Statement on Prudent Risk Management for Commercial Real Estate Lending

The Federal Reserve, the FDIC, and the OCC jointly issued this Statement to remind financial institutions of existing regulatory guidance on prudent risk management practices for commercial real estate (CRE) lending activity through economic cycles.  The NCUA was not part of the agencies that issued the statement, but may follow other agencies guidelines when conducting audits. The Statement includes “Historical … Read More

OCC Semiannual Risk Perspective Report

The Office of the Comptroller of the Currency (OCC) released its Semiannual Risk Perspective Report providing OCC supervisory concerns.  Leading concerns are strategic, underwriting, cybersecurity, compliance and interest rate risks. Highlights included in the report are: Many national banks and federal savings associations continue to face strategic challenges to growing revenues to meet target rates of return in a slow-growth, … Read More

In-Person Collection of Consumer Debt

CFPB Compliance Bulletin 2015-07 Compliance Bulletin 2015-07 warns creditors, debt buyers, and third-party collectors of potentially unlawful in-person debt collection practices.  The bulletin reminds the financial services industry of debt collection practices prohibited by the Dodd-Frank Act and the Fair Debt Collection Practices Act, including: Engaging in unfair, deceptive, or abusive acts or practices, Communicating with a consumer at any … Read More

HMDA and TILA annual adjustments

The CFPB has announced two final rules with annual threshold adjustments under the implementing regulations for the Home Mortgage Disclosure Act (HMDA) and the Truth in Lending Act (TILA). The HMDA asset-size exemption threshold under Regulation C is unchanged at $44 million. Institutions with assets of $44 million or less as of December 31, 2015, are exempt from collecting HMDA … Read More

Military Lending Act… continued

We blogged about the new requirements for the Military Lending Act (MLA) previously.  In summary, the final rule broadens the MLA protections by expanding the range of covered loans, defining a covered borrower, adding more components to the MAPR, placing restrictions on imposing other limitations, and requiring a statement of the MAPR Disclosure.  Compliance with the changes is required by … Read More

IRS Criminal Investigation Releases Fiscal Year 2015 Annual Report

The Internal Revenue Service released its IRS Criminal Investigation (CI) annual report, reflecting significant accomplishments and enforcement actions taken in fiscal year 2015.  Focusing on tax-related identity theft, money laundering, public corruption, cybercrime and terrorist financing, IRS CI initiated 3,853 cases in FY 2015. The report includes a section on the IRS Illegal Source Financial Crimes Program, which includes all, … Read More

IOLTA and Other Similar Escrow Accounts Share Insurance

The NCUA’s rule codifies the insurance coverage pursuant to the Insurance Parity Act for IOLTAs and other accounts that satisfy the definition of “other similar escrow accounts.”  The Credit Union Share Insurance Fund Parity Act was passed in December 2014, and provides coverage to IOLTA and “other similar escrow accounts.”  Credit unions raised many questions about what qualifies as an … Read More

CFPB releases rural and underserved areas tool

The Consumer Financial Protection Bureau has released a new online tool to help creditors determine which properties are located in a rural or underserved area. The tool aids in determining the exemption for requiring escrow accounts for higher-priced mortgages. Regulation Z provides that if “During any of the three preceding calendar years, the creditor extended more than 50 percent of … Read More

Amendments to the Telemarketing Sales Rule

The amendments include prohibiting four specific payments methods used by telemarketers and changes related to the National Do Not Call Registry. The prohibited payment methods include: Cash-to-Cash money transfers – where cash is received from one person and transferred to another person in a different location and received in cash. This includes services like Moneygram or Western Union. Cash reload … Read More

Annual Privacy Notice Requirement

Disclosure of Nonpublic Personal Information 15 USC 94 On December 4, 2015, President Obama signed the “Fixing America’s Surface Transportation Act” (“FAST Act”) which provides relief to financial institutions regarding providing an annual privacy notice. The Gramm-Leach-Bliley Act (GLB Act or GLBA) is a statute that, among other things, governs the privacy and sharing of nonpublic personal information.  Regulation P … Read More