Private Flood Insurance: Disparate Impact?
What do fair lending and disparate impact have to do with the new private flood insurance rules?
July 1, 2019, is the “go date” for the new private flood insurance requirements, which basically say that if a borrower provides the bank with a private flood insurance policy and it meets the definition of private flood insurance under the Rule, the bank is required to accept it.
Now it’s not quite that simple but you get the idea.
Since the Rule came out; however, there have been some evolutions. One of the things that keeps coming up is the issue of fair lending and disparate impact.
Within the Rule, there are two types of private policies where a bank is allowed to apply discretion with respect to whether or not they want to accept the private policy.
Listen to the video as Jerod explains more.
Since we are in the business of providing solutions, we’ve put together a last-minute webinar on the Private Flood Insurance Rules that will be held on May 29, 2019. We’ll spend 30 minutes giving you the latest and greatest information we have. We’ll look at the requirements and the evolution since the Final Rule was issued. All this in time so you have time to adjust your program/procedures if necessary.
Want to find out more about Flood Insurance? See the regulation page here. https://www.bankerscompliance.com/banking-regulations-compliance-services/reviews-2/flood/
Exceeds the Maximum NFIP Deductible
Question: What if we have a private policy that meets all of the Biggert-Waters requirements except that the policy deductible exceeds the maximum NFIP deductible?
Answer: You cannot allow a private policy to have a deductible that is higher than the deductible available under a Standard Flood Insurance Policy (SFIP). However, a private policy’s deductible can exceed the maximum deductible that’s available under the National Flood Insurance Program for any coverage that exceeds what is available under the NFIP.
Register here to find out more answers on Private Flood.
Find out more about the Flood Regulation here – https://www.bankerscompliance.com/banking-regulations-compliance-services/reviews-2/flood/
Beneficial Owners: Can We Rely on Existing CIP Information?
We often get the question, “Can we rely on existing CIP information to satisfy the Beneficial Ownership requirements? In short, the answer is yes, but you do have to meet some specific criteria to be able to do so.
Listen to the video as Jerod explains that criteria.
This is just one of many requirements that come into play with the Beneficial Ownership rules.
We want to make sure your Team is up to speed and headed in the right direction with these requirements. Join us on May 2, 2019, for our “Beneficial Owner Due Diligence Requirements” webinar where we will spend one hour spelling out the requirements in plain English!
Want to know all the regulations we cover? Check them out here – https://www.bankerscompliance.com/banking-regulations-compliance-services/regualationswecover/
Cancelling an Escrow Account on a HPML
Do you have a borrower that wants to cancel the required escrow account on their Higher-Priced Mortgage Loan (HPML)?
First you need to understand what your options are. Option #1 is that you don’t have to honor their request. You can require they keep the escrow account in place. Option #2 is to allow them to cancel the escrow account. But, they MUST meet all of the following criteria before doing so:
- It must be five years since the HPML (and required escrow) were originated;
- They must be at 80% loan to original value (not current value) of the property; and,
- They cannot be delinquent at the time of the request.
This is just one of the many topics that we will address in our upcoming “Ability to Repay, Qualified Mortgage, High-Cost & Higher-Priced Mortgage Loans” webinar. On April 23, 2019, we will spend two hours walking you through the compliance requirements for these types of loans and answering your questions along the way. See you then!
See all training options here – https://www.bankerscompliance.com/banking-regulations-compliance-training/
TRID: Intent to Proceed
When it comes to the Intent to Proceed under TRID, what is an auditor looking for?
First, they’re going to look at how the applicant communicated their intent to the lender and that the lender documented it somewhere in the loan file. This creates a line in the sand and lets an auditor know that beyond that point in time the lender is allowed to charge for things over and above the credit report. Before you receive the intent to proceed, the only thing you can ask an applicant to pay for is a reasonable cost for a credit report. So, that communication from the applicant and documenting it are very important from an auditing standpoint.
This is just one of the many things we will tackle during our “Auditing TRID” webinar on April 18, 2019. This training is a little unique in that it takes a look at TRID from an auditor’s perspective. So, whether you’re the one being audited or the one doing the auditing, it’s a great fit for both!
Find out more about our services here – https://www.bankerscompliance.com/banking-regulations-compliance-services/