Big Orange Book Regulatory Compliance Manual
Table of Contents
1 Introduction................................................................................................................1
Compliance Is Tough.............................................................................................................1.1
How to Establish and Maintain the Compliance Function.....................................................1.2
CITATION TABLE FOR CFPB REGULATIONS...................................................................1.13
2 Deposits......................................................................................................................2
Federal Deposit Insurance....................................................................................................2.1
Advertising Deposits............................................................................................................2.10
Insurance Rules.............................................................................................................2.10
Unfair, Deceptive or Abusive Acts or Practices (“UDAAP”) ..........................................2.13
Truth in Savings ............................................................................................................2.14
FTC Communication Laws............................................................................................2.17
The CAN-SPAM Act . ....................................................................................................2.17
The National Do Not Call Registry . ..............................................................................2.20
The “No Fax” Rules.......................................................................................................2.23
Lotteries.........................................................................................................................2.24
Non-Deposit Investment Products . ....................................................................................2.25
Privacy of Consumer Information........................................................................................2.34
Privacy of Consumer Information..................................................................................2.34
FCRA - Sharing With Affiliates.......................................................................................2.44
Right to Financial Privacy Act........................................................................................2.53
Reimbursement for Providing Financial Records..........................................................2.57
Truth In Savings Act.............................................................................................................2.59
Electronic Fund Transfers Act..............................................................................................2.69
Overdraft Protection Products.............................................................................................2.89
Expedited Funds Availability Act........................................................................................2.104
Stored Value Cards & Prepaid Access..............................................................................2.116
Remittance Transfers........................................................................................................2.128
Remittance Transfers and UCC Article 4A . ................................................................2.140
Collection and Return of Checks.......................................................................................2.147
CHECK 21.........................................................................................................................2.152
Unlawful Internet Gambling Enforcement Act....................................................................2.160
Individual Retirement Accounts and Other Tax Sheltered Deposit Plans..........................2.167
Remote Deposit Capture...................................................................................................2.177
Safe-Deposit Box...............................................................................................................2.182
Savings, Money Market, and Time Deposits.....................................................................2.185
NOW Account Eligibility.....................................................................................................2.188
3 Loans...........................................................................................................................3
Advertising Loans..................................................................................................................3.1
Fair Lending Considerations............................................................................................3.1
Equal Credit Opportunity Act...........................................................................................3.1
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Fair Housing Act..............................................................................................................3.1
Misleading or Deceptive Advertisements.........................................................................3.3
Disclosures......................................................................................................................3.6
Other Advertising Considerations..................................................................................3.11
Privacy of Consumer Information........................................................................................3.15
Fair Lending.........................................................................................................................3.16
Regulation B - Equal Credit Opportunity Act.................................................................3.16
Fair Housing Act............................................................................................................3.33
Fair Credit Reporting Act Rules on Medical Information . .............................................3.36
Adverse Actions and Notices Related to Consumer Credit Rating......................................3.38
Adverse Actions . ..........................................................................................................3.38
Fair Credit Reporting Act.........................................................................................3.38
Equal Credit Opportunity Act...................................................................................3.41
Notice to Home Loan Applicants...................................................................................3.46
FCRA - Risk-Based Pricing...........................................................................................3.47
Home Mortgage Disclosure Act...........................................................................................3.54
Gathering Government Monitoring Information under ECOA..............................................3.65
Registration, Compensation and Kickbacks for Mortgage Loans........................................3.67
SAFE Act.......................................................................................................................3.67
Loan Originator Compensation......................................................................................3.73
RESPA - Prohibition Against Kickbacks and Unearned Fees........................................3.79
Mortgage Types...................................................................................................................3.82
Regulation Z Covered Mortgages..................................................................................3.82
RESPA Covered Mortgages..........................................................................................3.83
Qualified Mortgages.......................................................................................................3.85
Qualified Residential Mortgages....................................................................................3.95
Higher Priced Mortgage Loans......................................................................................3.95
High Cost Mortgage Loans............................................................................................3.97
Refinancings ...............................................................................................................3.103
Home Equity Lines of Credit........................................................................................3.103
Reverse Mortgages.....................................................................................................3.104
Mortgage Disclosures........................................................................................................3.106
Introduction..................................................................................................................3.106
Closed-End Dwelling Secured Loans..........................................................................3.107
Open-End Dwelling Secured Loans............................................................................3.132
Mortgage Servicing............................................................................................................3.147
Servicing Policies and Procedures..............................................................................3.147
Servicing Closed-End Dwelling Secured Loans..........................................................3.149
Servicing Home Equity Lines Of Credit.......................................................................3.177
Servicing Reverse Mortgages......................................................................................3.180
Truth in Lending Act...........................................................................................................3.182
Background..................................................................................................................3.182
Finance Charge...........................................................................................................3.183
Dwelling-Secured Loans..............................................................................................3.185
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Other Closed-End Non-Dwelling Secured Loans........................................................3.186
Open-End Credit Non-Dwelling Secured.....................................................................3.187
Record Retention.........................................................................................................3.196
Truth in Leasing Act.....................................................................................................3.197
Real Estate Settlement Procedures Act............................................................................3.201
The Homeowners Protection Act.......................................................................................3.202
Consumer Credit Practices Act..........................................................................................3.209
HUD Notice Requirements................................................................................................3.213
Lending to Servicemembers . ...........................................................................................3.217
Servicemembers Civil Relief Act..................................................................................3.217
The John Warner National Defense Authorization Act................................................3.220
Flood Insurance.................................................................................................................3.226
Fair Debt Collection Practices Act.....................................................................................3.240
Real Estate Lending Standards.........................................................................................3.243
Appraisals and Valuations.................................................................................................3.248
Regulation Z - Appraisals and Valuation Independence..............................................3.248
Appraisal Requirements for Higher-Priced Mortgage Loans.......................................3.251
Regulation B - Appraisal Requirements.......................................................................3.253
Appraisals and Interagency Appraisal Standards........................................................3.255
CERCLA............................................................................................................................3.268
4 Customer-Related Operations..................................................................................4
Fair Credit Reporting Act Consumer Report Issues .............................................................4.1
Permissible Purpose for Consumer Reports...................................................................4.2
Notice of Negative Information .......................................................................................4.4
Disputed Information........................................................................................................4.5
Accuracy and Integrity of Information Furnished to CRAs...............................................4.7
Red Flag Guidelines........................................................................................................4.8
Duties of Users of Consumer Reports ..........................................................................4.14
Fraud and Active Duty Alerts ........................................................................................4.15
Penalties........................................................................................................................4.15
Disposal of Records.......................................................................................................4.15
Bank Secrecy Act................................................................................................................4.17
Introduction....................................................................................................................4.17
BSA/AML Risk Assessment...........................................................................................4.18
BSA/AML Compliance Program....................................................................................4.19
Customer Identification Program...................................................................................4.21
Due Diligence................................................................................................................4.25
Currency Transaction Reporting ...................................................................................4.31
Suspicious Activity Reporting........................................................................................4.38
Other Record Keeping Requirements............................................................................4.45
Recordkeeping for Funds Transfers and Transmittals...................................................4.47
USA PATRIOT Act Section 314(a).................................................................................4.53
USA PATRIOT ACT 314(b) -Voluntary Sharing ............................................................4.55
Office of Foreign Assets Control . .......................................................................................4.76
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Unfair or Deceptive Acts or Practices..................................................................................4.84
Social Media........................................................................................................................4.96
The E-SIGN Act and Internet Banking...............................................................................4.102
5 Internal Operations....................................................................................................5
FIRREA Enforcement and Civil Penalty Provisions . ............................................................5.1
Insider Loans.........................................................................................................................5.4
Transactions Between Banks and Their Affiliates................................................................5.14
Insider Related Regulations................................................................................................5.19
Community Reinvestment Act.............................................................................................5.23
Alternative Mortgage Transaction Parity Act........................................................................5.36
Lending on Securities..........................................................................................................5.42
Securities Inquiries..............................................................................................................5.45
Exceptions for Banks from the Definition of Broker.............................................................5.48
Bank Protection Act.............................................................................................................5.58
Bank Bribery Act..................................................................................................................5.60
Branch Closings..................................................................................................................5.63
Interbank Liabilities..............................................................................................................5.66
Index............................................................................................................................ IN.1
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