1Q 2019 Compliance Update Class to be Available Mid to Late April

Adam Witmer

Coming off a year of some significant regulatory changes like TRID 2.0, HMDA 2.0, and the BSA Beneficial Ownership rule, you might think that 2019 should be a slower year for regulatory changes.  Should be. In reality, 2019 is already proving to be just as complex and fast moving as 2018 was.  From trend-setting enforcement actions to new rules like private flood insurance, the first quarter of 2019 has had a plethora of changes.

As we have done in 2018, we will again release a training program to review all of the significant changes from the prior quarter that compliance professionals need to be aware of.  Our 1Q 2019 Compliance Update program will be available for purchase sometime in April, so be sure to watch for upcoming communications relating to this valuable training program. Click here to see what is on the agenda for this program…

Redlining & Branching Networks

Redlining & Branching Networks

Adam Witmer
Fair Lending

In this Compliance Clip (video), Adam takes a look how a financial institution’s branching network could have an impact on redlining risk. The clip provides two visual maps as Adam reviews what redlining would look like visually, when it comes to a branching network.

FFIEC Updates Exam Report Standards

Adam Witmer
Regulatory Update

On March 6, 2019, the FFIEC issued a joint statement to promote consistency, clarify and ease of reference for the presentation of information in examination reports.  The FFIEC has been working on an Examination Modernization Project - which is aimed at reducing unnecessary regulatory burden on community financial institutions - and this policy statement is aimed to provide consistency upon exam agencies in regards to the structure of examination reports.

FDIC Rescinds Annual Disclosure Requirement

Adam Witmer
Regulatory Update

On 3/18/19, the FDIC finally rescinded their annual disclosure statement requirement.  This rule comes a few months after the October 25, 2018 proposal, and over twenty years after two other agencies rescinded similar guidance due to the internet and availability of such data.  This new final rule rescinds and removes the FDIC’s regulations entitled Disclosure of Financial and Other Information By FDIC-Insured State Nonmember Banks. Once the regulations are removed, state nonmember banks and insured state-licensed branches of foreign banks will no longer be subject to the annual disclosure statement as the information required to be disclosed by this rule is also available publicly through the FDIC’s website.

It should be noted that this rule will become effective on April 17, 2019 - meaning that applicable banks must ensure that the disclosure statement requirements are met for 2019 as the deadline is (at least) March 31 of each year.

Flood Notice To Borrower 10 Days Before Closing

Adam Witmer
Flood

While flood insurance compliance is extremely important due to potential fines and penalties, the rules can be quite confusing and cumbersome for both customers and financial institutions.  For example, when a structure is found to be in a high-risk flood zone, flood rules require that a flood notice be sent to the applicant advising them of being in a flood zone, their responsibilities for obtaining insurance, and a few other disclosures.  These rules, however, don’t provide time-frames on when, exactly, the flood notice must be delivered. Therefore, there has been quite a bit of confusion over the timing requirements of the flood notice that must be delivered to borrowers who have a collateralized structure in a high-risk flood zone.

Special Exception Hold Reasonable Cause Examples

Adam Witmer
Regulation CC

In auditing check holds over the years, I have often found violations of of Regulation CC.  These violations result from a number of things, such as incorrectly calculating the amount of a hold or incorrectly choosing the wrong date to make funds available.  Often times, there isn’t a pattern or practices as to why these violations occur - other than a lack of training - though I have noticed a trend of violations relating to one specific special exception hold reason: The reasonable cause to doubt collectibility.

Contents of a CRA Public File

Contents of a CRA Public File

Adam Witmer
CRA

In this Compliance Clip (video), Adam reviews the items needed to be in the CRA public file of each bank. As the CRA public file must be current as of April 1 of each year, banks can use this video to review their public file and ensure they have everything they need.

As explained in this video, certain information must be kept in each bank’s CRA public file. The following is section 228.43 from Regulation BB, which…

OCC Releases List of Key HMDA Data Points

Adam Witmer
Regulatory Update, HMDA

On March 7, 2019, the Office of the Comptroller of the Currency (OCC) released a bulletin (2019-12) explaining the key HMDA data fields for full and partial HMDA reporters.  In their bulletin, the OCC explains that key data fields have been identified to support the efficient and effective evaluation of banks’ compliance with HMDA requirements. Of the 110 total data fields, 37 have been identified as key fields by the OCC, Federal Reserve Board (FRB), and Federal Deposit Insurance Corporation (FDIC) on an interagency basis. The OCC explains that OCC examiners will typically test and validate these 37 key fields for the banks that are required to collect, record, and report information for all HMDA data fields. For banks that qualify for a partial exemption from the HMDA data collection, recording, and reporting requirements, OCC examiners will typically test and validate 21 of those 37 fields.

Load More