Regulatory Compliance Update April 2017

Regulatory Compliance Update

By: Hickman Beckner, Vice President

The regulatory activity in Congress has increased. There have been few new final regulations put into place. There is one change as a result of Dodd-Frank.

HMDA – Home Mortgage Disclosure Act – tracking of mortgage loan application data.

There are multiple changes that will impact the filing of mortgage applicant data under the Home Mortgage Disclosure Act.

Receiving Agency – The 2016 data was sent to the Federal Reserve. Starting on March 1, 2018 the data will be sent to the CFPB.

Data Transmission – The 2016 data was sent using multiple transmission methods. Starting on March 1, 2018 the data will be submitted on the HMDA platform.

File format – The existing Commercial and Retail formats were used for the March 1, 2017 reports. Starting with the March 1, 2018 reporting will be submitted using a variable length, “pipe” delimited text file. The data fields will be separate by a vertical bar (“pipe”). The amount fields will no longer have leading zeros. The rate fields will still have leading zeros. The text entries may be both upper and lower case.

Edits – The new HMDA platform will have edits for the data. This will allow reporting institutions to correct the data.

The CFPB has put forth a regulatory notice they intend to add additional data to be collected in the future.

Significant Dates:

April 5, 2017 – Comments due for the CFPB delay of the effective date for the final rules governing prepaid cards.

June 8, 2017 – Comments due on CFPB’s request for information about the consumer credit card market.

September 15, 2017 – Effective date for Phase 2 of NACHA’s same day ACH Processing.

September 29, 2017 – Effective date for NACHA Operating Rules that require registration of third-party senders.

October 19, 2017 – Effective date for CFPB final mortgage servicing rules covering:
Definition of delinquency
Forced placed insurance notices
Early intervention for defaults
Loss mitigation
Prompt payment crediting
Wording changes on statements to reflect successors in interest
Small servicers

Emerging Legislation:

The Congress has turned its attention to modifying or repealing Dodd-Frank.

Multiple bills have been submitted to change the funding for CFPB to bring it under control of Congress. Currently the CFPB is funded by the Federal Reserve Board and is not subject to the funding oversight of Congress.

There have also been bills submitted to abolish the CFPB and repeal any regulations enacted by the CFPB.