All in Regulatory Update

FDIC Releases Fall 2019 Edition of Supervisory Insights

Adam Witmer
Regulatory Update

On 12/23/19, the FDIC released their Fall 2019 edition of the publication Supervisory Insights. This edition contains two articles that might be of interest for bank management. The first article discusses commercial real estate (CRE) exposure in the banking industry while the second article discusses leveraged lending. In addition, the publication includes a “Regulatory and Supervisory Roundup” section which includes thirteen pages of activity by the FDIC.

Escrow Exemption Threshold for 2020

Adam Witmer
Regulatory Update, TRID

On December 19, 2019, 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. For 2020, the exemption threshold has increased from…

2020 HMDA Exemption Threshold

Adam Witmer
HMDA, Regulatory Update

On December 20, 2019, the CFPB adjusted the HMDA exemption threshold from $46 million to $47 million.  The adjustment is based on the 1.6 percent increase in the average of the CPI-W for the 12-month period ending in November 2019 (down from 2.6 last in 2018). Therefore, banks, savings associations, and credit unions with assets of $47 million or less as of Dec. 31, 2019, are exempt from collecting data in 2020.

New URLA Implementation Date Set

Adam Witmer
Regulatory Update

On December 18, 2019, Fannie Mae and Freddie Mac published a revised implementation timeline for the redesigned Uniform Residential Loan Application (URLA) as well as updated automated underwriting systems (AUS). Starting on September 1, 2020, all lenders may begin using the redesigned URLA and may also submit loan applications to the new AUS production environment. Prior to this time, testing and limited use (during a “test and learn” period) will be available for some lenders. By November 1, 2020, all lenders must use the redesigned URAL and submit loan applications to the new AUS production environment. In addition to announcing the implementation dates of the URLA and new AUS, the…

CFPB Adds TRID Guidance

Adam Witmer
TRID, Regulatory Update

On 12/18/19, the CFPB released two additional TRID guides regarding disclosures for construction-only and construction-permanent loans. The guidance can be viewed in either a combined guide or a separate guide, and provides examples based on common questions received by the Bureau.

FDIC Updates Consumer Compliance Exam Manual

Adam Witmer
Regulatory Update

Earlier this month, the FDIC updated their Consumer Compliance Exam Manual by adding a section on Disclosure Requirements for Sweep Accounts. This new section adds just a half a page of instruction and is intended to assist examiners in the review of disclosure requirements that apply to all sweep account contracts, which require financial institutions to prominently disclose whether swept funds are deposits and the status of the swept funds if the institution were to fail. The updated version…

CFPB Issues Proposal on Remittance Rule

Adam Witmer
Regulatory Update

Consistent with their Fall 2019 rulemaking agenda, the CFPB on 12/3/19 announced a Notice of Proposed Rulemaking (NPRM) relating to remittance transfers. As a background, the remittance transfer rules generally require companies that provide remittance transfers in the normal course of business to disclose to consumers certain fees and the exchange rates that apply to transfers. The current remittance transfer rule also includes an exception for certain credit unions and banks where they are permitted to estimate certain fee and exchange rate information instead of providing exact amounts.  This exception, however, is set to expire in July of 2020.

Agencies Issue Hemp Guidance

Adam Witmer
BSA, Regulatory Update

On 12/3/2019, four regulators (FDIC, Federal Reserve, OCC, and FinCEN) issued a joint statement to clarify requirements for providing financial services to hemp-related businesses. The statement, which runs only three pages long and has about as many footnotes as it does content, emphasizes that banks are no longer required to file SARs for customers solely because they are engaged in the growth or cultivation of hemp in accordance with applicable laws and regulations.  Similar to recent NCUA hemp guidance, it is important to note that this guidance seems to…

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