TRID 2.0: Rate Locks and Revised Disclosures

Adam Witmer
Regulation Z, TRID

Section 1026.19(e)(3)(iv)(D) of Regulation Z requires a creditor to provide a revised Loan Estimate within three business days after the date an interest rate is subsequently locked on a loan where an initial LE was issued without a (signed) rate lock agreement in place.  In other words, if a rate was initially floating and is later locked, a revised LE must be provided within three business days of the rate lock.

Resetting Tolerances with a Loan Estimate for TRID 2.0

Adam Witmer
Regulation Z, TRID

One of the key provisions of TRID rules relates to the “good faith” requirement, which essentially provides certain tolerance thresholds that must be honored for applicants who are quoted certain fees on the Loan Estimate (LE).  Tolerance requirements actually pre-date TRID but were a big part of the consumer protection requirements of TRID. TRID 2.0 has made two minor revisions to the original rules regarding using a revised estimate in calculating good faith requirements.

SAR Filing Deadlines

SAR Filing Deadlines

Adam Witmer
BSA

This Compliance Clip explains the SAR filing timeframes, which you would think would be easy. Unfortunately, like all good compliance topics, they are actually more confusing than you would think. Adam uses layman's terms to explain when the clock starts and how to calculate when a SAR filing is due.

Agencies Release CRA Ratings for June 2018

Adam Witmer
CRA, Regulatory Update

Last week, the OCC and FDIC released their monthly list of CRA ratings from June of 2018.  The following summary provides a few noteworthy highlights from this months ratings. As we have advocated before, one of the best ways for a financial institution to understand their requirements under the Community Reinvestment Act (CRA) is to read the performance evaluations from other financial institutions.

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.

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