October 2015 A Regulatory & Legislative Advisory for Compliance Professionals
Inside . . .
2 Warning on
3 Initial Plans to
3 mprovements in
4 Student Loan
5 Regulator Flood
Bank Secrecy Act
6 Proposed FinCEN
Rule Against LCB
7 ABA Shopping Cart
7 Average Cost of
7 EMV: Banks
Committed to Help
ABA LAUNCHES DATABASE OF ENFORCEMENT ACTIONS
ABA on October 1 released a first-of-its-kind, searchable database of enforcement
actions against financial institutions by federal agencies. Civil money penalties and
consumer restitutions associated with BSA/AML, ECOA, FDPA, FHA, HMDA, RESPA
and UDAP/UDAAP from January 2012 to September 2015 are included in the catalog.
The data may be searched by bank name, asset size, law or regulation, date and
amount. Each record includes a summary of primary issues found in the action, as
well as a link to the issuing agency for more detailed information. The database is
available for download exclusively to ABA members and will be updated monthly.
View the database.
ABA ADVOCACY YIELDS
TRID COMPLIANCE CLARIFICATIONS
Responding to multiple letters and aggressive advocacy by ABA, top regulators on
October 1 clarified their approach to assessing compliance with the TILA-RESPA
integrated disclosures. Identical letters from Comptroller of the Currency Thomas
Curry, FDIC Chairman Martin Gruenberg and Consumer Financial Protection Bureau
Director Richard Cordray to ABA said the agencies recognize the daunting challenges
posed by TRID implementation and will “recognize the scope and scale of changes
necessary” in their early examinations for TRID compliance.
“The member agencies of the [Federal Financial Institutions Examination Council]
recognize that the mortgage industry has needed to make significant systems and
operational changes to adjust to the requirements of the rule, and that implementation
requires extensive coordination with third parties,” the letters said. “We recognize that
... additional technical and other questions are likely to be identified once the new
forms are used in practice after the effective date.”
In light of widely reported delays in the delivery and testing of TRID systems from
vendors, the agencies said they would consider institutions’ “overall efforts” to comply,
as well as the institutions’ implementation plans, updated policies and procedures,
staff training and “handling of early technical problems.”
The agencies said they would employ an approach “similar” to the one they used after
the CFPB’s mortgage rules took effect in January 2014. In congressional testimony on
September 29, Cordray characterized this approach as “diagnostic, not punitive.” The
approach reflects the one ABA said it expected in a memo that was sent to members
sent on September 29. Read the letter. Read ABA’s memo.