All in Regulatory Update

CFPB Releases ECOA Appraisal Fact Sheets

Adam Witmer
Regulatory Update, Appraisals

On April 29, 2020, the CFPB released two fact sheets. The first fact sheet, titled “Transaction Coverage Under the ECOA Valuations Rule”, explains the coverage requirements under the Equal Credit Opportunity Act (ECOA) Valuations Rule (Rule) and addresses frequently asked questions the Bureau has received since it went into effect. The second fact sheet, titled "Delivery of Appraisals”, explains the delivery requirements for appraisals under the Equal Credit Opportunity Act (ECOA) Valuations Rule (Rule) and also addresses questions the Bureau has received since it went into effect.

FATF Evaluation of UAE

Adam Witmer
Regulatory Update, BSA

On April 30, 2020, the Financial Action Task Force (FATF) issued a mutual evaluation report with United Arab Emirates. In their release, FATF explains that UAE recently strengthened its legal framework to fight money laundering and terrorist financing but, as a major global financial center and trading hub, it must take urgent action to effectively stop the criminal financial flows that it attracts.

OFAC Cites American Express for Violation

Adam Witmer
BSA, Regulatory Update

On April 30, 2020, OFAC issued a “Finding of Violation” to American Express Travel Related Services Company (“Amex”) for violations resulting from processing transactions for a person designated as a “Specially Designated National” (i.e. SDN list). In their release, OFAC explains that they found that Amex issued a prepaid card to, and processed 41 transactions totaling $35,246.82 on behalf of, Gerhard Wisser, who was on the SDN list. OFAC explains that these violations were the result of human error and screening system defects and Amex remediated and disclosed the violations to OFAC. Fortunately for Amex, there is no monetary penalty associated with a Finding of Violation.

CFPB Releases 2019 Fair Lending Report to Congress

Adam Witmer
Regulatory Update, Fair Lending

On April 30, 2020, the CFPB released their annual Fair Lending Report to Congress that highlights how in 2019 the CFPB continued to focus their fair lending efforts on mortgage lending, student loans, small business lending and other market areas. The CFPB also explains that they encouraged consumer-friendly innovation to, among other things, expand access to unbanked and underbanked consumers and their communities.

VIDEO: Reg D Restrictions Lifted!

VIDEO: Reg D Restrictions Lifted!

Adam Witmer
Regulation D, Regulatory Update

In this Compliance Clip (video), Adam takes a brief look at the recent interim final rule from the Federal Reserve which lifts the requirement to monitor for excessive transactions on savings deposits. Adam even gives a brief overview of why this was done and explains the monetary policy behind all of these changes. While economics and compliance typically don’t mix, hold on for a slightly extended video of excitement and danger… or maybe just a good overview of the changes.

FFIEC Statement on Risk Management for Cloud Computing Services

Adam Witmer
Regulatory Update

On April 30, 2020, the FFIEC issued a statement on risk management for cloud computing services and security risk management principles in the financial services sector. The new statement highlights examples of risk management practices for a financial institution’s safe and sound use of cloud computing services and safeguards to protect customers’ sensitive information from risks that pose potential consumer harm. The statement also provides a list of government and industry resources and references to assist financial institutions using cloud computing services.

CFPB Factsheet On ECOA Valuations Rule

Adam Witmer
Regulatory Update, Adverse Action

On April 29, 2020, the CFPB released a factsheet to explain the coverage requirements under the Equal Credit Opportunity Act “Valuations Rule” and addresses frequently asked questions the CFPB has received since it went into effect. As a background on this, the Bureau published the original Rule in 2013, which amended Regulation B to require creditors to provide applicants free copies of all appraisals and other written valuations developed in connection with an application secured by a first lien on a dwelling and to notify applicants of their right to receive copies of appraisals within three business days. The new factsheet addresses all three components of coverage and discusses common questions received regarding the three criteria for coverage.

CFPB Relief Under Reg Z and TRID Rules

Adam Witmer
Regulatory Update, TRID, Regulation Z

On April 29, 2020, the CFPB took steps to make it easier for consumers with urgent financial needs to obtain access to mortgage credit more quickly in the middle of the COVID-19 pandemic. Specifically, the CFPB has issued an interpretive rule to clarify that consumers can exercise their rights to modify or waive certain required waiting periods under the TILA-RESPA Integrated Disclosure Rule and Regulation Z rescission rules. The Bureau also issued an FAQ document to address when creditors must provide appraisals or other written valuations to mortgage applicants in order to expedite access to credit for consumers affected by the COVID-19 pandemic.

Fed Deletes 6-Per Month Limit on Savings Deposits

Adam Witmer
Regulatory Update, Regulation D

On April 24, 2020, the Federal Reserve Board announced an interim final rule that amends Regulation D to delete the six-per-month limit on convenient transfers from the “savings deposit” definition. The rule was published in the Federal Register on April 28, 2020 and allows depository institutions to immediately suspend enforcement of the six transfer limit and to allow their customers to make an unlimited number of convenient transfers and withdrawals from their savings deposits at a time when financial events associated with the coronavirus pandemic have made such access more urgent. As justification for this change, the Fed explains that the Board’s recent action to reduce all reserve requirement ratios to zero has rendered this regulatory distinction unnecessary.

ICE Combats COVID-19 Fraud

Adam Witmer
Regulatory Update

On April 27, 2020, the U.S. Immigration and Customs Enforcement agency (ICE) released an online resource page to combat COVID-19 fraud schemes. Tagged “Operation Stolen Promise,” the new dedicated web page provides information to the public on COVID-19-related fraud schemes. In addition, the page also highlights the investigative efforts the agency is taking to counter threats posed by individuals and criminal organizations seeking to exploit the pandemic for illicit financial gain.

Similarly, the Department of Homeland Security issued a Fact Sheet on April 24, 2020 to highlight the steps the agency has taken to combat COVID-19-related fraud.

Load More