NCUA Guidance Regarding CDD & UBO Compliance

Adam Witmer
Regulatory Update, BSA

In August of 2018, the NCUA issued a letter to Credit Union CEOs and Boards of Directors regarding examination guidance for Bank Secrecy Act (BSA) customer due diligence(CDD) and ultimate beneficial ownership (UBO) compliance.  The letter (18-CU-02) explained to credit unions that the NCUA has issued examination procedures to field staff regarding the new CDD and UBO rules that went into effect earlier in 2018. The Credit Union Letter included an attached supervisory letter that provides all federally insured credit unions with examination expectations for NCUA examiners regarding conducting reviews of a credit union’s compliance with the new rules.  

Using a Credit Score Disclosure in Lieu of the Adverse Action Notice

Using a Credit Score Disclosure in Lieu of the Adverse Action Notice

Adam Witmer
Adverse Action, FCRA, Regulation B

This Compliance Clip (video) answers the question of whether the FCRA pieces of the AA Notice must be completed every time, or if creditors can combine certain FCRA disclosures with the AA Notice. Adam attempts a new approach to adding a bit of humor to a mundane compliance topic and fails terribly. He makes a promise to never attempt this approach again (unless he is asked).

OCC Solicits Comments on Modernizing CRA Regulations

Adam Witmer
Regulatory Update, CRA

On August 28, 2018, the Office of the Comptroller of the Currency (OCC) issued an advance notice of proposed rulemaking (ANPR) inviting public comment on ways to modernize the regulations that implement the Community Reinvestment Act (CRA).  In their notice (OCC-2018-0008), the OCC is soliciting ideas on how the CRA rules could better achieve the statute’s original purpose, encourage increased lending and investment where it is needed the most, and reduce the burden associated with reporting and evaluating CRA performance. As the OCC plans to share the results of the ANPR with other regulatory agencies, all financial institutions are encouraged to provide comments to the OCC.

2019 Regulation Z Thresholds

Adam Witmer
Regulatory Update, Regulation Z

On August 27, 2018, the CFPB published a number of annual threshold adjustments to Regulation Z in the Federal Register.  Effective January 1, 2019, the final rule implements the Truth in Lending Act and satisfies the CFPB’s requirement to calculate annually the dollar amounts for several provisions in Regulation Z.   The 2019 threshold adjustments to Regulation Z are as follows:

The Required Deposit Disclosure for CD Secured Loans

Adam Witmer
Regulation Z

When reviewing deposit secured loans, one of the most common audit violations relates to the “required deposit” disclosure.  This lower risk finding is often found in audit and exam reports because it is a fairly common finding and is extremely easy to identify - known as “low hanging fruit.”  Financial institutions can ensure they don’t fall victim to this easy to avoid issue by fully understanding the rules for the required deposit disclosure.

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.

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