Beneficial Ownership Verification for Unincorporated Nonprofits

Adam Witmer
BSA, Regulatory Update

As the new CDD FAQs on the ultimate beneficial ownership (UBO) rules were released last week, there have been quite a few questions relating to the rules that require compliance by May 11, 2018.  One of those questions relates to non-profit organizations that are not incorporated or registered with the secretary of state. This article will explore how to complete the UBO information for both incorporated nonprofits as well as nonprofits which are unincorporated associations.

How the New CDD/UBO FAQs Apply to Community Banks and Credit Unions

Adam Witmer
Regulatory Update, BSA

For several months now, there have been rumors about a new set of frequently asked questions (FAQs) from FinCEN regarding the new CDD/UBO rules which require compliance by May 11, 2018.  Well, the mysterious FAQs are finally here.  Earlier today, the Financial Crimes Enforcement Network (FinCEN) released a set of updated FAQs regarding the new BSA rules that will be effective on May 11, 2018.  These FAQs relate to the new customer due diligence requirements for ultimate beneficial owners on accounts for legal entity customers. 

Agencies Increase CRE Appraisal Threshold

Adam Witmer
Regulatory Update

For the first time since the appraisal threshold for commercial real estate transactions was originally established 24 years ago, the threshold requiring an appraisal by a certified or licensed appraiser has been increased.  On April 2, 2018, the OCC, FDIC, and Federal Reserve jointly released guidance that raises the threshold for “commercial real estate transactions” requiring an appraisal.  This rule really doesn’t come as a surprise as it follows the July 2017 proposal to make similar changes. One of the main differences from the proposed rule, however, is that the final rule...

NMLS Number on Adverse Action Notice

Adam Witmer
Adverse Action, SAFE Act, Regulation B

The SAFE Act requires that each registered Mortgage Loan Officer (MLO) provide their unique identifier (NMLS #) to applicants according to certain requirements.  For example, the NMLS number must be provided to the customer upon request, before acting as a mortgage loan originator, and through the MLO’s initial written communication with a consumer.  For this reason, most financial institutions have established procedures to include the NMLS number on...

HMDA Loan Purpose Hierarchy

HMDA Loan Purpose Hierarchy

Adam Witmer
HMDA

In this extended Compliance Clip (about 8 minutes), Adam discusses the new purpose hierarchy in this HMDA video and explains why the CFPB changed the long-standing order of which purposes take priority over other purposes.   This video dives into the rule, commentary, and preamble to give us a full understanding of the new HMDA hierarchy.

Precise vs General Business Day Under Regulation Z

Adam Witmer
Regulation Z, TRID

While logic would tell us that a definition should be consistent from one regulation to another, reality tells us that this is anything but the truth.  When I teach compliance schools where we work through regulations from top to bottom, I always make an effort to point out the difference in the definition of “business day” as the definition varies - sometimes greatly - from one regulation to another.  In fact, Regulation Z actually has two different definitions for business day: the precise definition and the general definition.

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