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Triangle Background

The Wisconsin Bankers Association has recently become aware of banks facing scrutiny over Home Mortgage Disclosure Act (HMDA) reporting. Specifically, reporting of the number of individual dwelling units when the covered loan is cross-collateralized by multiple properties. While the rules have not changed, there has been some confusion regarding the interplay of cross-collateralization clauses and HMDA rules. This article will discuss those HMDA requirements in relation to cross-collateralization considerations. 

Subject to certain exemptions, HMDA requires financial institutions to report data on covered transactions. Data is reported on those fields as required by Regulation C section 1003.4. For institutions which qualify for a partial exemption, some of those fields are optional. For purposes of this article, only one of those data fields is discussed, being the number of individual dwelling units related to the property securing the covered loan or, in the case of an application, proposed to secure the covered loan (total units). This data point is required by Regulation C section 1003.4(a)(31). Total units is not a field subject to optional reporting.

The total units field requires a reporting institution to enter, in numeral form, the number of individual dwelling units related to the property securing the covered loan. For example, if there are five (5) individual dwelling units, bank will enter 5 on the HMDA LAR. When a loan is secured by multiple properties, bank may need to consider each of those properties securing the loan to properly report this field. This includes property securing the loan by any means.

This could be the result of future advance language or other cross-collateralization. For example, when taking a loan using the WBA 451 Business Note, cross-collateralization language is included which provides broad coverage in support of the bank as lender. This language provides in part that the note is secured by all existing and future security agreements and mortgages by the borrower, by any indorser or guarantor, and by any other person providing collateral security. Lenders must carefully consider this language, and its relationship with the borrower, including guarantors and other parties, in order to determine those properties which secure the loan. This type of broad cross-collateralization language is most common on business notes.  

As a consumer example, when taking a loan secured by a WBA 428 Real Estate Mortgage, the mortgage document states that the mortgage will secure certain future advances. However, in general, most WBA consumer notes disclaim dwellings as collateral, unless the dwelling is specifically described in the note or agreement. So, a pre-existing mortgage on a dwelling does not secure a future consumer note or agreement unless the note or agreement specifically identifies the dwelling.¹

Lenders need to review their notes and security agreements for this, and similar language. While this is important for a number of reasons, this article strictly discusses the significance of such language as it relates to reporting HMDA total units. 

When reporting total units, HMDA provides clarity within its commentary. Comment 1 to section 1003.4(a)(31) makes a cross-reference to section 1003.4(a)(9) comment 2 regarding transactions involving multiple properties with more than one property taken as security (comment 2). This discussion provides clarity regarding how to report on various data points. Comment 2 draws distinctions between those data points which require reporting for a single property (selected by the lender), and those which must be considered for every property securing the loan (in addition to that single property selected by the lender). The information reported for total units is one of those which must be reported for every property securing the loan. Comment 2 in relevant part provides:

“…for aspects of the entries that do not refer to the property identified in § 1003.4(a)(9) (i.e., § 1003.4(a)(1) through (4), (7), (8), (10) through (13), (15) through (28), (31) through (38)), Financial Institution A reports the information applicable to the covered loan or application and not information that relates only to the property identified in § 1003.4(a)(9).”

Because the commentary includes total units as one of those categories for which information must be reported applicable to the covered loan, and not that which relates only to the single property identified under 1003.4(a)(9), then the lender must report total units based upon every property which secures the loan. As a result, lenders must consider whether the loan is secured by multiple properties. Lenders must review their language specifically to make this determination, but as a final point of distinction, note that the effect of cross-collateralization clauses is to secure the loan with multiple properties.

While this is not a new rule, it is recommended that banks review the above HMDA sections as a refresher. From there, banks should review their contracts and HMDA reporting to ensure that all applicable fields are being reported for all applicable properties. It may be that additional monitoring systems need to be put into place to account for multiple properties securing a loan. Banks should conduct this review in advance of any upcoming compliance exam and prepare accordingly. 

In summary, if a loan is secured by multiple properties, those properties must be included for purposes of reporting total units. As a result, lenders must review their notes and security agreements to understand the extent of how their loans are secured. This is a contractual matter which can vary from note to note, and from one loan relationship to the next. As such, each loan relationship must be reviewed to determine HMDA reporting requirements. Lastly, as mentioned above, this article is specific to the implications of cross-collateralization clauses in relation to reporting of total units for HMDA purposes. However, cross-collateralization clauses are important to understand for reasons beyond HMDA reporting, and such matters will be addressed in a broader sense in a future article.

For any questions on this matter or others, please contact WBA’s legal team at wbalegal@wisbank.com or 608-441-1200. 

¹This is for purposes of flood rules. For further discussion on cross-collateralization as it relates to flood requirements, please review the WBA Compliance Journal from February, 2022. 

Q: When does the HMDA Partial Exemption Apply?

A: The Home Mortgage Disclosure Act’s (HMDA) partial exemption applies based on a loan-volume threshold for originations made during each of the two preceding calendar years. The Economic Growth, Regulatory Relief, and Consumer Protection Act created partial exemptions from some of HMDA’s requirements for certain financial institutions. In order for a partial exemption to apply, an eligible financial institution must meet a loan-volume threshold. The threshold is whether the institution originated fewer than 500 of closed-end loans and open-end lines of credit, counted separately, during each of the two preceding calendar years. For example, a partial exemption applies to an eligible financial institution’s applications for originations of, and purchases of closed-end mortgage loans if the institution originated fewer than 500 closed-end mortgage loans in each of the two preceding calendar years. To illustrate, consider the following two scenarios:

  • Bank A originated 490 closed-end loans during 2019, and 499 closed-end loans during 2020.
  • Bank B originated 490 closed-end loans during 2019, and 501 closed-end loans during 2020.

Bank A would receive the partial exemption in 2021 for closed-end mortgage loans. Bank B would not. Furthermore, Bank B would not receive the partial exemption in 2022. A similar analysis would need to be performed for open-end lines of credit. Banks should carefully consider their loan-volume thresholds in each given year if they are looking to take advantage of a partial exemption. Exceeding the threshold would mean required reporting of additional data fields.

If you have any questions on this topic or other matters of compliance, contact WBA’s legal call program at 608-441-1200 or wbalegal@wisbank.com.

By, Alex Paniagua

If you are like most banks running a large mortgage pipeline over the last ten months, you have had very little time to catch your breath before accepting that next application. And like most banks, your back-office support staff have had to adjust their processes and resources just to keep up the rate locks, TRID disclosures, and timely mortgage closing, all during a pandemic. But what about that pesky HMDA LAR we have all come to love and adore? It’s the last regulation down the mortgage production trough and comes in a close second to post-closing internal quality control that is required during the same time period. We really don’t have time or staff for either.

But don’t get yourself on the naughty list this close to the holidays. Unless your bank is considered a large institution, compliance with every aspect of updating your HMDA within thirty days of each calendar quarter is still in play. And even for large institutions, the only regulatory relief they saw due to COVID-19 is that their regulator would not cite it as a violation if they did not file their quarterly LAR timely. How many banks, large and small, can proudly raise their hand and say they nailed it? Not as many as you would think based on my observations.

For those of you who are required to file a HMDA LAR, we all know it was made much more difficult once the extra sets of data points were introduced, and accounting for up to five applicants on one mortgage has made your HMDA LAR as long as Santa’s list, making it almost impossible to keep it up-to-date. And while the adoption to automate HMDA systems has made reporting more efficient, we still need a few extra elves to edit, review and if necessary, scrub the LAR before it can be wrapped up with a pretty bow. Without further regulatory relief or extension of filing your 2020 HMDA LAR, bank management should consider now how to reallocate staff and resources as we head into the holiday season. Getting your HMDA LAR’s caught up in time for 2021 filing may just be a Christmas miracle.

For those banks who have seen their HMDA LAR grow three times it’s normal size, this is not necessarily a bad thing. Remember, your bank’s HMDA LAR tells a story. Not one of a baby born in a manger, but one of hundreds of people being homeowners. And as bankers, we helped those wishes come true.

So, if your bank lacks the necessary resources, or elves, to review your 2020 HMDA LAR before submission, don’t fret, ShareFI is here to help. Please contact Jeff Schmid, Director of Compliance and Management Services via email to learn how we can help your bank check this list twice.

Schmid, CRCM, CERP is director of compliance and management services at FIPCO. He can be reached via email or 608-441-1220. 

By, Eric Skrum

On July 7, 2020, the Bureau of Consumer Financial Protection (CFPB) issued two new frequently asked questions regarding Regulation C, Home Mortgage Disclosure Act (HMDA), reporting requirements for financial institutions. The FAQs discuss reporting of multiple data points when certain factors are relied upon in making a credit decision. 

Multiple Data Points 

The first question asks whether financial institutions are required to report the credit score, debt-to-income ratio (DTI), and combined loan-to-value ratio (CLTV) relied on in making a credit decision when such data is not the dispositive factor? CFPB responds that yes, credit underwriting data such as credit score, DTI, and CLTV must be reported if they were a factor relied on in making a credit decision—even if the data was not the dispositive factor.  
 
For purposes of Regulation C, it does not matter whether the application is approved or denied; if certain data was relied on in making a credit decision, such data must be reported. For example, if the credit score was relied on in making a credit decision, the credit score must be reported. If the financial institution denied the application because the application did not satisfy one or more underwriting requirements other than the credit score, the financial institution is still required to report the credit score relied on. The same analysis applies to the reporting of CLTV and DTI.  

The second question asks if, when income and property value are factors in the credit decision, though not the dispositive factor, should such data points be reported? CFPB responds that yes, when a credit decision is made, Regulation C requires reporting of the data “relied on in making the credit decision.” Hence, if these data are relied on in making a credit decision, such data must be reported.  

There is no requirement in Regulation C for either of these data points to be the dispositive factor in order to be reported. Specifically, the commentary explains that when a financial institution evaluates income as part of a credit decision, it must report the gross annual income relied on in making the credit decision. For example, if an institution relies on the verified gross income of an applicant to make a credit decision, the institution is required to report the verified gross income. The comment does not state that verified gross annual income must be dispositive in the credit decision.  

The commentary also provides a similar narrative for property value. Income and property value apply the relied-on standard in a similar way to credit score, DTI, and CLTV and should, therefore, be reported if relied on in making a credit decision.  

Conclusion 

The FAQs emphasize specific factors that, when relied upon in making a credit decision, must be reported. The data points are required even when the information is not the dispositive factor in a credit decision. 
 
The FAQs can be found here. 

By, Ally Bates

The below article is the Regulatory Spotlight section of the February 2019 Compliance Journal. The full issue may be viewed by clicking here.

Agencies Propose Thresholds Increase for the Major Assets Prohibition of the Depository Institution Management Interlocks Act Rules.

The Board of Governors of the Federal Reserve System (FRB), the Federal Deposit Insurance Corporation (FDIC), and the Office of the Comptroller of the Currency (OCC) issued a proposed rule that would increase the major assets prohibition thresholds for management interlocks in the agencies’ rules implementing the Depository Institution Management Interlocks Act (DIMIA). The DIMIA major assets prohibition prohibits a management official of a depository organization with total assets exceeding $2.5 billion (or any affiliate of such an organization) from serving at the same time as a management official of an unaffiliated depository organization with total assets exceeding $1.5 billion (or any affiliate of such an organization). DIMIA provides that the agencies may adjust, by regulation, the major assets prohibition thresholds in order to allow for inflation or market changes. The agencies propose to raise the major assets prohibition thresholds to $10 billion to account for changes in the United States banking market since the current thresholds were established in 1996. The agencies also propose three alternative approaches for increasing the thresholds based on market changes or inflation. Comments are due 04/01/2019. The notice may be viewed at: https://www.govinfo.gov/content/pkg/FR-2019-01-31/pdf/2018-28038.pdf. Federal Register, Vol. 84, No. 21, 01/31/2019, 604-612.

Agencies Propose Revisions to Prohibitions and Restrictions on Proprietary Trading and Certain Interests In, and Relationships With, Hedge Funds and Private Equity Funds.

The Board of Governors of the Federal Reserve System (FRB), the Federal Deposit Insurance Corporation (FDIC), the Office of the Comptroller of the Currency (OCC), the Commodity Futures Trading Commission (CFTC), and the Securities and Exchange Commission (SEC) issued a proposal to amend the regulations implementing the Bank Holding Company Act’s (BHC Act) prohibitions and restrictions on proprietary trading and certain interests in, and relationships with, hedge funds and private equity funds in a manner consistent with the statutory amendments made pursuant to certain sections of the Economic Growth, Regulatory Relief, and Consumer Protection Act. The statutory amendments exclude from these restrictions certain firms that have total consolidated assets equal to $10 billion or less and total trading assets and liabilities equal to five percent or less of total consolidated assets and amend the restrictions applicable to the naming of a hedge fund or private equity fund to permit an investment adviser that is a banking entity to share a name with the fund under certain circumstances. Comments are due 03/11/2019. The notice may be viewed at: https://www.govinfo.gov/content/pkg/FR-2019-02-08/pdf/2019-00797.pdf. Federal Register, Vol. 84, No. 27, 02/08/2019, 2778-2791. 

Agencies Propose Capital Simplification for Qualifying Community Banking Organizations.

The Board of Governors of the Federal Reserve System (FRB), the Federal Deposit Insurance Corporation (FDIC), and the Office of the Comptroller of the Currency (OCC) issued a proposal that would provide for a simple measure of capital adequacy for certain community banking organizations, consistent with section 201 of the Economic Growth, Regulatory Relief, and Consumer Protection Act. Under the proposal, most depository institutions and depository institution holding companies that have less than $10 billion in total consolidated assets, that meet risk-based qualifying criteria, and that have a community bank leverage ratio (as defined in the proposal) of greater than 9 percent would be eligible to opt into a community bank leverage ratio framework. Such banking organizations that elect to use the community bank leverage ratio and that maintain a community bank leverage ratio of greater than 9 percent would not be subject to other risk-based and leverage capital requirements and would be considered to have met the well capitalized ratio requirements for purposes of section 38 of the Federal Deposit Insurance Act and regulations implementing that section, as applicable, and the generally applicable capital requirements under the agencies’ capital rule. Comments are due 04/09/2019. The notice may be viewed at: https://www.govinfo.gov/content/pkg/FR-2019-02-08/pdf/2018-27002.pdf. Federal Register, Vol. 84, No. 27, 02/08/2019, 3062-3094.

Agencies Issue Final Guidance.

The Board of Governors of the Federal Reserve System (FRB), and the Federal Deposit Insurance Corporation (FDIC) are adopting this final guidance for the 2019 and subsequent resolution plan submissions by the eight largest, complex U.S. banking organizations. The final guidance is meant to assist these firms in developing their resolution plans, which are required to be submitted pursuant to the Dodd-Frank Wall Street Reform and Consumer Protection Act (Dodd-Frank Act). The final guidance, which is largely based on prior guidance issued to these Covered Companies, describes the Agencies’ expectations regarding a number of key vulnerabilities in plans for an orderly resolution under the U.S. Bankruptcy Code (i.e., capital; liquidity; governance mechanisms; operational; legal entity rationalization and separability; and derivatives and trading activities). The final guidance also updates certain aspects of prior guidance based on the Agencies’ review of these firms’ most recent resolution plan submissions. The notice may be viewed at: https://www.govinfo.gov/content/pkg/FR-2019-02-04/pdf/2019-00800.pdf. Federal Register, Vol. 84, No. 23, 02/04/2019, 1438-1464.

CFPB Finalizes Amendments to Fair Credit Reporting Act Disclosures.

The Bureau of Consumer Financial Protection (CFPB) is amending Regulation V, which implements the Fair Credit Reporting Act (FCRA), to add a section establishing a maximum allowable charge for disclosures by a consumer reporting agency to a consumer pursuant to FCRA section 609. CFPB is also amending Regulation V to add an appendix setting forth the statutory requirements for determining the maximum allowable charge; announcing the maximum charge for 2019; and preserving a list of historical maximum allowable charges. Historically, CFPB has published these FCRA annual adjustments as a notice. CFPB is now codifying those notices and adding a provision to Regulation V to track the FCRA’s provisions concerning the annual maximum allowable charge. The rule is effective 01/31/2019. The notice may be viewed at: https://www.govinfo.gov/content/pkg/FR-2019-01-31/pdf/2018-28372.pdf. Federal Register, Vol. 84, No. 21, 01/31/2019, 515-517.

CFPB Finalizes Home Mortgage Disclosure Adjustment to Asset-Size Exemption Threshold.

CFPB is amending the official commentary that interprets the requirements of the Bureau’s Regulation C (Home Mortgage Disclosure) to reflect the asset-size exemption threshold for banks, savings associations, and credit unions based on the annual percentage change in the average of the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI–W). Based on the 2.6 percent increase in the average of the CPI–W for the 12-month period ending in November 2018, the exemption threshold is adjusted to increase to $46 million from $45 million. Therefore, banks, savings associations, and credit unions with assets of $46 million or less as of 12/31/2018, are exempt from collecting data in 2019. The final rule is effective 01/31/2019. The notice may be viewed at: https://www.govinfo.gov/content/pkg/FR-2019-01-31/pdf/2018-28373.pdf. Federal Register, Vol. 84, No. 21, 01/31/2019, 513-515.

CFPB Finalizes Amendments to Truth in Lending Act Asset-Size Exemption Threshold.

CFPB is amending the official commentary that interprets the requirements of its Regulation Z (Truth in Lending) to reflect a change in the asset-size threshold for certain creditors to qualify for an exemption to the requirement to establish an escrow account for a higher-priced mortgage loan based on the annual percentage change in the average of the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI–W). Based on the 2.6 percent increase in the average of the CPI–W for the 12-month period ending in November 2018, the exemption threshold is adjusted to increase to $2.167 billion from $2.112 billion. Therefore, creditors with assets of less than $2.167 billion (including assets of certain affiliates) as of 12/31/2018, are exempt, if other requirements of Regulation Z also are met, from establishing escrow accounts for higher-priced mortgage loans in 2019. The final rule is effective 02/04/2019. The notice may be viewed at: https://www.govinfo.gov/content/pkg/FR-2019-02-04/pdf/2018-28374.pdf. Federal Register, Vol. 84, No. 23, 02/04/2019, 1356-1359.

CFPB Issues Inflation Adjustments for Civil Monetary Penalties.

CFPB finalized amendments to its rule that specifies the time period for which adjusted civil penalty amounts would be applied to conduct within its jurisdiction and is also adjusting specific civil penalty amounts in that rule to account for inflation. The rule is effective 01/31/2019. The notice may be viewed at: https://www.govinfo.gov/content/pkg/FR-2019-01-31/pdf/2019-00488.pdf. Federal Register, Vol. 84, No. 21, 01/31/2019, 517-520.

CFPB Issues Policy Guidance on Disclosure of Loan-Level HMDA Data.

CFPB is issuing final policy guidance describing modifications that CFPB intends to apply to the loan-level data that financial institutions report under the Home Mortgage Disclosure Act (HMDA) and Regulation C before the data is disclosed to the public. This final policy guidance applies to HMDA data compiled by financial institutions in or after 2018 and made available to the public by CFPB beginning in 2019. The final policy guidance was released on CFPB’s website on 12/21/2018. The notice may be viewed at: https://www.govinfo.gov/content/pkg/FR-2019-01-31/pdf/2018-28404.pdf. Federal Register, Vol. 84, No. 21, 01/31/2019, 649-673.

CFPB Requests Comment on Consumer Credit Card Market.

CFPB is conducting a review of the consumer credit card market. In connection with conducting this review, CFPB is requesting information from the public regarding a number of aspects of the consumer credit card market. Comments are due 05/01/2019. The notice may be viewed at: https://www.govinfo.gov/content/pkg/FR-2019-01-31/pdf/2019-00487.pdf. Federal Register, Vol. 84, No. 21, 01/31/2019, 647-649.

CFPB Requests Comment on Information Collections.

  • CFPB announced it seeks comment on the information collection titled Joint Standards for Assessing the Diversity Policies and Practices. CFPB also gave notice that it sent the collection to OMB for review. Comments are due 04/05/2019. The notice may be viewed at: https://www.govinfo.gov/content/pkg/FR-2019-02-04/pdf/2019-00901.pdf. Federal Register, Vol. 84, No. 23, 02/04/2019, 1429-1430.
  • CFPB announced it seeks comment on the information collection titled Debt Collection Quantitative Disclosure Testing. CFPB also gave notice that it sent the collection to OMB for review. Comments are due 03/06/2019. The notice may be viewed at: https://www.govinfo.gov/content/pkg/FR-2019-02-04/pdf/2019-00905.pdf. Federal Register, Vol. 84, No. 23, 02/04/2019, 1430-1431.
  • CFPB announced it seeks comment on the information collection titled Making Ends Meet Survey. CFPB also gave notice that it sent the collection to OMB for review. Comments are due 03/06/2019. The notice may be viewed at: https://www.govinfo.gov/content/pkg/FR-2019-02-04/pdf/2019-00906.pdf. Federal Register, Vol. 84, No. 23, 02/04/2019, 1428-1429.
  • CFPB announced it seeks comment on the information collection titled Generic Information Collection Plan for Studies of Consumers Using Controlled Trials in Field and Economic Laboratory Settings. CFPB also gave notice that it sent the collection to OMB for review. Comments are due 04/08/2019. The notice may be viewed at: https://www.govinfo.gov/content/pkg/FR-2019-02-06/pdf/2019-01166.pdf. Federal Register, Vol. 84, No. 25, 02/06/2019, 2175-2176.

CFPB Issues Fair Lending Report.

CFPB is issuing its sixth Fair Lending Report of the Bureau of Consumer Financial Protection (Fair Lending Report) to Congress. CFPB is committed to ensuring fair access to credit and eliminating discriminatory lending practices. The report describes CFPB’s fair lending activities in prioritization, supervision, enforcement, rulemaking, interagency coordination, and outreach for calendar year 2017. The notice may be viewed at: https://www.govinfo.gov/content/pkg/FR-2019-02-08/pdf/2019-01568.pdf. Federal Register, Vol. 84, No. 27, 02/08/2019, 2824-2833. 
 
FRB Finalizes Amendments to Regulation A.

The Board of Governors of the Federal Reserve System (FRB) has adopted final amendments to its Regulation A to reflect FRB’s approval of an increase in the rate for primary credit at each Federal Reserve Bank. The secondary credit rate at each Reserve Bank automatically increased by formula as a result of FRB’s primary credit rate action. The final amendments are effective 01/31/2019. The notice may be viewed at: https://www.govinfo.gov/content/pkg/FR-2019-01-31/pdf/2018-28423.pdf. Federal Register, Vol. 84, No. 21, 01/31/2019, 511-512.

FRB Finalizes Amendments to Regulation D.

FRB is amending Regulation D (Reserve Requirements of Depository Institutions) to revise the rate of interest paid on balances maintained to satisfy reserve balance requirements (IORR) and the rate of interest paid on excess balances (IOER) maintained at Federal Reserve Banks by or on behalf of eligible institutions. The final amendments specify that IORR is 2.40 percent and IOER is 2.40 percent, a 0.20 percentage point increase from their prior levels. The amendments are intended to enhance the role of such rates of interest in moving the Federal funds rate into the target range established by the Federal Open Market Committee. The final amendments are effective 01/31/2019. The notice may be viewed at: https://www.govinfo.gov/content/pkg/FR-2019-01-31/pdf/2018-28424.pdf. Federal Register, Vol. 84, No. 21, 01/31/2019, 512-513.

FRB Requests Comment on Information Collections.

  • FRB announced it seeks comment on the information collection titled Registration of a Securities Holding Company. FRB also gave notice that it sent the collection to OMB for review. Comments are due 04/01/2019. The notice may be viewed at: https://www.govinfo.gov/content/pkg/FR-2019-01-31/pdf/2019-00367.pdf. Federal Register, Vol. 84, No. 21, 01/31/2019, 716-717.
  • FRB announced it seeks comment on the information collection titled Application Form for Membership on the Community Advisory Council. FRB also gave notice that it sent the collection to OMB for review. Comments are due 04/01/2019. The notice may be viewed at: https://www.govinfo.gov/content/pkg/FR-2019-01-31/pdf/2019-00365.pdf. Federal Register, Vol. 84, No. 21, 01/31/2019, 718-719.
  • FRB announced it seeks comment on the information collection titled Suspicious Activity Report. FRB also gave notice that it sent the collection to OMB for review. Comments are due 04/08/2019. The notice may be viewed at: https://www.govinfo.gov/content/pkg/FR-2019-02-05/pdf/2019-00996.pdf. Federal Register, Vol. 84, No. 24, 02/05/2019, 1732-1734.
  • FRB announced it seeks comment on the information collection titled Recordkeeping Requirements of Regulation H and Regulation K Associated with the Procedures for Monitoring Bank Secrecy Act Compliance. FRB also gave notice that it sent the collection to OMB for review. Comments are due 04/08/2019. The notice may be viewed at: https://www.govinfo.gov/content/pkg/FR-2019-02-05/pdf/2019-01000.pdf. Federal Register, Vol. 84, No. 24, 02/05/2019, 1731-1732.

FDIC Finalizes Amendments to Exception for a Capped Amount of Reciprocal Deposits from Treatment as Brokered Deposits.

The Federal Deposit Insurance Corporation (FDIC) is amending its regulations that implement brokered deposits and interest rate restrictions to conform with recent changes to section 29 of the Federal Deposit Insurance Act made by section 202 of the Economic Growth, Regulatory Relief, and Consumer Protection Act related to reciprocal deposits, which took effect on 05/24/2018. FDIC is also making conforming amendments to FDIC’s regulations governing deposit insurance assessments. The final rule is effective 03/06/2019. The notice may be viewed at: https://www.govinfo.gov/content/pkg/FR-2019-02-04/pdf/2018-28137.pdf. Federal Register, Vol. 84, No. 23, 02/04/2019, 1346-1354.

FDIC Finalizes Amendments to Depository Institution Management Interlocks Act.

FDIC finalized a rule in connection with an adjustment of the thresholds for the major assets prohibition of the Depository Institutions Management Interlocks Act (DIMIA) that has been proposed jointly by FDIC with the Office of the Comptroller of the Currency (OCC) and the Board of Governors of the Federal Reserve System (FRB) through a notice of proposed rulemaking (NPR) published in the Federal Register on 01/31/2019. FDIC has decided to use this opportunity to make two purely technical corrections to FDIC Regulations, both pertaining to DIMIA implementation, by means of a separate final rule without notice and comment. The final rule is effective 02/08/2019. The notice may be viewed at: https://www.govinfo.gov/content/pkg/FR-2019-02-08/pdf/2019-01193.pdf. Federal Register, Vol. 84, No. 27, 02/08/2019, 2705-2706.

FDIC Proposes Removal of Transferred OTS Regulations Regarding Lending and Investment.

FDIC proposes to rescind and remove from the Code of Federal Regulations rules entitled ‘‘Lending and Investment’’ (part 390, subpart P) that were transferred to FDIC from the Office of Thrift Supervision (OTS) on 07/21/2011, in connection with the implementation of Title III of the Dodd-Frank Act; amend certain sections of existing FDIC regulations governing real estate lending standards to make it clear that such rules apply to all insured depository institutions for which FDIC is the appropriate Federal banking agency; and amend part 365 by rescinding in its entirety the subpart concerning registration requirements for residential mortgage loan originators because supervision and rulemaking authority in this area was transferred to the Bureau of Consumer Financial Protection (CFPB) by the Dodd-Frank Act. Comments are due 04/08/2019. The notice may be viewed at: https://www.govinfo.gov/content/pkg/FR-2019-02-05/pdf/2018-28084.pdf. Federal Register, Vol. 84, No. 24, 02/05/2019, 1653-1661.

FDIC Requests Comment on Brokered Deposits and Interest Rate Restrictions.

FDIC is undertaking a comprehensive review of the regulatory approach to brokered deposits and the interest rate caps applicable to banks that are less than well capitalized. Since the statutory brokered deposit restrictions were put in place in 1989, and amended in 1991, the financial services industry has seen significant changes in technology, business models, and products. In addition, changes to the economic environment have raised a number of issues relating to the interest rate restrictions. A key part of FDIC’s review is to seek public comment through this Advance Notice of Proposed Rulemaking (ANPR) on the impact of these changes. FDIC will carefully consider comments received in response to this ANPR in determining what actions may be warranted. Comments are due 05/07/2019. The notice may be viewed at: https://www.govinfo.gov/content/pkg/FR-2019-02-06/pdf/2018-28273.pdf. Federal Register, Vol. 84, No. 25, 02/06/2019, 2366-2400.  

FDIC Requests Comment on Information Collections.

  • FDIC announced it seeks comment on the information collection titled Market Risk Capital Requirements. FDIC also gave notice that it sent the collection to OMB for review. Comments are due 04/02/2019. The notice may be viewed at: https://www.govinfo.gov/content/pkg/FR-2019-02-01/pdf/2019-00558.pdf. Federal Register, Vol. 84, No. 22, 02/01/2019, 1121-1123.
  • FDIC announced it seeks comment on the information collection titled Mutual-to-Stock Conversion of State Savings Banks. FDIC also gave notice that it sent the collection to OMB for review. Comments are due 03/04/2019. The notice may be viewed at: https://www.govinfo.gov/content/pkg/FR-2019-02-01/pdf/2019-00560.pdf. Federal Register, Vol. 84, No. 22, 02/01/2019, 1123-1125.
  • FDIC announced it seeks comment on the information collection titled Privacy of Consumer Information. FDIC also gave notice that it sent the collection to OMB for review. Comments are due 03/04/2019. The notice may be viewed at: https://www.govinfo.gov/content/pkg/FR-2019-02-01/pdf/2019-00561.pdf. Federal Register, Vol. 84, No. 22, 02/01/2019, 1120-1121.

FDIC Issues Terminations of Receiverships.

  • FDIC as Receiver was charged with the duty of winding up the affairs of former depository institutions and liquidating all related assets. The Receiver has fulfilled its obligations and made all dividend distributions required by law. The Receiver has further irrevocably authorized and appointed FDIC-Corporate as its attorney-in-fact to execute and file any and all documents that may be required to be executed by the Receiver which FDIC-Corporate, in its sole discretion, deems necessary, including but not limited to releases, discharges, satisfactions, endorsements, assignments, and deeds. Effective on the termination dates listed in the final column of the chart in the notice, the Receiverships have been terminated, the Receiver has been discharged, and the Receiverships have ceased to exist as legal entities. The notice may be viewed at: https://www.govinfo.gov/content/pkg/FR-2019-02-06/pdf/2019-01310.pdf. Federal Register, Vol. 84, No. 25, 02/04/2019, 2224-2225.
  • FDIC as Receiver for former depository institutions, intends to terminate its receivership for the institutions listed in the notices. The liquidation of the assets for each receivership has been completed. To the extent permitted by available funds and in accordance with law, the Receiver will be making a final dividend payment to proven creditors. Based upon the foregoing, the Receiver has determined that the continued existence of the receiverships will serve no useful purpose. Consequently, notice is given that the receiverships shall be terminated, to be effective no sooner than thirty days after the date of this notice. If any person wishes to comment concerning the termination of any of the receiverships, such comment must be made in writing, identify the receivership to which the comment pertains, and be sent within thirty days of the date of this notice to: Federal Deposit Insurance Corporation, Division of Resolutions and Receiverships, Attention: Receivership Oversight Department 34.6, 1601 Bryan Street, Dallas, TX 75201. No comments concerning the termination of the above-mentioned receiverships will be considered which are not sent within this time frame. The notices may be viewed at: https://www.govinfo.gov/content/pkg/FR-2019-02-08/pdf/2019-01542.pdf. Federal Register, Vol. 84, No. 27, 02/08/2019, 2865.
    https://www.govinfo.gov/content/pkg/FR-2019-02-05/pdf/2019-01027.pdf. Federal Register, Vol. 84, No. 24, 02/05/2019, 1729-1730.

OCC Requests Comment on Information Collections.

  • The Office of the Comptroller of the Currency (OCC) announced it seeks comment on the information collection titled Company-Run Annual Stress Test Reporting Template and Documentation for Covered Institutions under the Dodd-Frank Wall Street Reform and Consumer Protection Act. OCC also gave notice that it sent the collection to OMB for review. Comments are due 03/04/2019. The notice may be viewed at: https://www.govinfo.gov/content/pkg/FR-2019-01-31/pdf/2019-00418.pdf. Federal Register, Vol. 84, No. 21, 01/31/2019, 881-882.
  • OCC announced it seeks comment on the information collection titled Community and Economic Development Entities, Community Development Projects, and Other Public Welfare Investments. OCC also gave notice that it sent the collection to OMB for review. Comments are due 04/08/2019. The notice may be viewed at: https://www.govinfo.gov/content/pkg/FR-2019-02-05/pdf/2019-00951.pdf. Federal Register, Vol. 84, No. 24, 02/05/2019, 1821-1822.
  • OCC announced it seeks comment on the information collection titled Domestic First Lien Residential Mortgage Data. OCC also gave notice that it sent the collection to OMB for review. Comments are due 04/08/2019. The notice may be viewed at: https://www.govinfo.gov/content/pkg/FR-2019-02-05/pdf/2019-00949.pdf. Federal Register, Vol. 84, No. 24, 02/05/2019, 1823-1824.
  • OCC announced it seeks comment on the information collection titled Interagency Guidance on Asset Securitization Activities. OCC also gave notice that it sent the collection to OMB for review. Comments are due 04/08/2019. The notice may be viewed at: https://www.govinfo.gov/content/pkg/FR-2019-02-05/pdf/2019-01114.pdf. Federal Register, Vol. 84, No. 24, 02/05/2019, 1824-1825.
  • OCC announced it seeks comment on the information collection titled Interagency Statement on Complex Structured Finance Transactions. OCC also gave notice that it sent the collection to OMB for review. Comments are due 04/08/2019. The notice may be viewed at: https://www.govinfo.gov/content/pkg/FR-2019-02-05/pdf/2019-01076.pdf. Federal Register, Vol. 84, No. 24, 02/05/2019, 1828-1829.
  • OCC announced it seeks comment on the information collection titled Margin and Capital Requirements for Covered Swap Entities. OCC also gave notice that it sent the collection to OMB for review. Comments are due 03/07/2019. The notice may be viewed at: https://www.govinfo.gov/content/pkg/FR-2019-02-05/pdf/2019-00952.pdf. Federal Register, Vol. 84, No. 24, 02/05/2019, 1825-1828.
  • OCC announced it seeks comment on the information collection titled Market Risk. OCC also gave notice that it sent the collection to OMB for review. Comments are due 03/07/2019. The notice may be viewed at: https://www.govinfo.gov/content/pkg/FR-2019-02-05/pdf/2019-00953.pdf. Federal Register, Vol. 84, No. 24, 02/05/2019, 1829-1830.
  • OCC announced it seeks comment on the information collection titled Reverse Mortgage Products: Guidance for Managing Compliance and Reputation Risks. OCC also gave notice that it sent the collection to OMB for review. Comments are due 04/08/2019. The notice may be viewed at: https://www.govinfo.gov/content/pkg/FR-2019-02-05/pdf/2019-01075.pdf. Federal Register, Vol. 84, No. 24, 02/05/2019, 1822-1823.
  • OCC announced it seeks comment on the information collection titled Survey of Minority Owned Institutions. OCC also gave notice that it sent the collection to OMB for review. Comments are due 04/08/2019. The notice may be viewed at: https://www.govinfo.gov/content/pkg/FR-2019-02-05/pdf/2019-00950.pdf. Federal Register, Vol. 84, No. 24, 02/05/2019, 1830-1831.

FEMA Issues Final Rules on Suspensions of NFIP Community Eligibility.

The Federal Emergency Management Agency (FEMA) issued a final rule which identifies communities in the state of Iowa, where the sale of flood insurance has been authorized under the National Flood Insurance Program (NFIP) that are scheduled for suspension on the effective dates listed within the final rule because of noncompliance with the floodplain management requirements of the program. If FEMA receives documentation that the community has adopted the required floodplain management measures prior to the effective suspension date given in the final rule, the suspension will not occur and a notice of this will be provided by publication in the Federal Register on a subsequent date. The effective date of each community’s scheduled suspension is the third date listed in the third column of the tables in the final rule. The final rule may be viewed at: https://www.govinfo.gov/content/pkg/FR-2019-02-01/pdf/2019-00699.pdf. Federal Register, Vol. 84, No. 22, 02/01/2019, 978-989.

Treasury Issues Final Rule on Qualified Business Income Deduction.

The Department of the Treasury (Treasury) issued a final rule concerning the deduction for qualified business income under section 199A of the Internal Revenue Code (Code). The regulations will affect individuals, partnerships, S corporations, trusts, and estates engaged in domestic trades or businesses. The regulations also contain an anti-avoidance rule under section 643 of the Code to treat multiple trusts as a single trust in certain cases, which will affect trusts, their grantors, and beneficiaries. The final rule is effective 02/08/2019. The notice may be viewed at: https://www.govinfo.gov/content/pkg/FR-2019-02-08/pdf/2019-01025.pdf. Federal Register, Vol. 84. No. 27, 02/08/2019, 2952-3014.

Treasury Proposes Rule on Qualified Business Income Deduction.

Treasury issued proposed regulations concerning the deduction for qualified business income under section 199A of the Internal Revenue Code (Code). The proposed regulations will affect certain individuals, partnerships, S corporations, trusts, and estates. The proposed regulations provide guidance on the treatment of previously suspended losses that constitute qualified business income. The proposed regulations also provide guidance on the determination of the section 199A deduction for taxpayers that hold interests in regulated investment companies, charitable remainder trusts, and split-interest trusts. Comments are due 04/09/2019. The notice may be viewed at: https://www.govinfo.gov/content/pkg/FR-2019-02-08/pdf/2019-01023.pdf. Federal Register, Vol. 84, No. 27, 02/08/2019, 3015-3023.

Treasury Announces Pricing for 2019 United States Mint Numismatic Products.

Treasury announced pricing changes and new pricing for some 2019 United States Mint Numismatic Products. The pricing may be viewed in the second column of the chart in the notice. The notice may be viewed at: https://www.govinfo.gov/content/pkg/FR-2019-02-08/pdf/2019-01636.pdf. Federal Register, Vol. 84, No. 27, 02/08/2019, 2949.

FHFA Issues Annual Adjustment of the Cap on Average Total Assets That Defines Community Financial Institutions.

The Federal Housing Finance Agency (FHFA) has adjusted the cap on average total assets that is used in determining whether a Federal Home Loan Bank member qualifies as a “community financial institution” (CFI) to $1,199,000,000, based on the annual percentage increase in the Consumer Price Index for all urban consumers (CPI–U), as published by the Department of Labor (DOL). The changes are effective 01/01/2019. The notice may be viewed at: https://www.govinfo.gov/content/pkg/FR-2019-02-06/pdf/2019-01154.pdf. Federal Register, Vol. 84, No. 25, 02/06/2019, 2225.

FSA Requests Comment on Information Collection.

The Farm Service Agency (FSA) announced it seeks comment on the information collection titled Farm Loan Programs, Direct Loan Making. FSA also gave notice that it sent the collection to OMB for review. Comments are due 04/08/2019. The notice may be viewed at: https://www.govinfo.gov/content/pkg/FR-2019-02-05/pdf/2019-01071.pdf. Federal Register, Vol. 84, No. 24, 02/05/2019, 1700-1701.

FCA Finalizes Amendments to Farmer Mac Investment Eligibility.

The Farm Credit Administration (FCA) issued a final rule adopting amendments to regulations governing the eligibility of non-program investments held by the Federal Agricultural Mortgage Corporation (Farmer Mac) to remove references to, and requirements relating to, credit ratings in compliance with section 939A of the Dodd-Frank Wall Street Reform and Consumer Protection Act. The final rule is effective 02/08/2019. The notice may be viewed at: https://www.govinfo.gov/content/pkg/FR-2019-02-08/pdf/2019-01072.pdf. Federal Register, Vol. 84, No. 27, 02/08/2019, 2706-2707.

FCA Issues Inflation Adjustments for Civil Monetary Penalties.

FCA issued inflation adjustments to civil money penalties (CMPs) that FCA may impose or enforce pursuant to the Farm Credit Act of 1971. The inflation adjustments are applicable 01/15/2019. The notice may be viewed at: https://www.govinfo.gov/content/pkg/FR-2019-02-04/pdf/2019-00789.pdf. Federal Register, Vol. 84, No. 23, 02/04/2019, 1354-1356.

FASB Issues Accounting Technical Release 19.

The Federal Accounting Standards Advisory Board (FASB) has issued Federal Financial Accounting Technical Release (TR) 19, Rescission of Technical Release 8. The TR is available on the FASAB website at http://www.fasab.gov/accounting-standards/. Copies can be obtained by contacting FASAB at (202)512–7350. The notice may be viewed at: https://www.govinfo.gov/content/pkg/FR-2019-01-31/pdf/2019-00500.pdf. Federal Register, Vol. 84, No. 21, 01/31/2019, 712.

NCUA Issues Inflation Adjustments for Civil Monetary Penalties.

The National Credit Union Administration (NCUA) is amending its regulations to adjust the maximum amount of each civil monetary penalty (CMP) within its jurisdiction to account for inflation. The final rule is effective 02/06/2019. The notice may be viewed at: https://www.govinfo.gov/content/pkg/FR-2019-02-06/pdf/2019-01123.pdf. Federal Register, Vol. 84, No. 23, 02/04/2019, 2052-2056.

NCUA Issues Technical Amendments.

NCUA is issuing a final rule to make technical amendments to various provisions of the NCUA’s regulations. These technical amendments correct minor drafting errors and inaccurate legal citations and remove unnecessary regulatory provisions no longer applicable to federally insured credit unions (FICUs). The amendments are effective 02/05/2019. The notice may be viewed at: https://www.govinfo.gov/content/pkg/FR-2019-02-05/pdf/2018-27472.pdf. Federal Register, Vol. 84, No. 24, 02/05/2019, 1601-1610.

SSA Issues Inflation Adjustments for Civil Monetary Penalties.

The Social Security Administration (SSA) is giving notice of its updated maximum civil monetary penalties. These amounts are effective from 01/15/2019 through 01/14/2020. These figures represent an annual adjustment for inflation. The updated figures and notification are required by the Federal Civil Penalties Inflation Adjustment Act Improvements Act of 2015. The notice may be viewed at: https://www.govinfo.gov/content/pkg/FR-2019-01-24/pdf/2019-00091.pdf. Federal Register, Vol. 84, No. 16, 01/24/2018, 360.

SSA Requests Comment on Information Collection.

SSA announced it seeks comment on the information collection titled Request to be Selected as a Payee. SSA also gave notice that it sent the collection to OMB for review. Comments are due 03/26/2019. The notice may be viewed at: https://www.govinfo.gov/content/pkg/FR-2019-01-25/pdf/2019-00194.pdf. Federal Register, Vol. 84, No. 17, 01/25/2019, 371-377.

By, Ally Bates

The below article is the Special Focus section of the September 2018 Compliance Journal. The full issue may be viewed by clicking here.

On July 5, 2018, the Bureau of Consumer Financial Protection (CFPB) issued an interpretive and procedural rule (the rule) to implement and clarify portions of the Economic Growth, Regulatory Relief, and Consumer Protection Act (S.2155) related to the Home Mortgage Disclosure Act (HMDA). The President signed S.2155 into law on May 24, 2018. Section 104 of S.2155 amends HMDA by adding partial exemptions to certain reporting requirements. The rule implements and clarifies the Section 104 provisions of S.2155.

S.2155 Partial Exemption

Section 104 of S.2155 exempts certain small-volume loan originators from the new HMDA reporting requirements. Financial institutions that originate fewer than 500 closed-end mortgage loans and 500 open-end lines of credit in each of the two preceding calendar years may revert to pre-January 2018 HMDA reporting requirements. The threshold must be met separately for both closed-end and open-end. This means:

  • Reporting closed-end loans following pre-2018 rules;
    • When originating fewer than 500 closed-end mortgage loans;
  • Reporting open-end loans following pre-2018 rules;
    • When originating fewer than 500 open-end mortgage loans;
  • Exemption from HMDA reporting for HELOCs during 2018-2019 period; and,
  • Limited HELOC reporting for post 2019 period.

This exemption does not apply to any bank that has received a “needs to improve” CRA rating during each of the last 2 most recent exams or a “substantial non-compliance” rating on its most recent exam.

CFPB’s Rule

The rule implements the partial exemption as discussed above. Whether a partial exemption applies to an institution’s lending activity for a particular calendar year depends on an institution’s origination activity in each of the preceding two years. For example, whether a partial exemption applies to closed-end loans for which final action is taken in 2019 depends on the number of closed-end loans
originated by the insured depository institution in 2017 and 2018. 

The rule’s clarifications of the S.2155 partial exemption include:

  • S.2155 does not define “closed-end mortgage loan” or “open-end line of credit.” The rule clarifies that the CFPB believes S.2155 intended those terms to only include those loans that would otherwise be reportable under HMDA. For example, “agricultural purpose loans,” as defined within Reg C, are not counted.
  • If a financial institution qualifies for a partial exemption, S.2155 specifies that the requirements of HMDA section 304(b)(5) and (6) do not apply. The rule interprets those sections to include 26 specific data points. For a list of those data points, see the link to the rule at the end of this article.
  • S.2155 does not require a universal loan identifier (ULI) for loans or applications that are partially exempt. However, loans and applications must be identifiable. The rule requires a non-universal loan identifier even for partially exempt loans that do not require a ULI. The non-universal loan identifier may be composed of up to 22 characters to identify the covered loan or application, which: 
  1. May be letters, numerals, or a combination of letters and numerals; 
  2. Must be unique within the insured depository institution; and 
  3. Must not include any information that could be used to directly identify the applicant or borrower.
  • As discussed above, an insured depository institution is not eligible for the S.2155 partial exemption if it has received a rating of “needs to improve record of meeting community credit needs” during each of its two most recent Community Reinvestment Act (CRA) examinations or a rating of “substantial noncompliance in meeting community credit needs” on its most recent CRA examination. The rule interprets this assessment to be made as of December 31 of the preceding calendar year.

Compliance Considerations

Covered financial institutions will want to consider their use of the S.2155 partial exemption based upon CFPB’s clarifications within the rule. Operational considerations will also need to be made. For example, the rule permits optional reporting. Some covered financial institutions eligible for a partial exemption may decide to report, especially for data submission in 2019. As discussed above, whether a partial exemption applies is based on origination activity for the preceding two years. Some covered financial institutions may be unable to determine this just before data collection for the covered year. For example, as most institutions had already begun collection of 2018 data before S.2155 was signed, they may not have time to adjust their systems. As a result, some covered financial institutions may decide to optionally report in 2019, which the rule permits.

Conclusion

While S.2155 became law upon publication, CFPB’s implementation of its HMDA provisions through the rule provides additional clarity to financial institutions eligible for the partial exemption. WBA recommends that financial institution’s seeking to utilize the partial exemption review the rule in full. The rule is effective on September 7, 2018. 

The rule may be found here: https://www.gpo.gov/fdsys/pkg/FR-2018-09-07/pdf/2018-19244.pdf

By, Ally Bates

The Bureau of Consumer Financial Protection (CFPB) has issued an interpretive and procedural rule implementing and clarifying changes to HMDA made by S. 2155 The Economic Growth, Regulatory Relief, and Consumer Protection Act (Act or S.2155). S. 2155 was signed into law May 24, 2018, the Act amends HMDA by adding partial exemptions from HMDA’s requirements for certain transactions made by certain financial institutions. The Act also increases the HMDA reporting threshold to 500 open-end lines of credit, meaning institutions that originated fewer than 500 open-end lines of credit in the two preceding calendar years do not need to collect and report certain data.

This new rule clarifies which data points in HMDA’s Regulation C are covered by the partial exemptions and that only loans and lines of credit that are otherwise reportable under the Regulation count toward the thresholds for the partial exemptions.

S. 2155 also provides that the above partial exemptions are not available to institutions that have received a CRA rating of “needs to improve record of meeting community credit needs” in each of their two most recent CRA examinations, or a rating of “substantial noncompliance in meeting community credit needs” in their most recent exam. The rule clarifies that the CRA examination assessment that would disqualify an institution from the partial exemptions must be made as of December 31 of the preceding calendar year.

CFPB also addresses transition issues with the implementation of the rule. The rule applies to data collected or reported under HMDA on or after May 24, 2018. An institution that is eligible for a partial exemption for a transaction does not need to collect exempt data points on or after May 24, 2018. In addition, such institutions are not required to report certain data that may have been collected on or before May 24, 2018. However, an institution may opt to voluntarily report data that are covered by a partial exemption.

The rule will be effective Sept. 7, 2018.

Click here for the full rule.

Click here for the executive summary.

By, Ally Bates

Events

HMDA compliance is tough! With all the data you are required to collect and report, there are bound to be mistakes. You can’t rest easy though, because too many errors can lead to civil money penalties. This webinar will take a look at HMDA from beginning to end and everything in between. This is a great opportunity to take an in-depth look at HMDA get your HMDA compliance on the right track!

What You’ll Learn

  • Bank Coverage – Who’s In & Who’s Out
  • Covered Loans
  • What’s a Dwelling?
  • Mixed-Use Properties
  • Demographic Information
  • Data Collection & Reporting for “Small” and “Large” Filers
  • What’s a Dwelling?
  • Mixed-Use Properties
  • Demographic Information
  • Data Collection & Reporting for “Small” and “Large” Filers

Who Should Attend
This webinar is for loan officers, loan processors, compliance, audit and other loan operations personnel.

Instructor Bio
Jerod Moyer is the leader of Banker’s Compliance Consulting’s training productions. He is a nationally recognized speaker. Whether it’s a conference, seminar, school, webinar or luncheon, it’s easy to stay engaged when he presents due to the amount of passion and energy he brings to each and every compliance topic. Jerod has spoken on behalf of the American Banker’s Association, BankersOnline, many state banking associations, private compliance groups and financial institutions. He is a Certified Regulatory Compliance Manager (CRCM) and BankersOnline Guru.

Moyer likes to spend his time (between reading regulations and producing compliance training!) relaxing at the lake with his wife and three children, following their activities or engaged in something sports related!

Registration Options

Live Access, 30 Days OnDemand Playback, Presenter Materials and Handouts $1049

  • Available Upgrades:
    • Additional Live Access + $99 per person

Note: This information is part 2 of a 2 part series.  To register for both webinars click here.

There are numerous compliance requirements when originating a consumer-purpose mortgage loan. Most people think about the TRID requirements (TILA-RESPA Integrated Disclosures), but there are many more. From ability-to-repay and Qualified Mortgage (QM) rules, flood insurance and appraisal requirements, to fair lending, there is much to think about. As well, the loan may be HMDA-reportable. And with the many recent changes in the QM, HMDA, and appraisal rules, things can get tricky. As well, the pandemic resulted in additional considerations. We’ll pay particular attention to these changes so you don’t miss a beat.

How can you keep all the requirements straight in your head so you can be sure to not miss anything? In Part 2 of this 2-part webinar, we’ll discuss all the relevant requirements and considerations in the origination process.

Covered Topics

  • Flood insurance requirements
  • Appraisal rules – when you have to get an appraisal and when you don’t
  • Fair lending considerations and Reg. B rules
  • HMDA reportability
  • FCRA considerations
  • And others

Who Should Attend
Anyone at the institution is involved in the mortgage loan origination process, including loan officers, processors, loan secretaries, closing agents, compliance officers, counsel, management, and others.

Instructor Bio
Carl Pry is a Certified Regulatory Compliance Manager (CRCM) and Certified Risk Professional (CRP) who is a Managing Director for Treliant Risk Advisors in Washington, D.C. Through his working career, as well as through his experience as a banking attorney and officer, he has provided a variety of regulatory compliance and financial performance services to financial institutions and other clients throughout the country. He has written extensively regarding consumer and commercial compliance, tax, audit, and financial institution legal issues, and is a frequent contributor to and currently serves on the Editorial Advisory Board for the ABA Bank Compliance magazine. He has spoken at scores of banking, compliance, and state bar associations, and has conducted training sessions for financial institutions across the country.

Registration Options
Live Access, 30 Days OnDemand Playback, Presenter Materials and Handouts $279

Available Upgrades:

  • 12 Months OnDemand Playback + $110
  • 12 Months OnDemand Playback + CD + $140
  • Additional Live Access + $75 per person

Sometimes going back to the basics is a step in the right direction. If you (or your institution) are new to HMDA reporting, this program will provide a solid foundation and the details needed to collect and report data the right way.

After This Webinar You’ll be Able To:

  • Determine the various types of dwellings that trigger a HMDA application
  • Explain to applicants why demographic information (ethnicity, race, and gender) is collected
  • Understand the elements of a completed application
  • Define the correct loan purpose
  • Handle common reporting problems for commercial loan applications:
  • Distinguish between covered and excluded applications
  • Identify which structures can be considered a dwelling for HMDA reporting
  • Sort out complex issues with mixed-use dwellings (these structures are often used as collateral for commercial loans)

Webinar Details

The Home Mortgage Disclosure Act (HMDA) requires financial institutions to collect and report data related to certain dwelling-secured applications. The detailed definitions and requirements can be confusing for new employees and financial institutions that have just become subject to reporting. This boot camp session will provide straightforward examples that explain the rules for identifying potential HMDA applications and the elements of data collection — while reinforcing the importance of “getting it right.”

Who Should Attend?

This informative session is designed to teach the basics of HMDA reporting to those new to the process. It will also be a helpful review for loan operations staff, loan officers, loan assistants, processors, compliance officers, and auditors.

Take-Away Toolkit

  • CFPB resource links
  • Step-by-step data collection definitions and how to avoid mistakes
  • Tool for taking demographic information
  • Employee training log
  • Interactive quiz
  • PDF of slides and speaker’s contact info for follow-up questions
  • Attendance certificate provided to self-report CE credits

Note: All materials are subject to copyright. Transmission, retransmission, or republishing of any webinar to other institutions or those not employed by your institution is prohibited. Print materials may be copied for eligible participants only.

Presenter: Susan Costonis, CRCM – Compliance Training & Consulting for Financial Institutions

Susan Costonis is a compliance consultant and trainer who began her career in 1978. She specializes in compliance management along with deposit and lending regulatory training. Costonis has successfully managed compliance programs and exams for institutions that ranged from a community bank to large multi-state bank holding companies. She has been a compliance officer for institutions supervised by the OCC, FDIC, and Federal Reserve. Costonis has been a Certified Regulatory Compliance Manager since 1998, completed the ABA Graduate Compliance School, and graduated from the University of Akron and the Graduate Banking School of the University of Colorado. She regularly presents to financial institution audiences in several states and “translates” complex regulations into simple concepts by using humor and real-life examples.

Registration Options

  • $245 – Live Webinar Access
  • $245 – OnDemand Access + Digital Download
  • $350 – Both Live & On-Demand Access + Digital Download

We tend to think of Commercial Loans as being free of troublesome compliance requirements, but that simply is not accurate. In this webinar, Anne Lolley will present and explain her checklist for commercial loans.

Several compliance-related laws apply to commercial loans as well as consumer loans. This colorful checklist, patterned after the popular Best-Ever Consumer Checklists, will guide bankers through those compliance traps and ensure compliance. In addition to addressing compliance issues, this checklist (and the accompanying information) will provide “best practice” suggestions and reminders that commonly apply to commercial loans. We’ll include information on business-entity documentation, underwriting documents, guarantors and security interests.

Covered Topics

  • HMDA
  • Customer identification
  • Environmental risk analysis
  • Appraisals and evaluations
  • Adverse action
  • Providing copies of appraisals
  • Intent to apply for joint credit
  • Flood insurance

Who Should Attend?

Lenders, loan processors, compliance officers and loan review personnel.

Instructor Bio
For over forty years, Anne Lolley has been simplifying compliance issues for bankers. After earning her law degree from the University of Kansas, she joined the Kansas Bankers Association, where she developed its successful legal department and gave compliance-related seminars. She has been a compliance officer for two banks and currently works with Bank Consulting Services, where she continues to provide webinars to Kansas bankers. Her expertise at simplifying the complex and creating user-friendly reference manuals has made her a popular instructor.

Registration Options

  • Live Access, 30 Days OnDemand Playback, Presenter Materials and Handouts – $279
  • Available Upgrades:
    • 12 Months OnDemand Playback + $110
    • 12 Months OnDemand Playback + CD  + $140
    • Additional Live Access + $75 per person

This school was designed to provide attendees with a fundamental overview of the various lending regulations affecting their institution, updates on current trends in compliance and the guidelines to use in interpreting federal and Wisconsin state laws, regulations and official commentary.

This school includes all of the elements of the WBA Real Estate Compliance School, in addition to non-real estate specific lending rules.

NEW VIRTUAL OPTION: Registration is now available to attend the school via livestream using Zoom. You’ll select your registration choice during registration.

Curriculum Includes:

  • ECOA
  • Fair Housing
  • UDAAP
  • Fair Lending
  • Fair Credit Reporting and FACT Act
  • Military Lending
  • Loan Advertising
  • Wisconsin Law – General and Real Estate Focused
  • Real Estate Settlement Procedures Act
  • Truth in Lending – General and Real Estate Focused
  • Miscellaneous Regulations – General and Real Estate Focused
  • HMDA
  • Homeowner’s Protection Act (PMI Law)
  • Real Estate Appraisal Rules
  • Flood Protection Act
  • Variable Rate Lending

Who Should Attend

 Compliance officers, loan officers, document preparation staff, loan operations staff, audit personnel and bank legal counsel.

School Requirements

In order to successfully complete the program, attendees will be expected to attend and participate in all classes and take daily quizzes. A passing score requires a 75% cumulative score.

Cost: $1,295

We’re now a couple years into the “new age” of HMDA – increased coverage requirements, data collection and submission, as well as risk. How are you doing with all this? The new final rules regarding reporting thresholds and the data elements have been finalized, but still more is to come. But for 2021’s submission season, it’s the same as 2020. In this webinar we’ll review all the pain points of HMDA, including for action taken and various of the data points. We’ll also address a number of questions: What will examiners be looking at it? What are the fair lending issues and risks you need to be aware of after submission? We’ll discuss the current state of HMDA so close to submission in this session and get some of your questions answered.

Covered Topics

  • The CFPB’s final rules around thresholds and data elements
  • Private vs. public data
  • Details of the coverage rules – who collects and submits information, and when
  • What types of loans are reportable
  • The dwelling-secured loan standard – what does this impact?
  • Effects in the commercial loan area
  • How to handle HELOCs
  • LAR fields – many additional data requirements
  • Categories of reporting, including information on the property, loan type, and loan features; plus identification information
  • Reporting GMI
  • Changes to the submission process
  • Quarterly reporting for some institutions
  • How the public obtains HMDA information changes
  • Practical and compliance implications

Who Should Attend?
Loan officers, managers, and processors, compliance and fair lending officers, auditors, counsel, and anyone else with HMDA-related responsibilities, including data collection, reporting, analysis, and disclosure.

Presenter
Carl Pry is a Certified Regulatory Compliance Manager (CRCM) and Certified Risk Professional (CRP) who is a Managing Director for Treliant LLC in Washington, DC. Through his working career, as well as through his experience as a banking attorney and officer, he has provided a variety of regulatory compliance and financial performance services to financial institutions and other clients throughout the country. He has written extensively regarding consumer and commercial compliance, tax, audit, and financial institution legal issues, and is a frequent contributor to and currently serves on the Editorial Advisory Board for the ABA Bank Compliance magazine. He has spoken at scores of banking, compliance, and state bar associations, and has conducted training sessions for financial institutions across the country.

Registration Options

  • Live Plus Five (days) – $265
  • OnDemand Recording – $295
  • CD-ROM – $345
  • Live Plus Six (months) – $365
  • Premier Package – $395

HMDA reporting can be tricky and error laden. Increase your institution’s accuracy and reduce potential liability by learning the latest on the issues that beset HMDA reporters, including the top 10 challenges.

AFTER THIS WEBINAR YOU’LL BE ABLE TO:
Submit the 2021 HMDA data with added confidence and improved data integrity
Effectively use the HMDA resources in the CFPB’s 2021 Filing Instructions Guide
Unravel confusing issues, such as what is and isn’t a dwelling, mixed-use property scenarios, and complex demographic information collection
Explain how to handle several types of quality edits
Understand clarifications for complicated data points

WEBINAR DETAILS
HMDA reporting continues to be a challenge for many financial institutions and potentially expensive for some. One of the 10 largest HMDA lenders was fined $1.75 million for multiple years of inaccurate reporting. Join this fast-paced webinar to learn the top 10 issues that challenge HMDA reporters, receive valuable tools, and prepare to submit your 2021 HMDA data before March 1, 2022. The presentation will include citations, tips, real-life examples, and these top-five issues that can cause reporting errors:

Secondary market reporting rules
Dwelling definitions and mixed-use property scenarios
Demographic information collection dos and don’ts
Reporting tips for applications made in the commercial loan area
Data integrity challenges and submission and resubmission steps
Attendance certificate provided to self-report CE credits.

WHO SHOULD ATTEND?
This informative session is designed for staff who contribute to or manage HMDA reporting, including loan operations staff, loan officers, loan assistants, processors, compliance officers, fair lending officers, IT support staff, and auditors.

TAKE-AWAY TOOLKIT
HMDA worksheets and flowchart for 2021 activity, including updated CFPB resources
Lists of data fields for each data point
Step-by-step data collection definitions and tips to avoid mistakes
HMDA compliance resources including checklists for submission and fair lending
Employee training log
Interactive quiz

PRESENTER
Susan Costonis, CRCM, Compliance Training & Consulting for Financial Institutions
Susan Costonis is a compliance consultant and trainer who began her career in 1978. She specializes in compliance management along with deposit and lending regulatory training. Susan has successfully managed compliance programs and exams for institutions that ranged from a community bank to large multi-state bank holding companies. She has been a compliance officer for institutions supervised by the OCC, FDIC, and Federal Reserve. Susan has been a Certified Regulatory Compliance Manager since 1998, completed the ABA Graduate Compliance School, and graduated from the University of Akron and the Graduate Banking School of the University of Colorado. She regularly presents to financial institution audiences in several states and “translates” complex regulations into simple concepts by using humor and real-life examples.

REGISTRATION OPTIONS
$245 Live Webinar Access
$245 On-Demand Access + Digital Download
$320 Both Live & On-Demand Access + Digital Download

The Home Mortgage Disclosure Act (HMDA) is a complex, data-driven process. The CFPB has published many FAQs to clarify the correct codes and collection process. This webinar will provide effective training to help staff correctly document the demographic information based on the various types of application submission. These methods include in-person, phone, internet, and “hybrid” submissions. This is the second webinar in a three-part series. Attend Parts 1 and 3 to learn more about application basics and commercial lending issues.

HIGHLIGHTS

Successfully use toolkit resources to collect complex demographic information
Define the terms ethnicity, race, and gender
Explain the collection process to employees and accountholders
Distinguish between the requirements for various application channels
Realize the importance of collecting and reporting accurate information

TAKE-AWAY TOOLKIT

Step-by-step data collection definitions and important tips to avoid mistakes
Tool for collecting demographic information
Helpful HMDA compliance resources
Employee training log
Interactive quiz

WHO SHOULD ATTEND?
This informative session is designed for all employees who need to understand and manage HMDA reporting, including loan operations, loan officers, loan assistants, processors, compliance officers, and auditors.

ABOUT THE PRESENTER – Susan Costonis, CRCM
Susan Costonis is a compliance consultant and trainer who began her career in 1978. She specializes in compliance management along with deposit and lending regulatory training. Susan has successfully managed compliance programs and exams for institutions that ranged from a community bank to large multi-state bank holding companies. She has been a compliance officer for institutions supervised by the OCC, FDIC, and Federal Reserve. Susan has been a Certified Regulatory Compliance Manager since 1998, completed the ABA Graduate Compliance School, and graduated from the University of Akron and the Graduate Banking School of the University of Colorado. She regularly presents to financial institution audiences in several states and “translates” complex regulations into simple concepts by using humor and real-life examples.

REGISTRATION OPTIONS

Live Webinar – $245
Recorded Webinar and Digital Download – $245 plus tax
Live Webinar, Recorded Webinar and Digital Download – $320 plus tax