United States

COVID-19 regulatory compliance updates

Comprehensive list of regulatory updates & changes due to the pandemic

AML AND COMPLIANCE NEWS  | 

In response to the COVID-19 pandemic, the Consumer Financial Protection Bureau (CFPB) and other regulatory agencies have issued various guidance to assist financial institutions with operational and consumer service challenges that have arisen during this national health crisis while still maintaining compliance with regulatory requirements. RSM has been tracking these issuances. Following is a list of guidance related to consumer protection regulations.

We’re sharing this summary so you have a convenient place to find information on these various issuances. We encourage you to read the guidance and share it with applicable departments in your institution to:

  1. Review and update policies or operational procedures
  2. Provide training to applicable personnel
  3. Review and update compliance monitoring or audit programs  

Regulation B: Compliance with Paycheck Protection Plan loans 

Regulation B: Appraisal waiting period

  • Noted in the Sept. 14, 2018, Statement on Supervisory Practices Regarding Financial Institutions and Consumers Affected by a Major Disaster or Emergency, the Equal Credit Opportunity Act valuations rule permits an applicant to waive the timing requirement through an affirmative oral or written statement and agree to receive any copy at or before consummation or account opening, except where otherwise prohibited by law. This regulatory flexibility available under the ECOA valuations rule can expedite access to credit secured by a first lien on a dwelling for consumers affected by the COVID-19 pandemic.
  • Source: Federal banking agencies to defer appraisals and evaluations for real estate transactions affected by COVID-19

Regulation C: CFPB reporting

  • Institutions are not expected to submit quarterly information reporting as required by Regulation C (Home Mortgage Disclosure Act),  Regulation Z (Truth in Lending Act), and/or Regulation E (Electronic Funds Transfer Act) until further notice. 
  • Source: CFPB Provides Flexibility During COVID-19 Pandemic

Regulation C: HMDA Getting It Right Guide

Regulation D: Reserve requirements  

Regulation E: Remittance transfer funds 

Regulation E: Remittance transfer final rule

  • Effective July 21, 2020, the threshold for identifying which banks are subject to the remittance rule’s requirements is increased. Under the final rule, institutions submitting 500 or fewer remittance transfers annually will not be considered remittance providers for the purposes of the rule, up from a previous threshold of 100 remittances or fewer.
  • Replaces temporary exception that has been granted to allow institutions to estimate costs rather than quote exact third-party fees and exchange rates if they met certain conditions.
  • Source: Remittance Transfers under the Electronic Fund Transfer Act (Regulation E)

Mandatory purchase of flood insurance: Policy renewal waiting period

Regulation X: CFPB mortgage servicing Q&A—COVID 

  • A mortgage servicer can offer a CARES Act forbearance to a borrower to comply with CFPB loss mitigation rules. 
  • A mortgage servicer can offer a short-term forbearance program/short-term repayment plan to help borrowers affected by COVID-19 as allowable by Regulation X, 12 CFR 1024.41(c)(2)(iii). In general, all required communications to borrowers remain applicable during COVID. 
  • Source: The Bureau’s Mortgage Servicing Rules FAQs related to the COVID-19 Emergency

Regulation X: Incomplete loss mitigation applications

Regulation Z: TRID and rescission waiting periods

  • Borrowers who affirm, via a brief signed statement, that their financial situation due to the coronavirus pandemic necessitates a faster closing before the end of the TILA-RESPA Integrated Disclosure rule (TRID) or Regulation Z rescission waiting periods would be permitted to waive those waiting periods, the CFPB said. The rule also states that the pandemic is a “changed circumstance” for purposes of TRID’s fee disclosure tolerance provisions, which allows creditors to use revised estimates reflecting changes in settlement charges when determining good faith compliance.
  • Source: CFPB Announces Relief From TRID, Reg Z Waiting Periods

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