Since the inception of TRID, it has not been completely clear for creditors whether they may reset tolerances if a consumer provides an intent to proceed after the 10-business-day period, but within a longer period that a creditor disclosed on the original Loan Estimate. This confusion is due, in part, by the way the original language of Regulation Z is worded as it…

May 2

May 2 HMDA Visual Observation Field

Adam Witmer

HMDA

This HMDA video talks about the visual observation field for the demographic information and discusses what code to use when the applicant was not seen in person.

Apr 28
Apr 28 TRID Resetting Tolerances With a Closing Disclosure

Adam Witmer

Regulatory Update, Regulation Z, TRID

On April 26, 2018, the CFPB released a second set of TRID amendments which address when mortgage lenders with a valid reason may pass on increased closing costs to consumers and disclose them on a Closing Disclosure instead of a Loan Estimate. “Specifically, a timing restriction on when the creditor may use a Closing Disclosure to communicate closing cost increases to the consumer could prevent a creditor from charging the consumer for those cost increases despite a valid reason for doing so, such as a changed circumstance or borrower request. This article takes an in-depth look at the new rules and how they apply to community banks and credit unions.

Apr 26
Apr 26 Ultimate Beneficial Ownership Rules for Loans

Adam Witmer

Regulatory Update, BSA

As we are now just two weeks away from the May 11, 2018 implementation date for the new Ultimate Beneficial Ownership (UBO) rules that apply to any legal entity customer opening a new account, I thought it would be a good time for a reminder on how these new rules will affect the lending side of your organization.

Apr 23
Apr 23 TRID 2.0: Expiration Date for Revised Loan Estimate

Adam Witmer

Regulation Z, TRID

For years, financial institutions have struggled with how to disclose the expiration date for disclosed fees on a Loan Estimate when a new Loan Estimate is issued. Well, the latest revision of TRID has clarified this for us, and it is probably not what you expected to hear.

Apr 19
Apr 19 Flood Insurance For Structures With No Appraised Value

Adam Witmer

Flood

We all know that the flood insurance rules apply when a loan is secured by a primary residence or a warehouse in which a business operates. These situations are very straightforward and would seem logical to be subject to flood insurance rules. The challenge with flood insurance, however, relates to less common situations that wouldn’t seem logical for the rules to apply. For example, many commercial lenders don’t think that flood insurance rules should apply when a structure is not given any value on an appraisal, even though it is technically part of the loan collateral.

Apr 17
Apr 17 CRA Evaluation Examples from the FDIC & OCC

Adam Witmer

CRA, Regulatory Update

Both the FDIC and the OCC recently released their list of financial institutions that were evaluated for the Community Reinvestment Act (CRA), as well as the corresponding CRA ratings. By law, the agencies are required to regularly publish this data and it is always insightful as to what examiners might be looking for when it comes to CRA. In fact, I strongly believe that one of the best ways to understand CRA is to read the performance evaluations of other financial institutions, specifically those that are...

Apr 16

Apr 16 HMDA Refinance vs. Cash-Out Refinance

Adam Witmer

HMDA

In this HMDA video, Adam explains when to use a "refinance" code vs a "cash-out refinance" code and explains that a cash-out refinance is just a subcategory of a refinance. He also discusses which code to use for business purpose loans.

Apr 12
Apr 12 Cyber Insurance Requirements From the FFIEC

Adam Witmer

Regulatory Update

While this topic is not usually considered to be in the realm of “compliance,” we wanted to share with you a regulatory update that was just issued and applies to the IT department of each financial institution so that you can pass this information to the appropriate person in your organization. Yesterday, the FFIEC issued a statement on “Cyber Insurance and Its Potential Role in Risk Management Programs.” This statement was...