What's New? Foreign Remittance Rules

The CFPB recently issued version 2.0 of its compliance guide to revise several requirements relating to the disclosure of institution fees and error resolution. All remittance transfer providers must comply with the new rules by October 28, 2013. The guide may be found here: http://files.consumerfinance.gov/f/201308_cfpb_intl-money-transfer-entity-compliance-guide.pdf. Also see The Gold Book section, Foreign Remittances for details.

What's New? Payroll Card Accounts

The Consumer Financial Protection Bureau (CFPB) recently issued information regarding payroll card accounts. See Payroll Cards for details. 

What's New? Employer Notices Required by October 1, 2013

The Patient Protection and Affordable Care Act (PPACA) requires most individuals (including children and other dependents) to carry health insurance beginning January 1, 2014.  The law also requires that employers provide notices to employees by October 1, 2013. See The Gold Book for more details.

New Posters for Family and Medical Leave Act (FMLA)

The Family and Medical Leave Act (FMLA) was amended earlier this year and the new mandatory poster that outlines these changes is now available at: http://www.dol.gov/whd/regs/compliance/posters/fmla.htm

Are you ready for the redesigned $100 note?

The Federal Reserve Board announced that the redesigned $100 note will begin circulating on October 8, 2013.  This note, which incorporates new security features such as a blue, 3-D security ribbon, will be easier for the public to authenticate but more difficult for counterfeiters to replicate. 

The new design for the $100 note was unveiled in 2010, but its introduction was postponed following an unexpected production delay.  To ensure a smooth transition to the redesigned note when it begins circulating in October, the U.S. Currency Education Program is reaching out to businesses and consumers around the world to raise awareness about the new design and inform them about how to use its security features.  More information about the new design $100 note, as well as training and educational materials, can be found at www.newmoney.gov.

Last Month's Q&A: Answered!

The following question appeared in the Q&A section of Banking Spectrum's July 2013 Report Bulletin. Compare your answer to the correct answer provided below.

Q: A trustee of a living trust has come to us and wants to open a living trust account.  The grantor is dead.  Can we do this?

A:  Yes.  The trust was created before the grantor’s death, it is now irrevocable and is a separate entity that can be opened by the trustee for the purpose of implementing the trust provisions.

New Remittance Rules

The Consumer Financial Protection Bureau has released new rules pertaining to the Remittance Rule under Regulation E, scheduled to take effect on October 28, 2013. For more information click here to see the International Fund Transfers Small Entity Compliance Guide v2.0 issued on August 8. 2013.

Fewer NY ATM Disclosure Requirements

New York Gov. Andrew Cuomo last week signed legislation eliminating the requirement of physical fee disclosures on ATMs. While ATM operators are required to disclose fees on their computer screens or on a paper notice once the transaction has been initiated, elimination of this disclosure requirement brings state law into conformity with the federal law signed last December by President Barack Obama. This measure is effective immediately.  See NY disclosure requirements and federal disclosure requirements in The Gold Book. 

Spousal IRAs Renamed

President Obama signed into law on July 25, 2013 a bill to rename a provision in the tax code that allows nonworking spouses to make equal contributions to their IRAs after its sponsor. Former Sen. Hutchinson (R-TX) sponsored the original spousal IRA legislation with Sen. Barbara Mikulski (D-MD), as part of the Small Business Job Protection Act of 1996 (P.L. 104-188). Click here to read about Spousal IRAs.

Disclosure and Delivery Requirements for Copies of Appraisals Under Reg B

A final rule revises Regulation B to implement an ECOA amendment concerning appraisals and other valuations that was enacted as part of the Dodd-Frank Act. In general, the revisions to Regulation B require creditors to provide to applicants free copies of all appraisals and other written valuations developed in connection with an application for a loan to be secured by a first lien on a dwelling, and require creditors to notify applicants in writing that copies of appraisals will be provided to them promptly. More information may be found in the Appraisal, Copies section of The Equal Credit Opportunity Act (Reg B) chapter of The Gold Book. 

FinCEN Issues Armored Car Ruling

FinCEN issued an administrative ruling to provide an exception to CTR data collection and aggregation requirements for certain armored car transactions. See Currency Transaction Reports, Exceptions in The Gold Book for details.

Last Month's Q&A Answered

The following question appeared in the Q&A section of Banking Spectrum's June 2013 Report Bulletin. Compare your answer to the correct answer provided below.

Q: We are making a loan to a buyer of a modular home who will place the home on a parcel of land that he does no own.  Rather, the home will be placed on land that the borrower will be renting from the landowner.  Our bank will not have a lien on the underlying property if we finance the purchase of the modular home.  Is this transaction covered by Regulation Z and RESPA?  

A: Yes as to Regulation Z and no as to RESPA.  A mobile or manufactured home placed on land that is not owned by the borrower, and which is not secured by the bank’s lien, is not a covered RESPA transaction.  Click here to see the latest HUD RESPA Frequently Asked Questions dated March 23, 2010 question # 5.

Last Month's Q&A Answered!

The following question appeared in the Q&A section of Banking Spectrum's April 2013 Report Bulletin. Compare your answer to the correct answer provided below.

Q: Our customer has an account with us in New York and an account at another bank in New Jersey. He lives in New Jersey.  His agent presented us with a New Jersey POA to withdraw funds from his account with us.  Do we have to or should we accept a New Jersey POA? 

A:  The bank is only required under New York law to accept a statutory short form POA.  The law encourages entities to accept out of state POAs but does not require it.  If the bank lacks the ability to verify the validity of the New Jersey POA, then it may insist that the New Jersey resident execute a New York statutory short form POA in order for his agent to transact banking business here.

What's New? FinCEN Releases New CTR FAQs

FinCEN has recently issued frequently asked questions (FAQs) to assist financial institutions in their use of the FinCEN CTR, which, as of April 1, 2013, is the only acceptable format for submitting currency transaction reports to FinCEN. FinCEN will issue additional FAQs and guidance as needed. Go to FinCEN FAQs at http://www.fincen.gov/whatsnew/html/ctr_faqs.html, or click here to read more in The Gold Book.

What's New? Fair Housing Act - New Guidance

New guidance released on April 30, 2013, by the U.S. Department of Housing and Urban Development (HUD) and the U.S. Department of Justice,  reinforces the Fair Housing Act requirement that multifamily housing be designed and constructed so as to be accessible to persons with disabilities.

More information about Fair Housing Act may be found in The Gold Book. 

Last Month's Q&A: Answered!

The following question appeared in the Q&A section of Banking Spectrum's March 2013 Report Bulletin. Compare your answer to the correct answer provided below.

Q: We were served with a restraining notice against a depositor's account for $17,000 to satisfy a judgment.  The depositor did not claim an exempt funds exemption.  We got a letter from the attorney for the plaintiff and an e-mail from the attorney for the defendant, our depositor, telling us to remove the restraint on the account as the matter had been settled.  Does the bank need a court order before it releases the hold?

A:  No.  Letters for both attorneys, and even a letter from plaintiff’s counsel would have been sufficient to release the hold.  Some banks may require an acknowledgment from the depositor but no court order or action is needed.  A court does not issue a restraining notice as this is part of the process for post judgment collection of assets, initiated usually by an attorney.  Keep the correspondence on this matter for the file on the account.

CFPB Issues Escrow Rule Compliance Guide

The Consumer Financial Protection Bureau released the latest in a series of compliance guides intended to help smaller institutions comply with the agency’s new mortgage rules. The most recent guide, released by the CFPB on April 19, 2013 addresses the escrow rule set to take effect in June. Click Here for Guide.

Redesigned $100 Note

A redesigned $100 note will begin circulating on October 8, 2013.  This note, which incorporates new security features such as a blue, 3-D security ribbon, will be easier for the public to authenticate but more difficult for counterfeiters to replicate. 

The new design for the $100 note was unveiled in 2010, but its introduction was postponed following an unexpected production delay.  To ensure a smooth transition to the redesigned note when it begins circulating in October, the U.S. Currency Education Program is reaching out to businesses and consumers around the world to raise awareness about the new design and inform them about how to use its security features. 

More information about the new design $100 note, as well as training and educational materials, can be found at www.newmoney.gov.

FinCEN E-Filing Reminder

Financial institutions are reminded that they must have begun to use the new FinCEN reports, which are available only electronically through the BSA E-Filing System, by April 1, 2013.

Please see The Gold Book, Bank Secrecy chapter for details.

What's New? Pension Chapter Reorganized

To make it easier to find information about IRAs and related distribution rules, parts of the Pension chapter have been reorganized. Please see Traditional IRA Distributions and Accounts of Deceased IRA Holders.