Flood Program Extended Through September 2021

Adam Witmer
Flood, Regulatory Update

On 10/1/2020, President Trump signed H.R.8337 which extends the National Flood Insurance Program (NFIP) through September 30, 2021. While funding for the flood program, and other government programs, expired for about an hour after the September 30, 2020 deadline had passed, CNBC reports that President Trump signed the bill early Thursday after apparently getting back from a campaign trip to Minnesota. While the bill only extends many government functions through December 31, 2020, it does specifically extend the NFIP through September 30, 2021.

OCC Updates Truth in Lending Act Booklet

Adam Witmer
Regulatory Update, Regulation Z, TRID

On 9/30/2020, the Office of the Comptroller of the Currency rescinded their “Truth in Lending Act” booklet from the Comptroller’s Handbook and instructed examiners to rely on revised interagency procedures. In their release, the OCC explains that the FFIEC has adopted revised interagency examination procedures for the Truth in Lending Act and the revised interagency procedures reflect amendments to Regulation Z published in the Federal Register through May 18, 2018.

FinCEN Speech Addresses Pandemic Issues

Adam Witmer
BSA, Regulatory Update

On 9/29/2020, FinCEN Director, Kenneth Blanco, presented a speech at the ACAMS Virtual AML Conference. After beginning the speech with a discussion on FinCEN’s response to the global health crisis, Director Blanco shared some fraud trends FinCEN is seeing related to COVID-19. Though much was a reiteration of applicable advisories issued by FinCEN, it was explained that the most common trend seen in COVID-19 related SARs involves fraudsters “targeting multiple COVID-19 related government stimulus programs, employing money mules and cyber techniques.”

Agencies Issues Final Rules Related to COVID-19

Adam Witmer
Regulatory Update, Appraisals

On 9/29/2020, the Federal Reserve, FDIC, and OCC jointly finalized two interim final rules that are currently in effected and were issued in light of the COVID-19 pandemic. The rules include:

  • A final rule that temporarily defers appraisal and evaluation requirements for up to 120 days after the closing of certain residential and commercial real estate transactions; and

  • A final rule that neutralizes—due to the lack of credit and market risk—the regulatory capital and liquidity effects for banks that participate in certain Federal Reserve liquidity facilities.

VIDEO: BSA SAR Disclosure

VIDEO: BSA SAR Disclosure

Adam Witmer
BSA

In this Compliance Clip (video), Adam discusses a recent FinCEN memo warning media outlets to not publicly disclose SARs illegally leaked to them… and they did! Adam gives a background on this situation and quotes a recent article that should be intriguing for anyone in the BSA world. And you won’t believe how many SARs were publicly released!

Auto Lender Fined for UDAAP Violations Related to Loss Damage Waivers

Adam Witmer
Regulatory Update

On 9/21/2020, the CFPB announced that it had settled with the auto-loan servicer, Lobel Financial Corporation. According to the CFPB’s release, the CFPB found “that Lobel engaged in unfair practices with respect to its Loss Damage Waiver (LDW) product, in violation of the Consumer Financial Protection Act (CFPA). When a borrower has insufficient insurance, rather than force-placing collateral-protection insurance, Lobel places the LDW product, which is not itself insurance, on borrower accounts and charges a monthly premium of approximately $70 for the LDW coverage. The LDW product provides that Lobel will pay for the cost of covered repairs and, in the event of a total vehicle loss, cancel the borrower’s debt. The Bureau found that Lobel continued to bill certain consumers for LDW coverage but then failed to provide it, and assessed fees from consumers that they were not obligated to pay.“

Extended Comment Period for Seasoned QM Proposal

Adam Witmer
Regulatory Update

On 9/21/2020, the CFPB announced that it is extending the comment period on its notice of proposed rulemaking that will create a new category of qualified mortgages - known as “seasoned QMs” - by three days. This short extension is meant to accommodate for the Yom Kippur Jewish holiday. Originally required by September 28, 2020, comments must now be submitted by October 1, 2020.

Federal Reserve Issues Notice of Upcoming CRA Proposal

Adam Witmer
CRA, Regulatory Update

On 9/21/2020, the Federal Reserve Board issued an Advance Notice of Proposed Rulemaking (ANPR) and invited public comment on an approach to modernize CRA regulations. The ANPR is looking for feedback on “ways to evaluate how banks meet the needs of low- and moderate-income (LMI) communities and address inequities in credit access.” This rule, of course, comes a few months after the OCC issued a final rule that requires financial institutions regulated by the OCC to comply with by October 1, 2020, January 1, 2023, or January 1, 2024. Therefore, it appears that this ANPR would only apply to financial institutions regulated by the Federal Reserve. The FDIC has not yet announced their intentions for CRA revisions, though they had originally issued the the proposal jointly with the OCC, but have not yet finalized the same rule as the OCC.

VIDEO: Reg GG Certification Form

VIDEO: Reg GG Certification Form

Adam Witmer
Reg GG

In this Compliance Clip (video), Adam answers a question about the unlawful internet gambling rules. Specifically, a question is asked about whether a certification form is required for commercial customers and whether there is any way to reduce the new account burden in relationship to Reg GG rules. This video a a fairly comprehensive review of the due diligence requirements under Reg GG, and would be good to review with your operations staff responsible for ensuring compliance with Reg GG.

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