{"id":909,"date":"2020-01-01T12:00:36","date_gmt":"2020-01-01T19:00:36","guid":{"rendered":"https:\/\/avalaunchsites.com\/bma\/?p=909"},"modified":"2020-09-17T12:48:15","modified_gmt":"2020-09-17T18:48:15","slug":"compliance-update-january-2020","status":"publish","type":"post","link":"https:\/\/avalaunchsites.com\/bma\/2020\/01\/compliance-update-january-2020\/","title":{"rendered":"Compliance Update \u2013 January 2020"},"content":{"rendered":"[vc_row type=”in_container” full_screen_row_position=”middle” column_margin=”default” scene_position=”center” text_color=”dark” text_align=”left” overlay_strength=”0.3″ shape_divider_position=”bottom” bg_image_animation=”none”][vc_column column_padding=”no-extra-padding” column_padding_position=”all” background_color_opacity=”1″ background_hover_color_opacity=”1″ column_link_target=”_self” column_shadow=”none” column_border_radius=”none” width=”1\/1″ tablet_width_inherit=”default” tablet_text_alignment=”default” phone_text_alignment=”default” overlay_strength=”0.3″ column_border_width=”none” column_border_style=”solid” bg_image_animation=”none”][vc_row_inner column_margin=”default” text_align=”left”][vc_column_inner column_padding=”no-extra-padding” column_padding_position=”all” background_color_opacity=”1″ background_hover_color_opacity=”1″ column_shadow=”none” column_border_radius=”none” column_link_target=”_self” width=”1\/1″ tablet_width_inherit=”default” overlay_strength=”0.3″ column_border_width=”none” column_border_style=”solid” bg_image_animation=”none”][nectar_gradient_text heading_tag=”h2″ color=”extra-color-gradient-2″ gradient_direction=”diagonal” text=”Regulatory Questions and Answers: Regulation CC”][vc_column_text]Question<\/strong>
\nFor the Regulation CC the availability threshold adjustments, effective July 1, 2020, does the bank need to send a change in terms?<\/p>\n

Answer<\/strong>
\nThe final rule which addresses the threshold adjustments effective July 1, 2020 states: the bank does need to send the change in terms (aka fund availability policy). However, the bank may have arrangements for electronic delivery or provide the change in terms in the monthly statement. The final rule also states: In addition, a bank need not set forth the entirety of its revised funds-availability policy in its change-in-terms notice.\u00a0 If a bank chooses to provide the notice by sending a completely new availability disclosure, the bank must direct the customer to the changed terms in the disclosure by use of a letter or insert, or by highlighting the changed terms in the disclosure.<\/p>\n

Reference<\/strong>
\nRegulation CC: 12 CFR 229 final rule. Federal Register, July 3, 2019, page 31694.[\/vc_column_text][\/vc_column_inner][\/vc_row_inner][vc_row_inner column_margin=”default” text_align=”left”][vc_column_inner column_padding=”no-extra-padding” column_padding_position=”all” background_color_opacity=”1″ background_hover_color_opacity=”1″ column_shadow=”none” column_border_radius=”none” column_link_target=”_self” width=”1\/1″ tablet_width_inherit=”default” overlay_strength=”0.3″ column_border_width=”none” column_border_style=”solid” bg_image_animation=”none”][nectar_gradient_text heading_tag=”h2″ color=”extra-color-gradient-2″ gradient_direction=”diagonal” text=”Regulatory Questions and Answers: Flood Insurance \/ FEMA”][vc_column_text]Question<\/strong>
\nDuring a private flood insurance review, it was noted that a few policies do not meet FEMA\u2019s requirements for acceptance. If the loan is covered by flood insurance and the borrower is fine with the policy, is there an issue?<\/p>\n

Answer<\/strong>
\nIn the Interagency Q&A for Loans in Areas Having Special Flood Hazards. Question 64 addresses the circumstances under which a bank may rely on a private insurance policy that does not meet the criteria established by FEMA in Mandatory Purchase of Flood Insurance Guidelines. If your bank determines that the policy does not meet those circumstances, also consider:<\/p>\n