TRID 2.0 Total of Payments Tolerance

Adam Witmer
TRID, Regulation Z

The changes made by TRID 2.0 were interesting.  On one hand, a few things made significant changes to the way we have always done things.  On the other hand, however, the majority of changes were fairly minor in nature or didn’t seem to affect the majority of financial institutions.  One question we have received a few times relates to the new TRID 2.0 rules for total of payment tolerances.  When TRID 2.0 was first announced, this seemed to be one of biggest changes included in the rules. Now that TRID 2.0 is in affect, however, some may be wondering what all of the fuss was about relating to the TRID 2.0 tolerances for total of payments.

OCC Releases Fall 2018 Semi-Annual Risk Perspective

Adam Witmer
Regulatory Update

Earlier this month (12/3/18), the OCC released their semi-annual risk perspective for the fall of 2018.  The report covers risks facing national banks and federal savings associations based on data as of June 30, 2018. The report presents information in five main areas: the operating environment, bank performance, special topics in emerging risk, trends in key risks, and supervisory actions. It focuses on issues that pose threats to those financial institutions regulated by the OCC and is intended as a resource to the industry, examiners, and the public. The report also includes several compliance and BSA-focused perspectives on trending challenges facing OCC-regulated banks.

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.

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