Regulatory Reform Guidance for HMDA Reporters

Adam Witmer
Regulatory Update, HMDA

On July 5, 2018, three of the regulatory agencies issued statements on how the new regulatory reform law (S. 2155) will affect certain HMDA reporters.  Each statement is substantially similar and gives an overview of how the Economic Growth, Regulatory Relief, and Consumer Protection Act amends the Home Mortgage Disclosures Act.  Each statement was substantially similar and essentially has three parts.

When is a Revised Loan Estimate Required

Adam Witmer
Regulation Z, TRID

As the Loan Estimate (LE) rules have been around for a few years now, there still seems to be some confusion about the good faith requirements in regards to tolerances and cures.  In my experience, much of this confusion is a result of financial institutions reissuing too many LEs and not fully understanding the revised Loan Estimate requirements. The reality is that many financial institutions provide far more revised Loan Estimates than are necessary.  This “overdisclosing” of the LE creates more work for mortgage processors and creates confusion for customers.

OCC Updates and Rescinds Booklets

Adam Witmer
Regulatory Update

On June 28, 2018, the OCC revised several booklets from their Comptroller’s Handbook. The revised booklets include “Bank Supervision Process,” “Community Bank Supervision,” “Compliance Management Systems,” and “Large Bank Supervision.”  In addition to these booklet revisions, the OCC has rescinded several booklets for various reasons.

CTRs For Sole Proprietorships

CTRs For Sole Proprietorships

Adam Witmer
BSA

This week's Compliance Clip explains how to complete a CTR on a sole proprietor who uses a DBA (doing business as) alias in operating their business. Adam explains what is needed in the CTR and provides the applicable guidance reference to cite the requirements.

Regulation CC Mobile Deposit Endorsement

Adam Witmer
Regulatory Update, Regulation CC

As more and more community banks and credit unions are offering mobile deposits (also known as consumer remote deposit capture), it is important for these financial institutions to understand the rules that govern mobile deposits and how this affect their liability under applicable regulations.  One of the main elements to understand is how a mobile deposit endorsement will affect the liability of the financial institution in regards to checks that are deposited twice; once through mobile deposit and then a second time (usually at another financial institution) with the paper check.

What is an Acceptable HMDA Error Rate?

Adam Witmer
HMDA

Have you ever wondered what is an acceptable HMDA error rate for your financial institution’s HMDA LAR?  You know, how many errors can you have before the regulators would make you scrub your data and resubmit your entire LAR?  Well, understanding the HMDA resubmission standards is fairly easy now, though that hasn’t always been the case. This in-depth article takes a deep dive into examiner error rate thresholds, which is especially important right now as financial institutions need to ensure that they are effectively complying with the HMDA changes that went into effect during the beginning of 2018.

Reminder to Watch for New SAR Form

Adam Witmer
BSA, Regulatory Update

As we explained several months back, FinCEN announced in January that they would be revising the SAR form in June of 2018.  As of today, that revision has not yet been released, so Financial Institutions are reminded that they should expect a new SAR form to be released within the next few days. The planned revision is the first change to v1.1 of the original electronic-only SAR form that was implemented a few years back.  Based on the proposed revisions, it appears that all…

OCC Issues Guidance on CRA Performance Evaluation Process

Adam Witmer
Regulatory Update, CRA

On June 15, 2018, the OCC issued a bulletin (2018-17) on supervisory policy and processes for Community Reinvestment Act (CRA) performance evaluations.  This bulletin was issued to inform national banks, federal savings associations, and federal branches and agencies (collectively, banks) regulated by the OCC about clarification to the OCC’s supervisory policies and processes regarding how examiners will now evaluate and communicate bank performance under the CRA.  This new guidance is effective immediately, though financial institutions that are currently in the middle of a CRA examination may see the use of transitional procedures.

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