Independent Banker - January 2022 - 34

PORTFOLIO
◎FOCUS COMPLIANCE
Compliance changes to
watch out for this year
Driven by uncertainty around the pandemic, few compliance reforms were
realized in 2021. This year, regulators are considering reforms centered on
the Community Reinvestment Act, the Fair Housing Act and more.
By Mary Thorson-Wright
ast year was quiet for compliance
reform, but in 2022, some changes
go into effect and several regulatory
proposals take shape.
L
Here are the regulatory and risk
issues that should be on community
bankers' radar this year. Many in this
sample hold unknown results.
Changes going into effect
General Qualified Mortgage
(QM) final rule. In April 2021, the
Consumer Financial Protection
Bureau (CFPB) delayed mandatory
compliance for the General QM final
rule from July 1, 2021, to Oct. 1,
2022. Lenders may use the old rule,
the new rule or the Government
Sponsored Enterprise (GSE) patch
until then.
Home Mortgage Disclosure Act
(HMDA) reporting thresholds. In
April 2020, the CFPB increased the
loan-volume coverage thresholds for
financial institutions reporting data
under HMDA. Effective Jan. 1, 2022,
the current temporary threshold of
500 open-end lines of credit expires
and reverts to 200.
Computer-security incident
notification requirements.
In January 2021, the Federal
Reserve, FDIC and the Office of the
Comptroller of the Currency (OCC)
submitted a notice of proposed
rulemaking to require banks to notify
their primary federal regulator when
they believe a " computer security
incident " has occurred. Following
a comment period, in which ICBA
submitted a comment letter to the
agencies expressing its concerns
and recommendations, the agencies
published a final rule in November
2021. The rule requires notification to
regulators as soon as possible but no
later than 36 hours after determining
a notification incident has occurred.
Further, the rule requires bank service
providers to notify an affected bank
if an incident could disrupt, degrade
or impair services for four or more
hours. The rule becomes effective
April 1, 2022, with a compliance date
of May 1, 2022.
Evolving proposals in 2022
Small business loan reporting. The
Dodd-Frank Act amends the Equal
Credit Opportunity Act (ECOA) to
require reporting of certain business
loans. In September 2021, the
CFPB issued a notice of proposed
rulemaking, which was published in
the Federal Register on Oct. 8, 2021.
Comments are due Jan. 6.
Third-party oversight. The federal
bank regulatory agencies issued
separate rules on managing third-party
relationships and risk. In July 2021,
the agencies published it in the Federal
Register and requested comments that
were due last September.
Community Reinvestment Act
(CRA). The OCC issued a change to
national banks in May 2020 for the
CRA, but it announced in September
2021 that it would rescind the rule
and work with the Federal Reserve
and FDIC on an interagency proposal.
Fair lending. The Department of
Housing and Urban Development
(HUD) proposed to rescind its
2020 changes to the Fair Housing
Act (FHA) disparate impact rule,
reverting to the 2013 standard. ICBA
34 Q ICBA Independent Banker Q January 2022
Independent Banker - January 2022

Table of Contents for the Digital Edition of Independent Banker - January 2022
