State and federal laws require financial institutions to apply automatic exemptions when served with a levy or garnishment against a depositor. This imposes an obligation on  the institution to leave a certain amount on deposit in accounts of a depositor without requiring the depositor to take any action.

 

Historically, these automatic exemptions were limited to situations where a depositor’s account received direct (electronic) deposits of certain state and federal benefit payments. The available automatic exemptions have expanded over the years to include other exemptions for set amounts, such as a child support order with a $3,500 exemption and California’s SB 616 exemption, which is applicable to all natural persons who maintain an account with a financial institution.

 

This is a very confusing and complicated area of law, especially since some automatic exempt amounts are required to be “stacked” with other exemptions while others require institutions to only apply the exemption that is for the higher amount.

 

This program will help guide financial institutions in applying the different exemptions, whether served with a government or private party levy or other type of garnishment.  

 

 

Flood insurance compliance can be complicated, and even seemingly minor missteps can lead to significant regulatory problems. From determining when coverage is required to calculating the appropriate amount of insurance, lenders must navigate a wide range of requirements throughout the life of a loan. Whether you work in mortgage lending, commercial real estate lending, servicing, or compliance, this Webinar will help you stay above water and avoid getting caught in the current of flood insurance compliance.