All in Regulatory Update

Reminder to Watch for New SAR Form

Adam Witmer
BSA, Regulatory Update

As we explained several months back, FinCEN announced in January that they would be revising the SAR form in June of 2018.  As of today, that revision has not yet been released, so Financial Institutions are reminded that they should expect a new SAR form to be released within the next few days. The planned revision is the first change to v1.1 of the original electronic-only SAR form that was implemented a few years back.  Based on the proposed revisions, it appears that all…

OCC Issues Guidance on CRA Performance Evaluation Process

Adam Witmer
Regulatory Update, CRA

On June 15, 2018, the OCC issued a bulletin (2018-17) on supervisory policy and processes for Community Reinvestment Act (CRA) performance evaluations.  This bulletin was issued to inform national banks, federal savings associations, and federal branches and agencies (collectively, banks) regulated by the OCC about clarification to the OCC’s supervisory policies and processes regarding how examiners will now evaluate and communicate bank performance under the CRA.  This new guidance is effective immediately, though financial institutions that are currently in the middle of a CRA examination may see the use of transitional procedures.

FinCEN Advisory on Corrupt PEPs

Adam Witmer
BSA, Regulatory Update

This week, on June 12, 2018, the Financial Crimes Enforcement Network (FinCEN) issued an advisory on human rights abuses enabled by corrupt senior foreign political figures - also known as Politically Exposed Persons (PEPs) - and their financial facilitators.  In their 15-page advisory, FIN-2018-A003, FinCEN explains that high-level political corruption “undermines democratic institutions and public trust, damages economic growth, and fosters a climate where financial crime and other forms of lawlessness can thrive.” FinCEN also explains that corrupt senior foreign political figures can also contribute directly and indirectly to human rights abuses.  Therefore, FinCEN has issued this guidance to, among other things, help financial institutions identify “red flags” for suspicious activity in relationship to senior foreign political figures.  The advisory also provides guidance for filing SARs on PEPs. (Read more.)

HMDA Relief for Community Banks and Credit Unions

Adam Witmer
HMDA, Regulatory Update

After passing through Congress on Tuesday, President Trump today signed into law S.2155, known as the Economic Growth, Regulatory Relief, and Consumer Protection Act.   This banking reform bill, introduced by Idaho Sen. Mike Crapo in November of 2017, does a number of things to undo the burdens placed on smaller financial institutions by the Dodd-Frank Act. One of those things relates to the new fields that were required under the Home Mortgage Disclosure Act (HMDA) beginning on January 1, 2018.

Regulatory Relief for Community Banks and Credit Unions

Adam Witmer
Regulatory Update

Earlier today, President Trump signed into law a major rollback of regulations.  S.2155, known as the Economic Growth, Regulatory Relief, and Consumer Protection Act, was passed by the House on Tuesday, and passed by the Senate over two months ago.  This banking reform bill, introduced by Idaho Sen. Mike Crapo in November of 2017, does a number of things to undo the burdens placed on smaller financial institutions by the Dodd-Frank Act.  

New SCRA Notice

Adam Witmer
Regulatory Update

At the end of the first quarter of 2018, HUD posted a revised SCRA notice which is sent to all delinquent mortgage borrowers.  This revised notice is the one that must be delivered between the 32nd and 45th day after a loan goes into default. The recent revision was made to reflect the extended protection from foreclosure which was adopted as part of the National Defense Authorization Act of 2018.  

FinCEN Delays UBO Requirements for Automatic Renewals

Adam Witmer
BSA, Regulatory Update

On May 16, 2018 - just five days after the new customer due diligence (CDD) rules requiring the identification and verification of ultimate beneficial owners (UBOs) went into effect - FinCEN issued a temporary ruling that delays parts of the new requirements for financial institutions.  FinCEN’s ruling, known as FIN-2018-R002, provides a 90-day limited exception for financial institutions in regards to products and services that automatically rollover or renew, such as loan accounts and certificates of deposit (CDs), that were established before the May 11, 2018 deadline for the new rules.

Exam Procedures for Ultimate Beneficial Ownership Rules

Adam Witmer
BSA, Regulatory Update

On May 11, 2018, the FFIEC released new examination procedures for the recent “Customer Due Diligence Requirements for Financial Institutions.”  These procedures are intended to be utilized by each regulatory agency - meaning they apply to all banks, savings and loans, savings associations, and credit unions - and will be a part of a financial institution’s BSA examination.  These new procedures replace the prior procedures and financial institutions should expect examiners to utilize them in the near future.

TRID Resetting Tolerances With a Closing Disclosure

Adam Witmer
Regulatory Update, Regulation Z, TRID

On April 26, 2018, the CFPB released a second set of TRID amendments which address when mortgage lenders with a valid reason may pass on increased closing costs to consumers and disclose them on a Closing Disclosure instead of a Loan Estimate. “Specifically, a timing restriction on when the creditor may use a Closing Disclosure to communicate closing cost increases to the consumer could prevent a creditor from charging the consumer for those cost increases despite a valid reason for doing so, such as a changed circumstance or borrower request. This article takes an in-depth look at the new rules and how they apply to community banks and credit unions.

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