Consumer Financial Protection Bureau (CFPB)
CFPB and U.S. Department of Education Coordinate to Better Serve Student Loan Borrowers
The Consumer Financial Protection Bureau and the U.S. Department of Education announced that the two entities signed a Memorandum of Understanding (MOU) to better serve student loan borrowers. The MOU states that the two agencies will share information about borrower complaints and hold quarterly meetings to discuss the complaints and the resolution of those complaints.
Federal Deposit Insurance Corporation (FDIC)
The Office of the Comptroller of the Currency (OCC)
FDIC and OCC Extend Comment Period for CRA Rule Changes
The Federal Deposit Insurance Corporation and the Office of the Comptroller of the Currency announced a thirty-day extension to the comment period for proposed rule changes regarding the Community Reinvestment Act, which will now end on April 8th. The rule changes hope to increase banking activity in areas where credit, responsible lending and better access to banking services are more greatly needed.
FDIC Asks for Public Input on Updating Signage and Advertising Requirements
The Federal Deposit Insurance Corporation Announced that it would be seeking public comment on ways to modernize the current regulations regarding signage and advertising. The idea is to better reflect the current operations of the industry and how customers use banking services, given that the last update was made in 2006 and the industry has changed dramatically since then.
Securities and Exchange Commission
SEC Proposes Modernization of Key Market Infrastructure
The Securities and Exchange Commission announced a proposal to modernize infrastructure used to collect, consolidate and distribute market data for exchange-listed national market system (NMS) stocks. To better serve investors in today’s equity markets, this proposal would expand NMS data and update the contents.
Federal Reserve Board (FRB)
FRB Releases Hypotheticals for 2020 Stress Tests
The Federal Reserve Board announced the release of the 2020 hypothetical scenarios that would be used for stress test exercises. These tests ensure that large banks have the resources to continue serving their customers and communities even if there is a severe recession. The most sever of these hypotheticals includes a global recession and increased stress on corporate debt markets and commercial real estate.
Why Your Bank Employees Need Security Training
Security is important in almost every public place. Whether it’s meant to make visitors comfortable, protect the people in that space or protect the space and its assets, security is an important part of many businesses. For banks and credit unions, security is of the utmost importance. Physical and digital security are paramount to ensuring that banks and other financial institutions are able to keep the money they are trusted with and the individuals who regularly are present in the institution safe. The best way for any financial institution to keep things safe and secure is with proper training.
Security is Everyone’s Concern
Security and safety training are important for every level of employee at a financial institution. Anyone in a bank can leave it vulnerable to physical and digital threats, from the bottom to the top. Knowing security and safety best practices are integral to any comprehensive training program and integral to the daily operations of a bank. Training should include red flags and warning signs, what employees should do to in the event of an emergency, what employees should do in the event of a robbery, how to properly open and close a bank or branch, the responsibilities of the chief security officer and more.
Comprehensive Training Programs
From the best way to handle suspicious activity to proper closing procedures, even the tiniest mistakes can lead to major repercussions. That’s why it’s better to be safe than sorry and ensure that your bank employees know security and safety protocol in and out. And that’s where your training comes in.
Edcomm offers a diverse array of banking and finance training that can keep your institution compliant and can also help keep it safe. Our training programs are comprehensive and constantly updated to stay up to date with a quickly changing industry and brand-new technology because with changes and new technology comes new threats.
Contact Us
If you’re looking for compliance and bank security training, contact the Edcomm team today!
Consumer Financial Protection Bureau (CFPB)
CFPB Announces Actions Against Fraudulent Debt Relief Companies
The Consumer Financial Protection Bureau filed charges against several companies and individuals associated with illegal student debt relief practices. These companies and individuals were illegally obtaining consumer reports, charging illegal advance fees, and engaging in fraudulent conduct. These actions were filed against Chou Team Realty, LLC, which does business as Monster Loans, Land Tech Loans, and Docu Prep Center Inc.
The Office of the Comptroller of the Currency (OCC)
OCC and Other Agencies Announce Annual CRA Asset-Size Threshold Adjustments for Small and Intermediate Small Institutions
The Office of the Comptroller of the Currency and the other federal banking regulatory agencies announced the annual adjustments to the thresholds that are used to define which institutions are a small bank, small savings association, intermediate small bank, and intermediate small savings association. These definitions are based on asset-size thresholds set in the CRA, which requires they be adjusted each year.
Securities and Exchange Commission
SEC Proposes Improved Market Data Plan Governance
The Securities and Exchange Commission proposed a plan to modernize the governance of National Market System (NMS). The proposed order would require equities exchanges and FINRA to file a new NMS plan with the SEC to increase transparency and reduce conflicts of interest. The SEC is seeking public comment on this proposal.
Federal Deposit Insurance Corporation (FDIC)
The FDIC Updates Money Smart for Small Business Curriculum
The Federal Deposit Insurance Corporation and the US Small Business Association announced updates to the Money Smart for Small Business curriculum, which focuses on helping small business owners and entrepreneurs understand their relationship with their bank and how it can help them reach their goals. The updates focus on banking and credit and are now available.
Federal Reserve Board (FRB)
FRB Releases Preliminary Treasury Data for 2019
The Federal Reserve Board announced preliminary data showing that in 2019, Reserve Banks made approximately $54.9 Billion in payments to the US Treasury. The final financial statements for the 2019 audit of Reserve Banks will be published in March. The data released in March may adjust these preliminary figures.
What is HMDA?
There are a lot of banking regulations and each one is incredibly important. This is true in both their purpose keeping the banking industry safe and secure and their ability to keep lending, trading, and other activities fair. Recently, the Consumer Financial Protection Bureau finalized rules that clarified exemptions and extended the current threshold for collecting and reporting data about open-end lines of credit under HMDA. But what is HMDA?
The Home Mortgage Disclosure Act or HMDA is a federal law in the US. It was enacted by the 94th congress of the United States and went into effect on December 31, 1975, signed into law by President Gerald Ford.
HMDA rose from the noticeable shortage of credit offered by banks and financial institutions in certain urban areas. As many of these urban areas declined, Congress came to believe that the decline was caused by institutions not providing home finance loans with good terms to qualified borrowers.
HMDA doesn’t necessarily prohibit financial institutions from certain actions, though. It is essentially a law that requires financial institutions to disclose important data, not only to regulatory authorities but to the public.
HMDA requires institutions to provide information to the public, allowing the people who live in a community to assess whether the institution is actually serving that community. A 1989 amendment to the law requires institutions to also provide information about the characteristics of borrowers and applicants. This information is used to ensure that lenders are not discriminating against certain individuals in their lending practices and is also used to enforce anti-discrimination laws.
HMDA and other banking regulations are an important part of the banking industry. And that’s why the understanding of regulations is important to compliance training. If you’re looking for compliance training for your financial institution, Contact us today for more information.
