Latest Compliance - Compliance/Compliance Management Topics

The scrutiny of fair lending continues. With top issues including pricing, overages, and credit scoring, regulators and the Department of Justice are looking at loan portfolios in new ways.

Too many bankers look at consumer complaints as a nuisance. They resent having to do the research on a complaint or respond to a consumer.

When keeping your compliance program running while trying to stay up to date on compliance developments, it is easy to overlook general issues that aren't driven by a specific regulatory priority.

The Friendly Philly Fed for Free!

This month, we visit the Federal Reserve System (the "Fed") beginning with the Federal Reserve Bank of Philadelphia.

Question: I recently read that credit scoring is being used for business loans. Would this use of credit scoring be subject to the Regulation B rules on credit scoring?

Question: In my review of files in the commercial lending department, I identified several loans that have the signature of the applicant's spouse.

An interesting compliance stat: In 1995, the FDIC examined 2814 banks and found compliance violations in 2714. That's a violation rate of 96.4%.

The Federal Reserve's published Commentary to the high cost mortgage rule contains clarification and no real surprises.

The Financial Crimes Enforcement Network ("FinCEN") has published an interim rule on exemptions with a request for comments. This amounts to a temporary regulation that is open for comment.

The new suspicious activity rules provide a powerful safe harbor. The regulation itself restates the safe harbor provisions. This in itself is unusual.