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All in Regulatory Update
I have spent a bit of time studying comedy. I’m no expert by any means, but I’m always intrigued by the details of how things work, and comedy is no exception. I figure that once I understand how something like comedy works, I will be able to better use it and appreciate it.
When we look at the art of comedy, there is one well-known element that seems to be….
(Click here to see how this post relates to the new TRID FAQs - and we promise it does!)
Two sets of comments are due next week.
First, Tuesday, February 5 marks the last day to comment regarding the proposal to increase the appraisal threshold for residential real estate transactions from $250,000 to $400,000. The proposed rule provides thirteen questions for which the agencies are seeking comment.
Secondly, comments regarding the Regulation CC proposal must be in by Friday, February 8, 2019. This request for comment does two things as the proposal would first implement new changes to the Expedited Funds Availability Act and also provides an additional opportunity for public comment on the 2011 funds availability proposal that was never finalized.
On January 25, 2019, the joint agencies issued a final rule requiring lending institutions to accept “private flood insurance.” This long-awaited rule was mandated by the Biggert-Waters Act and went through two different proposals. One of the biggest challenges the new rule could have created relates to how lenders will determine whether a private flood insurance policy is considered to be in compliance and, therefore, acceptable. To alleviate this challenge, the final rule provides a…
In early January 2019, the NCUA released a letter (19-CU-01) to credit unions outlining their primary areas of supervisory focus for 2019. In their letter, the NCUA explained that the extended exam cycle introduced in 2017 would be fully implement in 2019, examiners will continue to increase offsite work, and that streamlined procedures and risk-focused exams will continue to be utilized, as applicable. For 2019, the NCUA has outlined a number of supervisory priorities. While many of these priorities are of a safety and soundness focus, the NCUA outlines two priorities that compliance professionals should be aware of.
On 1/2/19, new CFPB director Kathleen Kraninger signed a consent order with USAA Federal Savings Bank. While the consent order outlines millions of dollars in restitutions and penalties, the order provides financial institutions with fairly detailed insights on a number of Regulation E violations identified by the Bureau. As Regulation E applies to all financial institutions regardless of their regulator, this consent order can be used as a learning tool for appropriately complying with the Regulation.
Specifically, the USAA consent order outlined six main deficiencies that resulted in either a violation of Regulation or a UDAAP violation, or both, including…
On December 31, 2018, the CFPB announced the annual adjustment to the asset size threshold for small creditors under Regulation Z. This threshold applies to both the exemption to the requirement to establish an escrow account for higher-priced mortgage loans as well as the thresholds for small creditors to originate small-creditor portfolio and balloon-payment qualified mortgages.
On December 31, 2018, the CFPB adjusted the HMDA exemption threshold from $45 million to $46 million. The adjustment is based on the 2.6 percent increase in the average of the CPI-W for the 12-month period ending in November 2018. Therefore, banks, savings associations, and credit unions with assets of $46 million or less as of Dec. 31, 2018, are exempt from collecting data in 2019.
On January 4, 2018, the CFPB announced the availability of their HMDA Platform which will be used for the filing process for data collected in 2018. This announcement comes days after the closing of the beta testing period for the 2018 HMDA Platform. The objective of the beta platform release was to…
On 12/13/18, the CFPB invited the public to comment on its proposed Policy on No-Action Letters and the CFPB’s Product Sandbox. The proposal is intended to carry out certain authorities of the Bureau under Federal consumer financial law.
Earlier this month (12/3/18), the OCC released their semi-annual risk perspective for the fall of 2018. The report covers risks facing national banks and federal savings associations based on data as of June 30, 2018. The report presents information in five main areas: the operating environment, bank performance, special topics in emerging risk, trends in key risks, and supervisory actions. It focuses on issues that pose threats to those financial institutions regulated by the OCC and is intended as a resource to the industry, examiners, and the public. The report also includes several compliance and BSA-focused perspectives on trending challenges facing OCC-regulated banks.
