State Field for HMDA Partial Exemption

Adam Witmer
HMDA

One might think that using the HMDA partial exemption for small filers would make life easier.  Much easier. Well, for the most part, that is true. The CFPB’s interpretive and procedural rule provides relief for certain “small HMDA filer” so that they are exempt from reporting about half of the data fields (22 out of 48 total data fields).  The problem with the HMDA partial exemption, however, is that the rules to comply with the partial exemption are actually quite confusing. For example, the CFPB interpretive and procedural rule provides a number of different ways to report exempt data fields, and even creates some confusion on one particular data field: the State data field.

CFPB Keeps Name

Adam Witmer
Regulatory Update

When the CFPB announced last June that they were beginning rebranding efforts to change the name of the Consumer Financial Protection Bureau to the Bureau of Consumer Financial Protection - or BCFP - I had my doubts. Over the last few months, I found myself feeling like some sort of geeky compliance-like rebel every time I…

CFPB Fair Lending Report to Congress

Adam Witmer
Regulatory Update

On December 4, 2018, the CFPB released their annual fair lending report to Congress regarding the fair lending activities that took place in 2017.  Traditionally released during April of each year, this years report comes nearly 20 months after the last annual fair lending report to Congress, and is the first report issued by the CFPB under a director different than Richard Cordray, who oversaw the first five reports to congress.

TRID 2.0 - Best Information Reasonably Available

Adam Witmer
Regulation Z, TRID

One of the significant changes in TRID 2.0 relates to how the “best information reasonably available” can affect calculating good faith and, ultimately, reimbursements.  Under Regulation Z, creditors are required to disclose fees that are anticipated for a loan transaction in “good faith.” Good faith depends on a number of factors (such as the type of fee and whether the fee goes to the creditor or their affiliate) and basically is calculated in one of three “buckets” as follows: The zero tolerance bucket, the 10% bucket, and the unlimited bucket.  While these tolerance “buckets” have been around for since the inception of TRID, TRID 2.0 has placed an even greater emphasis on disclosing fees based on the best information reasonably available.

FinCEN Issues Statement to Cultivate BSA/AML Innovation

Adam Witmer
BSA, Regulatory Update

On December 3, 2018 FinCEN and the joint agencies released an advisory to encourage and support the implementation of responsible innovation and new technology in the financial system.  The advisory encourages banks and credit unions to take innovative approaches to their Bank Secrecy Act (BSA) programs for combating money laundering, terrorist financing, and other illicit financial threats.  

Fed & CFPB Reopen Comments & Proposal for Reg CC Proposed Rule

Adam Witmer
Regulation CC, Regulatory Update

On 11/20/18, the CFPB and Federal Reserve jointly issued a 58 page “proposed rule and reopening of comment period for existing proposed rule” for Regulation CC.  This request for comment does two things as the proposal would first implement new changes to the Expedited Funds Availability Act and also provides an additional opportunity for public comment on the 2011 funds availability proposal that was never finalized.

Comments must be received within 60 days after the date of publication to the Federal Register.

Joint Webinar on Fair Lending Hot Topics

Adam Witmer
Fair Lending

On 12/3/18, the Federal Reserve, FDIC, OCC, NCUA, CFPB and Department of Justice hosted a joint webinar on fair lending hot topics.  The webinar covered a number of topics including redlining, examination scoping, pricing risks, marital status discrimination, disability and maternity leave discrimination, a HMDA update, and a question and answer session.  Overall, the webinar did….

FDIC Issues Several Updates

Adam Witmer
Regulatory Update

On 12/6/18, the FDIC issued several updates, many of which relate to De Novos and the application process for deposit insurance.  First, the FDIC announced that it is seeking comments from interested parties on all aspects of the deposit insurance application process.  Secondly, the FDIC reissued its processing timeframe guidelines for applications, notices and other requests submitted on behalf of existing and proposed institutions and other parties.  Next, the FDIC issued an update to its publication entitled applying for Deposit Insurance - A Handbook for Organizers of De Novo Institutions, finalized its…

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