Using Quality Control to Prove Compliance

Article By: Gregg Oberg, Spillane Consulting Associates, Inc. Quality Control as a "Detective" Compliance Control I’ll skip the obligatory “compliance is hard and expensive” explanation; you’re already aware of that fact. The process—regardless of the regulation being complied with—begins with identifying and assessing risks. Policies, procedures and other controls are then implemented, and we hope we’ve met our obligations. But unless we continually monitor and test our programs, improving … [Read more...]

Are Small Banks Still Subject to HMDA?

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. Change has come to HMDA once again; see how the S.B. 2155 Regulatory Reforms will impact your institution moving forward... S.B. 2155 and HMDA: A Simplified Explanation for “Small Banks” As you likely have seen, S.B. 2155 is now law. Let’s take a moment to applaud Congress for doing SOMETHING … [Read more...]

HMDA Reporting on Construction Loans

Article By: Gregg Oberg, Spillane Consulting Associates, Inc. When is Financing “Temporary?” Today I want to take a look at one of the least understood topics in HMDA—temporary financing exemptions. These exemptions most often come up in the context of construction loans (read: commercial loan dept); but the classic “bridge loan” scenario we often see on consumer residential transactions is also captured under the 12 C.F.R. 1003.3(c). Statutory Language The language of the “Temporary … [Read more...]

Who Ya Gonna Call?

Article By: Gregg Oberg, Spillane Consulting Associates, Inc. Compliance Support on Speed Dial SCA has established a Compliance Hotline to assist our clients with those one-off, unanticipated questions. Wondering if you need a LE and CD on an abnormal transaction? Not sure how to handle multiple properties as security in HMDA reporting? Just want a second set of eyes on an advertisement or new policy? These are all good reasons to call or email SCA’s Compliance Hotline. Not everyone has a team … [Read more...]

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...]

Vendor Management Best Practices

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. Outsourcing a function DOES NOT outsource the corresponding Risk "Reliance on third-party relationships can significantly increase a bank's risk profile, notably strategic, reputation, compliance, and transaction risks. Increased risk most often arises from poor planning, oversight, and control on … [Read more...]

How Are You Keeping Up With Regulatory Changes?

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. With the CFPB, the Only Certainty is Change At this point, we’ve seen so many “will they or won’t they” moments for the 2018 (and beyond) HDMA rule that the CFPB should hire Brett Favre as the official HMDA spokesman. In just the last 30 days, we’ve seen multiple legislative and … [Read more...]

Some Thoughts on Compliance Training

Article By: Gregg Oberg, Spillane Consulting Associates, Inc. Habits that served us well in the past may hurt us after regulatory change. Getting HMDA Wrong? It’s All About the Habits …  Experience is typically viewed as a positive trait, particularly in highly repetitive operations such as mortgage originations. So much so that I’ve always viewed my lack of “Old HMDA” experience as a glaring hole in my knowledge. Those who have reported HMDA transactions for years often know their … [Read more...]

Successors in Interest Under the 2016 Mortgage Servicing Rule

Article By: Gregg Oberg, Spillane Consulting Associates, Inc. Are your policies and procedures ready for the successor in interest rules?  The 2016 Mortgage Servicing Rule, which amends parts of Regs X and Z, creates certain rights for "successors in interest" to the borrower in a mortgage lending transaction. Although most of the 2016 rules have already been implemented, the effective date of these successor in interest provisions is April 19, 2018. Depending on whether you meet certain … [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...]