As the summer comes to a close, you may be among the many compliance officers nationwide returning from vacation and settling back into the office. Here are 9 fresh compliance articles published this summer that you may have missed, and what they mean for your financial institution.
It's hard to believe that summer is almost over; family vacations are winding down and kids are heading back to school. As we collectively return to the office after a wonderful season of long, sun-drenched weekends, catching up on news and events can be a challenge.
When reviewing these articles in composite, certain compliance trends emerge. Among them? Redlining remains hot, HMDA Plus changes loom, and everyone seems to have a different opinion about the potential for both risk and deregulation.
(Please note: if you think we've missed an article that should be featured on this list, please link to it in the comments section at the end of the post, and we'll review it!)
Without further ado, here are 9 of the newest and most illuminating compliance articles published this summer:
Yesterday, Reuters reported that bank profits increased in Q2 2017 by 10.7 percent. This increase, which totaled $48.3B in profits, is seen as an indication that the banking industry is healthy and growing.
In a news conference, FDIC Chairman Martin Gruenberg noted the following:
As you focus on growth, it's important to continue prioritizing compliance and risk management. We'll discuss this more in the future, but suffice it to say that unchecked risk can jeopardize your growth plans.
The OCC released the Semiannual Risk Perspective for Spring 2017 in June, which provided unique regulatory perspectives on key areas of focus, including the operating environment, bank performance, trends in key risks, and regulatory actions. According to the press release, the following are some of the key points highlighted in the report:
Financial institutions will need to comply with most of the updated HMDA requirements, originally released in 2015, starting in January 2018.
We will be watching this story closely and continuing to report on updates and what it means for you. In the short term, know that it will be possible to report your 2017 HMDA data in March 2018 with the new tool.
As the summer comes to a close, the heat is still on for Redlining compliance. This post focuses on why data analysis is essential for Redlining compliance risk management. In it, you'll learn real, actionable tips for how to look at your data for Redlining compliance risk.
The Credit Union Journal, an industry publication for credit unions, recently posted a slideshow about some key compliance priorities and how credit unions can manage them. Among those featured are:
Take a look at the entire slideshow here.
The Dodd-Frank Wall Street Reform Act from 2010 introduced the Volcker Rule, which was designed to limit potentially risky or speculative bank trading and investing. It was seen as an important risk mitigation measure in the aftermath of the financial crisis. However, some have said that the rule led to complex compliance requirements and overly burdensome restrictions for banks.
Earlier in August, the OCC requested public comment about the Volcker Rule.
“A bipartisan consensus has emerged that the Volcker Rule needs clarification and recalibration to eliminate burden on banks that do not engage in covered activities and do not present systemic risks," said Acting Comptroller of the Currency Keith Noreika.
In June, the CFPB released their rulemaking agenda for the rest of the year, and it's packed. There are almost 20 rules in the pipeline, from the Prerule Stage to the Final Rule Stage. This news comes amidst ongoing arbitration rules discussions, and the recently released TILA/RESPA amendments (which will take effect in October 2017).
The future rules can be grouped into the following key categories:
As a financial institution, keep an eye on the news to make sure that you're aware of any proposed changes that may impact your institution. We know the pace of change can be breakneck, so we will be watching this story closely and trying to provide you the best and most current perspectives to help reduce the pressure.
8. Actionable Tips for How to Respond to a Bad Compliance Exam
Compliance exams can be stressful and challenging. That stress increases with the prospect of responding to the repercussions of a negative or critical compliance exam.This article shows 7 experience-tested tips for how to respond to a bad compliance examination.
Each recommendation is based in personal experience as a former compliance officer at a bank, and in TRUPOINT's collective experience as consultants, analysts, and thought leaders. In addition to guidance for how to respond to a bad exam, you'll also learn a few ideas for how to be proactive in the face of an exam, in case you're currently in that situation.
Earlier this year, the CFPB listed mortgage servicing as a priority for 2017. This enforcement action is evidence that the industry should take that signal seriously.
According to the press release, the CFPB took action against Fay Servicing for failing to provide mortgage borrowers with the required protections against foreclosure. Fay Servicing is slated to pay up to $1.15 million to harmed borrowers, offer borrowers the opportunity to seek foreclosure relief, and end its allegedly illegal servicing actions.
This month and next, we're anticipating a lot of attention on HMDA and Fair Lending compliance. If you're a HMDA filer, the release of the public HMDA data will provide unique opportunities to identify and manage your Fair Lending and consumer compliance risk.
To learn more about how we can help you stay abreast of HMDA and Fair Lending developments with our TRUPOINT Analytics data analysis platform, click the button below for free HMDA Fair Lending sample reports and to learn more about analyzing your HMDA data for Fair Lending compliance!