Regulatory Compliance Update February 2018

Regulatory Compliance Update

By: Hickman Beckner, Senior Vice President

I have reviewed the Compliance News for January 2018.  Congress is back in session.  The administration has requested zero new funding for the CFPB.  The CFPB will use its reserve fund for its budget.  This has caused regulatory activity to slow down except for the implementation of existing regulations.

Federal Financial Institutions Examination Council (FFIEC) – has revised the implementation date for “Round 1” of the Call Report changes.  The date has been moved to March 31, 2018.

The Schedule RC-N definition for “Past Due” has not been implemented.  The new definition would have required institutions to report as past due any loan for which a payment has not been received by the day immediately preceding the loan’s next payment date.  This would have caused a significant increase in the number of reported past due loans.

The Consumer Date Industry Association (CDIA) has published their annual update to the Credit Reporting Resource Guide.  These are clarifications to the Guide and do not represent changes in the reporting requirements. You can view the changes to the Guide here:

Significant Dates:

March 16, 2018 – Effective date for Phase 3 of NACHA Same Day ACH Processing.

April 16, 2018 – Registration deadline for registered information systems for payday lenders, vehicle title lenders and other high cost consumer loans.

April 19, 2018 – Effective date for CFPB final changes in mortgage servicing requirements dealing with Successor In Interest and periodic statements for borrowers in bankruptcy.   This will impact both Retail and Commercial.

April 19, 2018 – Effective date for CFPB rules for Successors in Interest safe harbor for Fair Debit Collection Practices Act for actions taken to comply with the CFPB Mortgage Servicing Rules.

May 11, 2018 – Effective date for FinCEN’s Customer Due Diligence (“Know Your Customer”) Requirements.

Emerging Legislation:

There were many bills introduced just prior to the December recess.  We will watch the progress of these bills through Congress.

Other Significant Events:

By: Amanda Nash, Communications Specialist

The acting director of the CFPB Mick Mulvaney announced on Monday February 12, 2018, a sweeping plan that will dramatically alter the CFPB, refocusing its mission to protect consumers. Mulvaney said in a statement: “If there is one way to summarize the strategic changes occurring at the bureau, it is this: we have committed to fulfill the bureau’s statutory responsibilities, but go no further.”

According to the CFPB, the plan “refocuses the bureau’s mission on regulating consumer financial products or services under existing federal consumer financial laws, enforcing those laws judiciously, and educating and empowering consumers to make better informed financial decisions.” The CFPB will now focus on “equally protecting the legal rights of all, including those regulated by the bureau.”

Also, the only new rulemaking the CFPB will engage in will be to “address unwarranted regulatory burdens and to implement federal consumer financial law and operate more efficiently, effectively, and transparently.” The CFPB will no longer be “pushing the envelope” when it comes to new rules, regulations, or enforcement. These changes mean that the CFPB is establishing a new mission that is different from what it was previously.

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