WINDOWS ON THE STATE CAPITOL
|
By Governmental Consultant Services, Inc. - lobbyists for Community Bankers of Michigan
CBM Makes Presentation to House Financial Services Committee
Members of Community Bankers of Michigan made a presentation to the House Financial Services Committee on March 29. CBM President/CEO, Mike Tierney led off with opening remarks on issues of importance to community bankers.
"While community banks and community bankers are a very important part of Michigan's economy - they face many challenges and unfortunately the biggest challenges are not market forces, they are regulatory burdens," Tierney told the committee. "Community banks have been unfairly impacted by the deluge of regulations that followed the financial crisis. Big banks caused the problems but all banks were impacted by the ensuing tidal wave of regulations," he added. "Big banks have the resources to rely on large compliance staffs and lots of law firms to represent them - small banks do not."
Joining him for the presentation were:
- Bruce Cady, Chairman and CEO Lakestone Bancorp and Lakestone Bank & Trust,
- Michael Burke, President, Lakestone Bank & Trust
- Eugene Lovell, President and CEO, First State Bank
- Dan Bitzer, President and CEO, First National Bank of Michigan
- Mark Kolanowski, President and CEO, Hastings City Bank
- Peter Kubacki, President and CEO, Dart Bank
- James North, President and CEO, First National Bank of St. Ignace
- Gary Schlinkert, Senior Vice President, West Shore Bank
Each member had the opportunity to provide background about their role, to talk about their bank, the markets served, their bank's history, lines of business, and their banks outreach to the community.
The meeting included House Financial Services Committee chair Diana Farrington of Macomb County, committee members included: Joe Graves, Genesee County; Jim Lilly, Ottawa County; Mike McCready, Oakland County; Curt VanderWall, Leelanau, Benzie, Manistee and Mason Counties; Sherry Gay-Dagnogo, Wayne County; Cara Clemente, Wayne County; Patrick Green, Macomb County; and Adam Zemke, Washtenaw County.
The full text of Mike Tierney's remarks to the House Financial Services Committee:
Good morning and thank you for allowing the CBM and some of our bank CEO's to address you and to discuss some of the things that are important to the bankers of Michigan and their communities. We have eight bankers from different areas of the state here to address you this morning.
We have just fewer than 100 banks in the great state of Michigan. Our banks are in the best financial shape in over a decade. They are well capitalized averaging over 10% in equity and they grew their loans in their communities by 7% in 2016. Community banks make nearly half of all small business loans and nearly 80% of all agricultural loans in addition to being a major force in mortgage lending - they are critically important to the economic vitality of our state and especially in our smaller towns and rural areas. Banks in Michigan employ over 16,000 people.
Community banks provide outstanding service to clients and their communities. DIFS statistics clearly show that Michigan banks get it right with our customers. DIFS received 5080 complaints last year from consumers and small business owners. Banks represented less than one half of one percent of those complaints - 23 in total for 100 banks. Banks represented just three percent of the 689 complaints against financial institutions. Credit Unions had 243 complaints which is over ten times the complaints banks received.
Community bankers are leaders in their communities serving in leadership positions with Chambers of Commerce, civic organizations and nonprofits throughout the state. We are proud to have one of our own - Ray Biggs the CEO of West Shore Bank serving as the Chair of the Michigan Chamber of Commerce in 2017 - just one example of hundreds of bankers who give back to their communities.
While community banks and community bankers are a very important part of Michigan's economy - they face many challenges and unfortunately the biggest challenges are not market forces they are regulatory burdens. Community banks have been unfairly impacted by the deluge of regulations that followed the financial crisis. Big banks caused the problems but all banks were impacted by the ensuing tidal wave of regulations. Big banks have the resources to rely on large compliance staffs and lots of law firms to represent them - small banks do not.
The number of banks in Michigan has declined from 196 in 2006 to just under 100 today - down by 50%. There has been no new bank formed in Michigan in the past ten years and less than a handful across the country. The main reason for this is regulatory burden and we need to lighten the load. The number of bank branches in Michigan has declined by 269 offices or 10% in the last five years - this trend will continue unless we can create a business climate in Michigan that encourages the formation of new banks and the expansion of existing banks. I have met with all of you except Sherry and Joe, and we will meet soon, and I am very glad to see your support for helping community banks be more successful.
Here are some things we can look to try to tackle in the next year or two:
- Have Michigan follow reasonable federal regulatory roll back actions that are likely to take place this year - see the outlined ICBA Plan for Prosperity
- Review QM status for portfolio loans held by Michigan banks and credit unions
- Review changes in statutes and procedures in Michigan that keep state of Michigan Treasury funds out of the hands of Michigan based banks and in the hands of large out of state mega banks. The collateral requirements are outdated and need to be revised. There are hundreds of millions that could be deposited with community banks and lent out to consumers and small businesses throughout the state.
- Provide incentives for community bank formation and look at tax relief for community banks below $100 million which is 20% (21) of the banks in the state. The former tax code used to allow for the first $20mm of capital to be free from taxes. They could then fairly compete with non-taxed credit unions.
- Strengthen identity theft and cyber hacking statutes to provide more meaningful penalties and enforcement to protect banks and Michigan consumers
- Oppose proposed regulation that will make lending more difficult to consumers, small businesses and farmers
- Provide reasonable incentives to spur commerce or to fix problems that might arise such as the loss of the EXIM bank. These types of things should be targeted to small to mid-sized businesses, low to moderate income residents and the agricultural community.
- Prevent CRA creep in assessment areas. Community banks are being unjustly pressured by regulators to include whole counties or in some cases whole MSA's in their assessment area for CRA and fair lending when they open a single branch in a new market. This is an absurd request and puts the community bank charter at risk and causes banks to incur unreasonable expenses trying to generate loans in areas where they receive no deposits. Customers will not drive more than five miles to visit a bank except in rural areas so banks should not be forced to lend beyond areas where their clients come from.
- Convert Michigan based federally regulated institutions to state chartered banks - this supports DIFS and our state.
- Longer term - work with us to make Michigan a preferred state for financial institutions to locate to rather than a mid-tier state who has reasonable laws but not favorable enough to sway a bank or fintech location decision.
Governor's Budget Released, Committees Begin Markups and Debate
The key State Budget investments for FY17-18 focus on economic development, talent development, infrastructure, education, and stronger, safer communities.
The overall budget includes $10.1 billion in general fund dollars, an increase of 1.75 percent compared to fiscal year 2017, and totals $56.3 billion, an increase of 2.5 percent.
Specific items in the Governor's budget include:
Investments in business attraction and retention, as well as talent development:
- A total of $125.5 million for business attraction and community revitalization, an 8.7-percent increase from last year.
- A one-time allocation for talent marketing in the amount of $5 million dollars to support stronger career connections.
- To help Michiganders get the skills they need to meet the demands of incoming jobs, $40.9 million dollars would be invested in the Going Pro Program which helps ensure that we are training job seekers to be experts in their field of choice, whether it's the professional trades, information technology, or other high-demand occupations. This is a 32% increase from the prior year.
To address the state's deteriorating infrastructure:
- A $20 million deposit into the Michigan Infrastructure Fund as the start of a down payment on future infrastructure investments.
- An additional $2 million to implement the commission's identified pilot for a statewide asset management database to better align and coordinate infrastructure needs.
- A $214.3 million increase over the FY 2017 levels for state and local roads, and $15 million for transit and rail programs.
The Governor also makes significant recommendations for aiding at-risk youth. The definition of at-risk students has been expanded for free and reduced lunch income eligibility, children in families receiving food (SNAP) or cash assistance (TANF), and migrant, homeless and foster care children. Among other things, the highlights include:
- An increase in per-pupil spending of $128 million, providing an additional $50 to $100 per pupil for schools, with an additional $50 per high school pupil to support the higher cost of educating high school students.
- An increase of $150 million, to a total of $529 million, to ensure that children in difficult financial situations are getting the help they need. All districts and public school academies will now be eligible to receive an additional $778 per pupil to assist at-risk students.
Higher Education Increases:
- Providing all of Michigan's students with access to opportunities in higher education remains a top priority for the Governor. The recommended FY2018 budget includes increases in higher education funding, financial aid assistance, and scholarship and grant programs.
- An increase of $36.6 million for university operations, bringing total funding to $1.5 billion.
- An increase in financial aid and scholarships that total $18 million.
- A 10-percent or $5.3 million increase is included for the Tuition Incentive Program. The program supports about 18,500 students, aiding low-income Medicaid-eligible students with funding for an associate's degree and up to $2,000 for baccalaureate work.
- A $2 million investment to reestablish the Independent Part-Time Student Grants program that targets adult students at community college who have completed at least 15 credit hours.
Michigan lawmakers are in recess until April 19, and both House and Senate appropriations committees are expected to take up the Governor's Budget when lawmakers return to Lansing. The state's new fiscal year begins October 1, 2017.
|
CFPB Proposes Delay of Prepaid Card Rule
The
Bureau is proposing to delay the October 1, 2017 effective date of the rule governing Prepaid Accounts Under the Electronic Fund Transfer Act (Regulation E) and the Truth in Lending Act (Regulation Z) (the Prepaid Accounts Final Rule) by six months (April 1, 2018.)
Comment:
The CFPB decided a six-month delay in the effective date would give "industry participants" adequate time to comply with the rule. The Bureau is not contemplating a change to any other part of the prepaid accounts rule in this recent proposal. To read the proposal, click here. Remember that this rule affects payroll cards as well as prepaid debit cards.
|
|
CFPB Requests Information Regarding Use of Alternative Data and Modeling Techniques in the Credit Process
The Consumer Financial Protection Bureau (CFPB or Bureau) seeks information about the use or potential use of alternative data and modeling techniques in the credit process. The Bureau seeks to learn more about current and future market developments, including existing and emerging consumer benefits and risks, and how these developments could alter the marketplace and the consumer experience. The Bureau also seeks to learn how market participants are or could be mitigating certain risks to consumers, and about consumer preferences, views, and concerns
.
Comment: Comments close May 19, 2017.
The alternative data usage is interesting for small dollar loan projects - particularly through a CDC. To read the Request for Comment or information on filing a comment, click here
.
|
|
CFPB Issues Report on Credit Reporting Problems
The Consumer Financial Protection Bureau (CFPB) released a report detailing the problems in the credit reporting industry that the Bureau has uncovered and corrected through its oversight work. Since launching its supervision of the credit reporting market, the CFPB has identified significant issues with the quality of the credit information being provided by furnishers and maintained by credit reporting companies. The report outlines the actions that the CFPB has taken to address these ongoing problems such as fixing data accuracy at credit reporting companies, repairing the broken dispute process, and cleaning up information being reported.
Through earlier reviews at banks and nonbanks, CFPB examiners found widespread problems with furnishers supplying incorrect information to the consumer reporting companies. The CFPB directed them to take steps to address these problems, such as maintaining evidence that they are accurately handling disputes and conducting reasonable investigations. Since then, several furnishers have dedicated more resources to ensuring the integrity of the information. This effort includes better investigations and handling of disputes, notifying consumers of results, and taking corrective action when inaccurate information has been supplied. Importantly, though, examiners continue to find numerous violations at one or more furnishers, particularly around deposit account information.
Comment: There are numerous compliance obligations for all banks acting as "furnishers" of information under Section 623 of the Fair Credit Reporting Act. A bank that reports information on consumers must not furnish inaccurate information to a CRA. Additionally, a furnisher of information must investigate a consumer's dispute of the completeness or accuracy of information after the furnisher receives notice from a CRA. With regard to a furnishers duty to investigate a consumer's dispute, the furnisher (e.g. bank) may be asked by the consumer directly to investigate a dispute. The bank must conduct a reasonable investigation and report results to the consumer, generally within 30 days.
To read the proposal, click here.
|
The FDIC Issues Winter 2016 Supervisory Insights
The Winter 2016 issue of
Supervisory Insights
features an article of interest to bankers, examiners, and supervisors. "Credit Risk Trends and Supervisory Expectation Highlights" identifies trends in credit risk in commercial real estate, agriculture, and oil and gas-related lending.
The information contained in
Supervisory Insights
may be of general interest to FDIC-supervised financial institutions, but it is not supervisory guidance.
Highlights:
- Financial institutions that have prudently managed loan growth in the past have been better positioned to withstand periods of stress and continue to serve the credit needs of their local communities.
- "Credit Risk Trends and Supervisory Expectation Highlights" identifies trends in credit risk and emphasizes to bankers and examiners that now is the time to heed long-standing principles of sound risk management practices.
- This article examines growth on bank balance sheets and effective risk management practices related to commercial real estate, agriculture, and oil and gas-related lending.
- The "Regulatory and Supervisory Roundup" provides an overview of recently released regulations and supervisory guidance.
Comment: The Winter 2016 issue of Supervisor Insights is available here.
|
The FDIC Makes Joining the Money Smart Alliance Program Easier
The FDIC's Money Smart Alliance program is a network of financial institutions, nonprofits, and governmental organizations that use the FDIC's financial education curriculum to provide training to consumers, small businesses, and others. Qualified organizations can join the alliance or renew their membership on the program's
recently enhanced website
that also offers the ability for organizations to find potential collaborators and for consumers to find the names of organizations that may be offering training.
|
FDIC Issues Second Quarter 2017 CRA Examination Schedule
The Federal Deposit Insurance Corporation (FDIC) has issued the public list of institutions that it has scheduled for a Community Reinvestment Act (CRA) examination during the second quarter of 2017. This list is published pursuant to revised CRA regulations published in May 1995 that require each federal bank and thrift regulator to publish a quarterly CRA examination schedule at least 30 days before the beginning of each quarter.
The examination schedule reflects the effects of an institution's size and CRA rating on examination frequency. Absent reasonable cause, an institution with $250 million or less in assets and a CRA rating of Satisfactory can be subject to a CRA examination no more frequently than once every 48 months. Absent reasonable cause, an institution with $250 million or less in assets and a CRA rating of Outstanding can be subject to a CRA examination no more frequently than once every 60 months.
The schedule of institutions to be examined April 1, 2017, through June 30, 2017, is based on the best information now available. Examination schedules may change. For example, a regulated financial institution not otherwise scheduled for an examination may be examined in connection with the application for a deposit facility. Alternatively, some institutions may require more time and resources than originally allotted, thus delaying other scheduled examinations. If an institution is rescheduled for a different quarter, that information will be included on a later list.
Comment: The CRA Exam Schedule Listing for Second Quarter 2017 is available here.
|
|
Fed Releases Second Quarter 2017 CRA Exam Schedule
The Board of Governors of the Federal Reserve System has made available the quarterly CRA examination schedule for the second quarter of 2017.
Comment: The FRB Quarterly Exam Schedule is available
here.
|
OCC Issues Second Quarter 2017 CRA Exam Schedule
The Office of the Comptroller of the Currency (OCC) released its schedule of Community Reinvestment Act (CRA) evaluations to be conducted in the second quarter of 2017.
The OCC encourages public comment on the national banks and federal savings associations scheduled to be evaluated under the CRA, and suggests that comments be submitted to the institutions themselves at the mailing addresses listed on the schedule, or to the appropriate OCC supervisory office prior to - or as early as possible during - the month in which the evaluation is scheduled. The OCC will consider all public comments received prior to the close of the CRA evaluation.
|
Other Federal Action and News
|
FinCEN Renews Real Estate "Geographic Targeting Orders" to Identify High-End Cash Buyers in Six Major Metropolitan Areas - Including San Antonio
The Financial Crimes Enforcement Network (FinCEN) announced the renewal of existing Geographic Targeting Orders (GTO) that temporarily require U.S. title insurance companies to identify the natural persons behind shell companies used to pay "all cash" for high-end residential real estate in six major metropolitan areas. FinCEN has found that about 30 percent of the transactions covered by the GTOs involve a beneficial owner or purchaser representative that is also the subject of a previous suspicious activity report. This corroborates FinCEN's concerns about the use of shell companies to buy luxury real estate in "all-cash" transactions.
"These GTOs are producing valuable data that is assisting law enforcement and is serving to inform our future efforts to address money laundering in the real estate sector," said FinCEN Acting Director Jamal El-Hindi. "The subject of money laundering and illicit financial flows involving the real estate sector is something that we have been taking on in steps to ensure that we continue to build an efficient and effective regulatory approach."
The GTOs renewed today include the following major U.S. geographic areas: (1) all boroughs of New York City; (2) Miami-Dade County and the two counties immediately north (Broward and Palm Beach); (3) Los Angeles County; (4) three counties comprising part of the San Francisco area (San Francisco, San Mateo, and Santa Clara counties); (5) San Diego County; and (6) the county that includes San Antonio, Texas (Bexar County).
Comment: The full news release is available
here.
|
FinCEN Penalizes California Bank for Egregious Violations of Anti-Money Laundering Laws
The Financial Crimes Enforcement Network (FinCEN) announced the assessment of a $7 million
civil money penalty
(CMP) against Merchants Bank of California of Carson, CA for willful violations of several provisions of the Bank Secrecy Act (BSA). The Office of the Comptroller of the Currency (OCC), the primary federal regulator of Merchants, has identified deficiencies in the Bank's practices that resulted in violations of previous consent orders entered into by Merchants, as well as other violations. The OCC simultaneously assessed a $1 million CMP against Merchants for these violations.
Merchants failed to (a) establish and implement an adequate anti-money laundering (AML) program, (b) conduct required due diligence on its foreign correspondent accounts, and (c) detect and report suspicious activity. Merchants' failures allowed billions of dollars to flow through the U.S. financial system without effective monitoring to adequately detect and report suspicious activity. Many of these transactions were conducted on behalf of money services businesses (MSBs) that were owned or managed by Bank insiders who encouraged staff to process these transactions without question or face potential dismissal or retaliation. Bank insiders directly interfered with the BSA staff's attempts to investigate suspicious activity related to these insider-owned accounts.
"The banking of money services businesses is important to the global financial system, and we believe that banks can mitigate the risks associated with such businesses, just as they do with other customers," said FinCEN Acting Director Jamal El-Hindi. "But here we had an institution run by insiders essentially to provide banking services to MSBs that the insiders owned, combined with directions from Bank leadership to staff to ignore BSA requirements with respect to those MSB customers and others. It is certainly not an acceptable way to bank MSBs."
Comment: The press release pointed out three particular areas of deficiency for the bank involved - the authority, independence, and responsibility of the BSA officer and compliance staff. The full news release is available
here. Enforcement orders are a great resource for BSA Officers in identifying areas of current concern to regulators. Also, they can be a good education tool for your board of directors.
|
FinCEN Issues 314(a) Fact Sheet
To date, the 314 Program Office has processed 3,118 requests pertinent to the following significant criminal investigations: Terrorism/Terrorist Financing - 544 cases; Money Laundering - 2,574 cases.
Based on the total feedback FinCEN has received using the current revised feedback reporting form, 95% of 314(a) requests have contributed to arrests or indictments
Comment:The full 314(a) Facts and Feedback is available here.
|
FTC Warning - Government Imposters Want to Get to Know Your Customers
The Office of the Inspector General (OIG) for the Department of Health and Human Services (HHS) and the FTC want consumers to know about a scam in which callers posing as federal employees are trying to get or verify personal information. This is a
government imposter scam
.
Comment: It might be worth spreading the word to your bank customers and including the link to information about Government Imposter Scams. Very often the scammers will pose as FDIC or OCC employees attempting to verify "bank" information. The full consumer alert is available here.
|
Publications, Articles, Reports, Studies, Testimony & Speeches
|
U.S. Economy Adds 235,000 Jobs in February, Unemployment Rate Falls to 4.7%
Total nonfarm payroll employment increased by 235,000 in February, and the unemployment rate was little changed at 4.7 percent, the U.S. Bureau of Labor Statistics reported today. Employment gains occurred in construction, private educational services, manufacturing, health care, and mining.
The number of unemployed persons, at 7.5 million, changed little in February. The unemployment rate, at 4.7 percent, was little changed over the month but was down from 4.9 percent a year earlier.
Comment: To read the entire report from the U.S. Department of Labor - Bureau of Labor Statistics, click
here.
|
Comptroller Discusses Financial Technology Innovation
Comptroller of the Currency Thomas J. Curry discussed financial technology innovation during a large industry conference. His remarks highlighted the potential for responsible innovation to expand financial inclusion and improve the delivery of banking products and services. During the speech, the Comptroller also provided an update on initiatives by the Office of the Comptroller of the Currency to support responsible innovation within the federal banking system.
Comment: To read the remarks of Comptroller Curry, click
here. This speech promotes the FinTech charter initiative, which is opposed by CSBS.
|
|
Comptroller Discusses the Condition of the Federal Banking System
Comptroller of the Currency Thomas J. Curry discussed the condition of the federal banking system during remarks at Central Connecticut State University. The speech came as part of the Distinguished Banking and Finance Lecture Series at the university. His comments also highlighted the importance of diversity in the federal banking system and what the Office of the Comptroller of the Currency has done to support community banking, and in particular federal savings associations and mutual savings associations.
Comment: To read the remarks of Comptroller Curry, click
here.
|
|
Selected Federal Rules Proposed
Proposed rules are included only when community banks may want to comment. Date posted may not be the same as the Federal Register Date.
03.09.2017
The CFPB is
proposing
to delay the October 1, 2017 effective date of the rule governing Prepaid Accounts Under the Electronic Fund Transfer Act (Regulation E) and the Truth in Lending Act (Regulation Z) (the Prepaid Accounts Final Rule) by six months. Comments must be received on or before 21 days after publication in the Federal Register.
02.02.2017
FinCEN, a bureau of the U.S. Department of the Treasury ("Treasury"), invites all interested parties to comment on its
proposed update
and revisions to the collection of information filings by financial institutions required to file such reports under the Bank Secrecy Act ("BSA"). This notice does not propose any new regulatory requirements or changes to the requirements related to suspicious activity reporting. The data fields reflect the filing requirement for all filers of SARs under the BSA. This request for comments is being made pursuant to the Paperwork Reduction Act (PRA) of 1995,
Public Law 104-13
,
44 U.S.C. 3506(c)(2)(A)
.
|
Selected Federal Rules - Upcoming Effective Dates
Not all final rules are included. Only rules affecting community banks are reported, but we make no guarantees that these are all the final rules your bank needs to know about.
09.30.2017
Joint Agencies: Loans in Areas Having Special Flood Hazards
. A lender that loses the small lender exemption shall mail or deliver to the borrower no later than September 30 of the first calendar year in which the lender loses its small lenders exemption a notice in writing, or if the borrower agrees, electronically, informing the borrower of the option to escrow all premiums and fees for any required flood insurance and the method(s) by which the borrower may request escrow, using language similar to the model clause in appendix B. A lender loses the exemption when its assets are ≥ $1 billion.
This applies to any loan secured by residential improved real estate or a mobile home that is outstanding on July 1 of the first calendar year in which the lender no longer qualifies for the small lender exemption (exception is for lenders with <$1 billion in assets).
10.01.2017
Prepaid Accounts under the Electronic Fund Transfer Act (Regulation E) and the Truth In Lending Act (Regulation Z)
. The CFPB is issuing this final rule to create comprehensive consumer protections for prepaid accounts under Regulation E, which implements the Electronic Fund Transfer Act; Regulation Z, which implements the Truth in Lending Act; and the official interpretations to those regulations. The final rule modifies general Regulation E requirements to create tailored provisions governing disclosures, limited liability and error resolution, and periodic statements, and adds new requirements regarding the posting of account agreements. Additionally, the final rule regulates overdraft credit features that may be offered in conjunction with prepaid accounts. Subject to certain exceptions, such credit features will be covered under Regulation Z where the credit feature is offered by the prepaid account issuer, its affiliate, or its business partner and credit can be accessed in the course of a transaction conducted with a prepaid card. DATES: This rule is effective on October 1, 2017. The requirement in § 1005.19(b) to submit prepaid account agreements to the Bureau is delayed until October 1, 2018. See the CFPB's
prepaid rule implementation page
.
Comment: The CFPB is proposing to delay the October 1, 2017 effective date of the rule governing Prepaid Accounts Under the Electronic Fund Transfer Act (Regulation E) and the Truth in Lending Act (Regulation Z) (the Prepaid Accounts Final Rule) by six months, until April 1, 2018.. Comments must be received on or before 21 days after publication in the Federal Register.
10.03.2017 Although the Military Lending Act was effective October 3, 2016, credit cards are exempt until October 3, 2017.
80 Fed Reg 43560
10.19.2017
Mortgage Servicing Rules
. The CFPB updated its mortgage servicing rules and expanded foreclosure protections. The final rule provides protections when a mortgage is transferred between servicers. Mortgage servicers must now offer mitigation services more than once if a borrower brings their mortgage current, then again becomes delinquent. The rule provides additional protections to mortgagors who acquired the mortgage, often through death or divorce. The rules require servicers to provide periodic statements to borrowers in bankruptcy in certain circumstances. The statements must contain specific information tailored for bankruptcy and about loss mitigation options. The CFPB published a summary for consumers on its website. Servicers have a full year from the October 19, 2016, publication date (and for some changes 18 months) to implement the rules.
10.19.2017
Safe harbors from FDCPA liability for actions complying with mortgage servicing rules under RESPA and Reg. Z
. The CFPB specified mortgage servicing rules in Regulations X and Z. This interpretive rule constitutes an advisory opinion for purposes of the FDCPA and provides safe harbors from liability for servicers acting in compliance with specified mortgage servicing rules in three situations: Servicers do not violate FDCPA section 805(b) when communicating about the mortgage loan with confirmed successors in interest in compliance with specified mortgage servicing rules in Regulation X or Z; servicers do not violate FDCPA section 805(c) with respect to the mortgage loan when providing the written early intervention notice required by Regulation X to a borrower who has invoked the cease communication right under FDCPA section 805(c); and servicers do not violate FDCPA section 805(c) when responding to borrower-initiated communications concerning loss mitigation after the borrower has invoked the cease communication right under FDCPA section 805(c).
01.01.2018
Home Mortgage Disclosure (Regulation C)
. The CFPB amended Regulation C to implement amendments to HMDA made by section 1094 of the Dodd-Frank Act. Consistent with section 1094 of the Dodd-Frank Act, the CFPB is adding several new reporting requirements and clarifying several existing requirements. The CFPB is also modifying the institutional and transactional coverage of Regulation C. The final rule also provides extensive guidance regarding compliance with both the existing and new requirements.
Comment: In 2018, all banks covered by Regulation C that originated at least 25 covered closed-end mortgage loans in each of the two preceding calendar years (2016 and 2017), OR all banks covered by Regulation C that originated at least 100 covered open-end lines in each of the two preceding calendar years (2016 and 2017) must report. Those reports are due in 2019. For HMDA data collected on or after January 1, 2018, bank's will collect, record, and report additional information about originations of, purchases of, and applications for covered loans. Data collection and reporting applies to most residential mortgage loan applications regardless of their ultimate disposition; it is not limited to loans that are approved. There are 25 new data points.
05.11.2018 FinCEN is issued
final rules
under the Bank Secrecy Act to clarify and strengthen customer due diligence requirements for: Banks; brokers or dealers in securities; mutual funds; and futures commission merchants and introducing brokers in commodities. The rules contain explicit customer due diligence requirements and include a new requirement to identify and verify the identity of beneficial owners of legal entity customers, subject to certain exclusions and exemptions.
|
|
|
|
|
517.336.4430
517.336.7833 fax
|
|
NEWS & EVENTS
Community Bankers for Compliance 2017
UPCOMING EDUCATIONAL AND INFORMATIVE EVENTS
Thursday - April 20, 2017
CBM Training Center
3505 Coolidge Rd
East Lansing
* * * * * * * * *
ICBA Capitol Summit
April 30 - May 3, 2017
Click here for more info
* * * * * * * * * *
Tuesday - May 16, 2017
Eagle Eye Golf Club
* * * * * * * * * *
BSA/AML Conference
Tuesday - June 6, 2017
Eagle Eye Golf Club
* * * * * * * * * *
HMDA Seminar
Wed. - June 7, 2017
Eagle Eye Golf Club
* * * * * * * * * *
Lenders Comprehensive Guide to Mortgage Loan Compliance Seminar
Tuesday/Wednesday
June 27-28, 2017
Eagle Eye Golf Club
Click
here to view past webinars that are available as an Archived (on-demand) Link that can become part of your training library.
|
|
