FREE Deposit Compliance Q & A Forum

Do you have burning questions related to deposit compliance?  Struggling with Electronic Funds Transfers, Truth in Savings Act, Regulation CC deposit delays, etc.?  If so, we’d love to have you join us on May 6, 2021, for our FREE Deposit Compliance Q & A Forum where we’ll answer questions such as:

FREE Deposit Compliance Q & A Forum

Question: Is it okay for our lenders to accept deposits and bring them to the teller line?

Answer:  This isn’t necessarily prohibited, but we wouldn’t recommend it.  First, you are required to post your general funds availability policy where deposits are received and this could get tricky if deposits are being accepted at places other than the teller line.  Second, lenders would need to have “Member FDIC” signs on their desks as well.

Question:  We recently discovered an annual percentage yield (APY) for one of our accounts was inaccurate. How do you recommend handling this?

Answer:  Keep in mind, the regulation does provide a tolerance of .05%.  This tolerance, however, should not be used to knowingly inflate the APY because that could quickly turn into a UDAAP issue.  If your APY is outside this tolerance, you will obviously want to correct it on any affected disclosures, advertising, etc.  Many are surprised to learn Regulation DD does not require restitution/reimbursement for APY tolerance errors but you could choose to do so.  It’s really a customer service issue.

All you have to do is register for the Forum on our website and then start pre-submitting your deposit compliance questions to (please put “May Forum” in the subject line).  We will answer as many of your questions as we can during the allotted hour.

See you there!!


Focus on Complaints

Back in February, Acting Director of the CFPB Dave Uejio stated one of his top priorities is making sure that consumers who submit complaints to us get the response and the relief they deserve.  He believes consumer experiences and input need to drive policymaking.  This “news” of the CFPB putting a focus on complaints really isn’t anything new.  But, it’s important to keep in mind that the focus is only likely to increase as Acting Director Uejio believes consumer complaints are the CFPB’s “lifeblood” and “direct connection to consumers in distress”. 

He also delivered a warning shot at companies with a history of a “lax” response, stating those with a poor track record…can expect to be hearing from me

While you don’t have a lot of control over whether someone complains about you or to you, you can control your response.  This, of course, is where your complaint program comes in.  If you don’t currently have a written complaint program, we absolutely encourage you to develop one. 

If you’ve already done so, make sure it addresses responding and reporting.  Now is the time to heed the warning and get your complaint program up to speed!

Ready for some help, that’s what we are here for.  Feel free to reach out to us or check out our webinar, “Complaints, Complaint Programs & Compliance”, which is available now OnDemand.


Fall 2021 Virtual Training Events

We are excited to announce that we are in the process of developing our Live Events for 2021. Our virtual conferences last fall were a huge success.  We hope to see you this year too!

Lending – October 13

Deposit Operations – September 28

BSA/AML – November 10

**For the virtual conference(s), you will have the option to purchase each session individually or you can purchase the series of three at a discounted rate.

Full Series! (BSA/AML, Lending, Deposit Operations)

So, MARK YOUR CALENDAR and refer to our store for additional information and to register/purchase.


Preparing for an Exam

During our February Monthly Connection, David Dickinson talked about how you should prepare for a regulatory examination.  There’s more to it than just getting your documentation in order. 

Listen as David explains:

Preparing for an exam is just the beginning; however.  David also has tips and tricks for what you should do during an exam, as well as, after an exam.  He plans to address each of these in an upcoming Monthly Connection.

What’s the Monthly Connection?

The Monthly Connection is a one-hour Zoom meeting with the experts at Banker’s Compliance Consulting and your peers.  We meet at 11:00 a.m. (Central Time) on the second Friday of each month.  Worried you can’t make it each month?  Not a problem.  All the meetings are recorded and archived so you can go back and watch at any time.

While the topics we discuss are driven by our members, each month we do try to present information on hot topics, compliance management, recent exam findings and some otherwise forgotten compliance requirements.  We also devote a good portion of the hour to answering member questions.  The Monthly Connection was designed for and is all about you!

Most importantly, the Monthly Connection is affordable! A subscription is just $599 per year (that’s only $50/month).  If you’d like to try it before you buy, contact us, and we’ll get you a video of the latest meeting.

Check it out today!


New Fannie Mae 1003

You are probably very aware that there is a new Uniform Residential Loan Application Form (URLA aka Fannie Mae Form 1003) available. Believe it or not, this new URLA was announced way back in August 2016! To say the least, it’s been quite a process with a lot of twists and turns and accompanying delays along the way. Unfortunately, and understandably, this has caused a lot of confusion! We thought we’d try to clarify who and/or what actually requires use of this new URLA. 

Fannie Mae’s website indicates use of the new URLA was permitted beginning January 1, 2021, with a deadline of March 1, 2021. While this timeframe applies to applications subject to Fannie Mae requirements, there is no regulatory requirement to use this new form by March 1st. In other words, there is no regulatory violation if you don’t switch to the new form by March 1st or if you never switch to the new form at all. 

This may come as a surprise to many of you.

You might be thinking, “That’s not what our investor said or what our forms provider told us”. Keep in mind, you still need to satisfy the requirements of other players involved in your loan origination process and you must also do what your system warrants. For example, the Fannie Mae website indicates the new Desktop Underwriter (DU) Interface will only accept the new 1003. Again, use of the new application form isn’t a regulatory requirement but may be required by someone else. 

Back in 2016, you may also remember that the CFPB “approved” the form. Why would the CFPB issue an “approval” if the application has nothing to do with compliance? Well, application forms generally have plenty to do with compliance, which is why the GSEs asked the CFPB for “official approval”. While there are a number of compliance requirements that must be met “at application”, whether it be for Regulation B (ECOA), Regulation C (HMDA), or a different regulation, you are free to use any form you want to meet those requirements. For example, under Regulation B, you need to request government monitoring information in certain circumstances and follow the rules for doing so. There are also specific disclosures that go along with collecting GMI as well as other requirements, for example, if you ask whether income is related to alimony, child support, etc., you must disclose that the amounts do not need to be provided if the applicant doesn’t want them used for qualification/creditworthiness purposes. 

So, while there are plenty of compliance requirements associated with application requests, there is not a regulation that dictates what form to use. In fact, Regulation B is the only regulation that requires a written application form at all, and it’s only required in the case of applications for the purchase or refinance of an applicant’s primary dwelling (when the loan will be secured by the dwelling). 

Appendix B of Regulation B actually gives us model application forms, but clarifies…their use is optional. There is also a version of the URLA form included in Appendix B, but if you look closely, you’ll see it’s the 2004 version. So, if you’re using a URLA today, it’s likely a different version, which is okay. As for updating Regulation B with a more current version of the URLA, the CFPB has essentially stated, maybe it will, maybe it won’t. 

The point of this article is not for you to run off and tell your investors that you don’t ever need to use the new form. You’ve likely heard us say, “Their game, their rules”. As we mentioned back in 2016, check with your investors, if you haven’t already heard from them, on transitioning to the new form. On loans you’re looking to sell, you likely do need to transition to the new URLA form, according to the timetable discussed. For those loans you keep in-house; however, don’t stress about having the new application form in place by March 1st. It’s fine if you do and it’s fine if you don’t. In other words, “your game, your rules”. Just ensure the application forms you do use are in line with regulatory requirements.

This article was highlighted in our February edition of the “Banking on BCC” monthly magazine.