CFPB Requests Information on Remittance Rule

Adam Witmer
Regulatory Update

On April 25, 2019, the CFPB issued a “Request for Information” (RFI) on its remittance rule.

Implemented a few years ago, the Remittance Rule has fairly strict requirements for companies which send international money transfers - known as “remittance transfers” - on behalf of consumers. Among its requirements, the Rule mandates that providers generally must disclose the exact exchange rate, the amount of certain fees, and the amount expected to be delivered to the recipient.     

Managing Reg D Excessive Transactions

Adam Witmer
Regulation D

Regulation D is an interesting regulation for compliance professionals as it isn’t a consumer protection rule, but rather was created by the Federal Reserve to help set monetary policy.  That said, compliance professionals typically focus on just a few elements of Regulation D such as ineligible entities on NOW accounts, waiving early withdrawal penalties, and, of course, monitoring for excessive transactions on savings accounts.

Kraninger Speech Outlines CFPB Strategy

Adam Witmer
Regulatory Update

On April 17, 2019, new CFPB Director, Kathleen Kraninger presenter her first public speech at the Bipartisan Policy Center.  In this speech, Director Kraninger outlined her agenda for the direction of the CFPB by explaining that she intends to utilize all available tools to prevent consumer harm including education, regulation, supervision, and enforcement.  The speech began by discussing how the CFPB hopes to…

Detached Structure Exemption For Investment Properties

Adam Witmer
Flood

When the guidelines for the detached structure exemption from flood insurance were first announced, many jumped for joy.  Over the years, many of customers and lenders alike have argued that flood insurance shouldn’t be required for certain detached structures, though flood insurance rules have traditionally required flood insurance for any collatoralized structure located in a high-risk flood zone, regardless of whether or not it was a residence, commercial building, or storage shed.  So, when the Homeowners Flood Insurance Affordability Act of 2014 provided for an exemption for flood insurance for certain detached structures, many were excited to quickly use the detached structure exemption to avoid flood insurance.

Unfortunately, many soon realized that the detached structure exemption couldn’t be used for every detached structure that was not a residence.  In addition, some ambiguity in the rules left many wondering which structures could actually qualify for the detached structure exemption. For example, one of the main questions we continue to see is this: Can detached structures on investment properties still qualify for the exemption from obtaining flood insurance?

Reg CC Holds on Savings Accounts

Reg CC Holds on Savings Accounts

Adam Witmer
Regulation CC

Adam uses this Compliance Clip (video) to explain how Regulation CC holds apply to savings accounts. Specifically, Adam answers the question on how long a next day item (like a cashier’s check or treasury check) can be delayed on a savings account. After a quick deep dive into the applicability of Regulation CC, Adam explains his answer in the geeky detail that only he can deliver in such an exciting manner.

How Difficult is it to Obtain the CRCM Certification?

Adam Witmer
Compliance Management

The Certified Regulatory Compliance Manager (CRCM) certification is one of the most respected and well recognized certifications for a banking compliance professional.  This respect and recognition doesn’t come just because the CRCM is earned through the American Bankers Association (ABA) - or because many of the top compliance professionals and consultants have this certification.  The CRCM certification is a valued credential because of the difficulty to obtain the designation, meaning that not just anyone can obtain their CRCM.

To explain, the difficulty of the CRCM certification results from four main things: experience qualifications, knowledge of content, taking the actual test, and maintaining the certification.

Example of a Deceptive UDAAP Violation

Example of a Deceptive UDAAP Violation

Adam Witmer
UDAAP

Adam uses this Compliance Clip (video) to provide an example of a “deceptive” UDAAP violation. The example in the video relates to television advertisements and Adam breaks down the three prongs that make this a definitive UDAAP violation example. Note: This video includes a transcript.

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