Joint Agency Guidance Encouraging Mortgage Services to Work With Consumers

Adam Witmer
Regulatory Update

On 4/3/2020, the regulators jointly issued a policy statement providing needed regulatory flexibility to enable mortgage servicers to work with struggling consumers affected by the Coronavirus Disease (referred to as COVID-19) emergency. The guidance informs servicers of the regulators’ flexible supervisory and enforcement approach during the COVID-19 emergency regarding certain communications to consumers required by the mortgage servicing rules. The policy statement and guidance will facilitate mortgage servicers’ ability to place consumers in short-term payment forbearance programs such as the one required by the Coronavirus Aid, Relief, and Economic Security Act (CARES Act).

IRS Warns of COVID-19 Scams

Adam Witmer
Regulatory Update

On April 2, 2020 the IRS urged taxpayers to be on the lookout for a surge of calls and email phishing attempts about the Coronavirus, or COVID-19. These contacts can lead to tax-related fraud and identity theft. The IRS explains that taxpayers should watch not only for emails but text messages, websites and social media attempts that request money or personal information.

SBA Issues Interim Final Rule for Paycheck Protection Program

Adam Witmer
Regulatory Update

The Small Business Administration issued an interim final rule announcing the implementation of sections 1102 and 1106 of the Coronavirus Aid, Relief, and Economic Security Act (CARES Act or the Act). Section 1102 of the Act to temporarily add a new product, titled the “Paycheck Protection Program,” to the U.S. Small Business Administration’s (SBA’s) 7(a) Loan Program. Section 1106 of the Act provides for forgiveness of up to the full principal amount of qualifying loans guaranteed under the Paycheck Protection Program. The Paycheck Protection Program and loan forgiveness are intended to provide economic relief to small businesses nationwide adversely impacted under the Coronavirus Disease 2019 (COVID-19) Emergency Declaration (COVID-19 Emergency Declaration) issued by President Trump on March 13, 2020.

Train your board on BSA or Fair Lending from home with our video training programs.

Adam Witmer

With social distancing likely to happen for several more weeks or even months, board compliance training may become more challenging for financial institutions. One alternative to in-person board training could be to use our downloadable video training programs and allow your directors to take their training at home, on their own time. For more information, see the following links: BSA Training for Board of Directors (https://www.compliancecohort.com/bsa-training-for-directors) or Fair Lending for Board of Directors (https://www.compliancecohort.com/fair-lending-training-for-directors)

Reg D Excessive Transaction Monitoring

Reg D Excessive Transaction Monitoring

Adam Witmer
Regulatory Update, Regulation D

In this Compliance Clip (video), Adam answers a question many bankers have been asking: With COVID-19, do we still have to comply with the excessive transaction monitoring requirements of Regulation D? This video revisits the rules of Regulation D and reiterates what must be done for monitoring excessive transactions on savings accounts.

Federal Reserve Guidance for Regulation D

Adam Witmer
Regulation D, Regulatory Update

The Federal Reserve recently issued a series of FAQs regarding their announcement on March 15, 2020 of the elimination of reserve requirements. This announcement has resulted in many questions regarding the transaction restrictions on savings accounts under Regulation D. Specifically, many banks are seeing an increase of restricted transactions on Savings accounts due to customers following stay-at-home orders. The question bankers often have is this: Do we still need to follow Regulation D’s restrictions on Savings accounts, or can we allow customers to exceed those restrictions?

Fortunately, the Federal Reserve has provided guidance to financial institutions, which many comes down to this: the restrictions are still in place, but financial institutions can convert applicable accounts to transaction accounts.

CFPB Guidance on Credit Reporting during COVID-19 Pandemic

Adam Witmer
FCRA, Regulatory Update

On April 1, 2020, the CFPB released a policy statement outlining the responsibility of credit reporting companies and furnishers during the COVID-19 pandemic. In response to the pandemic, many lenders are being flexible when it comes to consumers’ making payments. As many lenders are now working to offer struggling borrowers payment accommodations, Congress last week passed the CARES Act which requires lenders to report to credit bureaus that consumers are current on their loans if consumers have sought relief from their lenders due to the pandemic. The Bureau’s statement informs lenders they must comply with the CARES Act and also encourages lenders to continue to voluntarily provide payment relief to consumers and to report accurate information to credit bureaus relating to this relief.

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