2023 Lending Compliance Triage Conference
AGENDA
REMOTE FEED ACCESS TIMES
 10:00am - 6:00pm Eastern Time
  9:00am - 5:00pm Central Time
     8:00am - 4:00pm Mountain Time
   7:00am - 3:00pm Pacific Time

Conference begins each day at the specified time which is dependent on which time-zone you reside in.
   
Day 1
CENTRAL TIME
SESSION
9:00 - 9:50 Intro and Military Lending Update
9:50 - 10:00 BREAK
10:00 - 10:50Loan Servicing with Enforcement Risks
10:50 - 11:00 BREAK
11:00 - 12:00 1071 - Your Workflow, What, When, Who and Why
12:00 - 1:00 LUNCH
1:00 - 1:50 CRA Update
1:50 - 2:00 BREAK
2:00 - 2:50 Managing the Risks of Third Party Relationships
2:50 - 3:00 BREAK
3:00 - 3:50 Flood Compliance I$$ue$
3:50 - 4:05 BSA Update for Lenders
4:05 - 5:00 Panel Discussion - Q and A
Adjourn - See you tomorrow!
  
Day 2
CENTRAL TIME
SESSION
9:00 - 9:50UDA(A)P, Complaints and Violations
9:50 - 10:00 BREAK
10:00 - 10:50 Fair Lending Practices and Prohibitions
10:50 - 11:00 BREAK
11:00 - 11:45 Vendor Due Diligence on FinTechs
11:45 - 1:00 LUNCH
1:00 - 1:50 Appraisals and Fair Lending, Including ROVs
1:50 - 2:00 BREAK
2:00 - 2:50 Exam Lessons Learned + Exam Management and Compliance Ratings
2:50 - 3:00 BREAK
  3:00 - 3:50 Compliance Rules on Refi's & Mods
3:50 - 4:00 BREAK
4:00 - 5:00 Panel Discussion - Q and A
Adjourn - Thank you for attending!

BSA Update for Lenders
The clock is ticking on the first piece of FinCEN's implementation of the Corporate Transparency Act. We are closing in on the start of 2024 when the filing with FinCEN of reports of beneficial ownership by domestic and foreign reporting companies should begin. The biggest part of those filings should come from reporting companies that pre-date the January 1, 2024, deadline. But how will the reports filed with FinCEN in 2024 (and beyond) affect a bank's responsibilities involving beneficial ownership of their entity customers? Will banks be able to access the data FinCEN imports from the reports, and when? How restrictive will access controls be? What will banks be expected to do with the data they are able to access? This brief session will provide a current overview of the parts in this puzzle, along with any late-breaking BSA news affecting lenders.

1071 - Your Workflow, What, When, Who and Why
The CFPB's final rule to implement Section 1071 of the Dodd-Frank Act was finalized on March 30, 2023, but its final form and specific requirements may or may not change. The implementation date may or may not change. The courts will determine this. We are going to focus on how to move forward with your program considering the lawsuits facing the CFPB. What do the court actions in Texas and Kentucky mean to your implementation program? We want you to come away with actionable steps for implementing the new rules as efficiently as possible. You will gain strategies for conducting a Section 1071 Gap Analysis. Learn how to communicate the impact of Section 1071 on your institution to the board, senior management, and commercial lending teams. Find out how to establish a proactive plan to acclimate employees and customers to changes in the lending process. The 1071 rules were developed because a federal law requires them, and an earlier court case forced the CFPB to write them - so the data collection rules will survive. The law still exists. Senate actions and the industry are looking for a change. We don't know if that will come, but we do know what is in front of us now. That's why this session delves into and what your institution needs to know to ease the regulatory burden and make the implementation process as smooth as possible once the court cases are settled. What we believe is that Section 1071rules of Regulation B will require a full compliance management program, including new policies, procedures, training, auditing, and will impact budgeting for several years. In addition to key definitions, effective dates, and the required data fields as we know them now, you'll come away from this session understanding:
  • Which types of transactions are exempt from reporting.
  • The tolerances applied to the collected data.
  • How to report data to the CFPB. Important recordkeeping requirements.
What we have now is our best "get ready for" scenario because it's early, but once there is a final ruling the requirements may ease up, or stay the same. So let's get ready with information to be proactive rather than chasing deadlines and being reactive. We'll learn the basics but be prepared to tweak.

CRA Update
NEW CRA Rule released Oct. 24, 2023. We have your first look. What will the new rules mean to your bank and how might you need to adjust to comply? The Community Reinvestment Act impacts banks in many ways and is one of the few ratings your bank will receive which is intended to be public knowledge. There is reputational risk involved as well as its effects on a bank's ability to expand and grow. There are a lot of questions surrounding CRA right now.
  • What are the major revisions now that the 1,466 page rule is out?
  • What's all the hoopla about REMAs, are they officially in the CRA or not, and what should you be doing about them?
  • Is it true that violations not typically CRA-related are influencing CRA ratings? What are some examples and what can your bank do about it?
  • What are the advantages and disadvantages to the different ratings, especially Needs to Improve vs. Outstanding?
  • What are some of the common questions and misperceptions about CRA that we are hearing and that you may learn from?

Fair Lending Practices and Prohibitions
A true understanding of fair lending, and the law(s) that governs it, can be difficult to achieve. The signs of lending discrimination can be blatant or subtle. It can occur in many different areas of lending including marketing, treatment, home appraisal and in loan servicing just to name a few. The number of Redlining enforcement actions in the last two years are key indicators for the importance of ensuring the fair lending practices in your institution are working as they need to be. This session is designed to aid today's compliance professionals in navigating the complexity of creating, enhancing, and implementing a practical risk based fair lending program. With all the focus on the DOJ's Fair Lending Initiative, now is the perfect time to take a long, hard look at your institution's fair lending program.

Managing the Risks of Third-Party Relationships
Has your institution assessed the risks of its third-party relationships for loan servicing, loan origination and document preparation, and document imaging and storage? How about ID verification for CIP and Beneficial Ownership purposes, appraisal management, and title services for real estate mortgage loans? In this presentation, we'll review the elements of the life cycle of third-party relationships, regulatory guidance on tailoring your approach to risk management to individual relationships, and steps you can take to reduce the risks involved.

Military Lending Update:
This session is based on what examiners do, how the media treats servicemembers, and your risks when the SCRA and Military Lending Act make servicemembers an unofficial "protected class." We'll explore recent court cases, common complaints, and violations so you know what troublesome areas to pay attention to.

UDA(A)P, Complaints and Violations:
UDA(A)P, Complaints and Violations: Is UDA(A)P expanding, contracting or is it both? There has been recent litigation, there are always more violations being found and handling complaints - which lead to UDA(A)P issues - are still on the rise. What can your bank do to be proactive and stay off everyone's unfair or deceptive list and still help management reach its goals?

Flood Compliance I$$ue$
Just this past August, Regions Bank was handed the largest flood civil money penalty in history: $2,945,500. This whopper of a fine was split between a $58,000 penalty for flood violations, and $2,887,500 for ineffectively monitoring their HELOC and Home Equity Portfolio for more than a year. They had self-identified the issues and enhanced their flood compliance program by 2017. Nonetheless, their problems must have been egregious enough to constitute an "unsafe or unsound banking practice," triggering penalties under the Federal Deposit Insurance Act. This is the first time the industry has seen the application of such a fine for systemic violations in flood compliance, and could usher in a new practice by regulatory agencies.

In this session, we'll explore key flood compliance issues and where Regions Bank seemingly tripped up. We'll look at what this new penalty structure could mean, and how to FIRM up your flood compliance program to protect yourself from significant problems.

All About Compliance Exams: The interagency ratings structure, good exam management, and recent lessons learned
Rebekah Leonard is the current Director of Compliance for a $6 Billion bank that just went through an FDIC Compliance Exam. In her words, "It was incredibly intense!" This was Rebekah's 7th compliance exam, so she has the experience and wisdom to share in how to make an exam be the best it can be. Rebekah will go over the FFIEC's Uniform Interagency Consumer Compliance Rating System and exam process, describe how exams have changed and the current exam mood, provide tips for good exam management, and share the bumps, bruises, and lessons learned this time around.

Compliance Rules on Refinances and Modifications
Does your bank do "Changes in Terms" on existing consumer loans? Hopefully you do - they often make good sense for both the bank and the borrower. However, it is imperative you do them in compliance with Reg Z requirements. There is a difference between refinancings, modifications, workouts, and assumptions . . . and what can be done on closed-end vs open-end loans. It is crucial to understand what each one is and is not. Keeping them straight is a big deal - because sometimes the changed deal is a NEW deal that must be underwritten to ATR / QM standards and fully disclosed. Failure to make the change properly could cause many compliance violations resulting in consumer harm (like making a TRID loan without any disclosures or documented underwriting!). Don't make that mistake - learn what you can and cannot do to stay compliant and help your borrowers appropriately.

Appraisals-Fair Lending Including ROVs
Appraisals are the foundation for real estate lending-they have also been the basis for recent enforcement actions with redlining ramifications to lenders who have not made sure that they had strong controls in place to ensure that fair lending reviews identified potentially discriminatory practices before they became a problem. Learn how to make sure your program is ready to address this hot issue including Reconsiderations of Value to address the customer's concern when they feel their property's value is higher than what the appraisal comes back for, learn how to document your program with second reviews to address customers' concerns and best practices to make information available for customers to be able to provide the information needed to request this review.

Loan Servicing with Enforcement Risks
RESPA can be a complex regulation including the mortgage servicing rules, but regulators are finding more issues lately where banks are getting tripped up on the basics and are having to pay heavy fines. This session will review these recent issues and focus on the areas where banks have missed the mark and then we will reinforce the basics.

Vendor Due Diligence-FinTechs
COVID changed much of banking and now fintechs are not only our competitors but also our vendors as well, often to compete against the other fintechs and neo banks. Regulators have high standards with the recent Interagency Guidance to ensure that we know everything about our vendors, but even more about our vendors who are fintechs, especially the ones who are not used to being in the banking industry. Do you know what you need to about those partners who have access to your customer data, about their financials and their business continuity programs? This session will help you prepare for the level of due diligence that is expected when you partner with this unique type of vendor.

BOL Conferences, Inc.
2541 Flint Ridge Rd, Edmond, OK 73003
PH: 888-229-8872 ext. 87      FAX: 405-348-7641     Email: carin@bankersonline.com
For sponsorship information, contact Tobi Chunowitz, 888-229-8872 ext. 801