Compliance Briefing for Friday, February 27, 2015

To access specific issuances, go to our Top Stories section, where you'll find links to all the relevant documents.
Risk Scoring — The Essential Element of BSA/AML Compliance

PATRIOT OFFICER automatically calculates risk scores for each customer to identify higher-risk customers and monitors them more closely as the regulations mandate. The solution automatically detects check fraud, check kiting, deposit fraud, ACH fraud, wire fraud, Internet banking fraud, credit/debit card fraud, ATM fraud, employee fraud, and financial fraud to prevent losses. PATRIOT OFFICER is the only BSA/AML/FRAUD solution endorsed by American Bankers Association.
— GlobalVision Systems, Inc.

More OFAC changes
Treasury's Office of Foreign Assets Control has posted a Specially Designated Nationals List Update adding three individuals as Specially Designated Global Terrorists (SDGT) linked to Hizballah. Three related entities were also added. OFAC's notice also announced several deletions from the SDN List.

Suspicious Activity Reporting for Dummies eBook
This guide walks you through the process of completing your SAR accurately and efficiently, and offers tips on how to spot and track potential money laundering activities. Get helpful advice on how to consolidate your AML workflow, save on costs, and streamline your institution's monitoring and reporting processes with automated SAR e-filing.
— Verafin

Dip in mortgage rates
The FHFA has announced released its January 2015 Monthly Interest Rate Survey (MIRS), which indicates interest rates on conventional purchase-money mortgages decreased from December 2014 to January 2015.
  • The National Average Contract Mortgage Rate for the Purchase of Previously Occupied Homes by Combined Lenders index was 3.88 percent for loans closed in late January, down 10 basis points.
  • The average interest rate on all mortgage loans was 3.89 percent, down 11 basis points.
  • The average interest rate on conventional, 30-year, fixed-rate mortgages of $417,000 or less was 4.06 percent, a decrease of 13 basis points.
  • The effective interest rate on all mortgage loans was 4.04 percent in January, down 11 basis points.
  • The average loan amount for all loans was $291,300 in January, down $7,000.

Do You Know How Your HMDA Data Compares?
Do you know how your HMDA LAR compares to national averages in key Fair Lending metrics? It's easy to find out. Get your free HMDA Benchmark Report, which uses the FFIEC's most recent public HMDA data release (2013). Click to get your report today!
— TRUPOINT Partners

Comment period extended for proposed Capital Surcharge rule
The Federal Reserve Board has extended the comment period for its proposed rule to implement capital surcharges for the largest, most systemically important U.S. bank holding companies from March 2, 2015, to April 3, 2015. The proposed rule would establish a methodology to identify whether a firm is a global systemically important banking organization and would also establish the size of a firm's risk-based capital surcharge. The proposal is designed to further strengthen the capital positions of these institutions.

Collateral Underwriter: Firsthand Reports From Experts Will Save You time
We've already seen thousands of appraisals pass through the system, so save time, hassles, and money with these tips from chief appraisers, compliance experts, and workflow gurus. Click here to get the article.
— Mercury Network

Second quarter CRA exam schedule
The FDIC has issued the public list of institutions that it has scheduled for a Community Reinvestment Act (CRA) examination during the second quarter of 2015.

Complaints filed against NY abusive debt collectors
The Federal Trade Commission and the New York State Office of the Attorney General have announced the filing of complaints aimed at shutting down 4 Star Resolution LLC and Vantage Point Services, LLC, two debt collection operations centered in Buffalo, New York, that target consumers nationwide. According to the complaints, the separate enterprises used threats and abusive language, including false threats that consumers would be arrested, to collect more than $45 million in supposed debts.

FDIC updates lawsuits data
The FDIC has updated its Professional Liability Lawsuits webpage to indicate that 14 additional suits were brought in January 2015. From January 1, 2009, through February 25, 2015, the FDIC has authorized suits in connection with 149 failed institutions against 1,195 individuals for D&O liability. This includes 105 filed D&O lawsuits (37 of which have fully settled and one of which resulted in a favorable jury verdict) naming 800 former directors and officers. The FDIC also has authorized 61 other lawsuits for residential mortgage-backed securities, LIBOR suppression, fidelity bond, insurance, accounting malpractice, appraiser malpractice, and attorney malpractice claims. In addition, 72 residential mortgage malpractice and fraud lawsuits are pending, consisting of lawsuits filed and inherited.

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