Jun 6

Jun 6 VIDEO: Reg B GMI on Refinance

In this Compliance Clip, Adam takes a deep dive into the world of government monitoring information (GMI) under Regulation B. If your financial institution recently became exempt from HMDA and you now collect GMI only under Regulation B - or maybe you have always been a Reg B bank - then you will want to check out this video. Basically, Adam answers the long-asked question of: Is GMI required under Reg B on a loan that is refinancing a loan that was not purchase money?

Apr 15

Apr 15 VIDEO: GMI for Construction Refinance

Adam Witmer

Regulation B

In this Compliance Clip (video), Adam answers a question about collecting government monitoring information (GMI) for a second construction loan replacing a first construction loan. This question is specific to Regulation B and applies to those financial institutions who are not HMDA reporters.

Mar 10
Mar 10 CFPB Interpretive Rule on Sexual Orientation Discrimination

Adam Witmer

Regulation B, Regulatory Update

On March 9, 2021, the CFPB issued an interpretive rule clarifying that the prohibition against sex discrimination under the Equal Credit Opportunity Act (ECOA) and Regulation B includes sexual orientation discrimination and gender identity discrimination.

Feb 18

Feb 18 VIDEO: Protected Classes - ECOA vs FHA

Adam Witmer

Fair Lending, Regulation B

In this Compliance Clip (video), Adam explains the differences in who is a “protected class” under the Equal Credit Opportunity Act and the Fair Housing Act. This short training video is a fair lending topic.

Dec 27
Dec 27 CFPB Issues Advisory Opinion on Special Purpose Credit

Adam Witmer

Regulatory Update, Regulation B

On 12/21/2020, the CFPB issued an advisory opinion related to special purpose credit programs (SPCPs) as it relates to uncertainty under Regulation B. The ECOA and Regulation B prohibit discrimination on certain prohibited bases in any aspect of a credit transaction, but they clarify that it is not discrimination for for-profit organizations to provide SPCPs designed to meet special social needs. In their release, the Bureau clarifies that they have issued this advisory opinion to clarify the content that a for-profit organization must include in a written plan that establishes and administers a SPCP under Regulation B. The advisory opinion also clarifies the type of research and data that may be appropriate to inform a for-profit organization’s determination that a SPCP would benefit a certain class of people.

Sep 16
Sep 16 CFPB Issues Outline of Proposals for Small Business Data Collection

Adam Witmer

Fair Lending, Regulation B, Regulatory Update

On 9/15/20, the Consumer Financial Protection Bureau (CFPB) issued an “Outline of Proposals Under Consideration and Alternatives Considered for Section 1071 of the Dodd-Frank Act.” This release explains how the CFPB is currently working to implement Section 1071 of the Dodd-Frank Wall Street Reform and Consumer Protection Act that will create a requirement for financial institutions to compile, maintain, and report certain data on applications for credit from women-owned, minority-owned, and small businesses.

Jul 16
Jul 16 CFPB Sues Mortgage Lender for Redlining

Adam Witmer

Regulatory Update, Regulation B

On July 15, 2020, the CFPB filed suit against Towstone Financial, Inc (a nonbank retail-mortgage creditor based in Chicago) for fair lending violations. The CFPB’s complaint alleges that Townstone violated ECOA and Regulation B by engaging in discriminatory mortgage-lending practices.

Jun 26

Jun 26 VIDEO: Adverse Action Notice for Withdrawn Counter-Offer

Adam Witmer

Adverse Action, Regulation B

In this Compliance Clip (video), Adam answers a question about whether or not an adverse action notice is needed on a commercial loan application where a lender verbally counter-offers but the applicant declines the counter-offer and then asks to withdraw the application.

Jun 5

Jun 5 VIDEO: Reg B Data Collection for Ag or Commercial Loans

Adam Witmer

Regulation B

In this Compliance Clip (video), Adam answers a question for a member about Reg B data collection of government monitoring information (GMI) for agricultural loans. This abnormally long Compliance Clip lasts over 10 minutes and goes over three different scenarios. This clip would be great for any newly exempt HMDA reporter who will soon be transitioning to GMI collection under Reg B instead of DI information under HMDA.

May 11
May 11 CFPB Issues Guidance on ECOA and PPP Loans

Adam Witmer

Regulatory Update, Regulation B

On May 6, 2020, the CFPB issued three clarifying FAQs, in a “Compliance Aid” document, to support small businesses who have applied for a loan from their financial institution under the Small Business Administration’s (SBA) Paycheck Protection Program (PPP). In its FAQs, the Bureau clarifies that a PPP application is only a “completed application” once the creditor has received a loan number from the SBA or a response about the availability of funds. This ensures that the time awaiting this information from the SBA does not count towards the 30-day notice requirement, and that applications will therefore not “time out” during the process.

The FAQs also make clear that if the creditor denies an application without ever sending the application to the SBA, the creditor must give notice of this adverse action within 30 days. It further clarifies that a creditor cannot deny a loan application based on incompleteness where the creditor has enough information for a credit decision but has yet to receive a loan number or response about the availability of funds from the SBA.