What is Section 1071 of the Dodd-Frank Act?
Section 1071 of the Dodd-Frank Act amended the Equal Credit Opportunity Act (ECOA) to require financial institutions to compile, maintain, and submit to the Bureau certain data on applications for credit for women-owned, minority-owned, and small businesses.
QM Rule Status
On March 3, 2021, the CFPB issued its proposed rule to delay the changes to the QM rule until October 1, 2022. The Bureau is proposing to delay the mandatory compliance date of the General QM Final Rule to help ensure access to responsible, affordable mortgage credit and to preserve flexibility for consumers, particularly those affected by the COVID-19 pandemic.
AML Act of 2020
On December 20, 2020, the National Defense Authorization Act (“NDAA”), was signed by the President and officially became law on January 1, 2020. The Act contains 1,500 pages known as the Anti-Money Laundering Act of 2020 (“AML Act”), significantly reforming the Bank Secrecy Act (“BSA”) and other anti-money laundering laws.
The 1,500 pages contain the most sweeping changes to the BSA since its enactment in 1970. No doubt that this Anti-Money Laundering Act of 2020 will have major impacts on your BSA AML program for
2021 and beyond.
The Fair Lending Risk Assessment – The Finale
The fair lending risk assessment is an integral component of and the springboard for your fair lending program. It is a critical risk management tool that enables the institution to identify and measure the risk inherent in the institution, measure the risk inherent in the bank’s lending s lending processes and to determine what control and
processes and to determine what control and monitoring mechanisms are in place to protect monitoring mechanisms are in place to protect against illegal discrimination.
Fair Lending, the Sequel
Last month Accume addressed the Fair Lending – HMDA conundrum regarding data collection. As a follow up, we thought it would be a great idea to focus on the overall fair lending program itself. In light of recent examination findings at financial institutions, it is obvious that fair lending will remain a hot topic into 2021 and beyond…
In light of the recent TD Bank Consent Order concerning its overdraft activities, it may be a good time to revisit your institution’s overdraft program. Overdraft programs continue to be a major focus of the regulators and are on Accume’s compliance “hot topics” honor roll!