ABA and other experts, coordinated by Christine Walika, federal regulatory representative, answer selected banker questions in this space. Write on letterhead to: Steve Cocheo, ABA Compliance Mailbox, c/o ABA Banking Journal, 345 Hudson St., New York, N.Y. 10014. Or fax questions to (212) 633-1165.

Fair Lending, Consumer Loans, and Driver's Licenses

Q. I noticed during loan review that our loan officers routinely copy a customer's driver's license for inclusion in the loan file as a means of verifying identification. Would there be a fair-lending implication here?--N.C., Ill.

A. Yes indeed. Because banks cannot collect this type of data for consumer loans, examiners would probably first ask why it is being done and, depending on the answer, either issue a warning or cite the bank for a Regulation B violation. (First-time offenders are not typically cited.) A suggestion from some fair-lending experts at the agencies that we talked to is that banks that use such photocopies for security purposes ask for the licenses at the closing, using a form or checklist that says that identification was verified when the funds were released, instead of copying the driver's license.

However, an attorney at the Fed says that it isn't valid to argue that getting the identification after the loan decision exempts a bank from fair-lending concerns. The attorney says that the Fed's position is that a photo in a file could be used to discriminate on workouts, foreclosures, or collections efforts--all long after the loan decision.

How to Learn About New Flood Maps

Q. If flood maps are changed, are banks in the area notified? Where do we get new maps?--F.N., Tenn.

A. Banks are not automatically sent new maps when a change occurs; however, you can make arrangements with the Federal Emergency Management Agency (FEMA) to be notified of changes.

There are two types of map changes, according to a FEMA map expert: a letter of map change and an actual reprinting of the map. In most cases changes do not warrant a map reprinting, so FEMA issues a "letter of map change," which is then just attached to the current map.

For example, a developer may add fill to raise a proposed subdivision above flood elevation. In this case, a letter of map change to be shown on the map would be sent--instead of a map reprinting. If the changed area is large enough, FEMA may send an annotated copy of the current map with the changes highlighted, but a new map would still probably not be reprinted. Only significant changes in the flood map would require a completely new map to be printed.

A listing of all map changes is published twice per year in the Federal Register. However, if you would like to receive notification of all FEMA map changes, you can subscribe to FEMA's Letter of Map Change Distribution service at the cost of $2,000 per year. The service includes, bi-monthly, a copy of every letter of map change that FEMA issues. But be careful what you ask for--the material amounts to about 1,500 pages at approximately five to ten pounds-twice per month. FEMA is working toward having this information available on the Internet.

For banks that would just like information on their market areas, with a deposit account or credit card number on file, FEMA will put you in their database and send out notices of physical map changes as needed. Call the map service center for more information at 1-800-358-9616. Or for general information regarding FEMA publications call 1-800-611-6125.

Currency Transaction Reports

Q. Would you need to file a currency transaction report (CTR) in this circumstance: A customer arrives at a bank and wants to send a $10,000 wire transfer to an individual in another institution. The customer pays for the wire in cash and is assessed a $20 fee?--R.S., Va.

A. Yes, a CTR would need to be filed. The $20 fee (provided it was paid in cash) would be added to the $10,000 wire transfer, thus making it a $10,020 cash transaction.

This column is intended to provide accurate and authoritative information in response to questions submitted by readers. The information pertains to federal banking law and regulation. State and other laws and regulations, as well as details not mentioned in questions, may also bear on the specific circumstances discussed. In no respect is the information provided intended as a substitute for legal or accounting advice. In the event legal or accounting advice is required, services of a competent professional should be sought.