CFPB Takes Steps to Prevent Consumer Harm

Adam Witmer
Regulatory Update

On 3/6/2020, the CFPB announced three steps to advance its strategy on one of its key priorities: preventing consumer harm. In addition to these three steps, the CFPB presented proposed legislative language to Congress in hopes to establish a whistleblower award program to assist the CFPB in advancing enforcement cases, especially as it relates to fair lending violations. .

OCC FAQs on Third Party Relationships

Adam Witmer
Regulatory Update

On 3/5/20, the OCC issued updated frequently asked questions (FAQs) to to supplement a 2013 bulletin (2013-29) titled “Third-Party Relationships: Risk Management Guidance.” The new FAQs were issued to clarify the OCC’s existing guidance and reflect evolving industry trends. The new bulletin also rescinds OCC Bulletin 2017-21, “Third-Party Relationships: Frequently Asked Questions to Supplement OCC Bulletin 2013-29,” issued on June 7, 2017. The FAQs from OCC Bulletin 2017-21 have been…

Abusive Acts or Practices

Abusive Acts or Practices

Adam Witmer
UDAAP

In this Compliance Clip (video), Adam discusses the definition of “abusive” in UDAAP. This short training is actually based on a section of our UDAAP Foundations program which discusses everything related to UDAAP - including a discussion on over 50 known UDAAP violations.

Hold Notice for New Accounts

Hold Notice for New Accounts

Adam Witmer
Regulation CC

In this Compliance Clip (video), Adam talks about the hold notice rules for New Accounts. Specifically, Adam answers the question as to whether a hold notice is required when using a new account hold under Regulation CC. For those interested in…

Former U.S. Bank Risk Officer Fined for BSA Failures

Adam Witmer
BSA, Regulatory Update

On March 4, 2020, the Financial Crimes Enforcement Network (FinCEN) assessed a $450,000 civil money penalty against the former Chief Operational Risk Officer, Michael LaFontaine, at U.S. Bank for his failure to prevent BSA/AML violations during his time of employment. In their release, FinCEN explains that U.S. Bank used automated transaction monitoring software to spot potentially suspicious activity but improperly capped the number of alerts generated. In addition, FinCEN states that while under the former risk officer’s leadership, the bank failed to staff the BSA compliance function with enough people to review even the reduced number of alerts.

FinCEN explains that…

Thank You!

Adam Witmer

We wanted to give a BIG THANK YOU to those of you who continue to refer our website to other compliance professionals. We are constantly working to make the Compliance Cohort a great resource for the compliance industry, but it doesn’t mean anything if no one knows about it. So, THANK YOU to the many of you who have shared the Compliance Cohort with others who might be interested in our site. We really appreciate it and are truly grateful for your referrals.

Changing a Lender Credit

Changing a Lender Credit

Adam Witmer
TRID

Adam uses this Compliance Clip (video) to answer this question: can a lender credit change? Adam takes a pretty deep dive answering this question and gives a background of the original TRID rule, talks about TRID 2.0 and, more importantly, the brand new guidance from the CFPB regarding lender credits. This video might be a great training opportunity for your lending staff as it is a sample of what we plan to cover in our upcoming Spring 2020 Quarterly Compliance Update, where we plan to review not just this one FAQ, but all ten new TRID FAQs - so be sure to watch for that program in our store in mid-to-late April.

FTC Releases Annual ECOA Report

Adam Witmer
Regulatory Update

On February 21, 2020, the Federal Trade Commission (FTC) provided their annual Equal Credit Opportunity Act (ECOA) report to the CFPB. The FTC is responsible for ECOA enforcement and education regarding most non-bank financial service providers and the report describes the Commission’s work on ECOA-related issues, including activities addressed in research and policy development. The summary also outlines the Commission’s business and consumer education efforts on fair lending issues.

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