This topic consolidates legislative summaries of proposed and final regulatory rules impacting the mortgage banking industry today. This includes rules promulgated by federal regulatory agencies as well as up-to-the-minute legislative actions out of Washington, DC.
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The OCC and FDIC issued a notice of proposed rulemaking to modernize the regulatory framework implementing the Community Reinvestment Act by expanding and delineating the activities that qualify for CRA consideration, providing benchmarks to determine what levels of activity are necessary to obtain a particular CRA rating, establishing additional assessment areas based on the location of a bank’s deposits, and increasing clarity, consistency, and transparency in reporting.
The FDIC has updated the Disclosure Requirements for Sweep Accounts (X-6.1) in the Compliance Examination Manual.
Search our Compliance Calendar for current regulatory changes & updates.
The FDIC approved a new advisory committee for state regulators and the FDIC to discuss a variety of current and emerging issues that could impact the regulation and supervision of state-chartered financial institutions.
The Bureau is proposing changes to the Remittance Transfers under the Electronic Fund Transfer Act (Regulation E) for the exception that expires on July 21, 202 that allows insured institutions to disclose estimates instead of exact amounts to consumers.
Buckley LLP-InfoBytes Blog
OFAC recently published five Iran-related sanctions FAQs.
Buckley LLP
Suspicious activity reports are no longer required to be filed by banks for the sole reason that they are “engaged in the growth or cultivation of hemp in accordance with applicable laws and regulations” as per Federal and state Banking regulators.
"We are already ahead of the game and without having to add additional FTEs."
- Julie Baril, QC Manager at Norcom Mortgage
Compliance Monitor--Elizabeth Dailey
While the IRS has not provided a standard form to comply with the Taxpayer First Act, lenders are strongly encouraged to use the Taxpayer Consent Language drafted by MISMO.
The Federal Reserve Board (Federal Reserve), the Consumer Financial Protection Bureau (CFPB), the Federal Deposit Insurance Corporation (FDIC), the Office of the Comptroller of the Currency (OCC), and the National Credit Union Administration (NCUA) issued a statement on the use of alternative data in credit underwriting and the requirement for a well-designed compliance management program provides for a thorough analysis of relevant consumer protection laws and regulations to ensure firms understand the opportunities, risks, and compliance requirements before using alternative data.
The CFPB issued a Notice of Proposed Rulemaking (NPRM) relating to the Remittance Rule (Rule), proposing to allow certain banks and credit unions to continue to provide estimates of certain fee and exchange rate information instead of disclosing exact amounts under certain conditions where it could be economically infeasible for these institutions to provide exact disclosures.
The Federal Reserve Board, the Federal Deposit Insurance Corporation, FinCEN, the Office of the Comptroller of the Currency and the Conference of State Bank Supervisors issued a statement clarifying the legal status of hemp growth and production and the relevant requirements under the Bank Secrecy Act (BSA) for banks providing services to hemp-related businesses.
Automated compliance tests to ensure compliance on more loans in less time
The federal bank regulatory agencies have issued amendments to the regulatory capital rule implementing a new approach for calculating the exposure amount for derivative contracts, which is called the "standardized approach for counterparty credit risk" (SA-CCR), effective April 1, 2020 with a mandatory compliance date of January 1, 2022.
The NCUA has issued a final interpretive ruling and policy statement that, effective January 2, 2020, will no longer require an application to the NCUA Board for employment applicants with convictions involving insufficient funds checks of aggregate moderate value, small dollar simple theft, false identification, simple drug possession, and isolated minor offenses committed by covered persons as young adults.
The ceiling on allowable charges under Section 612(f) of the Fair Credit Reporting Act (FCRA) will remain unchanged at $12.50, effective for 2020.
HUD has published it's quarterly Federal Register notices of all regulatory waivers granted by HUD during the period beginning on July , 2019 and ending on September 30, 2019.
