August 2014 A Regulatory & Legislative Advisory for Compliance Professionals
Inside . . .
Sought on Servicing
2 Other CFPB News
3 No Flood Guidance
3 Fair Lending
Analysis of Credit
4 Student Loan
4 EGRPRA Resource
Compliance a Drag on
Bank Secrecy Act
5 Lists of High-Risk
5 Customer Due
6 Culture of
6 US/Mexico Cross-Border Cash Couriers
6 FS-ISAC CAPP
CFPB PROPOSES HMDA CHANGES
The Consumer Financial Protection Bureau on July 24 proposed several changes to
Regulation C, which implements the Home Mortgage Disclosure Act. Comments are
due by October 22. The Bureau is seeking to add several new categories for
reporting by lenders and make changes in how the data is reported.
In keeping with the Dodd-Frank Act, the rule would require lenders to report for the
Total points and fees;
The duration of teaser rates;
The age of the applicant or borrower; and
The credit score of the applicant or borrower.
The CFPB also proposed that lenders submit data on an applicant’s debt-to-income
ratio, interest rate and total points charged, which the Bureau said would help it
evaluate the impact of its mortgage rules. With only a few exceptions, all dwelling-secured loans would be subject to the rule.
The CFPB proposed a single threshold – 25 mortgages originated annually – at which
banks and nonbanks become subject to the rule. It said this would align the HMDA
reporting requirements with industry data standards and improve the electronic
reporting process. The Bureau also said it would seek to improve the public, online
HMDA database that it launched in February.
ABA will evaluate the proposal and provide feedback. Read the proposed rule. For
more information, contact ABA’s Rod Alba or Rob Rowe.
CFPB ISSUES REPORT ON OVERDRAFT FEES
The CFPB on July 31 issued a report on trends in overdraft fees. Drawing on data
from several banks with over $10 billion in assets, the Bureau said that overdraft and
non-sufficient funds fees represent the majority of fees that checking account
customers incur, a figure that increases to 75 percent for customers who have opted in
to overdraft protection. The vast majority of customers – 69.8 percent – never
overdraw their accounts, and an additional 12.5 percent overdraw only one to three
times per year, averaging less than $30 in fees.