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1:30 - 2:30 p.m. Central Time | With Andy Zavonia and John Burnett
- 1 Multimedia
- 2.0 hrs
These are strange times to be a banker because COVID-19 has changed everything. There are new customer needs on a grand scale and the situation is not good for so many customers. Regulatory agencies are sending notices that banks should assist customers in need. But these notices also say, “in a safe and sound manner.” The CARES Act is going to provide up to a year of forbearance on some mortgage loans based on a borrower’s request. Then management asks Compliance and lenders if they want to automatically offer, 3-, 4-or 5-payment extensions to borrowers? Where is the balance between assistance and a practice that is unsafe or unsound? The answer is, you don’t really want to wait for your examiner’s opinion a year from now. This should be defined by the bank, now.
The rules are constantly developing and being updated. This includes loan programs, payment extensions, and Bank Secrecy Act reporting requirements. A potential “gotcha” here is that lenders are not as conversant in the BSA as operations staff. But lenders have been put on notice by the agencies that BSA does apply.
Policies need to be applied equally across the board.
- One lender cannot decide to extend a mortgage payment several months without a written agreement as to what is happening, what is owed and when
- Are new disclosures required?
- What if this is in a flood area?
- When is adverse action required?
- What if an insider wants a new Paycheck Protection Program loan, but is already at the bank’s lending limit?
These are the issues we will address. This one-hour session will not discuss proper underwriting requirements of the SBA or special loan programs as these seem to be ever-developing.
John Burnett is a 1979 alumnus of the ABA National Compliance School, and served on its faculty for several years. He graduated with honors with the Class of 1990 from ABA's Stonier Graduate School of Banking, and is also a graduate of the BAIs and the Massachusetts Banker Associations Schools of Banking.
John began his banking career in high school when he started as a teller at a $15 million bank that didn't have account numbers for its checking accounts (he says they actually filed by signature!) He joined Cape Cod Bank and Trust Company in 1971 and assumed the position of Compliance Officer in 1976. He also served as corporate secretary and secretary of CCBT's Board of Directors, as well as Clerk of the bank's holding company.
John joined Glia Group, Inc. and the BankersOnline.com team in June, 2004. He is a frequent presenter of BOL Learning Connect webinars, and at BOL Conferences events.
He was a member of the Massachusetts Bankers Association Legal and Regulatory Compliance Committee, and a former member of the American Bankers Association Compliance Executive Committee and NCS/NGCS Advisory Board. He served on ABA's Truth in Savings Task Force as Regulation DD was being written, and has served on several ABA and Massachusetts Bankers seminar panels.
Mr. Andy Zavoina, CRCM, is an Executive Vice President with the Glia Group, Inc., best known for its involvement with BankersOnline.com. He joined Glia and BOL in 2003.
Mr. Zavoina has been in finance and banking for 35 years. Over 20 years were with a two-bank holding company that had $534 million in assets, 89 branches spanning Texas and nearly 500 ATMs. He has done loan workouts, has been a consumer, commercial and real estate lender and managed those departments, as well as being his banks first Webmaster. He was responsible for compliance -management, -auditing, and -training for both banks.
Mr. Zavoina is a recipient of the American Bankers Association’s Distinguished Service Award for his involvement and accomplishments in the field of regulatory compliance management. He is a past Chairman of the ABA’s Compliance Executive Committee, the Editorial Advisory Board for the ABA Compliance Magazine and served as a member of the ABA’s Compliance School Board. He is a BankersOnline Guru. He also served on the Texas Bankers Association's Compliance Committee.
He is a graduate of the ABA National Commercial Lending School, National Compliance and National Graduate Compliance School and is a Certified Regulatory Compliance Manager with the Institute of Certified Bankers. He has written articles and lectured on compliance, the use of the internet and technology as a tool, as well as compliance in cyberspace to local, state and national associations across the U.S. and teaches basic compliance and compliance management.