OCC Updates UDAAP Resources

Adam Witmer
Regulatory Update, UDAAP

On 6/29/2020, the Office of the Comptroller of the Currency (OCC) issued an updated section to their Comptroller’s Handbook by releasing a new “Unfair or Deceptive Acts or Practices and Unfair, Deceptive, or Abusive Acts or Practices” booklet. In their release, the OCC explains that highlights of this booklet include…

Supreme Court Ruling on CFPB Structure

Adam Witmer
Regulatory Update

On June 29, 2020, the Supreme Court of the United States issued a decision related to the structure, and specifically the Director’s authority, of the Consumer Financial Protection Bureau (CFPB). In their ruling, the courts determined that the current structure - which only allows the single CFPB Director to be removed by the President for “inefficiency, neglect of duty, or malfeasance in office,” - is unconstitutional. Therefore, the ruling has now established that the President can, in fact, remove the CFPB Director at will. That said, the CFPB can continue to operate, but the ruling establishes that the Director must be removable by the President “at will.”

FinCEN Issues Hemp Guidance

Adam Witmer
BSA, Regulatory Update

On 6/29/2020, FinCEN issued guidance (FIN-2020-G001) to address BSA/AML requirements for hemp-related business customers. This guidance supplements the December 3, 2019 interagency statement on providing financial services to customers engaged in hemp-related businesses and focuses on the due diligence for financial institutions servicing hemp-related businesses. The guidance also explains the type of information and documentation financial institutions can collect from hemp-related businesses to comply with BSA/AML rules.

CFPB Proposes QM Changes

Adam Witmer
Regulatory Update, Regulation Z

In June of 2020, the CFPB proposed two new rules to adjust the current Qualified Mortgage rules. The CFPB states that their objective with these proposals is to facilitate a smooth and orderly transition away from the Temporary GSE QM loan definition (which is a temporary QM category set to expire on 1/10/2021 that basically qualifies a mortgage as a QM if it is eligible for purchase or guarantee by Fannie or Freddie) and to ensure access to responsible, affordable mortgage credit upon its expiration.

New Flood FAQs Proposed

Adam Witmer
Regulatory Update, Flood

On 6/26/2020, the OCC, Federal Reserve, FDIC, Farm Credit Administration, and the NCUA issued a joint proposal to update the interagency flood FAQs. If issued as proposed, these revisions would be the first updates to the Interagency Questions and Answer Regarding Flood Insurance since they were last updated in 2011.

As you might recall, there have been several updates to flood insurance rules since 2011 including the Biggert-Waters Flood Insurance Reform Act of 2012, the Homeowner Flood Insurance Affordability Act of 2014, interagency guidance on the detached structure exemption, rules on the escrow of flood insurance premiums, and private flood insurance guidance. In addition to updating the questions and answers to align with most of the current flood insurance laws and guidance, the proposal would also…

Newly Exempt from HMDA?

Adam Witmer

If you are newly exempt from HMDA this week, don’t forget that you need to transition to collecting GMI under Regulation B. In other words, if you don’t collect DI under HMDA, you still have to collect GMI under Regulation B. For more information on transitioning to a non-HMDA bank, check out our class on this topic at https://www.compliancecohort.com/hmda-july-2020.

BSA Bootcamp On Sale Through Wednesday

Adam Witmer

Our BSA Bootcamp is on sale through next Wednesday, July 1, 2020. This online class is a comprehensive BSA/AML training program that can be completed from the comfort of your office (or home!) as it is delivered in our “virtual classroom” video presentation - so we can bring the seminar to you. Twice the length of a typical webinar, the BSA Bootcamp runs around 3 ½ hours and takes a deep dive into the core elements of BSA rules that any BSA/AML professional should know and understand. This program is a great way to get comprehensive BSA training in for 2020 and satisfy your examiners during your next exam. We don’t offer a discount on the BSA Bootcamp very often, so if you were considering an online option for your BSA training this year, be sure to take advantage of this price while you can. (Note: Feel free to share this with your BSA Officer and/or BSA team as non-members can purchase this program too).

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