Weekly Rewind...News from Your Regulators

TILA and Regulation Z: Top 10 Material Violations

By: Justin Hosie[1] and Cliff Cook[2]

June 5, 2022


Excerpt from presentation at the 2022 ACUIA Convention:


Confusing the requirements for multiple-advance closed-end loans and open-end lines of credit

Another common violation we see involves misunderstanding different credit products that involve multiple advances. One example involves a bank that used a closed-end note with multiple advances, rather than using a home-equity line of credit or other line of credit for home-improvement. While lines of credit and multiple-advance closed-end credit transactions both involve multiple advances, the APR calculations differ drastically. Open-end line of credit APRs are generally easier to calculate and disclose, and the transactions are easier for the consumer to understand. By contrast, multiple-advance closed-end credit is complicated, and can result in more TILA errors than we could explain in a novel.



FDIC Summer Supervisory Insights

Supervisory Insights – The FDIC released its Summer 2022 issue of Supervisory Insights. The issue contains an article highlighting the financial performance in the wake of the pandemic of banks concentrated in commercial real estate (CRE) lending as well as examination observations about CRE lending risk management practices, and information that is intended to help financial institutions better understand the applicable capital, investment, and financial reporting requirements for the issuance of and investment in subordinated debt. The issue also includes the Regulatory and Supervisory Roundup, which is an overview of recently released regulations and other items of interest. 


From WA DFI


Spring/Summer 2022 Division of Consumer Services Newsletter – The newsletter includes information on returning to on-site examinations, working with borrowers applying for relief, common exam findings, and a rulemaking update. 

Interagency Comment Requested on Prudent Commercial Loan Accommodations


Interagency Policy Statement on Prudent Commercial Real Estate Loan Accommodations and Workouts - The OCC, FDIC, and NCUA, in consultation with state bank and credit union regulators, are inviting comment on a policy statement for prudent commercial real estate loan accommodations and workouts. This updated policy statement would build on existing guidance on the need for financial institutions to work prudently and constructively with creditworthy borrowers during times of financial stress, update existing interagency guidance on commercial real estate loan workouts, and add a new section on short-term loan accommodations.

[1] Justin B. Hosie is a partner and practice group leader at Hudson Cook, LLP, a nationwide law firm focused on compliance with consumer protection laws governing financial services. Justin provides day-to-day compliance advice on various laws including the Federal Truth-in-Lending Act. Among various publications, Justin is co-authoring the “Annual Percentage Rates” chapter of the forthcoming American Bar Association’s Truth in Lending Manual, 2023 edition. He is AV rated by Martindale Hubbell and is recognized in The Best Lawyers in America for Financial Services Regulation Law.

[2] Cliff E. Cook is an Executive Consultant with Compliance Services Group. Cliff began his banking and compliance career in 1974, and has since been widely recognized by the Banking, Credit Union, Consumer Loan, Payday Loan, and Title Loan industries as an authoritative source for Truth-in-Lending Act compliance, with particular expertise in assisting lenders in complying with the Annual Percentage Rate requirements, as well as issues related to product development, loan agreements, loan origination systems, and loan servicing systems. Recently, Cliff has been assisting commercial lenders and law firms to comply with the new state-required commercial loan APR disclosures.

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