The TRID Loan Purpose Hierarchy

Adam Witmer
Regulation Z, TRID

Although TRID rules have been around for a while now, there still seems to be some confusion when it comes to understanding the TRID loan purpose that should be listed on the Loan Estimate (LE).  Much of the reason behind this confusion is that the rules actually contradict the loan purpose rules of Regulation C and the Home Mortgage Disclosure Act (HMDA). Therefore, it is important for each creditor to fully understand the TRID loan purpose hierarchy and when each TRID loan purpose should be listed on the Loan Estimate.

Bank Compliance Requirements for Facebook Contests

Bank Compliance Requirements for Facebook Contests

Adam Witmer

"Sign up for our Facebook page and get entered into a drawing to win a free trip to Fiji!" (Warning! This is NOT a contest and this statement is for example purposes only.) The truth is that Facebook (and other social media) contests are one of the trendiest ways marketers have been using to get customer engagement. The challenge is that there are several things that must be considered when a financial institution runs a Facebook contest. This Compliance Clip (video) explains several considerations that every compliance professional (and marketing employee) should review before running a Facebook contest.

CFPB Adds Innovation Page to Website

Adam Witmer
Regulatory Update

Earlier this month, the CFPB launched a new “Innovation” page on their website which promotes the initiatives of the newly formed Office of Innovation.  The Office of Innovation was formed in July of 2018 with a goal of encouraging consumer-friendly innovation and carrying on the work that was being done under Project Catalyst.  The new Innovation webpage comes just about a month after the CFPB proposed a revision to their policy to encourage trial disclosure programs (9/10/18).

Fall 2018 CFPB Rulemaking Agenda

Adam Witmer
Regulatory Update

On October 17, 2018, the CFPB published its rulemaking agenda for the Fall of 2018.  This is the second rulemaking agenda under Acting Director Mick Mulvaney. The agenda indicates that the information is current as of August 30, 2018 and identifies items the  CFPB “reasonably anticipates having under consideration during the period from October 1, 2018, to September 30, 2019.”

CIP Requirements for Banks and Credit Unions

Adam Witmer
BSA

One of the most challenging parts of any financial institution’s Bank Secrecy Act (BSA) program is to have an effective Customer Identification Program (CIP) that forms a reasonable belief that the institution knows the true identity of the person they are opening account for.  Understanding CIP requirements is essential as an insufficient CIP program can lead to significant consequences such as regulator enforcement actions and civil money penalties (fines). This article discusses some of the general CIP requirements for Banks and Credit Unions.

Agencies Release CRA Ratings from September 2018

Adam Witmer
Regulatory Update

As is the case each month, the FDIC and OCC have released lists of performance evaluations from financial institutions receiving ratings during September of 2018.  Banks and savings associations subject to CRA examinations - and especially their CRA Officers who are responsible for CRA compliance - can greatly benefit from reviewing CRA performance evaluations that their regulators publish on similarly sized banks.  Specifically, reviewing Outstanding performance evaluations can often show a bank what unique steps can be taken to get extra CRA credit during an examination while Substantial NonCompliance ratings can explain what an insufficient CRA program looks like.

CFPB Releases HMDA Filing Instruction Guide for 2019

Adam Witmer
HMDA, Regulatory Update

On October 23, 2018, the CFPB released the Filing Instruction Guide (FIG) for data collected in 2019.  This guide comes less than two months after the most recent version of the guide (August 2018), but is designed to be used for data collected during 2019.  The FIG is considered to be a “technical resource to help financial institutions file HMDA data collected in 2019 and reported in 2020.”

5 Tips for CRCM Test Prep

Adam Witmer
Compliance Management

The CRCM certification (Certified Regulatory Compliance Manager) is arguably the most well respected and highest certification a compliance profession can achieve.  And for good reason. In order for you to just qualify to take the CRCM, you must be a banking professional with at least six years as a compliance professional within the last ten years (three of which need to be within the last five years).  Alternatively, you can qualify with only three years of experience if you also have met two of several different requirement options. Furthermore, you must be a compliance professionals with “management” experience overseeing the “full range of compliance risk functions.”  

RESPA Section 8 & Hosting Lending Events

RESPA Section 8 & Hosting Lending Events

Adam Witmer
RESPA

In this Compliance Clip (video), Adam discusses the compliance challenges when a lender wants to host a lending event and invite Realtors, title companies, or other settlement service providers. Networking, of course, is essential to the lending function of any creditor, but RESPA Section 8 provides some strict prohibitions that every lender should be aware of as significant fines can be assessed when the rules are ignored or not followed.

Load More