With so much focus on Consumer Compliance documentation, on occasion it can be useful to step back and take a look at some of the most common commercial compliance documentation questions/potential pitfalls. Here are just a few documentation items for consideration.



Flood insurance applies for each collateral improved piece of real estate located in a special flood hazard area. This includes “abundance of caution” or “incidental collateral.”


Commercial Loans

  • Joint application acknowledgement (individuals)
  • Beneficial Ownership Certification (as applicable)
  • Business entity verification with appropriate State authority (e.g., Secretary of State)
  • Remember spousal guaranty rules – can’t require spouse unless require all corporate officers and spouse is a corporate officer


Commercial Loan (Real Estate Secured)

  • Appraisal Notice
  • OFAC – Borrower, Beneficiaries, Guarantor, POA’s; OFAC or non-customer seller on purchase transaction prior to proceeds disbursement
  • Environmental Phase I
  • Determination if LTV over Supervisor Limit
  • HMDA applies only if secured by a dwelling and made to purchase a dwelling, to refinance a dwelling, or to make home improvements. Short-term builder loans are not reportable and business spec. loans are not reportable.

Of course, Regulation O applicability should be considered as well.

Hopefully, this brief summary of these few items on the commercial side will be of benefit.