2018 Regulation P Amendments

2018 Regulation P Amendments

Adam Witmer
Privacy, Regulatory Update

This Compliance Clip (video) discusses the August 2018 amendments to Regulation P. This final rule does four things and Adam provides a summary of the changes, including the exemption to sending the annual privacy notice from qualifying institutions. Those institutions who provide a privacy notice only because of the FCRA opt-out should pay particular attention to this video, as the new amendments provide relief to certain institutions. The video also discusses the timing requirements for institutions who lose their exemption due to a change in their privacy policy. In a rare "reference moment," Adam ends this video with one of his favorite quotes from "The Truman Show."

Reporting the HMDA Purpose for an Interest Buyout

Adam Witmer
HMDA

For years, HMDA has caused all kinds of headaches.  In fact, the acronym “HMDA” itself could just as easily stand for Head Migraine Day Again.  The reason for this, of course, is that HMDA is an infinitely detailed rule, but the rules don’t address every situation which often leaves those responsible stuck between a rock and a hard place, which I commonly refer to as the “gray area” of HMDA.  One area that seems to be in this category relates to how an interest buyout should be reported for HMDA purposes. This article attempts to break down the HMDA purpose reporting requirements for “interest buyout” loans.

How to Refund an Appraisal Fee Overage on the Closing Disclosure

Adam Witmer
Regulation Z, TRID

There are rarely perfect scenarios in real estate lending.  Sure, occasionally a transaction will go as exactly planned, but there are usually one or two quirks in the process that must be addressed to ensure the loan remains in compliance.  One of these quirks I continue to see lenders struggle with is when an appraisal fee is collected before closing, but the actual cost of the appraisal comes in below what the creditor collected.  

Demographic Information for HMDA & Regulation B

Demographic Information for HMDA & Regulation B

Adam Witmer
HMDA, Regulation B

What's the difference between government monitoring information and demographic information? This Compliance Clip (video) explains the differences in information collection under Regulation B and HMDA while also explaining when a bank must comply with one rule or the other for collecting information. In an attempt to make things easier to understand, Adam provides a number of common exemptions for collecting the GMI/DI information.

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.

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