HMDA Mixed Use Property

Adam Witmer
HMDA

he HMDA mixed-use property test has slightly changed with the new 2018 rules.  Some of what we knew before still applies, but there are definitely some new difference.  Specifically, the mixed-use property test is now a two step process where you must first look at the primary use of a property and then make sure the loan does not have a purpose of home improvement.  First, you must determine if...

The Difference Between the Credit Score Disclosure & Risk Based Pricing Notice

Adam Witmer
FCRA

The requirements for risk-based pricing notices and credit score disclosures can be extremely confusing at times.  Trust me, I know.  As was the case for me in the past, most bankers don’t have to worry about understanding the different disclosure options available as a bank will only use one form or another and will never have a need for the other disclosure options.  That said, however, understanding which disclosures are required is important to...

CFPB Makes Changes to Prepaid Accounts Rule

Adam Witmer
Regulatory Update

Yesterday, the CFPB finalized some updates to its 2016 prepaid rule.  The original rule put in place some consumer protections for prepaid accounts such as the treatment of funds on lost or stolen cards, error resolution and investigation, upfront fee disclosure, access to account information, and disclosing applicable overdraft features.  Yesterday’s changes adjust requirements for...

HMDA Code for Visual Observation

Adam Witmer
HMDA

There has been some question regarding how to report whether or not demographic information was collected based on a visual observation for applications that were not taken face to face.  Specifically, the question relates to the following field for each part of demographic information: “Collected on the Basis of Visual Observation or Surname.”

CFPB Calls for Feedback

Adam Witmer
Regulatory Update

Yesterday, the CFPB announced that it is issuing “call for evidence to ensure the Bureau is fulfilling its proper and appropriate functions to best protect consumers.”  This call comes just weeks after CFPB management changed where Mick Mulvaney was appointed by President Trump to temporarily run the CFPB after the departure of long-time director Richard Cordray.   The CFPB publication states that the Bureau will...

Payday Rule and CFPB Statement

Adam Witmer
Regulatory Update

On January 16, 2017, the CFPB issued a statement that they intend to reconsider the final Payday Rule which was originally issued on October 5, 2017.  This publication, which came on the effective date of the final rule, explains that the reconsideration will occur through an official rulemaking process.  The CFPB also discusses how compliance with the final rule will be affected by...

HMDA Head Scratcher - The New HMDA Hierarchy

Adam Witmer
HMDA

As is the case with new regulations, we are often left scratching our heads as to why a rule is done the way it is.  For those of you that are HMDA reporters, I’m sure you can relate with the 2018 changes that are now upon us.  In particular, one HMDA head scratcher is the new HMDA hierarchy for reporting the loan purpose.   This article explains why the CFPB made the change.

Demographic Information Under Reg B & HMDA

Adam Witmer
Compliance Management

On the surface, collecting and recording demographic information (DI) seems fairly straightforward and simple.  One would assume that requesting and collecting the ethnicity, race, and gender of an applicant wouldn’t be terribly difficult.  Besides, the requirement to collect government monitoring information (GMI) has been around for nearly 40 years (though the regulators just recently changed the reference from GMI to DI).  Why is it then that so many financial institutions still struggle with...

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