From ABA:

FINCEN
Freis: FinCEN to Close AML Nonbank Regulatory Gap
The Financial Crimes Enforcement Network is in the process of imposing anti-money laundering reporting requirements on several nonbank entities, including mortgage lenders, investment advisers and certain prepaid-card issuers, agency Director James Freis Jr. said yesterday at the ABA/American Bar Association Money Laundering Enforcement Conference.

"We must attempt to ensure that other pathways criminals may take into the financial system or utilize to benefit from their illicit activities are stymied, and that the relevant financial trails are available for FinCEN and law enforcement to follow," Freis said.

He noted, for example, that before the financial crisis, nonbank lenders made about 50 percent of the mortgage loans, yet they do not have to report suspicious activity. "We only have half the information available to us in terms of holding criminals accountable," Freis said.

That will change soon because FinCEN is finalizing a regulation that will require nonbank residential mortgage lenders and originators to establish anti-money laundering programs and file Suspicious Activity Reports, he explained.

The rule "would seek to guard against mortgage fraud including such activities as false statement, use of straw buyers, fraudulent flipping, and even identity theft associated with mortgage finance," Freis said. Read Freis’ speech.

It sure took long enough. This will be culture shock for many.

Good, now they can have the same stress levels as the banks.

Only if their loan are reviewed by "our" regulators as well.

point.

A number of my buddies are mortgage brokers. Man, are they in for a culture shock

Tell them I said hi. (with a )

::applauds loudly::

Can you imagine being the compliance person trying to implement a program at one of these places? I am sure that some will advertise positions, but I don't think I would want that job until AFTER they had been thoroughly smacked around in an exam.

Otherwise, if you try to implement what they SHOULD be doing, I am sure that management would accuse you of just making stuff up. I know it used to be that way at some smaller banks a few years ago.

Can you imagine being the compliance person trying to implement a program at one of these places? I am sure that some will advertise positions, but I don't think I would want that job until AFTER they had been thoroughly smacked around in an exam

They have compliance people?

I was in charge of compliance at a new bank affiliated with a non-bank mortgage lender. We bought from them and had to implement our own AML/OFAC and establish some level of controls at the mortgage lender. They had never heard of OFAC, couldn't believe we would report situations to the government, etc.

Let alone the rest of the regulations (you actually expect us to follow Reg B timelines?)

It was not fun.

at KB...

Oh lord help me

Is this new new information? or is this from back in 2010 when they first announced they were going to try this?

I know they took comments some time ago - but I never heard anything since ....

Nevermind - I found the speech. http://www.fincen.gov/news_room/speech/html/20111115.html


Anyone want to come to Northern California to work with me?

Will I get to be the boss of you?

Do you like New Yorkers...?

mmmmm - Negative

ABSOLUTELY!

Hmph!

You could probably just HAVE my job - I don't think I'll make it out of this one alive ...

LMAO...