ABA Banking Journal - January 2013 - (Page 38)

compliance clinic SPECIAL OUTLOOK REPORT lation on overdrafts. “I absolutely think that that is a false rumor—I don’t know where that’s going,” says Riese. “However, I believe CFPB is very focused on check payment order. That’s because they think that’s a natural way of reducing the incidence of overdraft fees, thereby reducing the total fee paid by people who would otherwise get assessed in a large-to-small system than in a small-to-large system.” Riese says this ties into CFPB’s focus on fairness. “CFPB feels payment order is something that consumers can’t control,” he explains, adding that “the reality is that banks don’t control presentment order— and that is as much the problem.” CFPB needs to find a way to address its concerns,” says Riese, “without putting technology into a straight- jacket.” O’Neill believes no rule or guidance will be in effect before 2014. Compliance exams While these areas are priorities, there’s plenty more banks have to comply with. Given the sheer volume, says Riese, “You’re bound to run into an examiner who’s picked on something obscure, or picked on something more current than when the institution had set its priorities.” While much attention has been on CFPB’s compliance exams, Rick Freer, who came to ABA having spent a career at the Comptroller’s Office, advises national community banks to take a close look at OCC’s compliance exams. For years, says Freer, OCC didn’t spend time on compliance processes at community banks. Now, how- ever, “they are looking for even the smallest banks to have some sort of system in place,” says Freer. “That’s something a lot of national banks have never really experienced before.” Community bankers complain about higher compliance spending, but Riese suggests examiners will have no sympathy. “They don’t come in with an expectation of the compliance budget you have—they don’t give a damn,” says Riese. “They want whatever it takes to get the job done—even though there may be tension between the compliance examiner and the safety-and-soundness examiner.” Riese says he’d like member banks to tell him more about interaction between the two types of exams and the examiners carrying them out. n ABA COMPLIANCE CENTER | inbox Change the address—CFPB is “complaint central” now Q. My bank is a small community bank with assets of less than $1 billion. Do we need to change the address on the risk-based pricing notices and summary of consumer rights notice under Appendix H and K or Regulation V to the Consumer Financial Protection Bureau’s address? Do we also need to change the address on the lobby Equal Housing Poster and the Community Reinvestment Act Poster? A. The change to the CFPB’s address for forms listed in the Appendices to Regulation V applies to all banks, regardless of primary prudential regulator. All complaints now funnel through CFPB, which will pass them to the appropriate regulatory body. As to the lobby posters, compliance with the Fair Housing Act and CRA are evaluated by your prudential regulator, not CFPB. So, the name and address of your prudential regulator 38  |  ABA BANKING JOURNAL  |  january 2013 should continue to appear on those posters. Additionally, the appropriate HUD address should also appear on the Equal Housing Poster. (Response provided December 2012.) Opting not to HMDA-report equity lines changes answer Q. Our bank has opted to not classify or report our home equity lines of credit for Home Mortgage Disclosure Act purposes. Since we do not report, is it necessary to collect monitoring information? A. No. Reg B permits you to collect that only when the purpose of the application is for credit primarily for the purchase or refinancing of a dwelling occupied or to be occupied by the applicant as a principal residence and where the extension of credit will be secured by the dwelling. The reg makes an exception for banks that must collect such infor- Leslie Callaway, CRCM, ABA Compliance Project Manager, and Mark Kr uhm, CRCM, ABA Senior Compliance Analyst, and other ABA experts, answer ABA member questions here and in the online edition of Inbox at ababj.com. Disclaimer: Our answers do not provide, nor are they intended to substitute for, professional legal advice. mation for HMDA reporting purposes. If you do not report HELOCs, then collecting such information violates Reg B. (Response provided December 2012.) http://www.ababj.com

Table of Contents for the Digital Edition of ABA Banking Journal - January 2013

ABA Banking Journal - January 2013
Contents
Chairman’s View
Editor’s Column
The Economy
Bank Notes
Picture This
ABA COMMUNITY BANKING Time to prune that branch?
Pass the Aspirin
Tech Topics
COVER STORY: The road ahead How banking may fare in Washington
Insurance: How well are you covered?
Compliance Special Report
Compliance Inbox
ABA At Your Service
Convention Preview
First Person

ABA Banking Journal - January 2013

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