What are the latest “hot buttons” in lending compliance?  Learn what is new, what is being proposed, and what changes need to be made to loan policy, underwriting practices, loan disclosures, loan documentation, and fair lending documentation. This series will explain the lending process from application through closing for both consumer and commercial loans.  This series is designed to explain the major lending regulations in terms that are easy to understand.

Practical suggestions are included to help manage lending compliance issues. Additional resources include links to the key model disclosures from Regulation Z and Regulation B; Flood Notices; RESPA issues and counseling notices, HMDA data collection tips, and suggestions for following the CFPB proposals. A matrix is provided for 30 types of Real Estate secured loans and a list of requirements Regulation B, RESPA, Regulation Z (including the Ability to Repay, Right of Recission, HPMLs), HMDA, and Flood.

Part 1 will provide an overview of the lending compliance priorities and changes in 2024. This general session is a great introduction for those new to the lending process, as well as an important review for the experienced lenders, audit & compliance professionals.  The focus for 2024 is predicted to include:

• Fair Lending
• Technology and consumer protection
• Consumer product digital marketing – and potential UDAAP violations
• Community Reinvestment Act focus
• Fair Credit Reporting Act violations

What you will learn: 

• What violations do examiners cite most frequently in lending compliance exams?
• What are the current “red flags” in Fair Lending? This section includes a review of recent enforcement actions, consequences of violations, and tips to avoid fair lending pitfalls
• Regulatory expectations for consumer protection, including the February 2023 Advisory Opinion from the CFPB on RESPA Section 8 for digital mortgage comparison-shopping platforms
• Advertising basics for lending and potential UDAAP issues
• CRA performance evaluation components - New Rule becomes effective April 1, 2024 with staggered compliance dates in January 1, 2026 and January 1, 2027
• The top 10 issues for FCRA (Fair Credit Reporting Act) and recent enforcement actions

Part 2 will provide an overview of the consumer lending compliance requirements. This session is a great introduction for those new to the consumer lending process, as well as an important review for the experienced lenders, audit & compliance professionals. 

The topics for consumer lending include:

Application Basics of Regulation B

• Reg Z requirements
• HMDA requirements
• Flood Disaster Protection Act
• E-SIGN steps
• FCRA issues 
• Mortgage loan disclosures

What you will learn: 

• What violations do examiners cite most frequently in consumer lending compliance exams?
• Loan application basics for consumer loans, including requirements for applications secured by real estate 
• Overview of the required basic disclosures by each lending regulation, with special emphasis in the following:

• Regulation B requirements
• Military Lending Act requirements and SCRA (Service Members Civil Relief Act)  
• Overview of Regulation Z requirements, selected RESPA requirements
• HMDA recap of coverage, required and exempt data fields, common violations, and tools for data integrity
• Review of Flood Insurance issues including private flood insurance and required disclosures and coverage calculations; learn how to avoid flood violations that have civil money penalties
• Special concerns about credit report accuracy, permissible purpose, and handling disputed reporting under the Fair Credit Reporting Act

Part 3 will provide an overview of the commercial lending compliance requirements. This session is a great introduction for those new to the commercial lending process, as well as an important review for the experienced lenders, audit & compliance professionals. 

The topics for commercial lending include:

• DELAYED FOR NOW - Overview of data collection requirements for minority & women-owned small businesses, Section 1071 rules
• Compliance for commercial loans including Regulation B, HMDA, Flood, and CRA reporting; 
  
  
• BSA requirements for “legal entity” loan applications. New – FinCEN will begin accepting BOI (Beneficial Ownership Information) reports FROM certain businesses January 1, 2024.  What will YOUR business customers need to know? 
• Reg O requirements

What you will learn: 

• Overview of Section 1071 regulations to collect data on applications for credit for women-owned and minority-owned small businesses
• Reg O overview and requirements for extensions of credit to directors, principal shareholders, and executive officers
• CRA reporting for small business and farm loans – New Rule becomes effective April 1, 2024 with staggered compliance dates in January 1, 2026 and January 1, 2027
• Loan application basics for commercial loans, including requirements for applications secured by real estate. 

• Reg O requirements
• HMDA recap of coverage, required and exempt data fields, common violations, and tools for data integrity.
• Overview of Beneficial Ownership requirements and impacts to lending for loans made to a “legal entity” (corporations, LLCs, partnerships, etc.)
• Practical tips to avoid costly fines and lending compliance violations