CRCM key terms

A federal regulation implementing the Truth in Savings Act that requires banks to disclose deposit account terms, fees, and interest in a standardized format and sets advertising rules for deposit accounts.

The standardized annual rate of return on a deposit account, reflecting compounding interest and stated as a percentage; it is designed to let consumers compare deposit products.

A federal regulation implementing the Electronic Fund Transfer Act that establishes consumer rights and error-resolution procedures for electronic transfers, including debit cards, ATM transactions, and certain prepaid accounts.

A federal regulation implementing the Expedited Funds Availability Act that sets maximum hold times for deposited checks and governs return of unpaid checks and substitute checks.

A paper reproduction of an original check created under the Check 21 Act that is legally equivalent to the original and can be processed electronically.

The process by which a bank transfers unclaimed or dormant deposit funds to the state after a statutory period, following required notices and due diligence to locate the owner.

A bank's legal ability, often governed by contract and state law, to apply a depositor's funds to offset a matured debt the depositor owes the same bank.

A requirement under Regulation E that a consumer affirmatively consent before a bank may charge a fee for covering ATM and one-time debit card transactions that overdraw the account.

Federal protection that insures deposits at insured banks up to the statutory limit per depositor, per institution, and per ownership category if the bank fails.

A federal regulation implementing the Truth in Lending Act that requires disclosure of credit terms and costs for consumer loans and governs related advertising and servicing practices.

The standardized annual cost of consumer credit, including interest and certain fees, expressed as a percentage so borrowers can compare credit offers.

The total cost of consumer credit as defined by Regulation Z, including interest and certain loan fees, but excluding items the regulation specifically excludes.

Rules requiring mortgage lenders to make a reasonable, good-faith determination that a borrower can repay a loan and establishing legal protections for qualified mortgages that meet specified criteria.

A federal regulation implementing the Real Estate Settlement Procedures Act that governs mortgage servicing, escrow accounts, disclosures, and resolution of borrower complaints and errors.

An account used to hold borrower funds for property taxes and insurance and to make payments when due, subject to limits and disclosure requirements under Regulation X.

A federal law requiring certain mortgage lenders to collect, report, and publicly disclose data about loan applications, approvals, denials, and borrower characteristics to detect discriminatory lending patterns.

A federal regulation implementing the Equal Credit Opportunity Act that prohibits credit discrimination based on protected characteristics and requires notices and recordkeeping for credit decisions.

A required communication telling a credit applicant that their application was denied or terms were changed adversely, including the reasons for the decision or how to obtain them.

A federal law requiring flood insurance for certain loans secured by property in special flood hazard areas and mandating notice and escrow requirements.

Insurance a lender purchases on behalf of a borrower who fails to maintain required coverage, typically at the borrower's expense and subject to notice and fee rules.

Specific words or phrases in credit or deposit advertising, such as an interest rate or payment amount, that require additional disclosures to prevent misleading offers.

A standard requiring disclosures and marketing statements to be presented in a way that is easily noticeable, readable, and understandable to the intended audience.

A required statement and logo used in mortgage advertising to show that a lender does not discriminate and complies with fair housing and equal credit opportunity laws.

A federal law restricting automated telephone calls and text messages, requiring prior express consent for many marketing contacts, and providing consumers a private right of action.

A federal law governing commercial email that requires accurate header information, a clear opt-out mechanism, and prompt honoring of unsubscribe requests.

A firm offer of credit made to consumers selected using credit report information under FCRA, subject to notice, opt-out, and firm-offer requirements.

A legal obligation to act in the best interest of a client or beneficiary, placing the client's interests ahead of the institution's own interests and avoiding conflicts.

A custodial account holding assets for a minor under the Uniform Transfers to Minors Act, with the custodian managing the property until the minor reaches the statutory age.

A tax-advantaged savings account for eligible individuals with high-deductible health plans, used for qualified medical expenses and subject to IRS contribution and distribution rules.

A SEC rule requiring broker-dealers and associated persons to act in the best interest of retail customers when recommending securities, without putting their own interests ahead.

A card, code, or other device used to access funds loaded in advance; many prepaid accounts are subject to Regulation E consumer protections, including error resolution and disclosures.

A legal standard prohibiting unfair, deceptive, or abusive acts or practices in consumer financial products and services, enforced by federal and state regulators.

A framework of federal laws and regulations requiring financial institutions to detect, report, and deter money laundering and terrorist financing, including customer due diligence and recordkeeping.

A confidential report financial institutions file with FinCEN when they detect suspicious activity that may involve money laundering, fraud, or other financial crimes.

A required program under the Bank Secrecy Act for verifying the identity of customers opening accounts, maintaining records, and checking against government lists.

The U.S. Treasury office that administers economic and trade sanctions; banks must screen customers and transactions and block or reject prohibited dealings.

A federal law requiring financial institutions to protect nonpublic personal information, provide privacy notices, and allow consumers to limit certain information sharing.

A governance model in which business units own risk, a compliance or risk function monitors and advises, and internal audit provides independent assurance to the board.