Wednesday
Oct082014

What's New? Gifts, Giveaways, Premiums and Savings Promotions

Financial institutions are permitted to offer gifts, giveaways, premiums and savings promotions subject to IRS and rules and other limitations. See the new section of The Gold Book for federal and NYS requirements. 

Wednesday
Oct082014

What's New? ATM Safety Act Compliance Reporting  

A permanent rule effective October 1, 2014 requires ATM Safety Act electronic compliance reporting by financial institutions on a semi-annual basis. See The Gold Book, ATM Safety Act and Annual Report of Compliance

Wednesday
Oct082014

What's New? Handbook for Third Party Risk Management

The OCC updated the Comptroller's Handbook on supervision of federal branches and agencies to replace 1999 guidance. The new handbook incorporates recent OCC guidance on third party risk management and Dodd-Frank Act-mandated enhanced standards for foreign banks. The Gold Book Federal Decisions and Opinions sub-chapter on Country Risk has been updated to include this reference. 

Friday
Sep122014

Last Month's Q&A Answered

The following question appeared in the Q&A section of Banking Spectrum's Report Bulletin last month. Compare your answer to the correct answer below:

Q: A realtor has approached us and is interested in making our bank the preferred lender for his clients.  He advertises on the web through a site that he pays for.  We would be willing to pay for our name being placed on the site and our payment would be used by the site to reduce the realtor’s fee for being listed as a realtor in his community.  Do we have a possible RESPA issue here?

A: Yes. This could be deemed an indirect payment to the realtor for the referral of business.  Not permitted under Section 8 of RESPA or Regulation X Section 1024.14.  A co-marketing exception might not apply since the bank would not be offering or providing reciprocal services alone or with the realty agent for the agent’s services.

 

Friday
Sep122014

What's New? 2015 inflation adjusted amounts for Health Savings Accounts (HSAs)

For 2015 the annual contribution limits for Health Savings Accounts has been increased (see The Gold Book) and the definition of a high deductible health plan has been changed (see The Gold Book).

Friday
Sep122014

What's New? Reg Z & M Threshold Exemptions for Consumer Credit and Lease Transactions

The Federal Reserve Board and the Consumer Financial Protection Bureau (CFPB) announced increases to the dollar thresholds in Regulation Z (Truth in Lending) and Regulation M (Consumer Leasing) for exempt consumer credit and lease transactions. Transactions at or below the thresholds are subject to the protections of the regulations.

See The Gold Book for more information.

Wednesday
Sep032014

What's New? NYS Electronic Media Storage Permitted

The New York Rules for Vital Records in the Records Retention chapter of The Gold Book has been updated.
Wednesday
Sep032014

What's New? Remittance Rules - Exception Extended

The Consumer Financial Protection Bureau extended a temporary exception in its remittance rule that allows sending institutions to estimate fees charged by the receiving institution. The original provision would have expired in July 2015, but the exception will now last until June 21, 2020, to facilitate industry compliance. Read more in The Gold Book.

Wednesday
Sep032014

Liquidity Coverage Ratio

The Federal Reserve Board, the Federal Deposit Insurance Corporation, and the Office of the Comptroller of the Currency finalized a rule to strengthen the liquidity positions of large financial institutions. The rule will for the first time create a standardized minimum liquidity requirement for large and internationally active banking organizations. Read more...

Wednesday
Sep032014

Proposed Repeal of Regulation AA

The Federal Reserve proposed repealing Regulation AA, which includes the credit practices rule, as required by the Dodd-Frank Act. Read more in the Interagency Guidance released on August 22, 2014.

Wednesday
Sep032014

NYS MLO Regulations Adopted on an Emergency Basis

The Department of Financial Services published a notice of Emergency Rulemaking to implement license, financial responsibility, education and test requirements for mortgage loan originators (MLOs) to comply with Banking Law and to conform the regulation of MLOs in New York to federal legislation. 
Click here for the Department of Financial Services notice on the rule.
Thursday
Aug212014

What's New? NYS ATM Security Rules

On July 1, 2014, institutions were sent a letter from the Department of Financial Services regarding their July and January 15th reporting dates for compliance with the ATM Safety Act.  Superintendent's Regulation Part 301.6 accompanied that letter and contains the form that must be completed by those dates. Please see New York State ATM Safety Act for information on this new reporting requirement.

Monday
Aug042014

Youth Savings Pilot Program

FDIC-insured institutions are invited to apply and participate in the FDIC's Youth Savings Pilot Program.

The program seeks to identify and highlight promising approaches to offering financial education tied to the opening of safe, low-cost savings accounts for school-aged children.

The pilot program is open to institutions currently working with schools or nonprofit organizations that help students open savings accounts in conjunction with financial education programs. Phase two is expected to target new programs that begin during the 2015–16 school year. 

For more information, click here:

https://www.fdic.gov/consumers/banking/youthsavingspilot/

 

Thursday
Jul102014

OCC Hosts Risk Assessment and Compliance Risk Workshops in Syracuse

he Office of the Comptroller of the Currency will host two workshops in Syracuse, N.Y., at the Sheraton Syracuse University Hotel, Aug. 5-6, for directors of national community banks and federal savings associations.

The Compliance Risk and Risk Assessment workshops are designed exclusively for directors of institutions supervised by the OCC. Both workshops are taught by seasoned OCC supervision staff.   

The compliance risk workshop focuses on major compliance risk and consumer protection regulations, such as the Qualified Mortgage Rule, Bank Secrecy Act, and Community Reinvestment Act, along with key elements of an effective compliance risk management program.  

The risk assessment workshop discusses the OCC’s approach to risk-based supervision, and best practices to identify, measure, monitor and control risk. The interactive sessions also cover industry hot topics such as credit risk, strategic risk, and the regulatory environment.  

The fee is $99 for each workshop. Participants receive a pre-workshop reading package and course materials, and assorted supervisory publications. Each workshop is limited to the first 35 registrants.

The workshops are among 35 offered nationwide to expand the skills of directors of national community banks and federal savings associations. For more information, such as a complete list of available workshops, or to register for a workshop, please visithttps://www.seiservices.com/occ/ or call (240) 485-1700.

Tuesday
Jul012014

Last Month's Q&A Answered

The following question appeared in the Q&A section of Banking Spectrum's Report Bulletin last month. Compare your answer to the correct answer below:

Q: A father opened an “in trust for account” for his minor child to receive direct deposit of social security. The father died last month.  The child is under 18 and the account has $20,000 in it.  The mother came to the bank and she wants to open an account to continue to receive the social security benefits.  How does this get accomplished?

 A: Since the account is an I/T/F account and the child is a minor, with an account balance of over $10,000, she will need a guardianship order from the local supreme or surrogates court to manage the account for her child.  The account may be opened as a custodian account.  If she wishes to bypass these rules she can apply directly to the social security administration for status as a representative payee for the direct deposit of social security benefits for the child.

Monday
May192014

Last Month's Q&A Answered

The following question appeared in the Q&A section of Banking Spectrum's Report Bulletin last month. Compare your answer to the correct answer below:

Q: We acquired a branch in an area that is largely Hispanic.  All our documents are in English and customers who are not fluent in English are directed to branch staff who are bilingual.  None of our disclosures are in English nor are any of our agreements, contracts and statements.  We use different systems for different products.  Do we need to provide Spanish speaking documents at the branch? 

A: A goods idea and one almost born out of necessity because of the large per centage of Spanish and perhaps non-English speaking applicants.  A failure to do so could result in CRA and fair lending issues in later compliance exams.  The bank will be faced with legal problems when they are faced with delinquent and other bad customer behavior that is defended on the basis that the customer did not understand what he was signing.  Having an interpreter for the customer won’t do on a long term basis.  Consider having English and Spanish versions for mortgage loan documents but have the customer sign the English version with the Spanish version attached or referenced or with a separately signed acknowledgment that he understood what he signed and all questions were answered.

Monday
May192014

NY Court of Appeals Decision

On May 8, 2014, the New York State Court of Appeals issued a decision in Clemente Brothers v. Aprile Hafner-Milazzo and Capital One. The case presented the issue of whether a bank and its customer may shorten the statutory time period provided for in UCC 4-406 within which a customer must notify its bank of an improperly paid item in order to recover the payment.

The court found for defendants on the facts of this case, calling it “not manifestly unreasonable” for the bank to shorten the time period from one year to 14 days because Clemente Brothers was a sophisticated customer with numerous employees who had the resources to make informed decisions about opening accounts. The Court specifically pointed to the fact that Clemente Brothers passed a corporate resolution acknowledging its obligation to notify Capital One of any irregularities in account statements within 14 days. It is important to note that the Court limited its holding to a case involving a sophisticated corporate entity but thought it could be unreasonable to impose a 14 day limit on unsophisticated customers, such as the elderly, disabled or small family businesses.

Monday
Apr212014

What's New? IRA Rollover Rules

IRS Announcement 2014-15 addresses a recent Tax Court opinion that limits the number of IRA-to-IRA rollovers an individual can make in a 12-month period. The interpretation indicates that the limitation applies on an aggregate basis, meaning that an individual could not make an IRA-to-IRA rollover if he or she had made such a rollover involving any of the individual’s IRAs in the preceding 1-year period. This rule is effective beginning January 1, 2015 and IRS Publication 590 will be updated accordingly.

Read more in The Gold Book under IRA Rollovers; General Rules and IRA Rollovers; Types; From One IRA to Another IRA.

 

 

Monday
Apr212014

Deposit Insurance Coverage: Free Seminars

The FDIC will conduct the following 12 free seminars on deposit insurance coverage for bank officers and employees between May 6, 2014, and December 4, 2014:

  • Four sessions on "Fundamentals of Deposit Insurance Coverage" (Fundamentals Seminar), which will provide an overview of the rules for determining deposit insurance coverage for the nine most common account ownership categories.
  • Four sessions on "Deposit Insurance Coverage for Revocable Trust Accounts" (Revocable Trust Seminar), which will focus on the rules for informal and formal revocable trust accounts.
  • Four sessions on "Advanced Topics in Deposit Insurance Coverage" (Advanced Topics Seminar), which will focus on government accounts, mortgage servicing accounts, bank mergers, pass-through deposit insurance coverage, and other deposit insurance topics. 

For instructions and presentation links, click here.

Monday
Apr212014

What's New? Adult Guardianship in Other States

New York and New Jersey recently joined over thirty other states in their adoption of a Uniform Adult Guardianship Protective Proceedings Jurisdiction Act. Passing of these acts is to create uniform procedures for guardianships and protective proceedings and to prevent or minimize interstate jurisdictional disputes in adult guardianship cases. Read more about New York's Act and New Jersey's Act in The Gold Book