Incomplete Applications

Adam Witmer
Regulation B, Fair Lending

This is a guest post by one of our Compliance Cohort members, Jennifer Johnson.  Jennifer is a Vice President and Chief Risk Officer at a $225 million community bank, and shares her years of experience in multiple banks with us in this article.

In a previous article, we discussed those frustrating customers who come to us with bits and pieces of the information we need to make a loan decision, providing us with an incomplete application. If you’re OCD like me, those situations drive you more than a little crazy, especially when you know that you have obligations to notify the customer of your decision within 30 days of receipt of the request. So how do you handle these scenarios without pulling out your hair? I have a simple solution…

NCUA Releases Priorities for 2020

Adam Witmer
Regulatory Update

On January 7, 2020, the NCUA announced that it had issued its annual letter to credit unions listing its 2020 supervisory priorities as well as updates on regulations and the agency’s modernization programs.

The letter includes a summary of recent statutory and regulatory updates, including additional guidance on serving legal hemp businesses; changes in the appraisal threshold for commercial real estate transactions; the amended supervisory committee audits rule, which took effect Jan. 6; and the amended public unit and nonmember shares rule, which takes effect Jan. 29. For 2020, the NCUA has listed the following as supervisory priorities:

Aspiring Author? Get Published on the Compliance Cohort.

Adam Witmer

Have you ever thought about writing an article on compliance or BSA to share your knowledge or expand your resume? Well, we should chat as we are again accepting article proposals for possible publication on the Compliance Cohort. If this is something you are interested in, we would love to collaborate with you as our members benefit from guest articles on any banking compliance topic. Contact us at members@compliancecohort.com or just reply to this email for more information.

Reg E Disputes on Older Transactions

Reg E Disputes on Older Transactions

Adam Witmer
Regulation E

In this Compliance Clip (video), Adam discusses how Reg E liability and the dispute process works for older transactions. You know, when a customer comes to you two years after-the-fact and says they now want to dispute a purchase they don’t remember doing. This video explains the responsibilities under Regulation E as far as what needs done for this type of dispute.

CRA Proposal Published

Adam Witmer
CRA, Regulatory Update

The long awaited CRA proposal was published in the Federal Register on January 9, 2020, meaning that comments on the proposed rule are due on March 9, 2020. This joint proposal between the OCC and FDIC did not include the support of the Federal Reserve, who currently have a slightly different take on how CRA regulations should be revised (according to comments by Federal Reserve Governor Lael Brainard on January 8, 2020). As we have explained before, this would be the first substantial update to the rules in nearly 25 years if the rule is finalized. According to the release, the proposed rules are intended to do a number of things including:

Agencies Adjust CRA Asset Size Thresholds

Adam Witmer
CRA, Regulatory Update

As is the case each year, the regulatory agencies have adjusted the asset size threshold under the Community Reinvestment Act for 2020. The “small institution” asset threshold has increased from 1.284 billion to 1.305 billion, while the “intermediate small institution” asset threshold has increased from 321 million in 2019 to 326 million in 2020.

FDIC Releases Fall 2019 Edition of Supervisory Insights

Adam Witmer
Regulatory Update

On 12/23/19, the FDIC released their Fall 2019 edition of the publication Supervisory Insights. This edition contains two articles that might be of interest for bank management. The first article discusses commercial real estate (CRE) exposure in the banking industry while the second article discusses leveraged lending. In addition, the publication includes a “Regulatory and Supervisory Roundup” section which includes thirteen pages of activity by the FDIC.

Escrow Exemption Threshold for 2020

Adam Witmer
Regulatory Update, TRID

On December 19, 2019, the CFPB announced the annual adjustment to the asset size threshold for small creditors under Regulation Z.  This threshold applies to both the exemption to the requirement to establish an escrow account for higher-priced mortgage loans as well as the thresholds for small creditors to originate small-creditor portfolio and balloon-payment qualified mortgages. For 2020, the exemption threshold has increased from…

2020 HMDA Exemption Threshold

Adam Witmer
HMDA, Regulatory Update

On December 20, 2019, the CFPB adjusted the HMDA exemption threshold from $46 million to $47 million.  The adjustment is based on the 1.6 percent increase in the average of the CPI-W for the 12-month period ending in November 2019 (down from 2.6 last in 2018). Therefore, banks, savings associations, and credit unions with assets of $47 million or less as of Dec. 31, 2019, are exempt from collecting data in 2020.

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