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Today is: December 14, 2018  

Important Updates Archive


Below is an archive of all Bankers' Compliance Group® Important Updates. To view each article, click on the link "Read more" below each description.

Congress Extends NFIP Until December 21st December 7, 2018

As BCG previously reported, the National Flood Insurance Program (NFIP) was set to expire on December 7, 2018. On that expiration date, President Trump signed Joint Resolution H.J. 143, extending NFIP funding through December 21, 2018. The law firm will continue to monitor and report on the status of the NFIP program. Read more.

Congress Extends NFIP for One Week - Until December 7 November 30, 2018

The evening before the National Flood Insurance Program (NFIP) was set to expire on November 30, Congress passed H.R. 7187 which extends the NFIP through December 7, 2018. Separately, the Senate passed S. 3628 (National Flood Insurance Program Extension Act) which would have extended the NFIP for six months (through May 31, 2019) had the House also voted to also pass the Senate’s bill. Read more.

HMDA Data Collection Relief is Finally Here! September 5, 2018

In May of this year, the Economic Growth, Regulatory Relief and Consumer Protection Act (Relief Act) became law.  Section 104(a) of the Relief Act amended HMDA by adding partial exemptions from HMDA’s collection and reporting requirements for certain types of lenders. On August 31, 2018, the CFPB issued an “interpretive and procedural rule” to implement the Relief Act amendments to HMDA (2018 HMDA Final Rule), which will be effective immediately upon publication in the Federal Register. Read more.

California Supreme Court: Consumer Loan Interest Rates May Be Unconscionable August 22, 2018

California Financial Code (FC) Section 22303 sets forth the maximum numerical rates of interest which California Financing Law (CFL) licensees may charge on consumer loans for a bona fide principal amount of less than $2,500 (i.e., usury). Section 22303 expressly excludes consumer loans of $2,500 or more from this usury limitation and no similar provision exists elsewhere in the FC that limits the numerical rate of interest on such larger loans. Read more.

FinCEN Extends Limited Auto-renewed Accounts Exception to Beneficial Ownership Requirements August 10, 2018

Recall that in May 2018, FinCEN issued a ruling providing a 90-day limited exception from its beneficial ownership rule requirements for certificate of deposit (CD) accounts and loans that (i) automatically rollover or renew, and (ii) were established before May 11, 2018.  Thus, this exception was effective until August 9, 2018. Read more.

OCC Bulletin Clarifies CRA Supervisory Policies and Processes June 19, 2018

The Community Reinvestment Act (CRA) requires the federal banking agencies to assess a financial institution’s record of helping to meet the credit needs of the institution’s local community (or communities), including low- and moderate-income (LMI) neighborhoods, consistent with safe and sound operations.  On June 15, 2018, the OCC issued Bulletin 2018-17 clarifying its supervisory policies and processes for conducting CRA exams and communicating the results. Read more.

Regulatory Relief Measure Signed May 24, 2018

On May 24, 2018 President Trump signed into law S. 2155 – a measure that eases some rules adopted under the Dodd-Frank Reform Act.  This article highlights some of the provisions of S. 2155, the “Economic Growth, Regulatory Relief, and Consumer Protection Act” (Relief Act), that are of particular interest to BCG members.  We will discuss the new law in more detail at an upcoming BCG Monthly Telephone Briefing. Read more.

NFIP Temporarily Extended to July 31, 2018 March 23, 2018

After threatening to veto the appropriations bill passed by Congress, and after a news conference where President Trump declared “I will never sign another bill like this again,” on Friday, March 23, 2018, the president acquiesced by signing the Consolidated Appropriations Act, 2018, funding various federal government programs, including the National Flood Insurance Program (NFIP).  Under this measure, the NFIP has been extended to July 31, 2018. Read more.

Federal Government Temporarily Funded Until March 23, 2018 February 9, 2018

In the wee hours of Friday, February 9, 2018, Congress agreed and the President signed the Bipartisan Budget Act, funding the federal government, including the National Flood Insurance Program, until March 23, 2018. Read more.

Federal Government Temporarily Funded Until February 8, 2018 January 23, 2018

On Monday, January 22, 2018 the U.S. Senate finally agreed via a continuing resolution to fund the federal government, including the National Flood Insurance Program, until February 8, 2018. Read more.

California SB 2 Requires Additional $75 Recording Fee December 20, 2017

Editor’s Note: We inadvertently failed to include this summary of SB 2 in BCG Handout #17-12A, “2018 California Legislation.” The Handout has been revised to include a discussion of the bill on page 2 of the Handout. The Handout also has been reposted  to the BCG website at

Effective January 1, 2018, SB 2 adds Section 27388.1 to the Government Code to provide for a new $75 per document recording fee to be charged on most recordable documents, except in purchase and sale transactions.
Read more.

Mick Mulvaney is the Acting Director of the CFPB For Now November 29, 2017

On Friday, November 24, 2017, the former Director of the Consumer Financial Protection Bureau (CFPB), Richard Cordray, appointed his chief of staff, Leandra English, as the Deputy Director of the agency. Cordray thereafter resigned from his post. That same day, President Trump appointed the Director of the Office of Management and Budget, Mick Mulvaney, to the position of Director of the CFPB. Read more.

President Overturns CFPB Arbitration Rule November 3, 2017

On November 1, 2017, President Trump signed legislation overturning the CFPB’s arbitration rule that was published in July 2017.  The Bureau’s arbitration rule would have prohibited class action waivers in pre-dispute arbitration clauses contained in certain consumer financial services agreements.  82 FR 33210. Read more.

Northern California Counties Declared Major Disaster Areas - Potential for CRA CD Credit October 11, 2017

On October 10, 2017, President Trump declared the following California counties as major disaster areas as a result of wildfires in these counties: (i) Butte; (ii) Lake; (iii) Mendocino; (iv) Napa; (v) Nevada; (vi) Sonoma; and (vii) Yuba.  On the same day, FEMA posted a major disaster declaration of the California wildfires on its website, Read more.

CFPB Issues Final Rule Prohibiting Class Action Waivers in Arbitration Clauses July 27, 2017

On July 19, 2017 the Consumer Financial Protection Bureau (CFPB) published its long delayed final rule that prohibits class action waivers in pre-dispute arbitration clauses contained in covered consumer financial services agreements. 82 FR 33210. While the final rule becomes effective on September 18, 2017, compliance will be mandatory only for pre-dispute arbitration agreements entered into on or after March 19, 2018. Read more.

ERRATUM April 5, 2017

We want to bring to members attention an omission in the sample Community Reinvestment Act (CRA) notices applicable to FDIC-supervised state nonmember banks that were included with the January 2017 "Important Update" posted to the BCG website. The sample notices did not include the FDIC’s website, regulations/cra, that the public can use to submit comments electronically. Note also, as reported in the January 2017 Important Update, the FDIC also amended its CRA public notices due to a change in the responsible FDIC official’s title from Regional Manager to Regional Director. We apologize for any inconvenience or confusion we may have caused. Read more.

Preliminary Injunction Blocks DOL Overtime Exemption Rule December 1, 2016

Congress passed the Fair Labor Standards Act (FLSA) (29 USC 201 et seq.) which, among other things, guarantees a minimum wage for all hours worked during the workweek, as well as a premium of not less than one and one-half times the employee’s regular rate for the hours worked over 40 in a workweek. The FLSA contains a number of exemptions to the overtime requirement. Read more.

Agencies Issue Another Proposal on Private Flood Insurance November 10, 2016

The Biggert-Waters Act requires the federal banking agencies to issue regulations that direct regulated lending institutions to accept private flood insurance if certain requirements are met. 42 USC 4012a(b)(1)(B). Despite what insurance agents may be telling your borrowers, this requirement is not effective until the federal banking agencies issue implementing rules. Read more.

CFPB Director Held Subject to Dismissal at Will by President; Court Also Reinstates Traditional View of RESPA Section 8 Allowing Reasonable Fees for Services Rendered October 19, 2016

On October 11, 2016 the federal appeals court for the D.C. Circuit held that the CFPB director must be subject to dismissal by the president to avoid an otherwise unconstitutional delegation of excessive power to one individual.  PHH Corp. v. CFPB, 2016 U.S. App. LEXIS 18332 (D.C. Cir. Oct. 11, 2016). Read more.

Bureau Approves Use of Revised 1003 for Reg B Purposes and Collection of HMDA Demographic Data in 2017 September 29, 2016

The Uniform Residential Loan Application (URLA) has long been used by lenders and brokers in the mortgage industry to collect certain data in connection with a consumer’s request for mortgage credit. Designed by the Federal Home Loan Mortgage Corporation (FHLMC) and the Federal National Mortgage Association (FNMA), the URLA (often referred to as the FNMA 1003) can be used to request information about an applicant’s ethnicity, race and gender in order to comply with Section 1002.13 of Regulation B. Read more.

FDIC Adopts Strong Risk-Focused Approach for IT Exams July 8, 2016

The FDIC recently updated its information technology and operations risk examination procedures. Dubbed "Information Technology Risk Examination (InTREx) Program," the Program is designed to enhance the ability of examiners to identify, assess and validate a financial institution’s information technology and operations risk and to ensure that institution management is affectively addressing identified risks.          Read more.

CFPB Proposes to Implement FAST Act Exception for Annual Privacy Notices July 7, 2016

On July 1, 2016 the CFPB issued a proposed rule that would amend Regulation P (12 CFR 1016) to implement a new limited exception to providing annual privacy notices. The Bureau also proposed to eliminate as unnecessary the alternative method for delivering annual privacy notices that it adopted in October 2014. Read more.

SCRA Foreclosure Protections Extended Once Again May 17, 2016

The phrase “better late than never” sometimes seems to be the motto for Congress and the President. Recently, President Obama signed into law Senate Bill S. 2393, the Foreclosure Relief and Extension for Servicemembers Act of 2015 (P.L. 114-142), that revives the one year foreclosure protection provisions under the Servicemembers Civil Relief Act (50 USC 3901 et seq.). Under the measure, the 12-month provision is in effect until December 31, 2017.
Read more.

Follow-up Question re the Closing Disclosure & Transactions Involving a Seller April 19, 2016

We dedicated the April 2016 BCG Monthly Telephone Briefing to frequently asked questions about the TILA-RESPA Integrated Disclosure (TRID) rule. Here are two follow-up questions we promised to address following the Briefing. Read more.

Clarification re HMDA Covered Transactions from Monthly Telephone Briefing February 19, 2016

At the BCG Monthly Telephone Briefing held on February 19, 2016 one participant had a question the speakers wanted to re-think.

Question: Under the amendments to Regulation C (HMDA) that become effective on January 1, 2018, is the following loan reportable: a closed-end mortgage secured by a dwelling the borrower owns free and clear to provide cash out for nonspecific purposes? Read more.

DoD Extends Time to Request Access to DoD Database for Identifying Military Status February 1, 2016

Under amended regulations implementing the Military Lending Act (MLA), creditors are required to determine the military status of applicants for specified covered loans. Recently, the Department of Defense (DoD) agreed to extend until February 15, 2016 the deadline to request direct access to the Defense Manpower Data Center (DMDC) database. The DoD’s decision came in response to a request from the American Bankers Association after the trade group became aware through a teleconference on MLA held on January 12, 2016 that financial institutions had the option to directly connect with the DMDC database. Read more.

Cordray Issues Letter on TRID Enforcement & Cure Provisions January 14, 2016

In response to a letter the Mortgage Bankers Association sent him, on December 29, 2015, CFPB Director Richard Cordray issued a letter explaining the Bureau’s stance on examining for TRID compliance and a creditor’s ability to cure TRID violations.  With regard to TRID enforcement, Director Cordray reiterated that the Bureau continues to take the same position it set forth in its October 2, 2015 release by stating that the CFPB’s “examiners will be squarely focused on whether companies have made good faith efforts to come into compliance with [TRID],” and “[a]ll of the regulators have indicated that their examinations for compliance in the first few months of implementing the new rule will be corrective and diagnostic, rather than punitive.” Read more.

Regulation C (HMDA) Final Amendments Issued October 16, 2015

On October 15, 2015 the CFPB released final amendments to Regulation C to implement the changes made to the Home Mortgage Disclosure Act (HMDA) under the Dodd-Frank Reform Act.  Recall that the Reform Act increased the types of data that must be reported by banks, credit unions and other financial institutions and authorized the Bureau to require additional information as it deems appropriate.  Of course in the Bureau's consistent fashion, the final rule requires lenders to report additional information beyond that required by the Reform Act. Read more.

Agencies Provide Insight on TRID Compliance Expectations October 2, 2015

At the request of the American Bankers Association and other industry representatives, top heads of the CFPB, OCC and FDIC provided some insight as to what financial institutions should expect when being examined for compliance with the TILA-RESPA integrated disclosure (TRID) rule.  While each agency responded separately, reports indicate that all three letters were identical. Read more.   

TRID Update Regarding Disclosing Fees on the Written Provider List September 24, 2015

In the Consumer Finance section of the September 2015 BCG Newsletter was a Q&A article titled, “TRID and Written List of Providers.”  That article stated that, “[w]hile the TRID rule and the CFPB’s commentary are silent on this point, the model form for the written list of providers (Model Form H-27(A)) includes an estimate column.  From this, it appears that creditors must provide an estimate of the cost of the services provided by each listed service provider.” Read more.   

Supreme Court Upholds Disparate Impact Theory under FHA June 26, 2015
The Supreme Court has ruled that disparate impact claims are recognized under the Fair Housing Act (FHA), Tex. Dep't of Hous. & Cmty. Affairs v. Inclusive Cmtys. Project, Inc., 2015 U.S. LEXIS 4249 (June 25, 2015).  This is the first time the Supreme Court has formally endorsed the use of disparate impact theory in a housing discrimination case.  “Disparate impact” occurs when a facially neutral policy or practice has in fact a disproportionate adverse impact on a prohibited basis group.  There is no requirement to show that race-based considerations actually affected the thinking of the accused party. Read more.   
TRID Delay of Effective Date and Loans to Family Trusts: Follow-up to BCG Webinar June 26, 2015
Under a proposal recently issued by the CFPB, the effective date of the TILA-RESPA Integrated Mortgage Disclosures or “TRID” would be extended from August 1, 2015 to October 3, 2015.  During the Bankers’ Compliance Group webinar presented June 25 on the “New Closing Disclosure,” a question was raised as to whether the delayed October 3, 2015 effective date would apply to the organizational exemption for family trusts.  We believe that it would. Read more.   
News Flash—TILA-RESPA Integrated Disclosures Effective Date Delayed by Two Months June 17, 2015
CFPB Director Richard Cordray issued a Press Release today (June 17, 2015) announcing that the “Know Before You Owe” rule would be delayed until October 1, 2015.  The rule, better known as the TILA-RESPA Integrated Mortgage Disclosures or “TRID”, was set to become effective on August 1, 2015. Read more.   


FEMA OKs Use of Standard Flood Hazard Determination Forms Until Updated May 20, 2015

With flood waters come muck and mire.  And, determining which is the appropriate version of the Standard Flood Hazard Determination Form (SFHDF) to be used in documenting a flood zone determination is no less murky.  However, a recent post on FEMA’s website regarding the approaching expiration of the SFHDF might help to clear away some of the murkiness. Read more.

March 31 Call Report to be Used For Making AOCI Election March 24, 2015

Financial institutions that are not subject to the Basel III advanced approaches risk-based capital rules are reminded that an election regarding Accumulated Other Comprehensive Income (AOCI) is to be made with the filing of the March 31, 2015 Consolidated Reports of Condition and Income (Call Report). Read more.

U.S. Supreme Court Upholds Department of Labor’s Interpretation on Mortgage Loan Officer Exemption from Overtime and Minimum Wage March 12, 2015

In 2010, the U.S. Department of Labor (DOL) issued an interpretation which clarified that employees engaged in duties that are typical of a mortgage loan officer are not exempt administrative employees. Administrator's Interpretation No. 2010-1. Shortly after the 2010 interpretation was issued, the Mortgage Bankers Association brought a lawsuit challenging the 2010 interpretation on the grounds that the DOL failed to follow official rulemaking procedures under the Administrative Procedures Act (APA). While the lower court upheld the 2010 interpretation, the U.S. Court of Appeals for the District of Columbia vacated the interpretation, holding that the DOL did not follow proper rulemaking procedures. Mortgage Bankers Ass'n v. Harris, 720 F.3d 966 (D.C. Cir. 2013). Read more.

CFPB Proposes Changes to Assist Small Lenders with Mortgage Rules January 30, 2015

The CFPB is requesting comments on a proposal that is aimed at assisting smaller institutions, including those in rural areas, in complying with its mortgage rules. The proposal, issued on January 29, 2015, would amend Regulation Z in several respects. Read more.

CFPB Issues Clarifications to IMD Final Rule January 28, 2015

On January 21, 2015, the CFPB issued a final rule which amends the TILA-RESPA Integrated Mortgage Disclosure (IMD) Rule in several respects. The final rule is based upon the CFPB’s earlier proposal, which was issued in October 2014. 79 FR 64336. The final rule, which is effective August 1, 2015, makes two much-needed modifications, as well as other clarifications, to the IMD Rule. Read more.

Measure to Extend SCRA Foreclosure Protections Awaiting President’s Signature December 16, 2014

A bill (S. 3008) that would extend the sunset date on foreclosure protection provisions under the Servicemembers Civil Relief Act (SCRA) from December 31, 2014 to December 31, 2015 has been sent to President Obama for signature. Read more.

State Law Imposes New Notice for Notarial Acts Effective January 1, 2015 December 11, 2014

Governor Brown signed Senate Bill (SB) 1050 into law on August 15, 2014. SB 1050 amends Civil Code Sections 1189 and 1195 and Government Code Section 8202 to require a new notice to appear at the top of specified notarial documents. Specifically, a notary public or other officer completing a certificate of acknowledgment, proof of execution or jurat is required to include the following statutory notice that indicates that the certification verifies only the identity of the person who signed the document, and not the truthfulness, accuracy or validity of that document. Read more.

CFPB Issues Proposal to Amend Regulation C
July 25, 2014 

Following its typical “MO,” the Bureau has issued a 573-page proposal to amend Regulation C to implement revisions made to the Home Mortgage Disclosure Act (HMDA) by the Dodd-Frank Reform Act. The proposed amendments would, among other things, increase the types of data required to be collected and reported by banks, credit unions and other financial institutions. And while the authors of the Reform Act were able to limit the revisions to the statute to four pages, the Bureau for some reason cannot resist the temptation to be verbose! The following provides a brief overview of the Bureau’s proposed rule, which is broader than the revisions made under the Reform Act. We will discuss the proposal in more detail at an upcoming BCG Monthly Telephone Briefing. Read more.

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