What is a Changed Circumstance Under TRID

Adam Witmer
Regulation Z, TRID

When a financial institution provides unnecessary Loan Estimates to applicants, this practice creates significant confusion regarding the “good faith” rules (i.e. the tolerance calculations).  For example, if a Loan Estimate is provided out of courtesy, the fees on the new LE cannot be used for calculating good faith (tolerances) under Regulation Z. This makes it very difficult for creditors, auditors, and examiners, to know which numbers are supposed to be used for good faith purposes. Therefore, it is important for every loan officer and loan processor to fully understand the changed circumstance rules so they know what exact conditions can reset the tolerances for determining good faith under TRID rules.

CFPB Finalizes Amendments to Regulation P

Adam Witmer
Privacy

Over two and a half years after the privacy laws were amended by Congress, the CFPB has finalized the revisions to Regulation P.  This final rule affects financial institutions that do not share nonpublic information to third parties, though financial institutions who do share information will see little changes to their existing practices.  The final rule was released on August 10, 2018 and will become effective 30 days after publication in the Federal Register.​​​​​​​

This executive summary provides an overview of the changes which can be shared with management.

Closing a Loan with Force Placed Flood Insurance

Closing a Loan with Force Placed Flood Insurance

Adam Witmer
Flood

Adam uses this Compliance Clip (video) to answer the question: Can you close a loan with force placed flood insurance? This question often comes up when an applicant has an existing loan with force placed flood insurance coverage and wants to refinance. Adam explains the conservative approach that will ensure compliance with flood insurance rules.

Regulation CC Lobby Disclosure Requirements

Adam Witmer
Regulation CC

As most of you probably know, we have been expecting a revised Regulation CC for years now.  Sure, there were a few updates to Subparts A, C & D, such as new requirements for mobile deposit endorsements that went into effect on July 1, 2018, but what we are really waiting on are the revisions to Subpart B.  In the meantime, however, banks are still required to comply with the rules of Subpart B of Regulation CC, including hold time frames for deposits, account disclosures, and additional disclosure requirements. While these rules have been around for years, we still continue to see questions and misunderstandings about some of these rules.  In particular, I received a question this week regarding the lobby disclosure requirements under regulation CC.

Compliance Considerations for CD Secured Loans

Adam Witmer
Compliance Management, BSA, Fair Lending, CRA, Regulation Z

Compliance requirements for CD secured loans are not typically a huge topic of discussion for compliance seminar speakers or article authors.  That said, one of our members suggested this topic (you know who you are!), and I think it is a great topic to write on from the perspective of CD secured loans, rather than just bringing up these loans when discussing applicable regulations (which is usually the way it happens). The truth is that most financial institutions (and regulators) just…

Agencies Release July 2018 List of Banks Examined for CRA Compliance

Adam Witmer
CRA, Regulatory Update

Each month, the FDIC and OCC each release a list of banks that have been evaluated under the Community Reinvestment Act (CRA).  This information is extremely valuable to CRA officers as one of the best ways to understand the CRA requirements for a financial institution is to read the performance evaluations of other financial institutions of the same regulator. This article summarizes some of the key points from these evaluations.

TRID Purpose on Construction Loans

TRID Purpose on Construction Loans

Adam Witmer
Regulation Z, TRID

This Compliance Clip reviews how to disclose the loan purpose for construction loans. This is a topic we continue to see issues on as it is actually a bit more complex than it needs to be. Adam breaks down examples of construction loans that are listed under TRID as a purchase, refinance, and construction loan.

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