Handling loan-insurance tie-ins without getting into knots.(MAILBOX) From: ABA Banking Journal | Date: February 1, 2008| Author: Callaway, Leslie | COPYRIGHT 2008 Simmons-Boardman Publishing Corporation. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan.  All inquiries regarding rights should be directed to the Gale Group.Copyright information

Q. Can we require customers to insure their home with our affiliated insurance company in order to receive a special loan offer?

A. This appears to be a violation of regulations regarding consumer protections in sales of insurance. Each federal banking regulator was required to adopt regulations to protect consumers in bank sales of insurance, as required in the Gramm-Leach-Bliley Act of 1999. The FDIC's regulations are found at 12 CFR Part 340. Certain tying arrangement...