TOPIC: Regulation


With the adopted amendments to Regulation C, referred to by the Consumer Financial Protection Bureau (CFPB) as the “Final Rule.” It brings with it a potential set of new challenges. The Final Rule adds 25 new data elements to the existing LAR data set, modifies, and expands many other existing elements. The lack of certain loan-level information in the current LAR data set has resulted in regulatory and enforcement agencies’ allegations of disparate treatment redlining based primarily on a statistical analysis of a mortgage lender’s application or origination rate in comparison with that of other mortgage lenders that are deemed to be its peers. Do the new data elements in the Final Rule improve fair lending or do they just allow for other areas of fair lending analysis to emerge and therefore present new challenges for mortgage lenders? Let me know what you think!

    Positive Aggregate Adjustment on Closing Disclosure

    Employee at a bank ($217MUSA)
    We currently use Compliance One Mortgage software to prepare our TRID docs. We recently encountered a positive aggregate adjustment on a closing disclosure increasing the borrower's Cash to Close. I have always been under the impression that aggregate adjustments can only be a negative number or zero. In reviewing how this was calculated, the annual property tax amount could not be evenly divided by 12. Through the calculations, the software recognized that there would be an escrow balance deficit of $0.04 after all payments had been made. However, it would be a $0.04 deficit to the bank's selected 2 month cushion. The escrow account balance, assuming the customer makes all payments, would be positive. The software then was collecting for this cushion deficit upfront in the aggregate adjustment.  We have researched our software parameters and it appears that there is no way to change this or manually complete the calculation. Compliance One legal claims this can be a positive number, a negative number or zero. I'm looking for some additional guidance on this, can we have a positive aggregate adjustment, and can we collect for a projected deficit upfront? 

      Blog | RPA: Improve Efficiency and Increase Productivity by Automating Routine Tasks - Read now

      RPA: Improve Efficiency and Increase Productivity by Automating Routine Tasks
      FIs Save Time and Money Implementing Robotic Process Automation

      September 4, 2019 by Verafin

      Read Now

      Is your financial intelligence unit challenged by limited time and resources? Are your BSA/AML and Fraud investigators spending more time manually collecting data than investigating potentially suspicious activity?

      Institutions can leverage financial crime management solutions that include Robotic Process Automation (RPA), which utilizes artificial intelligence and software robots to perform automated tasks. RPA solutions augmented with cognitive processes, such as machine learning analytical agents, provide more complete financial crime management platforms.

      In this blog, you will learn how RPA can help financial institutions increase efficiency and productivity in everyday banking operations, while maintaining BSA/AML regulatory compliance and conducting thorough financial crime investigations. With automated solutions to collect data and effectively perform routine tasks, Verafin helps financial institutions operate more effectively, saving valuable time and reducing costs.

      Read Now

        Whitepaper | Hemp, The Farm Bill, and Their Impact on Ag Lending

        For growth-minded institutions, the recent legislation for cultivating hemp in the US may shed light on a new opportunity regarding the banking and servicing of hemp-related businesses. But the changes tied to the Farm Bill also bring increasing risks for banks and credit unions who take on these clients. In this paper, Abrigo experts outline some of the critical questions that institutions can use to begin evaluating the potential value – and risk – to the institution in taking on cannabis related businesses (CRBs) or marijuana related businesses (MRBs).

        Download to learn:
        • How to evaluate the opportunity
        • The impact of the Farm Bill
        • The differences between cannabis, marijuana, hemp, and cannabinoids (CBDs)
        • Potential risks of taking on these banking relationships
        Click here to download the whitepaper. 

          Upcoming CECL, Portfolio Risk, Credit, and Lending Conference | ThinkBIG - September 24-26

          There are only four days left until regular registration ends for the biggest CECL, portfolio risk, and lending and credit conference of the year - ThinkBIG!

          When: September 24-26
          Where: Loews Sapphire Falls Resort at Universal Orlando | Orlando, FL
          Who: Anyone involved in CECL/ALLL, portfolio risk, or credit and lending. Common titles include CFO, Controller, VP of Finance, Credit Analyst, CCO, CRO, Credit Admin and Loan Admin.

          Are you managing risk and driving growth at your financial institution? Do you need ideas to think bigger about portfolio risk, CECL, or lending and credit? The ThinkBIG Conference presented by Abrigo was created to give you the educational tools and concrete ideas to Manage Risk. Drive Growth.  

          The conference brings together industry thought leaders and experts, financial institution peers, CPAs, auditors and regulators for three days of compelling educational content and networking. Be prepared to Think Bigger with insights and information critical to your lending strategies, mitigating credit risk, and the transition to and implementation of the new allowance accounting standard.  

          If you have responsibilities related to CECL and the ALLL at your institution, or if you want to know more about how CECL will impact your institution or you want to grow your loan portfolio quicker and more efficiently while driving profitability, this is the one conference this year you cannot afford to miss. 

          Earn 14 CPEs! 
          Register today and save! 

            Free Webinar Thursday: Loan Grading - A to Z

            Thursday, August 15 - 2 p.m. EST/ 1 p.m. CST

            Can your financial institution survive the next economic downturn? The recent financial crisis demonstrated how unexpected economic downturns and rapid deterioration in market conditions can significantly harm a bank’s financial condition and economic viability.

            Join us for a free webinar to learn how to create a consistent and objective based risk scoring model that still allows for subjective adjustments. We will highlight the significance of leveraging a dual loan grading and underwriting system to monitor your loan portfolio. Our expert will provide practical advice on incorporating the 5 C’s into your loan grade and how to select an appropriate loan grading scale for your institution.

            You Will Learn:
            • Regulatory examiners expectations
            • Loan grading scales & dual loan grading systems
            • Financial statement analysis
            Save your seat!

              FCRA and Cross-selling

              Person at a credit_union ($1.5BUSA)

              Generally speaking under FCRA cross-selling is not considered a permissible purpose.
              However, "in accordance with the written instructions of the consumer who it relates" is a permissible purpose under FCRA.

              We are looking to build this written authorization into our membership application so we can cross-sell at account opening and also into our loan application so we can cross-sell other loans when a consumer applies for a loan.

              Is anyone currently doing this?

              Is anyone willing to share a copy of their membership application or loan application or the verbiage they use on these applications?

              Any thoughts, comments, feedback, experiences, etc. are welcome.

              Thanks in advance!

                Free Webinar | Shedding Light on the Dark Web - 1 CAMS credit, 1.25 CAFP, CFSSP, CRCM credits

                Click here to register

                Tuesday, July 23 | 1 p.m. CST/ 2 p.m. EST
                Presented by: Eli Dominitz, CEO of Q6 Cyber

                The Dark Web is home to many of the fraudsters who plague US financial institutions. In this webinar, hosted by Q6 Cyber and Abrigo, we will venture into the Dark Web and shed light on the criminals targeting banks and credit unions, highlighting the latest trends in financial fraud and cybercrime observed in the first half of 2019.

                We will browse the leading fraud and hacker communities, and see the ever-growing underground economy for stolen payment card data, online account credentials, employee records, and much more – all of which increase fraud losses, trigger information security breaches, and damage reputation and customer relationships. We will also profile the “latest and greatest” tools and tactics developed by criminals to bypass industry-leading security and anti-fraud controls.

                Join to learn:
                • What are the latest trends in financial fraud and cybercrime as seen on the Digital Underground, Dark Web, and Deep Web
                • What are the latest tools and tactics deployed by leading cybercriminals and fraudsters
                • How do leading financial institutions leverage intelligence from the Digital Underground to combat cybercrime and fraud

                Click here to register

                  Free Webinar | How to Build and Cultivate Relationships with Examiners - 1 CAMS credit, 1.25 CAFP, CFSSP, CRCM credits

                  Register today

                  Thursday, July 18 | 1 p.m. CST

                  One of the most important business relationships your financial institution has is your relationship with examination staff from state and federal agencies, including the OCC, FDIC, Federal Reserve, and NCUA. A well-managed relationship needs tending even outside the exam window and should be nurtured by both sides on an ongoing basis. During this webinar, learn how to cultivate a collaborative relationship and effectively communicate with examiners.

                  Join to learn:
                  • Utilizing examiners as subject matter experts
                  • Requesting examiner input and buy-in when making material business decisions
                  • Addressing previously documented criticisms or recommendations
                  • Knowing your escalation paths within the agencies
                   Save your seat! 


                    SVP at a bank ($96.1BUSA)
                    Hello. When a sender sets up a recurring preauthorized remittance transfer, and is initially provided with the combined disclosures and receipt, the regulations are a bit confusing as to whether subsequent receipts must be sent or not after each subsequent transfer, where there are no changes. If they are required, is sending them on the next monthly statement sufficient? Thanks,

                      Webinar | Banking Marijuana Related Businesses - Join us June 26

                      June 26 at 12:30 PM - 01:30 PM EST
                      Banking Marijuana Related Businesses
                      Regulatory & Due Diligence Challenges for Financial Institutions

                      Register Now

                      As the cannabis industry continues to grow in the US, financial institutions are facing increased regulatory uncertainty and due diligence challenges for banking Marijuana-Related Businesses (MRBs).

                      Join us for this educational webinar, during which we will cover: 
                      • Highlights from FinCEN Guidance on Marijuana-Related Businesses
                      • Challenges of Customer Due Diligence for high-risk customers, including direct and indirect cannabis companies 
                      • Technology to improve due diligence and compliance processes for MRBs.
                      Register Now

                        CDD: One Year Later | Survey Request

                        It's officially been one year since the CDD rule went into affect. Have you had an exam since then? What aspects of CDD and beneficial ownership, if any, did the examiner focus on? 

                        We're doing a short survey on the impact CDD is having on recent exams and would appreciate if you could take a few minutes to fill it out. We're happy to share the results if you participate. 

                        Thank you! 


                          Webinar - Fair or Foul: Understanding Fair Lending Compliance Risk

                          Whether you’re a risk management or compliance professional, join us for advice on how to protect your institution and ensure borrowers are treated fairly. Register today!

                          In the race to comply with fair lending regulations, the finish line is constantly moving. Evolving HMDA requirements and increased public interest in allegations of discrimination makes running afoul of fair lending regulations more than just a regulatory and financial headache. It can also be a public relations nightmare.

                          This webinar will help you understand fair lending compliance risk and the nine essentials of a strong compliance management program. You’ll gain insights into:
                          • Today’s fair lending landscape
                          • Lessons learned from recent fair-lending settlements
                          • Mitigating key fair lending risks
                          • Redlining compliance risks
                          • Tips for improving fair lending compliance
                          Register today!

                            ***Managing Construction Loan Payments***

                            VP at a bank ($241MUSA)
                            How do other banks manage customers making principal payments on interest only construction loans?  Do you prepay interest which creates negative interest or do you allow your customers to reduce principal which may impact the permanent loan at conversion?  Do you impose a prepayment penalty?

                            Any help is appreciated!