Regulatory Compliance Update
By: Hickman Beckner, Vice President
There was little regulatory activity in May. There is one IRS change that Shaw will have to make changes for in Commercial and Retail.
The IRS has published their update for the 2017 Tax Year forms:
1042-S added requirement for a Unique Identification Number (UIN) to be assigned to each 1042-S form submitted. This number must be numeric, 10 digits, must be unique to each form, and must not be the recipient’s Tax ID or foreign taxpayer identification number. The UIN will go in a new box on the form.
1098-Mortgage Interest added a new box for the number of properties that secure the mortgage being reported. The new information will go in Box 10. There is a new legend on the form:
The information in boxes 1 through 10 is important tax information and is being furnished to the Internal Revenue Service. If you are required to file a return, a negligence penalty or other sanction may be imposed on you if the IRS determines that an underpayment of tax results because you overstated a deduction for this mortgage interest or for these points, reported in boxes 1 and 6; or because you didn’t report the refund of interest (box 4); or because you claimed a non-deductible item.
June 8, 2017 – Comments due on CFPB’s request for information about the consumer credit card market.
July 10, 2017 – Comments due on CFPB’s plan to determine the effectiveness of the new Mortgage Servicing regulations.
July 14, 2017 – Comments due on CFPB’s request for information on the small business lending 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
October 19, 2017 – Effective date for CFPB’s interpretive ruling dealing with borrowers in bankruptcy. The CFBP has created a “safe harbor” for sending statement to borrowers that have declared bankruptcy.
Multiple bills have been submitted to reduce regulation on community banks (less than $1B in assets) by exempting them from certain CFPB regulations.