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#1443638 - 09/15/10 10:04 PM
Re: SAFE Act
villenbe
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100 Club
Joined: Nov 2009
Posts: 219
Chicagoland, IL
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Irishguy, here's the FIL from the FDIC dated July 30th. http://www.fdic.gov/news/news/financial/2010/fil10043.html "The rule takes effect on October 1, 2010, and institutions will be expected to implement appropriate policies, procedures and management systems to ensure compliance." It would have been clearer if the phrase "by October 1, 2010" followed, but it does not. What do you think, is that what is implied here? It sure seems like it.
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#1443647 - 09/15/10 10:36 PM
Re: SAFE Act
Dan Persfull
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100 Club
Joined: Jan 2010
Posts: 192
Florida
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Where? The above quote was taken from the July 28, 2010 release of the final rule and in my search I found no such requirements. The only place I found October 1, 2010 mentioned was
DATES: This final rule is effective on October 1, 2010. Compliance with § __.103 (registration requirement) of the final rule is required by the end of the 180-day period for initial registrations beginning on the date the Agencies provide in a public notice that the Registry is accepting initial registrations.
I also located the following in the July 28 release;
This in effect provides institutions with an implementation period longer than 180 days as institutions and their employees can begin to implement the final rule’s requirements before the Registry is operational, i.e., develop policies and procedures, train employees, gather information needed for registration, and program and implement system controls before registration is required.
But no where did I find reference to October 1, 2010 as being the deadline for the policy and procedures to be in place, nor did I find any other "effective" date for policies and procedures other than what I quoted above. I'm not saying they're not there just that I didn't find any such requrement in my search, so if you have the citation please post it for the rest of us. Our internal auditors agree with you, Dan.
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#1443660 - 09/16/10 12:11 AM
Re: SAFE Act
MB Guy
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Gold Star
Joined: Dec 2006
Posts: 435
TN
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Per the regulation:
[i][i]DATES: b]This final rule is effective on October 1, 2010.[/b] Compliance with § __.103 (registration requirement) of the final rule is required by the end of the 180-day period for initial registrations beginning on the date the Agencies provide in a public notice that the Registry is accepting initial registrations.[/i][/i]
The way I interpret it, everything except the registration is effective October 1st. The policy goes to our Board tomorrow for approval, and we'll have draft procedures in place by then, which I'm sure will be revised once more information about the Registry is available.
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#1443699 - 09/16/10 11:52 AM
Re: SAFE Act
Sewanee, CRCM
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Power Poster
Joined: Nov 2000
Posts: 2,701
PA
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That's the way I interpret it, too, sewanee. We will have our policy and draft procedures approved by our board prior to 10/1. While I think it's important to read the supplementary material that is published when a reg is issued, the reg is the reg and this one says it's effective 10/1 (except the registration piece).
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#1443716 - 09/16/10 12:31 PM
Re: SAFE Act
Deena
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10K Club
Joined: Aug 2002
Posts: 47,532
Bloomington, IN
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The effective date of the Reg is 10/1/10 however the section I quoted above from the Reg indicates you only have to have the policies and procedures in place prior to your registration process, which that process is not yet in place.
If your regulator issued a statement as shown above then by all means you should have your policies and procedures in place, but, depending on your interpretation, the FDIC did not state that as fact. At least now I know I wasn't going crazy and where everyone else was getting the idea they had to be ready by 10/1/10.
BTW, our HR person should be taking ours to the board on 9/16.
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The opinions expressed are mine and they are not to be taken as legal advice.
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#1444613 - 09/17/10 02:19 PM
Re: SAFE Act
Random
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Diamond Poster
Joined: Jan 2010
Posts: 1,028
Utopia
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Can anyone clarify for me whether the procedures also need to go to the board. I thought I read that they both had to be approved; then I have seen where some of you are only having the policy approved? I just want to make sure I am doing this correctly.
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#1446518 - 09/22/10 03:28 PM
Re: SAFE Act
Soccer
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Platinum Poster
Joined: Jan 2002
Posts: 537
Elizabeth City, NC
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FWIW, I am also on the team that thinks the policies and procedures are to be in place by October 1. That being said, if examiners walked in my shop on December 1, would I be too worried if they are not in place? No. I think I will have a whole lot more to worry about than SAFE (TILA, RESPA, FACTA, etc).
I searched the final rule again, and I don't see where the procedures must be approved by the Board (as is the case with CIP). §____.104 says "A bank .... must adopt and follow written policies and procedures designed to assure compliance..."
MarkB
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#1447441 - 09/23/10 04:49 PM
Re: SAFE Act
Soccer
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Power Poster
Joined: Jul 2002
Posts: 5,568
New Jersey
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Can anyone clarify for me whether the procedures also need to go to the board. I thought I read that they both had to be approved; then I have seen where some of you are only having the policy approved? I just want to make sure I am doing this correctly. The first sentence of section _____.104 of the final rule read thus: "A [financial institutuion] that employs one or more mortgage loan originators must adopt and follow written policies and procedures designed to assure compliance with this subpart." {emphasis mine}
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#1447466 - 09/23/10 04:57 PM
Re: SAFE Act
Sinatra Fan
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10K Club
Joined: Oct 2000
Posts: 40,086
Cape Cod
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There's nothing in the regulation that specifically requires that the SAFE Act compliance policy be approved by your board. Some banks, however, take all policies there for approval. There's definitely no reason, however, to walk your procedures through the boardroom.
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John S. Burnett BankersOnline.com Fighting for Compliance since 1976 Bankers' Threads User #8
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#1447474 - 09/23/10 05:05 PM
Re: SAFE Act
John Burnett
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Power Poster
Joined: Jul 2002
Posts: 5,568
New Jersey
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Good point, John.
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Management is doing things right; leadership is doing the right things. Peter Drucker
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#1448324 - 09/24/10 08:10 PM
Re: SAFE Act
villenbe
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10K Club
Joined: Oct 2000
Posts: 27,752
On the Net
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Pretty much policies are board approved, procedures are from management. Who else is approving your bank policies, and what is that doing to them under Reg O?
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AndyZ CRCM My opinions are not necessarily my employers. R+R-R=R+R Rules and Regs minus Relationships equals Resentment and Rebellion. John Maxwell
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#1453199 - 10/07/10 08:02 PM
Re: SAFE Act
Irishguy
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Platinum Poster
Joined: Mar 2008
Posts: 504
TN
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My policy is going to the board for approval on Oct 20th. I hope that's soon enough. Have the procedures ready to go for training.
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#1453205 - 10/07/10 08:04 PM
Re: SAFE Act
Dan Persfull
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Platinum Poster
Joined: Mar 2008
Posts: 504
TN
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Thanks Dan, I've been sweating a 10/1 deadline too, but my poicy is going to the board for approval 10/20. I feel so much better now...you made my weekend.
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#1453245 - 10/07/10 08:35 PM
Re: SAFE Act
Southern gal
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10K Club
Joined: Nov 2002
Posts: 20,656
The Swamp
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I posted this in another SAFE Act thread, but if you read the commentary within the final rule, it states, as Dan said on page 1 of this thread that the P&Ps must be in place before you begin registering. It does not say 10-1.
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