OFAC Encourages Communication of COVID-19 Concerns

Adam Witmer
BSA, Regulatory Update

On 4/20/2020, OFAC issued a statement to encourage persons to communicate OFAC compliance concerns related to the coronavirus disease (COVID-19). Specifically, OFAC encourages persons, including financial institutions and other businesses, affected by the COVID-19 global pandemic to contact OFAC as soon as practicable if the person believes it may experience delays in its ability to meet deadlines associated with regulatory requirements administered by OFAC. This includes requirements related to filing blocking and reject reports within ten business days, responses to administrative subpoenas issued​, reports required by general or specific licenses, or any other required reports or submissions.

HMDA Thresholds Changed! - Final Rule Released

Adam Witmer
HMDA, Regulatory Update

On 4/16/17, the CFPB released the long-awaited final rule which changes the threshold of mortgage originations for both closed-end and open-end credit, which determines whether or not a financial institution is a HMDA reporter. The good news is that some HMDA reporters will no longer need to collect and report HMDA data, starting on July 1, 2020. Click here to see a summary of the changes…

Video: Increasing Reg CC Thresholds to Avoid 5 Year Adjustments

Video: Increasing Reg CC Thresholds to Avoid 5 Year Adjustments

Adam Witmer
Regulation CC

In this extended Compliance Clip (video), Adam take a little bit different approach to our Compliance Clips and discusses the pros and cons of increasing the Reg CC threshold amounts above and beyond the new mandated amounts, in attempts to avoid another required adjustment (and customer redisclosure) in 5 years, when the rule is set to again adjust for inflation. In other words, some financial institutions are considering increasing their hold amounts from $225 and $5,525 to something like $300 and $6,100 (watch the video to see where the $6,100 comes from) in order to avoid another adjustment in 5 years - but are these amounts enough?. This Compliance Clip takes a deep dive into the thought process some compliance professionals are taking to determine their course of action regarding the upcoming Reg CC changes. If you are a super-nerd when it comes to deposit compliance, this clip is for you.

FFIEC Announces APR & APY Calculation Tools

Adam Witmer
Regulation Z, Regulatory Update, Compliance Management

On April 2016, the FFIEC announced the availability of two new computational tools: one for calculating APY and one for calculating APR. According to the FFIEC, the APR Computational Tool is designed to streamline the process by which examiners and financial institutions can verify finance charges and annual percentage rates included on consumer loan disclosures subject to the Truth in Lending Act and its implementing regulation, Regulation Z. The FFIEC explains that…

NCUA Provides Regulatory Relief in Response to Coronavirus

Adam Witmer
Regulatory Update

On April 16, 2020, the NCUA approved several regulatory relief measures to assist credit unions during the COVID-19 pandemic including: 1). A temporary final rule granting measures of regulatory relief to help ensure that federally insured credit unions remain operational and liquid during the COVID-19 pandemic. 2) An interim final rule that temporarily defers real estate-related appraisals and evaluations under the agency’s appraisal regulations because the public health crisis and social distancing directives have created difficulties for lenders to obtain required appraisals on a timely basis. 3) A final rule that increases the threshold level below which appraisals would not be required for residential real estate-related transactions from $250,000 to $400,000.

PPP Funding Exhausted

Adam Witmer
Regulatory Update

On 4/16/20, the Small Business Administration (SBA) updated its website to reflect the fact that all available funds for the PPP program have been used up. Specifically, the SBA placed the following notice on its website:

“Lapse in Appropriations Notice: SBA is unable to accept new applications at this time for the Paycheck Protection Program or the Economic Injury Disaster Loan (EIDL)-COVID-19 related assistance program (including EIDL Advances) based on available appropriations funding.

FFIEC BSA Exam Manual Updated

Adam Witmer
BSA, Regulatory Update

On April 15, 2020, the FFIEC released a 43 page update to their BSA/AML Exam Manual. This long-awaited update includes many revisions designed to emphasize and enhance the regulators’ risk-focused approach to BSA/AML supervision. Click this link to see a summary of the major changes to the BSA/AML Exam Manual.

Agencies Provide Appraisal Relief Due to Coronavirus

Adam Witmer
Regulatory Update, Appraisals

On 4/14/20, the banking regulators (except the NCUA) issued an interim final rule to temporarily defer real estate-related appraisals and evaluations under the agencies' interagency appraisal regulations. The Federal Reserve, FDIC, and OCC are providing this temporary relief to allow regulated institutions to extend financing to creditworthy households and businesses quickly in the wake of the national emergency declared in connection with COVID-19. The agencies are deferring certain appraisals and evaluations for up to 120 days after closing of residential or commercial real estate loan transactions. Transactions involving acquisition, development, and construction of real estate are excluded from this interim rule. These temporary provisions will expire on December 31, 2020, unless extended by the regulators.

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