Fed Launches Off-Site Reviews for Electronic Loan Records

The Federal Reserve today announced that the banking organizations it supervises with less than $50 billion in assets may choose to have Fed examiners review loan files off-site, provided the bank can transmit readable and comprehensive loan information securely. The move to streamline the exam process has been signaled by top Fed officials for years and is expected to reduce the burden that on-site exams place on the day-to-day operations of community banks.

According to Fed guidance, for banks that have demonstrated their ability to meet the security, imaging and comprehensiveness requirements, “Reserve Banks should make all efforts to accommodate the request for an off-site loan review.” The Fed said it would handle submitted loan data in accordance with its existing security policies and practices.