The Edcomm Group Banker’s Academy is dedicated to training excellence and compliance in the field of financial services. Our team of legal experts and research consultants have come together to bring you the very latest in updated regulations and notices from the federal banking agencies, including the Federal Reserve Bank, Office of the Comptroller of the Currency, the Securities and Exchange Commission, the Consumer Financial Protection Bureau, and other regulatory authorities.

 

Lending Appraisals for Higher-Priced Mortgage Loans – The Consumer Financial Protection Bureau (CFPB) issued a final rule to amend Regulation Z jointly with the Federal Reserve Board, Federal Deposit Insurance Corporation (FDIC), Federal Housing Finance Agency (FHFA), National Credit Union Administration (NCUA), and Office of the Comptroller of the Currency (OCC). This rule implements the Truth in Lending Act (TILA), and the official interpretation to the regulation. The revisions to Regulation Z implement a new provision requiring appraisals for “higher-risk mortgages” that was added to TILA by the Dodd-Frank Act. For mortgages with an annual percentage rate that exceeds the average prime offer rate by a specified percentage, the final rule requires creditors to obtain an appraisal or appraisals meeting certain specified standards, provide applicants with a notification regarding the use of the appraisals, and give applicants a copy of the written appraisals used.

• On Learning Link™, the courses “Focus on Compliance,” “Focus on Compliance for Credit Unions,” and “Focus on Compliance for Mortgage Lenders” topic 8“Higher-Priced Loans” have been updated with relevant content on pages 7-10.
• On Banker’s Academy LMS™, the course “Regulation Z: Truth in Lending Act” topic 8 “Higher-Priced Loans” has been updated with relevant content.

 

Telephone Consumer Protection Act Regulations – The Federal Communications Commission (FCC) adopted additional protections for consumers concerning unwanted autodialed and/or robocalls. The changes address prior written consent and “established business relationship” exemption. The regulations were approved in a Report and Order approved in February of 2012 and become effective on October 16, 2013.

• On Learning Link™, the courses “Focus on Compliance” and “Focus on Compliance for Credit Unions” have been updated with relevant content in the module “Telephone Consumer Protection Act” Topic 1 “Telephone Consumer Protection Act” pages 3, 5, and 6.
• On Banker’s Academy LMS™, the course “Telephone Consumer Protection Act” topic 1 “Telephone Consumer Protection Act” has similarly been updated on pages 4, 6, and 7.

 

Basel III Finale Rule – The FDIC has announced its approval of an interim final rule that adopts with revisions the three notices of proposed rulemaking (NPRs) that the banking agencies proposed last year regarding Basel III NPR, the Basel III advanced approaches NPR, and the so-called Standardized Approach NPR. The Federal Reserve Board approved a final rule to implement the Basel III regulatory capital reforms and changes required by the Dodd-Frank Act. In most respects, the final rule follows the proposed rule from 2012 and makes three changes to the proposed rule that have a beneficial impact on community banks.

• On Learning Link™, the course “Basel” module topic 1 “What is Basel III?” all pages have been updated to reflect the new information.
• On Banker’s Academy LMS™, the course “Overview of Basel II and III” topic 9 “Basel III” pgs. 10-15 have been updated to reflect the new information.

 

Additional Mortgage Amendments – Additional final rules were published to amend the 2013 Mortgage Rules under the Real Estate Settlement Procedures Act (Regulation X) and the Truth in Lending Act (Regulation Z). The finalized rule provided clarifications and updates for mortgage rules under TILA and RESPA that were proposed in April of 2013. The rule provides clarification on determining a consumer’s debt-to-income ratio, the eligibility standard for certain loans, and more. This rule is effective January 10, 2014.

• On Learning Link™, the courses “Focus on Compliance,” “Focus on Compliance for Credit Unions,” and “Focus on Compliance for Mortgage Lenders” topic  8“Higher-Priced Loans” have been updated with relevant content.
• On Banker’s Academy LMS™, the course “Regulation Z: Truth in Lending Act” topic 8 “Higher-Priced Loans” has been updated with relevant content.

 

25% Increase in Premium Rates – Key provisions of the Biggert-Waters Flood Insurance Reform Act of 2012 will require the NFIP to raise rates to reflect true flood risk, make the program more financially stable, and change how Flood Insurance Rate Map (FIRM) updates impact policyholders. The changes will mean premium rate increases for some—but not all—policyholders over time. Homeowners and business owners are encouraged to learn their flood risk and talk to their insurance agent to determine if their policy will be affected by BW-12. In October 2013, a 25% increase in premium rates began and will take effect each year until premiums reflect full risk rates. BW 12 calls for the phase-out of subsidies and discounts on flood insurance premiums. Full-risk rates will apply to these policies.

• On Learning Link™, the following courses have been updated to reflect this information:
  • “Focus on Compliance,” Module 13, Topic 1
  • “Focus on Compliance for Credit Unions,” Module 15, Topic 1
  • “Focus on Compliance for Mortgage Lenders,” Module 7 Topic 1
  • “Achieving Mortgage Lending Excellence,” Unit 5, Module 1, Topic 18
  • “Achieving Mortgage Lending Excellence for Credit Unions,” Unit 5, Module 1, Topic 18
  • “Achieving Commercial Lending Excellence,” Unit 6, Module 1, Topic 15
  • “Achieving Consumer Lending Excellence,” Unit 6, Module 1, Topic 18
  • “Achieving Consumer Lending Excellence for Credit Unions,” Unit 6, Module 1, Topic 17
  • On Banker’s Academy LMS™, the course “Flood” topic 1 pages 10-11 have similarly been updated.