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...]

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...]