Welcome to the Compliance Cohort. We are a group of compliance professionals working to make compliance easier. Our goal is to take complex compliance concepts and put them in simple terms that apply to the real world. We are glad you have found us and look forward to collaborating in the future.
If you haven't done so already, make sure you sign up for our free membership where you get access to many member-only videos, articles, and other resources.
In this Compliance Clip (video) Adam discusses the compliance rules to look out for when reviewing advertisements and marketing material related to loans. As the consequences of violating lending advertising compliance rules can be significant, it is imperative that financial institutions know what to look for in their lending marketing and advertising material. A transcript of this video is now available.
In this Compliance Clip (video), Adam reviews the LE and CD signature requirements of Regulation Z. As you will see, Regulation Z provides a few options for applicant signatures, but also has a few requirements that must be met. A transcript of this video is now available.
In this Compliance Clip (video), Adam enumerates the requirements for reporting identity theft red flags to the board of directors. In addition, Adam describes an alternative for how small financial institutions can report these requirements.
In this Compliance Clip (video), Adam discusses what a protected class is under fair lending. In particular, Adam talks about the protected classes under the two fair lending laws: Fair Housing Act and ECOA., and how they differ as well as how they overlap. A transcript of this video is now available.
In this Compliance Clip (video), Adam talks about the six pieces of information r needed for a TRID application under Regulation Z. Adam discusses what constitutes a completed application and when the six pieces of information triggers the loan estimate requirements. A transcript of this video is now available.
In this Compliance Clip (video), Adam discusses how financial institutions can avoid a potential unfair act or practice when it comes to assessing statement fees and returned statement fees. Adam explains how this practice can result to a risk of UDAAP violation and shares some steps on how to make sure your financial institution is doing it right. A transcript of this video is now available.
In this Compliance Clip (video), Adam talks about a potential revision to the Regulation DD. A transcript of this video is now available.
In this Compliance Clip (video), Adam covers a few best practices to use when conducting BSA training for the Board. As this is often something that is done on an annual basis, BSA training can be repetitive and directors can easily "check out" of the meeting and not have great retention - which defeats the purpose of the meeting. By using best practices in training directors on BSA, your training can be effective, efficient, and even entertaining - which is exactly what your directors want. View this video for a few quick tips on providing BSA training to your board.
In this Compliance Clip (video), Adam talks about an amicus brief that the CFPB submitted to the courts regarding how Regulation Z applies to commercial loans. In particular, the opinion clarifies whether or not you can call a loan a “commercial loan” in order to exempt the loan from the requirements of Regulation Z. A transcript of this video is now available.
In this Compliance Clip (video), Adam explains the basics of an abusive act or practice. The abusive standard has been a moving target over the last decade or so, but the CFPB has finally given us guidance to help us understand the topic a bit better.
In this Compliance Clip (video), Adam answers a question about who can fill out the 1071 data collection form when there are multiple principal owners of a business opening an account. I other words, can one principal owner answer the demographic questions on behalf of the other principal owners, or do they each need to answer their own questions?
In this Compliance Clip (video), Adam discusses what denial reasons should be used when an applicant does not meet a minimum credit score. He explains that there are sometimes reasons that are easily listed on the Adverse Action notice, but other times, the reasons for a low credit score may not be as clear. If your financial institution has a minimum credit score requirement, this video is a must watch.
In this Compliance Clip (video), Adam discusses how consumer negligence can (or cannot) be considered when conducting an investigation of an “error” under Regulation E. Specifically, he answers two questions regarding a customer being negligent in handling their PIN as well as whether a financial institution can add language to their account disclosures that limit a consumers liability. A transcript of this video is now available.
In this Compliance Clip (video), Adam answers the question on whether a non-covered financial institution can voluntarily collect information on covered applications from a small business pursuant to the 1071 Final Rule. Adam explains the answer by discussing the different situations that the CFPB has provided through the Small Business Lending Rule Small Entity Compliance Guide. A transcript of this video is now available.
In this Compliance Clip (video), Adam gives an example of a disparate impact that actually that comes from the regulators. This example shows how an otherwise neutral policy or practice, applied equally to all credit applicants, can disproportionately exclude or burden certain persons on a prohibited basis.
In this Compliance Clip (video), Adam discusses the three times a financial institution is required to file a Suspicious Activity Report. This is a BSA topic. A transcript of this video is now available.
In this Compliance Clip (video), Adam answers the question of whether construction-only and construction-permanent loans are covered by TRID and Regulation Z. And although the answer is obvious, Adam discusses the specific citations from the regulations and from the CFPB’s Frequently Asked Questions to further explain the answer. A transcript of this video is now available.
In this Compliance Clip (video), Adam discusses the requirements for having a signature line on the LE and CD. While many financial institutions may not have thought about whether this is required or not for some time, it might be a good idea to revisit the rules to ensure things are being done correctly.
In this Compliance Clip (video), Adam gives a short but sweet explanation of what the BSA or Bank Secrecy Act is and its role in preventing and detecting money laundering activities. A transcript of this video is now available.
In this Compliance Clip (video), Adam breaks down the requirements in Regulation B as to when a borrower must get a copy of the appraisal used in their loan. Not only is the timeframe for delivering the appraisal discussed, Adam also covers when the appraisal delivery requirements of Regulation B apply. A transcript of this video is now available.
In this Compliance Clip (video), Adam discusses how to identify covered borrowers under the Military Lending Act (MLA). MLA provides special protections for active duty servicemembers like capping interest rates on many loan products. In particular, Adam talks about the two safe harbors that the regulation provided in determining a covered borrower.
In this Compliance Clip (video), Adam talks about the minimum requirements for a financial institution’s Customer Identification Program. This is a BSA topic. A transcript of this video is now available.
In this Compliance Clip (video), Adam talks about the requirements for lobby disclosures under Regulation CC. In other words, Adam discusses and gives an examples of how the notice that tells customers about a bank’s hold practices should be displayed in a bank’s lobby area, based on the requirements of Regulation CC. A transcript of this video is now available.
In this Compliance Clip (video), Adam gives an overview of the requirements when closing a branch of your bank or credit union. A transcript of this video is now available.
In this Compliance Clip (video), Adam talks about the required deposit disclosure requirements found in Regulation Z if the creditor requires the consumer to maintain a deposit as a condition of the specific transaction. In addition, Adam shares a best practice in managing the required deposit disclosure on TIL. A transcript of this video is now available.
In this Compliance Clip (video), Adam discusses whether or not electronic fund transfers (EFTs) that were initiated through fraud or robbery are considered unauthorized EFTs under Regulation E. Adam also cites examples of unauthorized EFTs, based from the CFPB’s FAQs on unauthorized electronic fund transfers. A transcript of this video is now available.
In this Compliance Clip (video), Adam discusses the timeframe for filing a continuing activity report. The timeframe can be a little bit complicated but the FAQs from FinCEN clarifies the guidance by providing a timeline of activities and Adam tries to simplify it one step further.
Our Compliance Clips have returned! You may have noticed that we haven’t published a new Compliance Clip in the last few weeks. Well, that was due to some technical difficulties, Adam losing his voice, and taxes. Okay, maybe not all of those are fully to blame, but our Compliance Clips are back starting with this one. In this Compliance Clip (video), Adam answers a recent question he received regarding closing a loan on a day that is not considered a business day under the general definition of a business day in Regulation Z.
In this Compliance Clip (video), Adam discusses when to provide the loan estimate.
In this Compliance Clip (video), Adam discusses options for reporting a SAR to the board of directors when the SAR is on a director. He also discusses what to do if the SAR is on a member of senior management, like the president of the financial institution. This is a must-watch video for any BSA professional.
