A summary of compliance developments for regional & community financial institutions
NOTABLE EFFECTIVE DATES
July 1, 2019: Private Flood Insurance Final Rule Effective
HOME MORTGAGE DISCLOSURE ACT RULE IMPLEMENTATION
The Consumer Financial Protection Bureau (CFPB) announced that the Home Mortgage Disclosure Act (HMDA) 2019 Filing Instructions Guide is available now on the Federal Financial Institutions Examination Council’s (FFIEC) help for filers webpage.
The CFPB also updated the Small Entity Compliance Guide to reflect section 104(a) of the Economic Growth, Regulatory Relief and Consumer Protection Act and the 2018 HMDA Rule.
Click the link to view the 2019 Filing Instructions Guide: bit.ly/2019-Filing-Instructions-Guide and the Small Entity Compliance Guide: bit.ly/Small-Entity-Compliance.
ISSUANCE OF FINAL RULE ON LOANS IN AREAS HAVING SPECIAL FLOOD HAZARDS—PRIVATE FLOOD INSURANCE
The final rule, issued Feb. 13, 2019, amends the Federal Deposit Insurance Corporation’s (FDIC) flood insurance regulation at Part 339 of Title 12 of the Code of Federal Regulations to incorporate and implement certain provisions regarding private flood insurance in the Biggert-Waters Flood Insurance Reform Act of 2012. The final rule becomes effective on July 1, 2019. The date should afford institutions sufficient time to make necessary changes to their policies, procedures and operating systems.
See the FDIC’s letter on these changes: bit.ly/FDIC-Flood-Insurance.
CFPB PROPOSES NEW HMDA RULES
The proposed rule, issued May 2, 2019, could increase the reporting threshold for mortgages. In 2018, the CFPB relaxed some of the requirements for the data collection and reporting stipulated by the HMDA. Now, the CFPB is proposing to ease the HMDA reporting requirements further.
Read this article and learn more about these changes: bit.ly/CFPB-HMDA-NewRules.
CFPB ISSUES FACT SHEET ON TRID REQUIREMENTS FOR ASSUMPTIONS
The CFPB fact sheet, issued May 3, 2019, helps lenders determine when the Truth in Lending Act – Real Estate Settlement Procedures Act (TILA-RESPA) Integrated Disclosure Rule (TRID) integrated disclosures are required when mortgages are assumed. The fact sheet addresses TRID requirements when a new consumer is added or substituted as an obligor on an existing closed-end credit transaction secured by real property that is not a reverse mortgage.
Read more about this in the CFPB fact sheet: bit.ly/CFPB-FactSheet.
FEDERAL RESERVE BOARD APPROVES FINAL RULE TO REPEAL REGULATIONS THAT INCORPORATED THE SECURE AND FAIR ENFORCEMENT FOR MORTGAGE LICENSING ACT
On May 9, 2019, the Federal Reserve Board (Board) approved final amendments to its regulations to reflect the transfer of the Board’s rulemaking authority for the Secure and Fair Enforcement for Mortgage Licensing Act of 2008 (SAFE Act) to the CFPB. Entities that were subject to the Board’s rules are subject to the CFPB’s rules now.
See the Federal Reserve Board’s press release: bit.ly/Federal-Reserve-Board-PR.
CFPB PROPOSES REGULATIONS TO IMPLEMENT THE FAIR DEBT COLLECTION PRACTICES ACT
The CFPB issued a notice of proposed rulemaking (NPRM) on May 7, 2019, to implement the Fair Debt Collection Practices Act (FDCPA). The proposal would provide consumers with clear protections against harassment by debt collectors and straightforward options to address or dispute debts.
See full article here: bit.ly/CFPB-FDCPA.
Dave Niles, CPA
Partner, DHG Financial Services
Michelle Nuckols, CRCM
Senior Manager, DHG Financial Services
Dean Paul, CAMS
Senior Associate, DHG Financial Services
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