FCRA/FACT Act Compliance

Be sure to JOIN US on October 6, 2020, for our webinar, “FCRA/FACT Act”. 

The FACT Act requires you to develop and implement a written ID Theft Prevention Program that is designed to detect, prevent and mitigate identity theft.  It’s not uncommon for the identity theft red flags to be inadvertently overlooked.  There are five main categories of red flags and it’s a good idea to remind your employees of these periodically to increase their overall awareness.

Click on the video to listen to Jerod explain more.

Want Free Lending Tools? Check them out here – https://store.bankerscompliance.com/link/LendingFD


Deposit Operations Overview

Be sure to JOIN US on August 27, 2020, for our webinar, “Deposit Operations Overview”. 

This webinar will focus on Deposit Operations regulations such as:

  • Electronic Funds Transfer Act
  • Truth in Savings Act
  • Expedited Funds Availability Act
  • Fair Credit Reporting Act
  • Privacy
  • Overdraft Hot Spots
  • Unfair, Deceptive or Abusive Acts or Practices
  • Complaints & Much More!

Regulation E is one of those deposit regulations that we consistently see a lot of errors. 

There are a lot of timing requirements, liability calculations, etc. to wrap your brain around.  One of those is the provisional credit requirement.

Click on the video to listen to Jerod explain more.

Read the Transcript Below!

Let’s talk about walking around money. Hi there. This is Jared Moyer with Bankers Compliance Consulting. I know, I know. What in the world’s walking around money? Well, here let’s do this. The regulation is the Electronic Funds Transfer Act, specifically unauthorized transfers covered by the Electronic Funds Transfer Act. Now there’s two sections in regulation E, the Electronic Funds Transfer Act, that deal with unauthorized transfers. There’s 1005.6, which is the baseline. And then there’s this other section, 1005.11, that is a little bit better deal for the customer if they do things in a quicker timeframe.

So it works like this, if the consumer tells you about the unauthorized transfer within 60 days of the statement on which it first appears and you ask them to put it in writing within 10 days and they do, and you aren’t able to complete the investigation within that same 10 days, then you have to give them what we call walking around money. You’ve probably heard it referred to as provisional credit. The idea is this — since you couldn’t complete the investigation during the initial 10 days after being notified, hey, and now you’re going to take the extended timeframe, which the regulation allows for, in order to take on the extended timeframe.

If you’ve asked them to put it in writing and they did, you have to give them walking around money. They get to walk around with the money in question in their pocket, until you complete your investigation. If you complete it in their favor, they get to keep that money. And if you don’t, you’re going to end up taking it back and there’s rules surrounding that. But that’s what walking around money is. We have a lot of different reg E and other deposit related training available within our library on our website, bankerscompliance.com. We’d love to have you reach out to us and figure out how we can partner with you to get the best solution in your hands, so that you can get your team going in the right direction. Pick up that phone and give us a call today.


Need FREE Deposit Operations Tools? Check them out here – https://store.bankerscompliance.com/#?keyword=deposit&type=Forum

Virtual Compliance Conferences

By now you’ve probably heard our Fall Compliance Conferences are going VIRTUAL!  We are so excited to bring this valuable compliance training directly to you and that it allows us to reach new audiences!

We know that your Team is spread out at various locations and many are likely still working from home due to COVID-19.  We don’t want that to be an obstacle for you so we will not charge extra for multiple locations/attendees.  One ticket gets your whole team in!

Click on the video to listen to Jerod explain what sessions we’ll be offering as well as some of the great perks you can expect.

We hope you JOIN US because you won’t be disappointed! 


Overdraft Training Sample

See full training here – https://store.bankerscompliance.com/#?keyword=overdraft&type=


Let’s talk about the agenda today. So at 10,000 foot, what are we doing? We’re going to look at the overdraft environment, the regulations that interact with overdrafts, the regulatory guidance, there’s a ton of it, and the best practices as relayed by the regulatory agencies and as dictated through the best practices. We’re also going to spend quite a bit of time looking at the areas where you need to make sure you’ve reviewed your programs because they’re the hotspot area. So we’ll spend a considerable amount of time there. Let’s big picture where we’re going to go with today’s program.

Page number one, Roman numeral I, letter A gives us this definition of an overdraft. And just so we’re all singing from the same sheet of music here, you want to read through that. What it’s going to mean is when somebody doesn’t have enough money to buy the stuff, but they do it anyway, there’s not enough money in their account, that’s an overdraft. If you’re going to pay the item, and you’re not required to pay the item, you can return the item, that’s a NSF, non-sufficient fund situation. All of those are going to be discussed and relevant to our conversation today. But that’s from the CFPB, their definition of an overdraft, we start there.

Overdraft programs, they’re really split up into two different buckets. You’re either a bank that has an Ad Hoc program where it’s maybe… Let’s say I’m an officer at the bank. And I get this report every day that’s got the customers that I work with and it’s the overdraft report. And I have to work this manually. And based on my experiences with the customer, the relationship, and a whole lot of other things, I work this report and go, yay, nay, as to whether or not to pay or return the items. That’s an Ad Hoc program for overdrafts.

And some of you listening, you’re like, “We’re 100% that.” Some of you listening are going to be 100% in the other bucket. You’re going to be the automated where it’s not a daily decision. It’s an automated decision-making program or software based on criteria that’s predetermined. It’s an automated system. And that’s the other bucket. I know what some of you are thinking, you’re going, “Well, we’re somewhat ad hoc, but we have some things that are automated.” And so you’re this in between, you’re a combination. So there’s actually a third bucket. Some of you will say, “Yeah, we’re ad hoc, but there’s a certain portion of it that’s not.” And that’s okay too.

Here’s the only reason I bring this up. There’s a misconception out there that if you’re only an ad hoc bank, that really you don’t have to pay attention to the overdraft space. And that’s not true. There’s some wording in some of the guidance documents that makes you believe that. But I can tell you in practice, that’s not how it’s interpreted by the examiners, nor is that how it’s applied. And if you’re an ad hoc bank, some of the stuff in this manual today, when we get to hotspots, you can still get sued for. They don’t care whether you’re ad hoc or automated.

So there’s this false sense of security with a bank that’s not automated with respect to how they handle overdrafts. Now that doesn’t mean that because you’re automated, you’re at a super higher risk either. It’s just, there’s a little bit more focus placed on you in a regulatory exam. Okay? There’s more of a target. You’re maybe the bullseye instead of one of the outer rings. That’s all it means. So we’re going to get that out of the way, because it’s going to come up a little bit later on and we want to make sure we all have kind of the same understanding of what ad hoc versus automated is.

Find more Free Tools here – https://store.bankerscompliance.com/#?keyword=&type=Forum


Mortgage Servicing

There’s a misconception out there that the mortgage servicing requirements are a “big bank” thing, and that’s not entirely true. While there is a large servicer element to these requirements, small servicers can’t just ignore them altogether. One area where small servicers don’t get an exemption from the requirements is information requests. When you have an information request, there are several timeframes you must abide by.

Click on the video to listen to Jerod explain more.

On July 28th, we hosted a Mortgage Servicing webinar where we get into what both large and small servicers need to know.  If these requirements have you scratching your head, be sure to check it out On Demand.


Have you ever had one of your consumer mortgage customers inquire about information related to the loan that you’re servicing on their behalf? Hi there. This is Jerod Moyer with Banker’s Compliance Consulting. The answer is probably yes. Right? Of course you have. The question then is, all right, how did they go about it? Did they just drop by and ask you for this, or that, or the other thing, or did they pick up the phone and just call you. If it’s a request for information that falls within those buckets, then you probably just revert to plain, old, everyday customer service in how you handle that information request.

Is Mortgage Servicing a Big Bank Thing?

However, if they actually pick up their pen and they put it to paper or they type it out and submit it formally … What do I mean by that? Giving you their name, the account information, and then the information that they’re actually seeking out. Well, that’s going to fall under regulatory requirements. In other words, you’re going to have I’s to dot and T’s to cross if it’s formally submitted. What’s that mean? Well, what it means is you have to respond by acknowledging that you’ve simply received the request for information within five days. You have 10 days to acknowledge and respond with the request if it’s related to contact information, and then everything else kind of has this 30 day element tied to it.

Here’s the deal. There’s a misconception out there that mortgage servicing is a big bank thing, and it’s just not entirely true. Yeah, there’s a large servicer element to this. In other words, some small servicers get out of some parts of mortgage servicing. Information requests is not an area where there is a small servicer exemption. So, everybody that is a financial institution that services mortgage loans has to comply with this five, 10, 30 day timeframe that I referred to in this short, little video here today.

Mortgage serving is just one of the compliance topics that we have training on within our library at bankerscompliance.com. I’d invite you and your teams to check out the other compliance topics that we cover, or better yet, pick up the phone and give us a call. We can chat with one another and figure out how we may be able to partner with you to meet the challenges that you face as it relates to the regulatory compliance requirements. Let’s have a discussion.