Regulatory Bulletin: July 2017



[Note: Various links are noted in this Bulletin.  If you cannot access by Control/Click you make copy and paste in your browser.]


 Is Your Bank Required to File HMDA Data? If So, Do You Know How to Find Resources to Help You?


As updated in July, 2017, modifications have been made to the Technology Preview, Filing Instructions Guide for data collected in 2017, Filing Instructions Guide for data collected in or after 2018, and Frequently Asked Questions (FAQs).  The FFIEC and HUD have published the following resources for financial institutions required to file Home Mortgage Disclosure Act (HMDA) data:

• Technology Preview
This section provides resources for financial institutions preparing their systems to file HMDA data with the CFPB.   See    For HMDA data collected in or after 2017, a web-based data submission and edit-check system (the HMDA Platform) is being created to process HMDA data. It is expected that the HMDA Platform will streamline the HMDA submission process and reduce burden on HMDA filers.  This webpage is intended to provide an initial view into the way HMDA filers will interact with the HMDA Platform. Additionally, this webpage describes resources that will be available for filers, developers, and the interested public. This webpage will be updated on an ongoing basis, to keep stakeholders informed of new developments.

• Filing Instructions Guide
Separate Filing Instruction Guides are now available for data collected in 2017 and 2018.
For data collected in 2017, see

For data collected in or after 2018, see

For data collected in or before 2016, you can visit the FFIEC website for data submission resources.  See

• Loan/Application Register (LAR) Formatting Tool
The LAR Formatting Tool is intended to help financial institutions, typically those with small volumes of covered loans and applications, to create an electronic file that can be submitted to the HMDA Platform.  See

Filers will not need to use the LAR Formatting Tool if they are able to format their HMDA data into a pipe delimited text file by using, for example, vendor HMDA software, the financial institution’s current Loan Origination Software (LOS), or applications such as Microsoft® Access® or Excel® that may be used for data entry and formatting.

You may review the Instructions for HMDA 2017 LAR Formatting Tool prior to downloading the tool.  See

To download the HMDA 2017 LAR Formatting Toll, see

• HMDA Loan Scenarios
The HMDA Loan Scenarios guidance is provided as an illustrative aid to help HMDA filers prepare their loan/application register.  See

• Frequently Asked Questions (FAQs) and Other Questions
If you have you have additional questions, you can check the FAQs. See

Technical questions about reporting HMDA data collected in or after 2017 may be should be directed to

FRC also has a team of HMDA experts to assist in any planning or other actions or reviews you may need.  Please contact us to discuss how we may help you meet your HMDA filing obligations.


Are You Following Supervisory Guidance on Model Risk Management?


In June 2017, the FDIC issued a Financial Institution Letter (FIL-22-2017), by which the FDIC noted that it is adopting the Supervisory Guidance on Model Risk Management previously issued by the Board of Governors of the Federal Reserve System (“FRB”) (SR 11-7) and the Office of the Comptroller of the Currency (“OCC”) (OCC Bulletin 2011-12), with technical conforming changes, thereby making the guidance applicable to certain FDIC-supervised institutions.

The guidance addresses supervisory expectations for model risk management, including: model development, implementation, and use; model validation; and governance, policies, and controls. The FDIC is adopting this guidance to facilitate consistent model risk-management expectations across the banking agencies and industry.  The FDIC noted that it is not expected that this guidance will pertain to FDIC-supervised institutions with under $1 billion in total assets unless the institution’s model use is significant, complex, or poses elevated risk to the institution.

For details of the Supervisory Guidance, see
Compliance with the guidance provided in this and the earlier FRB and OCC guidance is an important part of management oversight.  Of particular significance is that the regulators refer to this guidance for expectation of periodic BSA monitoring system model valuation.  Emphasis has also been placed on evaluations of OFAC screening processes as part of risk management.

If you need any assistance with model risk management please contact FRC.


What Should You Know About Pre-Dispute Arbitration Agreements for Providers of Certain Consumer Financial Products?


On July 10, 2017, the Consumer Financial Protection Bureau (CFPB) issued a final rule governing the use of pre-dispute arbitration agreements by providers of certain consumer financial products and services.

Pursuant to section 1028(b) of the Dodd-Frank Wall Street Reform and Consumer Protection Act (Public Law 111-203), the CFPB issued this final rule establishing 12 CFR part 1040 to regulate arbitration agreements in contracts for specified consumer financial product and services.  First, the final rule prohibits covered providers of certain consumer financial products and services from using an agreement with a consumer that provides for arbitration of any future dispute between the parties to bar the consumer from filing or participating in a class action concerning the covered consumer financial product or service.  Second, the final rule requires covered providers that are involved in arbitration pursuant to a pre-dispute arbitration agreement to submit specified arbitral records to the CFPB and also to submit specified court records.  The CFPB is also adopting official interpretations to the proposed regulation.

To support implementation of the new rule, the CFPB launched a web page to help access materials to help those affected comply. Reference sections are:

• The Arbitration Agreements final rule on the Bureau’s website at:

• The the new implementation web page can be accessed at:

• The PDF form of the Final Rule can be found at:

If you need any assistance please contact FRC.


Did You Know The CFPB Issued a Final Rule Amending and Clarifying Mortgage Disclosure Provisions in Regulation Z?


The CFBP issued a final rule (2017 TILA-RESPA Rule) July 7, 2017 amending and clarifying certain federal mortgage disclosure provisions implemented in The Truth In Lending Act (Regulation Z). To support implementation of the 2017 TILA-RESPA Rule, the CFBP issued an Executive Summary.

This rule memorializes the Bureau’s informal guidance on various issues and makes additional clarifications and technical amendments. This rule also creates tolerances for the total of payments, adjusts a partial exemption mainly affecting housing finance agencies and nonprofits, extends coverage of the TILA-RESPA integrated disclosure (integrated disclosure) requirements to all cooperative units, and provides guidance on sharing the integrated disclosures with various parties involved in the mortgage origination process.

The Final Rule is referenced on the CFPB website at:

The Final Rule may be found at:

The Executive summary may be found at:

If you need any help in determining how this rule may affect your institution, FRC can provide assistance.


Contact Our President or Marketing Director for More Information


• Mr. Kevin Kane, President, CEO and Founder of FRC, who has substantial legal, compliance and regulatory experience – (212) 849-6828
• Ms. Shelly Berman, Marketing Director, who has substantial experience in assisting financial institutions obtain the products and services they need to meet their goals – (301) 262-6987

For more information visit


This entry was posted on Monday, July 17th, 2017 at 9:27 am and is filed under Regulatory Bulletins, Regulatory Insights. You can follow any responses to this entry through the RSS 2.0 feed. Both comments and pings are currently closed.

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