Building the BSA/AML Program

Article By: Gregg Oberg, Spillane Consulting Associates, Inc. When regulatory requirements impact strategic or management action, our goal is to help business leaders make well-informed decisions. Many of us are, at least in passing, familiar with the “Four Pillars” of an effective BSA/AML compliance program. But are we ready (or even aware) of the FIFTH Pillar; which becomes effective in May of this year? May 11, 2018 to be exact. If you're less familiar, or want a simple way to describe … [Read more...]

HMDA on Hold?

Article By:  Gregg Oberg,  Spillane Consulting Associates, Inc. As an industry, we've been anticipating the changes to HMDA data collection since Dodd-Frank. We've been through the creation of the CFPB and transfer of rule making authority to that agency, interim rules, final rules, Guides, charts, training, etc. etc. etc. Literally thousands of pages, hours, and dollars spent to prepare. So you'd think we would have some clarity at this point. But, after all the effort spent trying preparing … [Read more...]

Thanks to John + Any difference between Non-QM and higher-priced QM?

Article By: Ben Giumarra, Spillane Consulting Associates, Inc. When regulatory requirements impact strategic or management action, our goal is to help business leaders make well-informed decisions. Many institutions have avoided the potential risks of making non-qualified mortgage loans. Of course, there's no universally correct answer to the question of whether to engage in non-QM lending. But as a consultant, the best I can hope for is that business leaders are well-advised when … [Read more...]

Small Way to Avoid Some Servicing Requirements?

Article by: Ben Giumarra, Spillane Consulting Associates, Inc. Some of the new servicing regulations don't actually apply to certain loan types - identify them and take one small step towards minimizing your regulatory burden.   The federal mortgage servicing rules added over the past few years (some in 2014, again in 2017, and one more coming in 2018) can be tough.  But in some cases, servicers are voluntarily over-complying with these already-rigorous requirements. For example, some "small … [Read more...]

How to Invite Real Estate Agents to Your Christmas Party (without running afoul of RESPA)

Article By: Ben Giumarra, Spillane Consulting Associates Here's what you need to know about avoiding RESPA Section 8 anti-kickback violations when sponsoring a party for real estate agents or other referral partners. The industry has adopted more conservative stances towards RESPA Section 8 anti-kickback concerns since the CFPB came in and ramped up enforcement in this area. But just as some of those decisions may have been over-conservative despite an active CFPB, some … [Read more...]

Republicans Win CFPB Hearing: How It Affects You

Article By: Ben Giumarra, Spillane Consulting Associates What you should to know about the CFPB turmoil and how it affects you The Debate Mr. Cordray left a vacancy when he stepped down as director of the CFPB. The big question remaining - who will serve as acting director until a replacement can go through the appointment process (which can take years)? President Trump claimed authority to assign his choice (Mulvaney) pursuant to a general law giving authority to fill vacancies in such … [Read more...]

Borrower Changes Demographic Data Answer

Article By: Ben Giumarra, Spillane Consulting Associates, Inc. What to do when borrower wants to change answers to HMDA demographic information post-application.  The topic for today how to handle a situation where a borrower wishes to change his original answers to HMDA's demographic information post-application. Scenario At application stage (by telephone), Joe Borrower declines to provide demographic information when the loan officer asks for HMDA purposes. The loan officer correctly … [Read more...]

HMDA is Coming … Review #2

Article By: Ben Giumarra, Spillane Consulting Associates, Inc. While Ben's away, Gregg will play ... a special [re]issue of the Wednesday compliance newsletter while Ben is on vacation.   Note from Ben: I appreciate Gregg Oberg taking over newsletter duties for the second week in a row. See you all next Wednesday!  Alright, Crocodile Dundee will be back tomorrow, so I've got this last newsletter to try and steal his audience. Last week we looked at scenarios in which demographic … [Read more...]

HMDA is coming …Review #1

Article By: Ben Giumarra, Spillane Consulting Associates, Inc. While Ben's away, Gregg will play ... a special [re]issue of the Wednesday compliance newsletter while Ben is on vacation, with commentary from Gregg. Alright, Ben's traveling through Australia, probably trying to remember to drive on the opposite side of the road, and probably listening to a playlist frustratingly including an equal mix of songs by Jim Croce, Volbeat, and Taylor Swift (*shake my head in disgust). So get a chance … [Read more...]

HMDA Analysis for More than Just Compliance…

Article By: Ben Giumarra, Spillane Consulting Associates, Inc. Are you missing an opportunity when you review your HMDA LAR to look beyond technical reporting errors? Does the LAR data have more to tell you? When I first met John, he asked me: Is it possible for our clients to not only survive these regulatory changes (Dodd-Frank), but actually benefit from them? Well, classic case of John asking a question that seems innocent enough at first, but that actually guides you towards a much … [Read more...]