Pub. 7 2017-2018 Issue 5

O V E R A C E N T U R Y : B U I L D I N G B E T T E R B A N K S - H E L P I N G C O L O R A D A N S R E A L I Z E D R E A M S March • April 2018 9 As of now, none of the provisions have been extended past 2017. So, be sure to keep an eye on these regulations towards the end of the year. One other slightly understated change has to do with preapprovals. Under the new rule, covered institutions will be required to collect, record, and report information for approved but not accepted preapproval requests for home purchase loans. In contrast, preapproval requests for open-end lines of credit, home purchase loans to be secured by multifamily dwellings, and reversemort- gages will not be covered under HMDA. Lastly and as most of you know, re- portable data under HMDA has received a bit of a makeover. HMDA 2018 adds a few extra data points. These new data points include: (a) applicant/borrower age, (b) credit score, (c) automated underwriting system information, (d) unique loan identifier, (e) property value, (f) application channel, (g) bor- rower-paid origination charges, (h) points and fees, (i) lender credits, (j) discount points, (k) loan term, (l) pre- payment penalty, (m) non-amortizing loan features, (n) interest rate, and (o) loan originator identifier as well as other data points. Again, the effective date for these changes is January 1, 2018. Be sure to re- member that, although the HMDA 2018 is upon us, you will still need to submit data collected in 2017 under the current rule with the slight change of submitting the 2017 data to the CFPB instead of the Federal Reserve Board. The updates to HMDA can be found here :https://s3.amazonaws.com/files.con - sumerfinance.gov/f/documents/201708_ cfpb_final-rule_home-mortgage-disclo - sure_regulation-c.pdf Because the regulators know that changing one major regulation isn’t enough fun, they have also changed ECOA. ECOA’s current ethnicity and race information collection are updated in the 2018 version of the regulation. Addition- ally, the amendments add certainmodel forms and remove others. Thankfully the changes toHMDAandECOAgo hand-in- hand, as the purpose of the amendments to ECOA is to facilitate compliance with HMDA version 2018. Note that all these changes to ECOA came into effect on January 1, 2018, with the exception of the amendment that removes the Uni- formResidential Loan Application. This particular amendment becomes effective on January 1, 2022. The final ECOA rule can be found here: http://files.consumerfinance.gov/f/ documents/201709_cfpb_final-rule_ regulation-b.pdf It didn’t happen for 2016…It didn’t happen 2017…but the time you have anxiously been awaiting…has finally ar - rived! The TIL exemption threshold has been adjusted. The exemption threshold increased from $54,600 to $55,800, effective January 1, 2018. The ruleupdating the thresholdcanbe found here: https://www.federalregister . gov/documents/2017/11/09/2017-24445/ truth-in-lending-regulation-z The regulators are at it again and are making more changes—this time to the CRA. Once again, these changes are aimed at helping banks transition to the new version of HMDA. The new rule updates the definitions of “home mort - gage loan” and “consumer loan,” and the public file content requirements to conformHMDA 2018. The amendments also cleanup the CRA by removing now obsolete references to the Neighborhood Stabilization Program. The comments closed on October 20, 2017, and the final rule became effective on January 1, 2018. The updates to the CRAmay be found here: https://www.federalreserve.gov/ newsevents/pressreleases/files/bcre- g20170913a1.pdf Finally: When I think of sunsets, I picture beaches, long walks, and OF COURSE regulations that are up for re- newal. (This is normal, right?) This last topic concerns the regulations that are set to expire in the near future. These are often referred to as “sunset” provisions because the regulatory sun is quickly setting on them. Some of the major sunset provisions include: sections 531 (maximum rent) and 533 (foreclosure) of the Servicemembers Civil Relief Act (SCRA); the U.S. Department of Housing and Urban Development (HUD) SCRA notice; the National Flood Insurance Program (NFIP); and the Federal Home LoanMortgage Corporation loan limit of $424,100. These provisions are all set to expire at the very end of 2017, with the exception of the NFIP. NFIP authoriza- tion was set to expire on December 8, 2017, but received a two-week extension by Congress (currently set to expire on December 22, 2017). As of now, none of the provisions have been extended past 2017. So, be sure to keep an eye on these regulations towards the end of the year. In conclusion, a great many changes arrived with 2018, but if you are pre- pared, you should be able to handle them with ease and confidence. n For any questions or concerns, feel free to give us a call at (888) 353-3933, chat with us on the website (https://www.compliancealliance.com ), or email us at hotline@compliancealliance.com Sarah Sauceda Associate General Counsel Sarah serves as Associate General Counsel for Com- pliance Alliance. She is an Honors Program graduate who graduated summa cum laude from Lamar University in Beaumont, Texas where she received her bachelor’s degree. While at Baylor Law School, Sarah heavily studied the financial aspects of the law—focusing her attention on secured transactions and the Uniform Commercial Code. Before coming to Compliance Alliance, she worked at Frost Bank within their Credit Administration Department. As an attorney with Compliance Alliance, Sarah is eager to help members with their compliance and regulatory questions.