Our upcoming 3Q 2019 Quarterly Compliance Update will be available within the next few weeks. The manual is almost complete for this program, so we will be going into the studio to record the video for this program. If you haven’t seen the curriculum for this program, it really is amazing how much compliance activity took place during the last quarter.

For example, one of the big changes we saw was an update to the appraisal threshold for residential real estate transactions. While this topic sometimes sits on the fringes of compliance responsibilities, we have decided to tackle this topic as many of you are responsible for dealing with this change. Therefore, we are featuring appraisal thresholds in our 3Q 2019 Quarterly Compliance Update. We will also be offering a stand-alone training program just for the new appraisal final rule.

You can view the full curriculum of our 3Q 2019 program at https://www.compliancecohort.com/video-webinar-3q2019-quarterly-compliance-update.

Which Appraisal Threshold for Two 1-4 Family Properties?

In this Compliance Clip (video), Adam answers a question related to which appraisal threshold applies for a consumer-purpose loan secured by two 1-4 family properties (for a bank). As the answer to this might not be what you expect it to be, Adam points out a few of the challenges of the new appraisal thresholds. This video provides a great overview of when the different appraisal thresholds apply to bank loans.

On October 10, 2019 the Consumer Financial Protection Bureau (CFPB) issued a rule which finalizes some parts of its May 2019 Notice of Proposed Rulemaking that we previously reported on. This new final rule extends for two years the current temporary threshold for collecting and reporting data about open-end lines of credit under HMDA. The rule also clarifies partial exemptions from certain HMDA requirements which Congress added in the Economic Growth, Regulatory Relief, and Consumer Protection Act (EGRRCPA).

As we reported last week, the regulators issued joint guidance to increase the threshold for residential real estate transactions requiring an appraisal from $250,000 to $400,000.  The appraisal threshold adjustment was effective the day after publication in the Federal Register.  Since the final rule was published on 10/8/19, the new $400,000 threshold is now in effect and can be utilized by banks on applicable loans.

For those looking for a comprehensive break-down of the new appraisal threshold rules, we will be offering training on this topic as both part of our 3Q 2019 Quarterly Compliance Update as well as a stand-alone product. Those programs will both be available in our store at www.compliancecohort.com/store over the next few weeks.

Over the last week, FinCEN updated their CTR Frequently Asked Question (FAQ) # 16 - for the third time in recent days. A few weeks ago, FinCEN started the process of changing how they want CTR filers to complete CTRs when a person has multiple “roles” in the transaction. Initially, FinCEN updated CTR FAQ 16 with a new answer, but then reverted to the original answer to FAQ 16 after apparent multiple calls from bankers questioning this change (that did not have an associated announcement or even changes to the CTR instructions). This week, we have received reports that FinCEN released a statement

Requiring Reg E Disputes to be Submitted Only Online

In this Compliance Clip (video), Adam answers a question related to streamlining the EFT dispute process by requiring customers to submit all disputes online so that they can easily flow into a help-desk type software for tracking purposes. Adam provides two examples where other financial institutions have had similar requirements and how this process worked out for them.

On October 1, 2019, the Office of the Comptroller of the Currency (OCC) released its bank supervision operating plan for fiscal year 2020.  This annual plan outlines how the OCC plans to focus their supervision of individual national banks, federal savings associations, federal branches, federal agencies, and technology service providers.  In their announcement, the OCC explains that they plan to focus on the following areas for 2020:

On 9/30/19, the OCC issued updates to the "Bank Supervision Process," "Community Bank Supervision," "Federal Branches and Agencies Supervision," and "Large Bank Supervision" booklets of the Comptroller’s Handbook. Updates to Comptroller’s Handbook booklets are summarized in the "Table of Updates Since Publication" in the back of each booklet. Refer to the "Foreword" booklet of the Comptroller’s Handbook for more information regarding the OCC’s process for updating booklets. The updated booklets reflect the following:

On September 27, 2019, the regulators issued joint guidance to increase the threshold for residential real estate transactions requiring an appraisal from $250,000 to $400,000.  This change represents the first change to the residential appraisal threshold since 1994.  In their joint release, the regulators explain that this change will provide burden relief without posing a threat to the safety and soundness of financial institutions. While an appraisal will now no longer be required for real estate transactions under $400,000, financial institutions are still required to obtain

During the end of September, Congress extended the National Flood Insurance Program for another few months, through November 21, 2019. As the NFIP was set to expire at the end of day on September 30, 2019, this new extension marks the thirteenth temporary extension of the flood program within the last few years. As we have noted before, this large number of temporary extensions signal a desire by Congress to make long-term changes to the program. In fact, Congress has been working on a bipartisan 5 year extension, but have yet to come to an agreement on what that extension would look like. As you have already probably noted, these continued short term extensions are…