Regulatory Compliance Update January 2020

Regulatory Compliance Update

By: Hickman Beckner, Senior Vice President

We have reviewed the Compliance News for December 2019. Congress had a limited, eight-day, schedule for December.

IRS – Extended the filing date for information returns for the following:

1095 – B Health coverage

1095 – C Employer provided Health Insurance Offer and Coverage

The new deadline for furnishing the information to individual taxpayers is March 2, 2020.  The extensions do not affect loans.

SECURE Act was signed into law.  The Act changes the following for IRA’s:

Contribution Age Limit – The 70½ age limit has been repealed.  Contributions may be made to a traditional IRA at any age.

Distributions – New parents may redeem up to $5,000 penalty free within one year of the birth or adoption of a child.

Required Minimum Distributions (RMD’s) – The age trigger has been raised to 72.

Death Distributions for Non-Spouse Beneficiaries – Distributions must be taken within 10 years.  There are exemptions for disabled, chronically ill, advanced age and minor children beneficiaries.

The new rules do not affect loans.

FDIC – Is requesting comments on ways to improve the quality of its analysis of regulatory actions.

CFPB – In compliance with Regulation C, the bureau has increased the asset size exemption threshold for higher priced mortgage loans for creditors to $2.203 billion.

Increased the asset size exemption threshold for reporting under the Home Mortgage Disclose Act (HMDA) for creditors to $47 million.

Significant Dates:

January 1, 2020 – Effective date of the CFPB’s Changes to Regulation C discussed above.

January 7, 2020 – Comments due on the IRS’s proposal to update the life expectancy tables that are used to calculate the RMD’s from IRA accounts and other retirement accounts.

January 21, 2020 – Comments due on CFPB’s request for information regarding Integrated Mortgage Disclosures.

January 28, 2020 – Comments due on NCUA’s proposed rule to raise the threshold for requiring appraisals on residential mortgages to $400,000.

Emerging Issues:

HELPER Act – Would allow withdrawals of $5,250.00 from 401(k) or IRA accounts to pay for college or to repay student loans.  The Act would also allow for employer-sponsored student loan and tuition plans to be tax free up to $5,250.00.  This act would have the effect of making student loan repayments up to $5,250 per year tax free.

Protecting Your Credit Score Act – Would direct the three major credit bureaus to set up a single online portal to provide free and unlimited access to credit reports and scores.  The Act would also provide the ability to more easily initiate and resolve disputes and to provide consumers with access to see who the bureaus have sold information to in the prior two years.

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