FFIEC Updates BSA Exam Manual

Adam Witmer
BSA, Regulatory Update, Compliance Management

In February of 2021, the FFIEC released the second round of what appears to be an overhaul of the BSA/AML Exam Manual. The February 2021 revisions include updates to four sections including and introduction section to the section on assessing compliance with BSA regulatory requirements, and sections on customer identification programs, currency transaction reporting, and transactions of exempt persons.

VIDEO: What is Overt Evidence of Disparate Treatment?

VIDEO: What is Overt Evidence of Disparate Treatment?

Adam Witmer
Fair Lending

In this Compliance Clip (video), Adam explains how a lender could end up with overt evidence of disparate treatment. This video takes just 7 minutes to view and can be shared with your lending team or others in your organization who need to understand fair lending rules and regulations. And be sure to watch our for Adam’s alter ego lender personality in this video…

FACT CHECK: Is the New URLA Mandatory on March 1?

Adam Witmer
Regulatory Update

Over the last few weeks, we have seen several questions regarding the new Uniform Residential Loan Application (URLA) and whether or not the new version must be used on March 1, 2021. Apparently, some consulting firms are sending marketing material that says the new URLA has mandatory use on March 1, 2021.

Our conclusion is that this statement is only partially correct.

FinCEN Advisory on COVID-19 Economic Impact Payments

Adam Witmer
BSA, Regulatory Update

On 2/24/2021, the Financial Crimes Enforcement Network (FinCEN) issued Advisory FIN-2021-A002 that discusses detecting, and reporting financial crimes related to Economic Impact Payments. The advisory contains descriptions of EIP fraud, 14 associated red flag indicators, and information on reporting suspicious activity, and is part of a series published by FinCEN on COVID-19-related frauds and criminal activity.

CFPB To Reconsider QM Final Rules

Adam Witmer
Regulatory Update, Regulation Z

On 2/23/21, the CFPB issued a statement that they are considering whether to initiate a rulemaking to revisit the recent Seasoned QM Final Rule. If it does, the CFPB stated that it expects it will consider whether “any potential final rule revoking or amending the Seasoned QM Final Rule should affect covered transactions for which an application was received during the period from March 1, 2021, until the effective date of such a final rule.” Additionally, the CFPB announced that they intend to issue a proposed rule that would delay the July 1, 2021 mandatory compliance date of the General QM Final Rule. If this upcoming proposed rule becomes finalized, creditors would have a choice to use either the current GM QM loan definition or the revised GM QM loan definition for applications received from March 1, 2021 through the extended mandatory compliance date (unless a GSE ceases to operate under conservatorship prior to the extended mandatory compliance date).

Federal Reserve Issues Final Rule for Netting Protections Under Regulation E

Adam Witmer
Regulatory Update

On 2/18/2021, the Federal Reserve Board announced a final rule that should reduce risk and increase efficiency in the financial system by applying netting protections to a broader range of financial institutions. This final rule amends Regulation EE - which is the regulation on financial institution netting - to apply netting provisions to certain new entities including swap dealers. The rule would also make minor clarifications to the existing activities-based test in Regulation EE to clarify how the activities-based test applies following a consolidation of legal entities.

FTC Bans Payday Lender

Adam Witmer
Regulatory Update

On 2/11/2021, the Federal Trade Commission (FTC) announced that they are banning the owners and operators of a vast payday lending scheme that overcharged consumers millions of dollars. The settlement also wipes out almost all of the outstanding debt owed to the entity as this debt was made up entirely of illegal finance charges. The organization operated online under the names Harvest Moon Financial, Gentle Breeze Online, and Green Stream Lending.

In their release, the FTC explained that the scheme used deceptive marketing to convince consumers that their loans would be repaid in a fixed number of payments. The FTC’s complaint alleged that the company instead continued to draw millions of dollars in payments from consumers’ bank accounts long after the loans’ original principal amount and stated repayment cost had been repaid, and would do so until consumers completely closed their bank accounts or found some other way to cut off payments.

CFPB Warns of Online Romance Scams

Adam Witmer
Regulatory Update

On February 11, 2021, the CFPB published a blog post warning of online romance scams. As bankers often know first hand, consumers who have fallen for an online romance scam can be difficult to convince that they are a victim of a scam. This blog post from the Consumer Financial Protection Bureau (CFPB) may be something that could assist bankers in educating customers on the prevalence and risks of romance scams. After providing a brief introduction to romance scams, the blog post provides guidance on how to spot romance scammers, and concludes with tips to avoid romance scams.

VIDEO: Sample from Winter 2021 Quarterly Update

Adam Witmer

For our Compliance Clip this week, we are providing a sample of our Winter 2021 Quarterly Compliance Update. Specifically, this video is the fifth and final video from our most recent quarterly update where we cover the changes in HMDA and CRA that took place during the fourth quarter of 2020. While there wasn’t much activity in these two areas this quarter - this video only runs 8 minutes long - this video provides a sample of what attendees can expect in our quarterly compliance updates. The entire program includes 5 different videos and runs 2 hours and 43 minutes - so you can see that this is just a small sample of our entire program.

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