There are signage requirements in both Illinois and federal laws, and whether these signs or notices are required depends on the activities performed at your corporate headquarters. In addition, some of these requirements apply only if the corporate headquarters is your “main office” or a “branch.” While you have told us that the corporate headquarters is not your main office, based on the activities you have described, it may be considered to be a branch by your Illinois or primary federal regulator, and we recommend consulting with both the IDFPR and the FDIC for their input in your case.
FEDERAL SIGNAGE REQUIREMENTS
Equal Housing Lender/Equal Housing Opportunity Notice: Both the FDIC and HUD require the display of an “Equal Housing Lender/Equal Housing Opportunity Poster.” The FDIC’s equal housing rules state that its Equal Housing Lender poster may be used as a substitute for HUD’s Equal Housing Opportunity poster — see 12 CFR 338.4(c). The FDIC requires that one or the other Equal Housing Lender poster must be displayed at “each bank engaged in extending loans for the purpose of purchasing, constructing, improving, repairing, or maintaining a dwelling or any loan secured by a dwelling . . . in a central location within the bank where deposits are received or where such loans are made.” 12 CFR 338.4(a). While it is not clear what is meant by “extending loans” for purposes of the FDIC’s equal housing rules, we believe that the HUD’s requirements are broad enough to apply to your corporate headquarters. HUD requires that the Equal Housing Opportunity Poster be “prominently displayed so as to be readily apparent to all persons seeking housing accommodations or seeking to engage in residential real estate-related transactions.” 24 CFR 110.15. Accepting loan applications and payments and making loan modifications would seem to be covered by this language, and accordingly, we think it would be prudent to display the Equal Housing Opportunity Poster.
CIP Notice: If your loan applications do not include the customer identification program (CIP) notice, then you most likely would be expected to display the CIP notice in the lobby of your corporate headquarters. The CIP rules require you to provide some form of notice of your CIP requirements so that a customer is able to view the notice before opening an account. 31 CFR 1020.220(a)(5)(ii). Because the CIP rules define “account” to include any “formal banking relationship,” such as “a credit account [or] other extension of credit,” we believe they will apply if customers are making loans or loan modifications at your corporate headquarters. 31 CFR 1020.100(c)(1)(i). Forms of adequate notice include a notice in your lobby, a notice on your account applications, or “any other form of written or oral notice.” Id.
Branch and Main Office Notices: Three notices apply at a financial institution’s “branch” or “main office” – the HMDA Data Availability Notice (12 CFR 1003.5(e)), the CRA notice (12 CFR 345.44), and the Annual Disclosure Statement notice (12 CFR 350.7). The HMDA rules state that a financial institution must post a general notice about the availability of its HMDA data in the lobby of each branch office located in a Metropolitan Statistical Area (MSA). 12 CFR 1003.5(e). The CRA rules require a bank to provide the CRA notice in the public lobby of its main office and each of its branches. 12 CFR 345.4412 CFR Part 345, Appendix B, subsection (b) (branches). The Annual Disclosure Statement notice must be displayed in the lobby of your main office and each branch. 12 CFR 350.7(b).
If your regulators require you to register the corporate headquarters as a branch, all of the above notices should be displayed, and we believe it would be prudent to consult with your regulators to determine whether the activities at your corporate headquarters would cause it to be considered a branch. The FDIC defines a “branch” using a three-prong test: First, the facility must receive deposits, pay checks, or lend money (activities known as the “core banking functions”). Second, the facility must be established by the bank. Third, the facility must provide the bank some advantage in its competition for customers – “it must offer the bank’s customers some convenience that gives the bank a competitive advantage over other banks” (such as access to the public). Advisory Opinion 99-2. If your corporate headquarters is considered to be a branch, then you should post the HMDA Data Availability Notice, the CRA Notice, and the Annual Disclosure Notice. [The FDIC has informed the IBA that it has removed all of its advisory opinions from its website due to a high risk of staleness. We have provided links to archived versions of the advisory opinions for your convenience. If you have a question about an advisory opinion, the FDIC recommends that you contact your FDIC Field Office, which you can find by clicking here.]
ILLNOIS SIGNAGE REQUIREMENTS
Illinois Promissory Note and Bank Holiday Notice: The Illinois Promissory Note and Bank Holiday Act requires state-chartered banks to display a notice in the lobby of the main banking office and at any branches of the bank three weeks prior to the date the bank wishes to remain closed on a day other than when the bank is closed on a regular basis. 215 ILCS 630/17(c).
Even if your corporate headquarters is not your main office, these notices may be required if it is considered a branch under Illinois law. The Illinois Banking Act defines a “branch” as a place where “deposits are received, checks paid, or loans made, but shall not include any place at which only records thereof are made, posted, or kept.” 205 ILCS 5/2. Because you accept loan applications and perform loan modifications at your corporate headquarters, it is possible that it could be considered to be a branch.
State Insurance Product Notice: If your institution sells insurance products, you should display the required state insurance product notice in areas where you take applications for loans or other extensions of credit. The Illinois Insurance Code requires financial institutions to clearly display a sign about the availability of insurance products offered by the financial institution “in the same area where applications for loans or other extensions of credit are being taken or closed.” 215 ILCS 5/1414. The sign should include the following disclosure: “You may obtain insurance required in connection with your loan or extension of credit from any insurance agent, broker, or firm that sells such insurance. Your choice of insurance provider will not affect our credit decision or your credit terms.” 215 ILCS 5/1412(a).