model Clause H-4(k) in
Appendix H of Content of Disclosures.

TILA-C 1026.19(a)

The Truth in Lending Act (15 U.S.C. § 1601 et seq.), as implemented by Regulation Z, 12 C.F.R. §
1026.19(a), requires that for reverse mortgage transactions subject to both § 1026.33 and the Real Estate
Settlement Procedures Act (12 U.S.C. § 2601) secured by the consumer’s dwelling, the creditor must
provide the consumer with good faith estimates of the disclosures required by § 1026.18. The creditor must
deliver or place the disclosures in the mail no later than the third business day after the creditor receives the
consumer’s written application. The creditor must adhere to the imposition of fee requirements of §
1026.19(a)(ii) and (a)(iii), the waiting period requirements of § 1026.19(a)(2), the waiver of waiting period
requirements of § 1026.19(a)(3), and the notice requirements of § 1026.19(a)(4).

TILA-C 1026.19(b);(d)

The Truth in Lending Act (15 U.S.C. § 1601 et seq.), as implemented by Regulation Z, 12 C.F.R. §
1026.19(b) and (d), requires that for variable-rate transactions secured by the consumer’s principal dwelling
with a term greater than a year, in which the annual percentage rate may increase after consummation, the
creditor must provide the disclosures outlined in § 1026.19(b) at the time an application form is provided or
before the consumer pays a non-refundable fee, whichever is earlier, except as provided under §
1026.19(d).

TILA-C 1026.19(e)

The Truth in Lending Act (15 U.S.C. § 1601 et seq.), as implemented by Regulation Z, 12 C.F.R. §
1026.19(e), requires the creditor to provide a consumer in a closed-end consumer credit transaction secured
by real property or a cooperative unit, a loan estimate disclosing the information required under § 1026.37.
The disclosures must adhere to the requirements of § 1026.19(e)(1), the pre-disclosure activity
requirements of § 1026.19(e)(2), the good faith determination for estimates of closing cost requirements of
§ 1026.19(e)(3), and the provision and receipt of revised disclosure requirements of § 1026.19(e)(4).

FDIC Consumer Compliance Examination Manual — November 2023 II-14.89

II. Consumer Compliance Examinations — FOCUS Violation Codes

Violation
Code Description

TILA-C 1026.19(f)

The Truth in Lending Act (15 U.S.C. § 1601 et seq.), as implemented by Regulation Z, 12 C.F.R. §
1026.19(f), requires the creditor to provide a consumer in a closed-end consumer credit transaction secured
by real property or a cooperative unit, a closing disclosure with the information required under § 1026.38.
The disclosures must adhere to the provision of disclosure requirements of § 1026.19(f)(1), the subsequent
change requirements of § 1026.19(f)(2), the charges disclosed requirements of § 1026.19(f)(3), the
transactions involving a seller requirements of § 1026.19(f)(4), and the fee restriction requirements of §
1026.19(f)(5).

TILA-C 1026.19(g)

The Truth in Lending Act (15 U.S.C. § 1601 et seq.), as implemented by Regulation Z, 12 C.F.R. §
1026.19(g), requires the creditor to provide a consumer in a closed-end consumer credit transaction secured
by real property or a cooperative unit, a copy of the special information booklet within the time specified,
except as provided in § 1026.19(g)(1)(ii) and (g)(1)(iii). A creditor is prohibited from making changes to,
deletions from, or additions to the special information booklet other than the changes specified in §
1026.19(g)(2)(i) through (g)(2)(iv).

TILA-C 1026.20(a)

The Truth in Lending Act (15 U.S.C. § 1601 et seq.), as implemented by Regulation Z, 12 C.F.R. §
1026.20(a), requires a creditor to treat a refinancing as a new transaction and provide new disclosures to the
consumer. The new finance charge must include any unearned portion of the old finance charge that is not
credited to the existing obligation.

TILA-C 1026.20(b)

The Truth in Lending Act (15 U.S.C. § 1601 et seq.), as implemented by Regulation Z, 12 C.F.R. §
1026.20(b), requires that for assumptions of an existing residential mortgage loan, a creditor must make
new disclosures to the subsequent consumer, based on the remaining obligation, before theassumption
occurs.

TILA-C 1026.20(c)

The Truth in Lending Act (15 U.S.C. § 1601 et seq.), as implemented by Regulation Z, 12 C.F.R. §
1026.20(c), requires the creditor, assignee, or servicer of a covered adjustable rate mortgage that incurred a
payment change because of the adjustment of the interest rate, to provide certain disclosures, in accordance
with the timing and content requirements of §1026.20(c)(2) and the formatting requirements described in §
1026.20(c)(3).

TILA-C 1026.20(d)

The Truth in Lending Act (15 U.S.C. § 1601 et seq.), as implemented by Regulation Z, 12 C.F.R. §
1026.20(d), requires that, in connection with the initial interest rate adjustment of a covered adjustable rate
mortgage, the creditor, assignee, or servicer provide certain disclosures within the prescribed timeframes
and in a separate document, in accordance with the content requirements of § 1026.20(d)(2) and the
formatting requirements described in § 1026.20(d)(3).

II-14.90 FDIC Consumer Compliance Examination Manual — November 2023

 II. Consumer Compliance Examinations — FOCUS Violation Codes

Violation
Code Description

TILA-C 1026.20(e)

The Truth in Lending Act (15 U.S.C. § 1601 et seq.), as implemented by Regulation Z, 12 C.F.R. §
1026.20(e), requires the creditor or servicer to disclose information in accordance with the content
requirements of § 1026.20(e)(2), the formatting requirements described in § 1026.20(e)(4), and the timing
requirements of § 1026.20(e)(5), for a covered closed-end consumer credit transaction secured by a first
lien on real property or a dwelling, other than a reverse mortgage under § 1026.33, for which an escrow
account was established and will be cancelled.

TILA-C 1026.21

The Truth in Lending Act (15 U.S.C. § 1601 et seq.), as implemented by Regulation Z, 12 C.F.R. §
1026.21, requires a creditor to take the actions outlined in § 1026.21(a), (b), and (c), when a credit balance
in excess of $1 is created in connection with a transaction.

TILA-C 1026.23(b)

The Truth in Lending Act (15 U.S.C. § 1601 et seq.), as implemented by Regulation Z, 12 C.F.R. §
1026.23(b), requires the creditor to deliver two copies of the notice of the right to rescind a credit
transaction in which a security interest is or will be retained or acquired in a consumer’s principal dwelling
to each consumer whose ownership interest is or will be subject to the security interest, except for
transactions described in § 1026.23(f). The notice must follow the content and format requirements of §
1026.23(b).

TILA-C 1026.23(c)-(e)

The Truth in Lending Act (15 U.S.C. § 1601 et seq.), as implemented by Regulation Z, 12 C.F.R. §
1026.23(c) through (e), requires that a creditor: delay performance of the credit transaction in accordance
with the requirements of § 1026.23(c); adhere to the effects of rescission under § 1026.23(d); and permit a
consumer’s waiver of the right to rescind in the format outlined under § 1026.23(e).

TILA-C 1026.24(a)-(b)

The Truth-in-Lending Act (15 U.S.C. § 1601 et seq.), as implemented by Regulation Z, 12 C.F.R. §
1026.24(a) and (b), requires that if an advertisement states specific credit terms, it shall clearly and
conspicuously state only those terms that actually are or will be arranged or offered by the creditor.

TILA-C 1026.24(c)

The Truth-in-Lending Act (15 U.S.C. § 1601 et seq.), as implemented by Regulation Z, 12 C.F.R. §
1026.24(c), requires that if an advertisement states a rate of finance charge, the rate must be stated as an
“annual percentage rate” using that term, and if the rate will increase after consummation, the
advertisement must state that fact. The advertisement cannot state any other rate together with the annual
percentage rate (or APR), except as permitted by § 1026.24(c).

FDIC Consumer Compliance Examination Manual — November 2023 II-14.91

II. Consumer Compliance Examinations — FOCUS Violation Codes

Violation
Code Description

TILA-C 1026.24(d)

The Truth-in-Lending Act (15 U.S.C. § 1601 et seq.), as implemented by Regulation Z, 12 C.F.R. §
1026.24(d), requires that when the “triggering terms” listed in § 1026.24(d)(1) appear in an advertisement,
the disclosures under § 1026.24(d)(2) must also appear, as applicable.

If a catalog or other multiple-page advertisement, or an electronic advertisement (such as an advertisement

appearing on an Internet Web site), gives information in a table or schedule in sufficient detail to permit
determination of the disclosures required by § 1026.24(d)(2), it shall be considered a single advertisement
if it meets the requirements of § 1026.24(e)(1). If a catalog or other multiple-page advertisement or an
electronic advertisement (such as an advertisement appearing on an Internet Web site) does not meet the
requirements of § 1026.24(e)(2), the advertisement does not comply with § 1026.24(d)(2).

TILA-C 1026.24(f)

The Truth-in-Lending Act (15 U.S.C. § 1601 et seq.), as implemented by Regulation Z, 12 C.F.R. §
1026.24(f), requires that advertisements (other than television or radio advertisements) for credit secured by
a dwelling that state a simple annual rate of interest and more than one simple annual rate of interest will
apply over the term of the advertised loan, or that state the amount of any payment, must include the
disclosures required under § 1026.24 (f)(2) and (f)(3), and must be made clearly and conspicuously, except
that certain envelopes, banners, and pop-up advertisements are excluded as provided under § 1026.24(f)(4).

TILA-C 1026.24(g)

The Truth-in-Lending Act (15 U.S.C. § 1601 et seq.), as implemented by Regulation Z, 12 C.F.R. §
1026.24(g), requires that an advertisement made through television or radio stating any of the “triggering
terms” that require additional disclosures under § 1026.24(d)(2), must comply with the disclosure
requirements of § 1026.24(d)(2) by stating in the advertisement, clearly and conspicuously:
(1) each of the additional disclosures required under § 1026.24(d)(2); or
(2) the information required under § 1026.24(d)(2)(iii) and a toll-free telephone number or a reverse charge
telephone number referencing that such number may be used by consumers to obtain additional loan cost
information.

TILA-C 1026.24(h)

The Truth-in-Lending Act (15 U.S.C. § 1601 et seq.), as implemented by Regulation Z, 12 C.F.R. §
1026.24(h), requires that when an advertisement for credit secured by the consumer’s principal dwelling
and distributed in paper form or through the Internet states that the extension of credit may exceed the fair
market value of the dwelling, the advertisement shall clearly and conspicuously disclose that, (1) the
interest on the portion of the credit extension that is greater than the fair market value of the dwelling is not
tax deductible for Federal income tax purposes; and (2) that the consumer should consult a tax adviser
regarding the deductibility of interest and charges.

TILA-C 1026.24(i)

The Truth-in-Lending Act (15 U.S.C. § 1601 et seq.), as implemented by Regulation Z, 12 C.F.R. §
1026.24(i), prohibits, certain acts or practices in advertisements for credit secured by a dwelling, as further
outlined under § 1026.24(i)(1) through (i)(7).

II-14.92 FDIC Consumer Compliance Examination Manual — November 2023

 II. Consumer Compliance Examinations — FOCUS Violation Codes

Violation
Code Description

Truth in Lending Act/Regulation Z – Subpart D – Miscellaneous

TILA-D 1026.25

The Truth-in-Lending Act (15 U.S.C. § 1601 et seq.), as implemented by Regulation Z, 12 C.F.R. §
1026.25, requires, generally, that a creditor retain evidence of compliance with the disclosures in part 1026
for two years after the date they are required to be made or action is required to be taken. These retention
requirements do not apply to the advertising rules under §§ 1026.16 and 1026.24, and longer retention
requirements apply to certain sections in part 1026, as provided below.

A creditor is required to retain, and provide copies (as applicable) of, records in the manner specified under
§ 1026.25(c) that evidence compliance with the requirements of: (1) the early disclosures under §
1026.19(e), and the closing disclosures under § 1026.19(f) for three years after the later of the date of
consummation, the date disclosures are required to be made, or the date action is required to be taken,
except that the disclosures under § 1026.19(f)(1)(i) or § 1026.19(f)(4)(i) must be retained for five years
after consummation; (2) the loan originator compensation under § 1026.36, for three years after the date of
payment; and (3) the ability-to-repay provisions under § 1026.43, for three years after the date of
consummation of a covered transaction.

The administrative agencies responsible for enforcing the regulation must be permitted by the creditor to
inspect the relevant records to ensure compliance with part 1026. In addition, such agencies may require
creditors under their jurisdictions to retain records for a longer period, if necessary, to carry out their
enforcement responsibilities under section 108 of the Act.

TILA-D 1026.26

The Truth-in-Lending Act (15 U.S.C. § 1601 et seq.), as implemented by Regulation Z, 12 C.F.R. §
1026.26, requires that, when responding orally to a consumer's inquiry about the cost of credit, the creditor
state only rates in terms of the annual percentage rate, except that, for open-end credit a periodic rate or
rates may also be stated, and for closed-end credit a simple annual rate or periodic rate may also be stated if
applied to an unpaid balance. Special conditions exist for open-end and closed-end transactions in which
the applicable annual percentage rate cannot be determined in advance by the creditor, as provided under §
1026.26.

TILA-D 1026.27

The Truth-in-Lending Act (15 U.S.C. § 1601 et seq.), as implemented by Regulation Z, 12 C.F.R. §
1026.27, requires the disclosures required by part 1026, with the exception of advertisements subject to §§
1026.16 and 1026.24, also be made available in English upon the consumer's request when those
disclosures are initially made in a language other than English.

TILA-D 1026.28(a)(2)(i)

The Truth-in-Lending Act (15 U.S.C. § 1601 et seq.), as implemented by Regulation Z, 12 C.F.R. §
1026.28(a)(2)(i), requires that if a creditor gives written notice of a consumer's rights under a state law that
provides for a longer period of time for reporting billing errors than that allowed under Federal law with
respect to the consumer’s open-end credit account, the notice must include a statement that reliance on the
longer time period available for certain actions under state law may result in the loss of important rights

FDIC Consumer Compliance Examination Manual — November 2023 II-14.93

II. Consumer Compliance Examinations — FOCUS Violation Codes

Violation
Code Description

that could be preserved by acting more promptly under Federal law. The notice must also explain when the
state law provisions apply; and if applicable, where the state disclosures should appear in relation to the
required Federal disclosures, as further provided under § 1026.28(a)(2)(i).

TILA-D 1026.30

The Truth-in-Lending Act (15 U.S.C. § 1601 et seq.), as implemented by Regulation Z, 12 C.F.R. §
1026.30, requires the creditor to disclose in any consumer credit contract secured by a dwelling and subject
to the Act and part 1026, the maximum interest rate that may be imposed during the term of an obligation
when: (a) in the case of closed-end credit, the annual percentage rate may increase after consummation, or
(b) in the case of open-end credit, the annual percentage rate may increase during the plan.

Truth in Lending Act/Regulation Z – Subpart E – Special Rules for Certain Home Mortgage Transactions

TILA-E 1026.31(b)

The Truth in Lending Act (15 U.S.C. § 1601 et seq.), as implemented by Regulation Z, 12 C.F.R. §
1026.31(b), requires the creditor to make disclosures for certain home mortgage transactions, as outlined in
§§ 1026.31 through 1026.45, clearly and conspicuously in writing, and in a form that the consumer can
keep.

TILA-E 1026.31(c)(1)

The Truth in Lending Act (15 U.S.C. § 1601 et seq.), as implemented by Regulation Z, 12 C.F.R. §
1026.31(c)(1), requires the creditor to provide the high-cost mortgage disclosures required by § 1026.32, at
least three business days prior to consummation or account opening. Any new disclosures provided must
be in accordance to the change in terms requirements of § 1026.31(c)(1)(i), and the telephone disclosure
requirements of § 1026.31(c)(1)(ii), as applicable. The consumer may waive the three business day waiting
period but must satisfy the requirements outlined in § 1026.31(c)(1)(iii).

TILA-E 1026.31(c)(2)

The Truth in Lending Act (15 U.S.C. § 1601 et seq.), as implemented by Regulation Z, 12 C.F.R. §
1026.31(c)(2), requires the creditor to provide the reverse mortgage disclosures required by § 1026.33, at
least three business days prior to consummation of a closed-end credit transaction, or the first transaction
under an open-end credit plan.

TILA-E 1026.31(d)

The Truth in Lending Act (15 U.S.C. § 1601 et seq.), as implemented by Regulation Z, 12 C.F.R. §
1026.31(d), requires that disclosures for certain home mortgage transactions reflect the terms of the legal
obligation between the parties. If any information for an accurate disclosure is unknown at the time the
disclosure is provided, including per-diem interest, the creditor is required to provide the best information
reasonably available and clearly state that the disclosure is an estimate.

TILA-E 1026.32(a)(3)

The Truth in Lending Act (15 U.S.C. § 1601 et seq.), as implemented by Regulation Z, 12 C.F.R. §
1026.32(a)(3), requires a creditor to determine the annual percentage rate for a closed- or open-end credit

II-14.94 FDIC Consumer Compliance Examination Manual — November 2023

 II. Consumer Compliance Examinations — FOCUS Violation Codes

Violation
Code Description

high-cost mortgage transaction in accordance with the requirements outlined in § 1026.32(a)(3)(i) through
(a)(3)(iii).

TILA-E 1026.32(c)

The Truth in Lending Act (15 U.S.C. § 1601 et seq.), as implemented by Regulation Z, 12 C.F.R. §
1026.32(c), requires a creditor to provide thehigh-cost mortgage disclosures in addition to any other
disclosures required by Regulation Z, in a conspicuous type size, as outlined in § 1026.32(c)(1) through
(c)(5), as applicable.

TILA-E 1026.32(d)

The Truth in Lending Act (15 U.S.C. § 1601 et seq.), as implemented by Regulation Z, 12 C.F.R. §
1026.32(d), prohibits a creditor from using the terms outlined in § 1026.32(d)(1) through (d)(8), for any
high-cost mortgage transactions, unless specifically allowed under § 1026.32(d)(1)(ii) and (d)(1)(iii), or
(d)(8)(i) through (d)(8)(iii).

TILA-E 1026.33(b)

The Truth in Lending Act (15 U.S.C. § 1601 et seq.), as implemented by Regulation Z, 12 C.F.R. §
1026.33(b), requires a creditor to provide certain disclosures for reverse mortgage transactions in a form
substantially similar to the model form found in paragraph (d) of Appendix K. The disclosure must contain
the information outlined in § 1026.33(b)(1) through (b)(4).

TILA-E 1026.33(c)

The Truth in Lending Act (15 U.S.C. § 1601 et seq.), as implemented by Regulation Z, 12 C.F.R. §
1026.33(c), requires a creditor to provide certain disclosures for reverse mortgages related to the projected
total cost of credit, in accordance with the information outlined in § 1026.33(c)(1) through (c)(6), as
applicable.

TILA-E 1026.34(a)

The Truth in Lending Act (15 U.S.C. § 1601 et seq.), as implemented by Regulation Z 12 C.F.R. §
1026.34(a), prohibits certain acts or practices for high-cost mortgage loans, as outlined in § 1026.34(a)(1)
through (a)(10).

TILA-E 1026.34(b)

The Truth in Lending Act (15 U.S.C. § 1601 et seq.), as implemented by Regulation Z, 12 C.F.R. §
1026.34(b), prohibits a creditor from structuring a high-cost mortgage in a form, for the purpose, and with
the intent to evade the requirements of Subpart E- Special Rules for Certain Home Mortgage Transactions.

TILA-E 1026.35(b)

The Truth in Lending Act (15 U.S.C. § 1601 et seq.), as implemented by Regulation Z, 12 C.F.R. §
1026.35(b), requires a creditor to establish an escrow account, before consummation, when extending a
first-lien higher-priced mortgage loan secured by a consumer’s principal dwelling, unless an exemption in §

FDIC Consumer Compliance Examination Manual — November 2023 II-14.95

II. Consumer Compliance Examinations — FOCUS Violation Codes

Violation
Code Description

1026.35(b)(2) applies. The creditor may not cancel the escrow account, unless the conditions set forth in §
1026.35(b)(3)(i) and (b)(3)(ii) are satisfied.

TILA-E 1026.35(c)

The Truth in Lending Act (15 U.S.C. § 1601 et seq.), as implemented by Regulation Z, 12 C.F.R. §
1026.35(c), requires a creditor to obtain appraisals for a higher-priced mortgage loan prior to
consummation, unless specifically exempt under § 1026.35(c)(2), following the requirements in §
1026.35(c)(3) through (c)(7).

TILA-E 1026.35(d)

The Truth in Lending Act (15 U.S.C. § 1601 et seq.), as implemented by Regulation Z, 12 C.F.R. §
1026.35(d), prohibits a creditor from structuring credit secured by a consumer’s principal dwelling that
does not meet the definition of open-end credit in § 1026.2(a)(20) as an open-end plan to evade the
requirements of this section.

TILA-E 1026.36(c)

The Truth in Lending Act (15 U.S.C. § 1601 et seq.), as implemented by Regulation Z, 12 C.F.R. §
1026.36(c), requires a creditor to adhere to certain servicing practices for closed-end consumer credit
transactions secured by a consumer’s principal dwelling. The servicer must adhere to the payment
processing requirements as outlined in § 1026.36(c)(i) through (c)(iii), not allow for the pyramiding of late
fees or delinquency charges as outlined in § 1026.36(c)(2), and provide a payoff statement as outlined
under § 1026.36(c)(3).

TILA-E 1026.36(d)(1)

The Truth in Lending Act (15 U.S.C. § 1601 et seq.), as implemented by Regulation Z, 12 C.F.R. §
1026.36(d)(1), prohibits a loan originator from receiving compensation, in connection with a consumer
credit transaction secured by a dwelling, in an amount that is based on the terms of a transaction(s), as
outlined in § 1026.36(d)(1)(i) through (d)(1)(iv).

TILA-E 1026.36(d)(2)

The Truth in Lending Act (15 U.S.C. § 1601 et seq.), as implemented by Regulation Z, 12 C.F.R. §
1026.36(d)(2), requires, except as provided in § 1026.36(d)(2)(i)(C), that if any loan originator receives
compensation directly from a consumer in a consumer credit transaction secured by a dwelling: 1) the loan
originator cannot receive compensation, directly or indirectly, from any person other than the consumer in
connection with the transaction; and 2) any person who knows or has reason to know of the consumer-paid
compensation to the loan originator (other than the consumer) cannot pay any compensation to a loan
originator, directly or indirectly, in connection with the transaction.

TILA-E 1026.36(e)(1)

The Truth in Lending Act (15 U.S.C. § 1601 et seq.), as implemented by Regulation Z, 12 C.F.R. §
1026.36(e)(1), prohibits a loan originator from directing or “steering” a consumer to consummate a
consumer credit transaction secured by a dwelling based on the fact that the originator will receive greater

II-14.96 FDIC Consumer Compliance Examination Manual — November 2023

 II. Consumer Compliance Examinations — FOCUS Violation Codes

Violation
Code Description

compensation from the creditor in that transaction than in other transactions the originator could have
offered to the consumer, unless the consummated transaction is in the consumer’s interest.

TILA-E 1026.36(f)

The Truth in Lending Act (15 U.S.C. § 1601 et seq.), as implemented by Regulation Z, 12 C.F.R. §
1026.36(f), requires a loan originator for a consumer credit transaction secured by a dwelling, that is not a
government agency or State housing finance agency, to comply with the qualification requirements as
outlined in § 1026.36(f)(1) through (f)(3), as applicable.

TILA-E 1026.36(g)

The Truth in Lending Act (15 U.S.C. § 1601 et seq.), as implemented by Regulation Z, 12 C.F.R. §
1026.36(g), requires a loan originator organization to include the information in § 1026.36(g)(1)(i) and
(g)(1)(ii), on all documents described in § 1026.36(g)(2). The loan originator must do so whenever each
loan document is provided to a consumer or presented to a consumer for signature, as applicable.

TILA-E 1026.36(h)

The Truth in Lending Act (15 U.S.C. § 1601 et seq.), as implemented by Regulation Z, 12 C.F.R. §
1026.36(h), prohibits mandatory arbitration clauses and waivers of certain consumer rights on a contract or
other agreement relating to a consumer credit transaction secured by a dwelling, as outlined in §
1026.36(h)(1) and (h)(2).

TILA-E 1026.36(i)

The Truth in Lending Act (15 U.S.C. § 1601 et seq.), as implemented by Regulation Z, 12 C.F.R. §
1026.36(i), prohibits a creditor from financing, directly or indirectly, any premiums or fees for credit
insurance in connection with a consumer credit transaction secured by a dwelling. This prohibition does
not apply to credit insurance for which premiums or fees are calculated and paid in full on a monthly basis.

TILA-E 1026.36(j)

The Truth in Lending Act (15 U.S.C. § 1601 et seq.), as implemented by Regulation Z, 12 C.F.R. §
1026.36(j), requires a depository institution to establish and maintain appropriate written policies and
procedures reasonably designed to ensure and monitor compliance with the requirements of § 1026.36(d)
through (g).

TILA-E 1026.36(k)

The Truth in Lending Act (15 U.S.C. § 1601 et seq.), as implemented by Regulation Z, 12 C.F.R. §
1026.36(k), prohibits a creditor from extending credit to a first-time borrower in connection with a closed-
end transaction secured by a dwelling, other than a reverse mortgage transaction subject to § 1026.33 or a
transaction secured by a timeshare plan described in 11 U.S.C. § 101(53D) that may result in negative
amortization, unless the creditor receives documentation that the consumer has received homeownership
counseling as provided under § 1026.36(k)(1). Furthermore, § 1026.36(k)(3) prohibits a creditor from
steering or directing a consumer to choose a particular counselor or counseling organization.

FDIC Consumer Compliance Examination Manual — November 2023 II-14.97

II. Consumer Compliance Examinations — FOCUS Violation Codes

Violation
Code Description

TILA-E 1026.37(a)-(e)

The Truth-in-Lending Act (15 U.S.C. § 1601 et seq.), as implemented by Regulation Z, 12 C.F.R. §
1026.37(a) through (e), requires the creditor to disclose on the Loan Estimate specified information under
the headings "General Information," "Loan Terms," "Projected Payments," and "Costs at Closing" for each
transaction subject to § 1026.19(e). The information required under § 1026.37(b) through (d) shall be
disclosed under the specified headings and separate tables, and the creditor must include a statement that
the consumer may obtain general information and tools at the Web site of the Consumer Financial
Protection Bureau, and the link or uniform resource locator address to the Web site:
www.consumerfinance.gov/mortgage-estimate, as required under § 1026.37(e).

TILA-E 1026.37(f)-(j)

The Truth-in-Lending Act (15 U.S.C. § 1601 et seq.), as implemented by Regulation Z, 12 C.F.R. §
1026.37(f) through (j), requires the creditor to disclose on the Loan Estimate under the master heading
“Closing Cost Details,” a table with the heading of “Loan Costs,” disclosing the items and amounts
described in § 1026.37(f)(1) through (f)(4), in accordance with the requirements of § 1026.37(f)(5) and
(f)(6); a table with the heading of “Other Costs,” disclosing the items and amounts described in §
1026.37(g)(1) through (g)(6), in accordance with the requirements of § 1026.37(g)(7) and (g)(8); a table
with the heading of “Calculating Cash to Close,” itemizing amounts as required by § 1026.37(h)(1) or
(h)(2), as appropriate; and if applicable, an “Adjustable Payment (AP) Table” that meets the requirements
of § 1026.37(i) and an “Adjustable Interest Rate (AIR) Table” that meets the requirements of § 1026.37(j).

TILA-E 1026.37(k)-(n)

The Truth-in-Lending Act (15 U.S.C. § 1601 et seq.), as implemented by Regulation Z, 12 C.F.R. §
1026.37(k) through (n), requires the creditor to disclose on the Loan Estimate under the master heading
“Additional Information About This Loan,” specific information under the headings “Contact Information,”
“Comparisons,” and “Other Considerations.” At the creditor’s option, a signature table to “Confirm
Receipt” of the Loan Estimate following the requirements of § 1026.37(n). These disclosures must contain
the information, and be made, as set forth in § 1026.37(k) through (n), as applicable.

TILA-E 1026.37(o)

The Truth-in-Lending Act (15 U.S.C. § 1601 et seq.), as implemented by Regulation Z, 12 C.F.R. §
1026.37(o), requires the creditor to format the Loan Estimate as outlined under § 1026.37(o)(1) through
(o)(4) pertaining to (1) General requirements, (2) Headings and labels, (3) Form, and (4) Rounding, subject
only to the exceptions outlined in § 1026.37(o)(5).

TILA-E 1026.38(a)-(d)

The Truth-in-Lending Act (15 U.S.C. § 1601 et seq.), as implemented by Regulation Z, 12 C.F.R. §
1026.38(a) through (d), requires the creditor to disclose on the Closing Disclosure specific information
under the headings “General Information,” “Loan Terms,” “Projected Payments,” and “Costs at Closing”
for each transaction subject to § 1026.19(f). These disclosures must contain the information, and be made,
as set forth under § 1026.38(b) through (d).

II-14.98 FDIC Consumer Compliance Examination Manual — November 2023

 II. Consumer Compliance Examinations — FOCUS Violation Codes

Violation
Code Description

TILA-E 1026.38(e)

The Truth-in-Lending Act (15 U.S.C. § 1601 et seq.), as implemented by Regulation Z, 12 C.F.R. §
1026.38(e), requires creditors who provided the optional alternative table pursuant to § 1026.37(h)(2) to
disclose the information outlined in § 1026.38(e)(1) through (e)(6) in a separate table on the Closing
Disclosure for transactions that do not involve a seller or for simultaneous subordinate financing. The
creditor must label the table under the heading "Calculating Cash to Close" and state, "Use this table to see
what has changed from your Loan Estimate."

TILA-E 1026.38(f)-(k)

The Truth-in-Lending Act (15 U.S.C. § 1601 et seq.), as implemented by Regulation Z, 12 C.F.R. §
1026.38(f) through (k), requires the creditor to disclose on the Closing Disclosure, “Loan Costs,” “Other
Costs,” Closing Cost Totals,” “Calculating Cash to Close,” and “Summaries of Transactions,” as
applicable, under a heading for “Closing Cost Details.” These disclosures must contain the information,
and be made, as set forth under § 1026.38(f) through (k) using the specified headings and tables.

TILA-E 1026.38(l)-(n)

The Truth-in-Lending Act (15 U.S.C. § 1601 et seq.), as implemented by Regulation Z, 12 C.F.R. §
1026.38(l) through (n), requires the creditor to disclose on the Closing Disclosure under the master heading
"Additional Information About This Loan," and under the heading "Loan Disclosures," “Assumption,”
“Demand Feature,” “Late Payment,” “Negative Amortization,” “Partial Payment” Policy,” “Security
Interest,” and “Escrow Account” information. These disclosures must contain the information, and be
made, as set forth under § 1026.38(l)(1) through (l)(7). Additionally, if applicable, the table required by §
1026.37(i) under the heading "Adjustable Payment (AP) Table" and the table required by § 1026.37(j)
under the heading “Adjustable Interest Rate (AIR) Table” shall also be disclosed.

TILA-E 1026.38(o)

The Truth-in-Lending Act (15 U.S.C. § 1601 et seq.), as implemented by Regulation Z, 12 C.F.R. §
1026.38(o), requires the creditor to disclose on the Closing Disclosure under the heading "Loan
Calculations," the "Total of Payments," the "Finance Charge," the "Amount Financed," the "Annual
Percentage Rate," using that term and the abbreviation "APR" and expressed as a percentage, and the
"Total Interest Percentage," using that term and the abbreviation "TIP" and expressed as a percentage.
These disclosures must contain the information, including the statements after each disclosure, as set forth
under § 1026.38(o).

TILA-E 1026.38(o); 108(e)

The Truth-in-Lending Act (15 U.S.C. § 1601 et seq.), as implemented by Regulation Z, 12 C.F.R. §
1026.38(o), requires the creditor to disclose on the Closing Disclosure under the heading "Loan
Calculations," the "Total of Payments," the "Finance Charge," the "Amount Financed," the "Annual
Percentage Rate," using that term and the abbreviation "APR" and expressed as a percentage, and the
"Total Interest Percentage," using that term and the abbreviation "TIP" and expressed as a percentage.
These disclosures must contain the information, including the statements after each disclosure, as set forth
under § 1026.38(o).

FDIC Consumer Compliance Examination Manual — November 2023 II-14.99

II. Consumer Compliance Examinations — FOCUS Violation Codes

Violation
Code Description

Section 108(e)(1) and (e)(2) of the Truth in Lending Act (12 U.S.C. § 1607(e)), requires the FDIC to notify
creditors in cases where the finance charge was inaccurately disclosed and to make monetary adjustments
to the accounts of consumers in cases where the finance charge has been understated by more than the
allowed tolerances as a result of a clear and consistent pattern or practice of violations, gross negligence, or
a willful violation which was intended to mislead the person to whom the credit was extended, unless an
exception under this section applies.

TILA-E 1026.38(p)-(s)

The Truth-in-Lending Act (15 U.S.C. § 1601 et seq.), as implemented by Regulation Z, 12 C.F.R. §
1026.38(p) through (s), requires the creditor to disclose on the Closing Disclosure specific information
under the headings “Other Disclosures,” “Questions?” and "Contact Information." At the creditor’s option,
the Closing Disclosure may include a signature table to “Confirm Receipt” by the applicant(s), which shall
follow the requirements of § 1026.38(s). These disclosures must contain the information, and be made, as
set forth in § 1026.38(p) through (s), as applicable.

TILA-E 1026.38(t)

The Truth-in-Lending Act (15 U.S.C. § 1601 et seq.), as implemented by Regulation Z, 12 C.F.R. §
1026.38(t), requires the creditor to format the Closing Disclosure as outlined under § 1026.38(t)(1) through
(t)(4) pertaining to (1) General requirements, (2) Headings and labels, (3) Form, and (4) Rounding, subject
only to the exceptions outlined in § 1026.38(t)(5).

TILA-E 1026.39

The Truth-in-Lending Act (15 U.S.C. § 1601 et seq.), as implemented by Regulation Z, 12 C.F.R. §
1026.39, requires a covered person, as defined in § 1026.39(a), to provide certain disclosures to the
consumer on or before the 30th calendar day following the date of a mortgage purchase, assignment, or
transfer as outlined in § 1026.39(b)(1) through (b)(5). These disclosures are not required with respect to a
particular mortgage loan if one of the exceptions under § 1026.39(c) apply. The disclosure must comply
with the content requirements outlined in § 1026.39(d)(1) through (d)(5).

TILA-E 1026.40(a)-(b)

The Truth-in-Lending Act (15 U.S.C. § 1601 et seq.), as implemented by Regulation Z, 12 C.F.R. §
1026.40(a) and (b), requires that the home equity credit plan disclosures under § 1026.40(d) follow the
form of disclosure requirements as outlined under § 1026.40(a)(1) through (a)(3) and the timing
requirements outlined under § 1026.40(b). The brochure required under § 1026.40(e), must also follow the
timing requirements under § 1026.40(b).

TILA-E 1026.40(d)-(e)

The Truth-in-Lending Act (15 U.S.C. § 1601 et seq.), as implemented by Regulation Z, 12 C.F.R. §
1026.40(d) and (e), requires the creditor to provide home equity credit plan disclosures related to the
following, as applicable: (1) Retention of information, (2) Conditions for disclosed terms, (3) Security
interest and risk to home, (4) Possible actions by creditor, (5) Payment terms, (6) Annual percentage rate,
(7) Fees imposed by creditor, (8) Fees imposed by third parties to open a plan, (9) Negative amortization,
(10) Transaction requirements, (11) Tax implications, and (12) Disclosures for variable-rate plans. In

II-14.100 FDIC Consumer Compliance Examination Manual — November 2023

 II. Consumer Compliance Examinations — FOCUS Violation Codes

Violation
Code Description

addition, the home-equity brochure entitled “What You Should Know About Home Equity Lines of Credit”
or a suitable substitute shall be provided as required by § 1026.40(e).

TILA-E 1026.40(f)

The Truth-in-Lending Act (15 U.S.C. § 1601 et seq.), as implemented by Regulation Z, 12 C.F.R. §
1026.40(f), requires creditors to adhere to limitations on home equity credit plans pertaining to (1)
Changing the annual percentage rate, (2) Terminating a plan, (3) Changing terms, and (4) Terminating
reverse mortgages subject to § 1026.33.

TILA-E 1026.40(g)

The Truth-in-Lending Act (15 U.S.C. § 1601 et seq.), as implemented by Regulation Z, 12 C.F.R. §
1026.40(g), requires the creditor to refund all fees paid by the consumer to anyone in connection with a
home equity credit plan application if any term required to be disclosed under § 1026.40(d) changes (other
than a change due to fluctuations in the index in a variable-rate plan) before the plan is opened and, as a
result, the consumer elects not to open the plan.

TILA-E 1026.40(h)

The Truth-in-Lending Act (15 U.S.C. § 1601 et seq.), as implemented by Regulation Z, 12 C.F.R. §
1026.40(h), prohibits a creditor from imposing a nonrefundable fee in connection with an application until
three business days after the consumer receives the home equity credit plan disclosures and brochure
required under this section.

TILA-E 1026.41(a)-(d)

The Truth-in-Lending Act (15 U.S.C. § 1601 et seq.), as implemented by Regulation Z, 12 C.F.R. §
1026.41(a) through (d), requires a servicer of closed-end consumer credit transactions secured by a
dwelling to comply with the periodic statement requirements pertaining to (a) General requirements, (b)
Timing, (c) Form, and (d) Content and layout.

TILA-E 1026.42(c)

The Truth-in-Lending Act (15 U.S.C. § 1601 et seq.), as implemented by Regulation Z, 12 C.F.R. §
1026.42(c), requires that a covered person, in connection with a covered transaction, as these terms are
defined in this section, not base the valuation of a consumer’s principal dwelling on any of the prohibited
practices outlined in § 1026.42(c)(1) and (c)(2) pertaining to (1) Coercion and (2) Mischaracterization of
value.

TILA-E 1026.42(d)

The Truth-in-Lending Act (15 U.S.C. § 1601 et seq.), as implemented by Regulation Z, 12 C.F.R. §
1026.42(d), prohibits conflicts of interest in the preparation of a valuation or performance of valuation
management functions, in connection with covered transactions as defined in this section. Subsections
1026.42(d)(2) through (d)(4) provide standards for compliance for employees and affiliates of creditors,
based on asset size from the past two calendar years, and for providers of multiple settlement services.

FDIC Consumer Compliance Examination Manual — November 2023 II-14.101

II. Consumer Compliance Examinations — FOCUS Violation Codes

Violation
Code Description

TILA-E 1026.42(e)

The Truth-in-Lending Act (15 U.S.C. § 1601 et seq.), as implemented by Regulation Z, 12 C.F.R. §
1026.42(e), prohibits creditors, in connection with a covered transaction as defined in this section, from
extending credit based on a valuation which the creditor knew, at or before consummation, violated §
1026.42(c) or (d), unless the creditor documents that it has acted with reasonable diligence to determine
that the valuation does not materially misstate or misrepresent the value of the consumer’s principal
dwelling.

TILA-E 1026.42(f)(1)

The Truth-in-Lending Act (15 U.S.C. § 1601 et seq.), as implemented by Regulation Z, 12 C.F.R. §
1026.42(f)(1), requires that the creditor and its agents compensate a fee appraiser for performing appraisal
services in covered transactions, as defined by this section, at a rate that is customary and reasonable for
comparable appraisal services performed in the geographic market of the property being appraised.

TILA-E 1026.42(g)

The Truth-in-Lending Act (15 U.S.C. § 1601 et seq.), as implemented by Regulation Z, 12 C.F.R. §
1026.42(g), requires any covered person, as defined in this section, to report within a reasonable time to the
appropriate state agency an appraiser that has materially failed to comply with the Uniform Standards of
Professional Appraisal Practice or ethical or professional requirements for appraisers under applicable state
or federal law or regulations. A material failure to comply exists if it is likely to significantly affect the
value assigned to the consumer’s principal dwelling.

TILA-E 1026.43(c)

The Truth-in-Lending Act (15 U.S.C. § 1601 et seq.), as implemented by Regulation Z, 12 C.F.R. §
1026.43(c), requires a creditor, in connection with a covered transaction as defined in this section, to make
a reasonable and good faith determination, at or before consummation, that a consumer will have a
reasonable ability to repay the loan, unless an exception applies under § 1026.43(d) through (f). A creditor
must consider the factors set forth in § 1026.43(c)(2) through (c)(7) to make an ability to repay
determination.
TILA-E 1026.43(g)

The Truth-in-Lending Act (15 U.S.C. § 1601 et seq.), as implemented by Regulation Z, 12 C.F.R. §
1026.43(g), requires a creditor to comply with the prepayment penalty requirements outlined under §
1026.43(g)(1) through (g)(5), for covered transactions defined in this section.

TILA-E 1026.43(h)

The Truth-in-Lending Act (15 U.S.C. § 1601 et seq.), as implemented by Regulation Z, 12 C.F.R. §
1026.43(h), prohibits a creditor from structuring credit secured by a consumer’s dwelling that does not
meet the definition of open-end credit in § 1026.2(a)(20) as an open-end plan to evade the requirements of
this section.

Truth in Lending Act/Regulation Z – Subpart F – Special Rules for Private Education Loans

TILA-F 1026.46(c)

II-14.102 FDIC Consumer Compliance Examination Manual — November 2023

 II. Consumer Compliance Examinations — FOCUS Violation Codes

Violation
Code Description

The Truth in Lending Act (15 U.S.C. § 1601 et seq.), as implemented by Regulation Z, 12 C.F.R. §
1026.46(c), requires creditors to make private education loan disclosures covered by Subpart F to be made
clearly and conspicuously, and in accordance with the disclosure requirements of § 1026.46(c)(2), and as
applicable, with the electronic disclosure requirements of § 1026.46(c)(3).

TILA-F 1026.46(d)

The Truth in Lending Act (15 U.S.C. § 1601 et seq.), as implemented by Regulation Z, 12 C.F.R. §
1026.46(d), requires a creditor to disclose private education loan information for applications or
solicitations under § 1026.47(a), approvals under § 1026.47(b), and acceptance under § 1026.47(c), based
on the timing requirements and contingencies specified under § 1026.46(d).

TILA-F 1026.46(e)

The Truth in Lending Act (15 U.S.C. § 1601 et seq.), as implemented by Regulation Z, 12 C.F.R. §
1026.46(e), requires private education loan disclosures to reflect the terms of the legal obligation between
the parties. If any information necessary for an accurate disclosure is unknown to the creditor, the creditor
must make the disclosure based on the best information reasonably available at the time the disclosure is
provided, and must clearly state that the disclosure is an estimate.

TILA-F 1026.46(f)

The Truth in Lending Act (15 U.S.C. § 1601 et seq.), as implemented by Regulation Z, 12 C.F.R. §
1026.46(f), requires that if a transaction involves more than one creditor, only one set of private education
loan disclosures will be given. The creditors must agree among themselves which creditor will comply
with the requirements that this part imposes on any or all of them.

TILA-F 1026.47(a)

The Truth in Lending Act (15 U.S.C. § 1601 et seq.), as implemented by Regulation Z, 12 C.F.R. §
1026.47(a), requires a creditor to provide certain disclosures on or with a solicitation or an application for a
private education loan, except as provided for under § 1026.46(d)(1)(iii) for loans with multiple purposes.
As applicable, the disclosures must contain the information outlined under § 1026.47(a)(1) through (a)(8).

TILA-F 1026.47(b)

The Truth in Lending Act (15 U.S.C. § 1601 et seq.), as implemented by Regulation Z, 12 C.F.R. §
1026.47(b), requires a creditor to provide certain disclosures for private education loans on or with any
notice of approval provided to the consumer. The disclosure must contain information required under §
1026.18 and the information outlined under § 1026.47(b)(1) through (b)(5).

TILA-F 1026.47(c)

The Truth in Lending Act (15 U.S.C. § 1601 et seq.), as implemented by Regulation Z, 12 C.F.R. §
1026.47(c), requires a creditor to provide certain disclosures for private education loans after the consumer
has accepted the loan in accordance with the requirements of § 1026.48(c)(1). The loan acceptance

FDIC Consumer Compliance Examination Manual — November 2023 II-14.103

II. Consumer Compliance Examinations — FOCUS Violation Codes

Violation
Code Description

disclosures must contain the information required under § 1026.18 and the information outlined under §
1026.47(c)(1) through (c)(4).

TILA-F 1026.48(a)

The Truth in Lending Act (15 U.S.C. § 1601 et seq.), as implemented by Regulation Z 12 C.F.R.
§1026.48(a), prohibits a creditor, other than the educational institution itself, from marketing educational
loans using an educational institution’s identifying characteristics, including name, logo, mascot, and
symbols in a way that implies that the covered educational institution endorses the creditor’s loans, unless,
as permitted by § 1026.48(b), the creditor and the educational institution have entered into an arrangement
where the educational institution agrees to endorse the creditor’s private education loans, such an
arrangement is not prohibited by other applicable law or regulation, and the marketing includes a disclosure
in the manner required under § 1026.48(b) that the creditor, not the educational institution, is making the
loan.

TILA-F 1026.48(c)

The Truth in Lending Act (15 U.S.C. § 1601 et seq.), as implemented by Regulation Z, 12 C.F.R. §
1026.48(c), requires the creditor to honor a consumer’s right to accept the terms of a private education loan
at any time within 30 calendar days following the date on which the consumer receives the disclosures
required under § 1026.47(b). Unless specifically permitted in § 1026.48(c)(3) or (c)(4), the creditor is
prohibited from changing the rate and terms of the private education loan that are required to be disclosed
under § 1026.47(b) and (c) prior to the earlier of the timeframes outlined in § 1026.48(c)(2)(i) and
(c)(2)(ii).

TILA-F 1026.48(d)

The Truth in Lending Act (15 U.S.C. § 1601 et seq.), as implemented by Regulation Z, 12 C.F.R. §
1026.48(d), requires the creditor to honor a consumer’s right to cancel a private education loan, without
penalty, until midnight of the third business day following the date on which the consumer receives the
disclosures required by § 1026.47(c). The creditor is prohibited from disbursing the funds of a private
education loan until the three-business day period has expired.

TILA-F 1026.48(e)

The Truth in Lending Act (15 U.S.C. § 1601 et seq.), as implemented by Regulation Z, 12 C.F.R. §
1026.48(e), requires that prior to consummating a private education loan, a creditor obtain from the
consumer or the institution of higher education the private education loan self-certification form developed
by the Secretary of Education, signed by the consumer, in written or electronic form.

TILA-F 1026.48(f)

The Truth in Lending Act (15 U.S.C. § 1601 et seq.), as implemented by Regulation Z, 12 C.F.R. §
1026.48(f), requires that a creditor with a preferred lender arrangement provide to the covered educational
institution the information required under § 1026.47(a)(1) through (a)(5), for each type of private education
loan the lender plans to offer to consumers for students attending the covered educational institution for the
period beginning July 1 of the current year and ending June 30 of the following year. The creditor must
provide the information annually, within the timeframes outlined in this section.

II-14.104 FDIC Consumer Compliance Examination Manual — November 2023

 II. Consumer Compliance Examinations — FOCUS Violation Codes

Violation
Code Description

Truth in Lending Act/Regulation Z – Subpart G – Special Rules Applicable to Credit Card Accounts and Open-
End Credit Offered to College Students

TILA-G 1026.51(a)

The Truth-in-Lending Act (15 U.S.C. § 1601 et seq.), as implemented by Regulation Z, 12 C.F.R. §
1026.51(a), prohibits a card issuer from opening a credit card account for a consumer under an open-end
(not home-secured) consumer credit plan, or increasing any credit limit applicable to such account, unless
the card issuer considers the consumer’s ability to repay to make the required minimum payment under the
terms of the account and establishes and maintains reasonable policies and procedures to consider the
consumer’s ability to repay as outlined under § 1026.51(a)(1)(i) through (a)(1)(ii). A creditor must use a
reasonable method for estimating the minimum periodic payments the consumer would be required to pay
under the terms of the account as outlined in § 1026.51(a)(2).

TILA-G 1026.51(b)

The Truth-in-Lending Act (15 U.S.C. § 1601 et seq.), as implemented by Regulation Z, 12 C.F.R. §
1026.51(b), prohibits a creditor from opening a credit card account under an open-end (not home-secured)
consumer credit plan for a consumer less than 21 years old, unless the consumer has submitted a written
application and the card issuer has complied with § 1026.51(b)(1)(i) or (b)(1)(ii), as applicable. A creditor
cannot increase the credit limit on a credit card account opened pursuant to § 1026.51(b)(1) before the
consumer is 21years old unless it follows the requirements of § 1026.51(b)(2)(i) or (b)(2)(ii), as applicable.

TILA-G 1026.52(a)

The Truth-in-Lending Act (15 U.S.C. § 1601 et seq.), as implemented by Regulation Z, 12 C.F.R. §
1026.52(a), requires that the total amount of fees a consumer pays on a credit card account under an open-
end (not home-secured) consumer credit plan during the first year after account opening must not exceed
25 percent of the credit limit in effect when the account is opened, except that this limitation does not apply
to fees listed under § 1026.52(a)(2).

TILA-G 1026.52(b)

The Truth-in-Lending Act (15 U.S.C. § 1601 et seq.), as implemented by Regulation Z, 12 C.F.R. §
1026.52(b), prohibits a card issuer from imposing a fee for violating the terms or other requirements of a
credit card account under an open-end (not home-secured) consumer credit plan unless the dollar amount of
the fee is consistent with § 1026.52(b)(1) through (b)(2).

TILA-G 1026.53

The Truth-in-Lending Act (15 U.S.C. § 1601 et seq.), as implemented by Regulation Z, 12 C.F.R. §
1026.53, requires that when a consumer makes a payment in excess of the required minimum payment for a
credit card account under an open-end (not home-secured) consumer credit plan, the creditor must allocate
the excess payment as specified by § 1026.53(a), except as provided under § 1026.53(b).

TILA-G 1026.54

FDIC Consumer Compliance Examination Manual — November 2023 II-14.105

II. Consumer Compliance Examinations — FOCUS Violation Codes

Violation
Code Description

The Truth-in-Lending Act (15 U.S.C. § 1601 et seq.), as implemented by Regulation Z, 12 C.F.R. §
1026.54, prohibits the card issuer from imposing finance charges as a result of the loss of a grace period on
a credit card account under an open-end (not home-secured) consumer credit plan if those finance charges
are based on: (i) balances for days in billing cycles that precede the most recent billing cycle; or (ii) any
portion of a balance subject to a grace period that was repaid prior to the expiration of the grace period,
except as provided for under § 1026.54(b).

TILA-G 1026.55(a)-(b)

The Truth-in-Lending Act (15 U.S.C. § 1601 et seq.), as implemented by Regulation Z, 12 C.F.R. §
1026.55(a) and (b), prohibits a card issuer from increasing an annual percentage rate or a fee, or a charge
required to be disclosed under § 1026.6(b)(2)(ii), (b)(2)(iii), or (b)(2)(xii) on a credit card account under an
open-end (not home-secured) consumer credit plan, except as provided in § 1026.55(b).

TILA-G 1026.55(c)(2)

The Truth-in-Lending Act (15 U.S.C. § 1601 et seq.), as implemented by Regulation Z, 12 C.F.R. §
1026.55(c)(2), prohibits a card issuer from requiring repayment of the protected balance using a method
that is less beneficial to the consumer than one of the methods outlined in § 1026.55(c)(2)(i) through
(c)(2)(iii).

TILA-G 1026.56(b)(1)

The Truth-in-Lending Act (15 U.S.C. § 1601 et seq.), as implemented by Regulation Z, 12 C.F.R. §
1026.56(b)(1), prohibits a card issuer from assessing a fee or charge on a consumer’s credit card account
under an open-end (not home-secured) consumer credit plan for an over-the-limit transaction unless the
card issuer complies with §1026.56(b)(1)(i) through (b)(1)(v).

TILA-G 1026.56(c)

The Truth-in-Lending Act (15 U.S.C. § 1601 et seq.), as implemented by Regulation Z, 12 C.F.R. §
1026.56(c), requires a card issuer who permits a consumer to consent to the card issuer’s payment of any
over-the-limit transaction in writing, orally, or electronically, to also permit the consumer to revoke his or
her consent using the same methods available to the consumer for providing consent.

TILA-G 1026.56(d)

The Truth-in-Lending Act (15 U.S.C. § 1601 et seq.), as implemented by Regulation Z, 12 C.F.R. §
1026.56(d), requires the card issuer to follow the timing and placement requirements of notices as outlined
in § 1026.56(d)(1) through (d)(3) regarding the (1) Initial notice, (2) Confirmation of opt-in, and (3) Notice
of right of revocation.

TILA-G 1026.56(e)

The Truth-in-Lending Act (15 U.S.C. § 1601 et seq.), as implemented by Regulation Z, 12 C.F.R. §
1026.56(e), requires the card issuer to comply with the content requirements for the initial notice and
subsequent notice as outlined in § 1026.56(e)(1) through (e)(2).

II-14.106 FDIC Consumer Compliance Examination Manual — November 2023

 II. Consumer Compliance Examinations — FOCUS Violation Codes

Violation
Code Description

TILA-G 1026.56(f)

The Truth-in-Lending Act (15 U.S.C. § 1601 et seq.), as implemented by Regulation Z, 12 C.F.R. §
1026.56(f), requires that if two or more consumers are jointly liable on a credit card account under an open-
end (not home-secured) consumer credit plan, the card issuer shall treat the affirmative consent of any of
the joint consumers as affirmative consent for that account. Similarly, the card issuer shall treat a
revocation of consent by any of the joint consumers as revocation of consent for that account.

TILA-G 1026.56(i)

The Truth-in-Lending Act (15 U.S.C. § 1601 et seq.), as implemented by Regulation Z, 12 C.F.R. §
1026.56(i), requires a card issuer to comply with a consumer’s revocation request as soon as reasonably
practicable after the card issuer receives it.

TILA-G 1026.56(j)

The Truth-in-Lending Act (15 U.S.C. § 1601 et seq.), as implemented by Regulation Z, 12 C.F.R. §
1026.56(j), prohibits a card issuer, notwithstanding a consumer’s affirmative consent to a card issuer’s
payment of over-the-limit transactions, from imposing over-the-limit fees or charges in excess of one per
cycle (unless the exception of § 1026.56(j)(1)(ii) applies) or solely because of the creditor’s failure to
promptly replenish the credit limit. A creditor is also prohibited from conditioning a credit limit on
whether a consumer provided affirmative consent, and charging over-the-limit fees attributed to fees or
interest charged by the cardholder.

TILA-G 1026.57(b)

The Truth-in-Lending Act (15 U.S.C. § 1601 et seq.), as implemented by Regulation Z, 12 C.F.R. §
1026.57(b), requires an institution of higher education to publicly disclose any contract or other agreement
made with a card issuer or creditor for the purpose of marketing a credit card to college students.

TILA-G 1026.57(c)

The Truth-in-Lending Act (15 U.S.C. § 1601 et seq.), as implemented by Regulation Z, 12 C.F.R. §
1026.57(c), prohibits a card issuer from offering a college student any tangible item to induce such student
to apply for or open an open-end consumer credit plan offered by such card issuer or creditor, if such offer
is made: (1) on a campus of the institution of higher education; (2) near the campus of an institution of
higher education; or (3) at an event sponsored by, or related to, an institution of higher education.

TILA-G 1026.57(d)

The Truth-in-Lending Act (15 U.S.C. § 1601 et seq.), as implemented by Regulation Z, 12 C.F.R. §
1026.57(d), requires a card issuer that was party to one or more college credit card agreements in effect at
any time during a calendar year to submit to the Consumer Financial Protection Bureau (CFPB) an annual
report regarding those agreements in the form and manner prescribed by the CFPB. The card issuer must
include in the annual report the required contents described in § 1026.57(d)(2) and must adhere to the
timing requirements prescribed in § 1026.57(d)(3).

TILA-G 1026.58(c)

FDIC Consumer Compliance Examination Manual — November 2023 II-14.107

II. Consumer Compliance Examinations — FOCUS Violation Codes

Violation
Code Description

The Truth-in-Lending Act (15 U.S.C. § 1601 et seq.), as implemented by Regulation Z, 12 C.F.R. §
1026.58(c), requires an issuer of credit cards under an open-end (not home-secured) consumer credit plan
to comply with the submission of credit card agreements to the Consumer Financial Protection Bureau as
outlined in § 1026.58(c)(1) through (c)(8), unless an exception applies.

TILA-G 1026.58(d)

The Truth-in-Lending Act (15 U.S.C. § 1601 et seq.), as implemented by Regulation Z, 12 C.F.R. §
1026.58(d), requires an issuer of credit cards under an open-end (not home-secured) consumer credit plan
to post its credit card agreements on its publicly available Web site as outlined in § 1026.58(d)(1) through
(d)(4).

TILA-G 1026.58(e)

The Truth-in-Lending Act (15 U.S.C. § 1601 et seq.), as implemented by Regulation Z, 12 C.F.R. §
1026.58(e), requires an issuer of credit cards under an open-end (not home-secured) consumer credit plan
to comply with the agreement requirements for all open accounts as outlined in § 1026.58(e)(1) through
(e)(3).

TILA-G 1026.59

The Truth-in-Lending Act (15 U.S.C. § 1601 et seq.), as implemented by Regulation Z, 12 C.F.R. §
1026.59, requires an issuer of credit cards under an open-end (not home-secured) consumer credit plan to
comply with the requirements of § 1026.59(a)(1) for the evaluation of increased rates and § 1026.59(a)(2)
for rate reductions. In addition, card issuers must comply with the requirements for the evaluation of rate
increases as specified in § 1026.59(b) through (h), including, written policies and procedures, timing,
review of factors considered in determining the applicable annual percentage rate, rate increases due to
delinquency, and the rules for acquired credit card accounts.

TILA-G 1026.60(a)

The Truth-in-Lending Act (15 U.S.C. § 1601 et seq.), as implemented by Regulation Z, 12 C.F.R. §
1026.60(a), requires the card issuer to provide the disclosures required under this section on or with a
solicitation or an application to open a credit or charge card account. These disclosures shall follow the
format specified under § 1026.60(a)(2) and follow the requirements of § 1026.60(a)(4) for fees that can
vary by state.

TILA-G 1026.60(b)-(f)

The Truth-in-Lending Act (15 U.S.C. § 1601 et seq.), as implemented by Regulation Z, 12 C.F.R. §
1026.60(b) through (f), requires the card issuer to disclose the items in these subsections, unless an
exception applies, on or with an application or a solicitation to open a credit or charge card account.

TILA-G 1026.61(b)

The Truth in Lending Act (15 U.S.C. § 1601 et. seq.), as implemented by Regulation Z, § 1026.61(b),
prohibits a hybrid prepaid-credit card issuer from structuring the credit feature as a negative balance on the

II-14.108 FDIC Consumer Compliance Examination Manual — November 2023

 II. Consumer Compliance Examinations — FOCUS Violation Codes

Violation
Code Description

asset feature of a prepaid account. Instead, the credit feature must be structured as a separate credit feature,
as described in this subsection.

TILA-G 1026.61(c)

The Truth in Lending Act (15 U.S.C. § 1601 et. seq.), as implemented by Regulation Z, § 1026.61(c),
prohibits a card issuer from engaging in the activities in § 1026.61(c)(1)(i) through (c)(1)(iii), with respect
to a covered separate feature that could be accessible at any point by a hybrid prepaid-credit card, until 30
days after the prepaid account has been registered.

Truth in Savings Act/Regulation DD

TISA 1030.3

The Truth in Savings Act (12 U.S.C. § 4301 et seq.), as implemented by Regulation DD, 12 C.F.R. §
1030.3, requires a financial institution to make disclosures required by §§ 1030.4 through 1030.6 of this
part, as applicable, clearly and conspicuously, in writing, and in a form the consumer may keep. The
disclosures should also meet the requirements of § 1030.3(b) through (f) regarding the terms of the legal
obligation; responding to oral inquiries; and the rounding and accuracy rules for rates and yields.
Disclosures required by, and provided in accordance with, the Electronic Funds Transfer Act and its
implementing Regulation E, that are also required by this part may be substituted for the disclosures
required by this part.

TISA 1030.4(a)-(b)

The Truth in Savings Act (12 U.S.C. § 4301 et seq.), as implemented by Regulation DD, 12 C.F.R. §
1030.4(a) and (b), requires a financial institution to provide account disclosures to a consumer before an
account is opened or a service provided, whichever is earlier, and to provide account disclosures to a
consumer upon request. The account disclosures must contain the information required by § 1030.4(b).

TISA 1030.5(a)

The Truth in Savings Act (12 U.S.C. § 4301 et seq.), as implemented by Regulation DD, 12 C.F.R. §
1030.5(a), requires a financial institution to provide advance notice to affected consumers of any change in
terms required to be disclosed under § 1030.4(b), if the change reduces the annual percentage yield or
adversely affects the consumer, except as permitted under § 1030.5(a)(2). The notice must include the
effective date of the change, and be mailed or delivered at least 30 calendar days before the effective date
of the change.

TISA 1030.5(b)-(c)

The Truth in Savings Act (12 U.S.C. § 4301 et seq.), as implemented by Regulation DD, 12 C.F.R. §
1030.5(b) and (c), requires a financial institution to provide disclosures before maturity, by disclosing
specific information for time accounts longer than one month that renew automatically; and time accounts
longer than one year that do not renew automatically. These disclosures must be provided in accordance
with the content and timing requirements of subsections (b) and (c).

FDIC Consumer Compliance Examination Manual — November 2023 II-14.109

II. Consumer Compliance Examinations — FOCUS Violation Codes

Violation
Code Description

TISA 1030.6

The Truth in Savings Act (12 U.S.C. § 4301 et seq.), as implemented by Regulation DD, 12 C.F.R. §
1030.6, requires a financial institution to provide certain periodic statement disclosures. Section 1030.6(a)
requires a financial institution that mails or delivers a periodic statement to include disclosures of the
annual percentage yield earned; amount of interest; fees imposed; length of the statement period; and total
overdraft and returned item fees as required by § 1030.11(a). The institution must also meet the
requirements of § 1030.6(b) when the financial institution uses the average daily balance method and
calculates interest for a period other than the statement period.

TISA 1030.7

The Truth in Savings Act (12 U.S.C. § 4301 et seq.), as implemented by Regulation DD, 12 C.F.R. §
1030.7, requires a financial institution to calculate interest on the full amount of principal in an account
each day using permissible methods, and to use the same method in determining any minimum balance to
earn interest. This section also requires that interest begin to accrue not later than the business day
specified for interest-bearing accounts as set out in the Expedited Funds Availability Act (12 U.S.C. §
4005) and its implementing Regulation CC (12 C.F.R. part 229).

TISA 1030.8(a)

The Truth in Savings Act (12 U.S.C. § 4301 et seq.), as implemented by Regulation DD, 12 C.F.R. §
1030.8(a), prohibits a financial institution from advertising in a way that is misleading or inaccurate, or that
misrepresents an institution’s deposit contract. An institution’s advertisements cannot refer to, or describe,
an account as “free” or “no cost” (or contain a similar term), if any maintenance activity fee may be
imposed on the account, or use the word “profit” in referring to interest paid on an account.

TISA 1030.8(b)-(c)

The Truth in Savings Act (12 U.S.C. § 4301 et seq.), as implemented by Regulation DD, 12 C.F.R. §
1030.8(b) and (c), requires that, if a financial institution advertises a rate of return, the advertisement state
the rate as an “annual percentage yield” using that term (the abbreviation APY may be used as long as
“annual percentage yield” is used at least once in the advertisement). The only other rate that may be stated
is "interest rate" if not more conspicuous than the annual percentage yield to which it is related. In
addition, except as provided by § 1030.8(e), if the financial institution advertises the annual percentage
yield, the advertisement must clearly and conspicuously state information, as applicable, regarding variable
rates; the time the annual percentage yield is offered; any minimum balance and minimum opening deposit
requirements; the effect of any fees; and the features of time accounts.

TISA 1030.8(d)

The Truth in Savings Act (12 U.S.C. § 4301 et seq.), as implemented by Regulation DD, 12 C.F.R. §
1030.8(d), requires that, except as provided by § 1030.8(e), if a financial institution advertises a bonus, the
advertisement must clearly and conspicuously state the “annual percentage yield,” using that term; the time
requirement to obtain the bonus; the minimum balance required to obtain the bonus; the minimum balance
required to open the account; and when the bonus will be provided.

TISA 1030.9(c)

II-14.110 FDIC Consumer Compliance Examination Manual — November 2023

 II. Consumer Compliance Examinations — FOCUS Violation Codes

Violation
Code Description

The Truth in Savings Act (12 U.S.C. § 4301 et seq.), as implemented by Regulation DD, 12 C.F.R. §
1030.9(c), requires a financial institution to retain evidence of compliance with the requirements of part
1030 for a minimum of two years after the date disclosures are required to be made or action is required to
be taken.

TISA 1030.11(a)

The Truth in Savings Act (12 U.S.C. § 4301 et seq.), as implemented by Regulation DD, 12 C.F.R. §
1030.11(a), requires a financial institution to separately disclose on each periodic statement, as applicable,
the total dollar amount for all fees or charges imposed on the account for paying checks or other items
when there are insufficient or unavailable funds and the account becomes overdrawn, using the term “Total
Overdraft Fees;” and the total dollar amount for all fees or charges imposed on the account for returning
items unpaid. These fee disclosures must be provided for the statement period and for the calendar year-to-
date, using the format requirements of § 1030.11(a)(3).

TISA 1030.11(b)

The Truth in Savings Act (12 U.S.C. § 4301 et seq.), as implemented by Regulation DD, 12 C.F.R. §
1030.11(b), requires a financial institution to disclose in a clear and conspicuous manner in any
advertisement promoting the payment of overdrafts, except as provided in § 1030.11(b)(2) through (b)(4),
the fee(s) for payment of each overdraft; the categories of transactions for which a fee for paying an
overdraft may be imposed; the time period by which the consumer must repay or cover any overdraft; and
the circumstances under which the institution will not pay an overdraft.

TISA 1030.11(c)

The Truth in Savings Act (12 U.S.C. § 4301 et seq.), as implemented by Regulation DD, 12 C.F.R. §
1030.11(c), prohibits a financial institution from disclosing balance information to a consumer through an
automated system that includes “additional amounts” that the institution may provide to cover an item
when there are insufficient or unavailable funds in the consumer’s account, whether under a discretionary
service, a service subject to Regulation Z (12 C.F.R. part 1026), or a service to transfer funds from another
account of the consumer. A financial institution may, at its option, disclose additional balances that include
such additional amounts if the institution prominently states that balances include the additional amounts
and, if applicable, that the amounts are not available for all transactions.

Unfair & Deceptive Acts or Practices (Section 5 of FTC Act)

UDAP Section 5(No Subsection–Unfair)

Section 5 of the Federal Trade Commission Act of 1914 (15 U.S.C. § 45) prohibits unfair acts or practices.
An act or practice is “unfair” where it (1) causes or is likely to cause substantial injury to consumers; (2)
cannot be reasonably avoided by consumers; and (3) is not outweighed by countervailing benefits to
consumers or to competition. Public policy may also be considered in the analysis of whether a particular
act or practice is unfair.

FDIC Consumer Compliance Examination Manual — November 2023 II-14.111

II. Consumer Compliance Examinations — FOCUS Violation Codes

Violation
Code Description

UDAP Section 5(No Subsection–Deceptive)

Section 5 of the Federal Trade Commission Act of 1914 (15 U.S.C. § 45) prohibits deceptive acts or
practices. To determine whether a representation, omission, or practice is “deceptive,” a three-part test is
used. First, the representation, omission, or practice must mislead or be likely to mislead the consumer.
Second, the consumer’s interpretation of the representation, omission, or practice must be reasonable under
the circumstances. Lastly, the misleading representation, omission, or practice must be material.

Unfair, Deceptive, Abusive Acts or Practices (Section 1036 of Dodd-Frank Wall Street Reform and Consumer
Protection Act)

Note: This category only includes the violation code for abusive. See the UDAP category for the deception and unfairness
violation codes.

UDAAP Section 1036(a)(1)(B)

Section 1036(a)(1)(B) of the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010 (12
U.S.C. § 5536(a)(1)(B)) prohibits any covered person or service provider from engaging in, among other
things, abusive acts or practices in connection with a consumer financial product or service. As provided in
section 1031(d) of the Act, an act or practice is abusive if it: (1) materially interferes with the ability of a
consumer to understand a term or condition of a consumer financial product or service; or (2) takes
unreasonable advantage of: (A) a lack of understanding on the part of the consumer of the material risks,
costs, or conditions of the product or service; (B) the inability of the consumer to protect the interests of the
consumer in selecting or using a consumer financial product or service; or (C) the reasonable reliance by
the consumer on a covered person to act in the interests of the consumer.
[UDAAP Section 1036(a)(1)(B)]

II-14.112 FDIC Consumer Compliance Examination Manual — November 2023