For financial institutions, few events are more high-stakes than a regulatory examination or audit. Whether conducted by the FDIC, OCC, Federal Reserve, or state agencies, these reviews can uncover compliance gaps, trigger penalties, or lead to reputational harm. This makes working with a Pennsylvania banking law attorney a wise risk management decision.
What Triggers a Regulatory Examination?
Both federal and state regulators regularly examine banks, credit unions, and other lenders. These reviews assess everything from safety and soundness to anti-money laundering controls and consumer protection practices.
Regulators may conduct:
- Routine examinations every 12 to 36 months, depending on the institution’s risk profile
- Targeted audits in response to complaints, violations, or emerging risks
- Follow-up exams after prior deficiencies were identified
In Pennsylvania, many community banks in areas such as Berks and Lehigh Counties are supervised by both federal agencies and the Pennsylvania Department of Banking and Securities.
Why Legal Counsel Matters
Regulatory compliance is no longer just about ticking boxes. It’s about understanding the evolving expectations behind the rules—and showing that your institution has the right governance, policies, and documentation in place.
Banking law attorneys can help in several ways:
- Pre-exam preparation: Reviewing internal controls, policies, and risk assessments before an exam begins
- Exam-day representation: Ensuring the institution communicates clearly and legally with regulators
- Post-exam response: Drafting response letters, addressing findings, and advising on corrective action plans
This guidance is especially valuable for smaller institutions that may not have in-house legal or compliance departments. Even for larger banks, working with outside counsel like Kozloff Stoudt adds clarity and legal protection during sensitive regulatory interactions.
Common Legal Issues That Arise
Regulatory exams often touch areas that require legal interpretation or remediation. Banking attorneys can assist with:
- Fair lending and consumer compliance: Interpreting the Equal Credit Opportunity Act (ECOA), Truth in Lending Act (TILA), and related laws
- BSA/AML compliance: Addressing deficiencies in the Bank Secrecy Act or suspicious activity reporting
- Loan documentation and credit file review: Ensuring consistency with lending regulations and internal policies
- Governance and board oversight: Advising on documentation practices, board resolutions, and fiduciary duties
In many cases, examiners may raise concerns that aren’t black-and-white violations. A seasoned banking law attorney can help institutions assess the issue, provide supporting evidence, and mitigate the risk of escalated enforcement.
The Role of Local Counsel
National banks and multi-state lenders often retain local counsel when operating in Pennsylvania, especially when regulatory questions intersect with state law. Kozloff Stoudt regularly serves as Pennsylvania counsel for institutions navigating audits, lending enforcement, and policy updates tied to local statutes or real estate regulations.
Our attorneys understand not only the federal frameworks that apply to banks, but also the nuances of Pennsylvania’s legal system. That perspective is critical when responding to multi-jurisdictional reviews or when state banking agencies are involved in joint examinations.
How Kozloff Stoudt Supports Financial Institutions
With decades of experience representing commercial lenders across Wyomissing and the greater Southeastern PA region, Kozloff Stoudt provides practical legal support tailored to the banking industry. Our team assists with:
- Exam readiness checklists and policy reviews
- Drafting or updating compliance manuals
- Attending exit interviews or regulatory meetings
- Responding to Matters Requiring Attention (MRAs) or enforcement letters
- Advising on risk mitigation and internal audit planning
We understand that no two institutions are alike. That’s why we provide responsive, right-sized support—whether your bank needs pre-exam legal review or full legal representation throughout the process.
Lehigh County Banking Law Attorneys
Regulatory exams and audits are part of doing business in today’s financial environment. But they don’t have to catch your institution off guard. By involving legal counsel early and establishing a robust compliance posture, lenders can mitigate legal risk and maintain confidence during reviews.
If your institution is facing an upcoming examination, reach out to Kozloff Stoudt’s banking law team. We’re here to provide the legal clarity and local insight that Pennsylvania lenders can count on.