The proposed transactions are subject to negotiation of a definitive contract, final due diligence, and regulatory approvals. The transaction is expected to be completed by the third quarter. Terms of the agreement, which are subject to regulatory approval, were not disclosed. Previously, only a spouse, child, or grandchild could qualify for this coverage. The new rules will become effective on April 1.
Banks typically have only a one-year transition period after a merger to combine computer systems.
These guidelines are intended to remind banks and thrifts of the risks inherent in subprime lending and to outline the types of controls the agencies expect banks to have in place before engaging in this field of lending.