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#190586 - 05/14/04 10:40 PM ABA NRCC Regulatory Questions
David Dickinson Offline
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David Dickinson
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Posts: 18,748
Central City, NE
Since many of us are attending the ABA NRCC, I would like to enlist the help of a few people. In the past, I have "planted" a few people in the Regulatory Breakout sessions to ask each regulator a few questions. Last year we asked about copying drivers licenses. This year I have the following questions:

FRB:
1. HMDA & "refinancing". Will the definition of refinancing be changed for 2005? lores Smith had indicated last year that it did. She retired in March. Where is the FRB at on this issue?


FDIC:
1. Evidence of Intent to Apply. Why would a loan officer need to have more evidence when applicants complete an application? Even if you want to say that signing the application is not sufficient (as the signature statement indicates they are only attesting to the accuracy of the info), completion of the sections entitled "Applicant" and "Co-Applicant" is evidence that they wish to apply. Is the FDIC going to provide further guidance on this issue.

2. HMDA and Refinancings. Some FDIC examiners are saying that the mortgage (or DOT) must be replaced before a loan is considered to be refinanced. This does not seem to line up with the definition in 203.2(k).
----------------------------------------------------------

That's all of the questions I have come up with so far. I think we should ask the OCC the same question as the FDIC about Evidence of Intent to Apply. I'm hearing from OCC banks that the OCC is saying the same thing.

I would need at least 1 person for each regulatory agency (OTS, OCC, FDIC and FRB). I'll probably attend the FRB session.

We would then post the responses back here. Any interested parties?
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http://www.bankerscompliance.com

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General Discussion
#190587 - 05/14/04 10:48 PM Re: ABA NRCC Regulatory Questions
Ski Offline
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Joined: May 2003
Posts: 639
South Louisiana
David, I would be pleased to help you with this.

These are some of my exact questions that I would like to ask.

Let me know if I can help.

Thanks,

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#190588 - 05/17/04 01:18 PM Re: ABA NRCC Regulatory Questions
Rubaiyat Offline
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Joined: Jun 2001
Posts: 1,373
Lido Deck
Dave, I'm willing to help with the OCC. This whole Intent to Apply issue seems crazy to me and I'd love to ask the question about that, as well as the others.
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#190589 - 05/17/04 02:02 PM Re: ABA NRCC Regulatory Questions
Lestie G Offline

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Near the Land of Enchantment
David, I'm OCC as well, but if you need me to ask a question, let me know!
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#190590 - 05/17/04 02:18 PM Re: ABA NRCC Regulatory Questions
David Dickinson Offline
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David Dickinson
Joined: Nov 2000
Posts: 18,748
Central City, NE
Quote:

David, I would be pleased to help you with this.

These are some of my exact questions that I would like to ask.

Let me know if I can help.

Thanks,



Ski: What regulatory agency would you visit with?

I see that we have 2 OCC (we sure can have more than 1 - this will ensure accurate info and diffuse the responsibility from one person) and we have the FRB covered (me, but we can have more). Anyone representing the FDIC or OTS?
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#190591 - 05/17/04 02:20 PM Re: ABA NRCC Regulatory Questions
CSpellman Offline
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David,
I'll do the OTS Session.
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#190592 - 05/17/04 02:45 PM Re: ABA NRCC Regulatory Questions
waldensouth Offline
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waldensouth
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FINALLY ABOVE the gnat line
Oh, don't worry, David. I had already planned to ask the FDIC about the HMDA/refinancing issue.
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#190593 - 05/17/04 02:45 PM Re: ABA NRCC Regulatory Questions
Ski Offline
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Joined: May 2003
Posts: 639
South Louisiana
David,

Sorry I forgot in my excitement to say that I'm FDIC.

I've also sent you an e-mail with some information regarding the FDIC refinance saga.

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#190594 - 05/17/04 03:06 PM Re: ABA NRCC Regulatory Questions
SMQ, CRCM Offline

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Between the lines
My state compliance group rec'd a message from the FDIC examiner on April 30 regarding HMDA refi definition.

"I just wanted to let you know that we received notification that the HMDA refinance definition the FDIC is using will not be the "relation-back" rule that requires the old deed of trust to be cancelled before a refinance occurs."

Of course that does not address the issue of what to do with all those loans that did not get coded for the first 4 months of the year. Sooooooo glad to be OCC.
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#190595 - 05/17/04 03:34 PM Re: ABA NRCC Regulatory Questions
David Dickinson Offline
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David Dickinson
Joined: Nov 2000
Posts: 18,748
Central City, NE
Here's what we have so far:

FDIC:
Ski (Dave)
Walden South

OCC:

OTS:
Chris Spellman

FRB:
Dave Dickinson

Anybody else? The more the merrier. Also, does anyone have other questions that this group can ask for you?
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#190596 - 05/17/04 06:47 PM Re: ABA NRCC Regulatory Questions
Lestie G Offline

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David,

I'm assuming you just forgot cwilliams and me under OCC?
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#190597 - 05/19/04 01:30 AM Re: ABA NRCC Regulatory Questions
David Dickinson Offline
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David Dickinson
Joined: Nov 2000
Posts: 18,748
Central City, NE
Quote:

David,

I'm assuming you just forgot cwilliams and me under OCC?



Please forgive me. I got interrupted and didn't pick up where I left off. Thanks for bringing this to my attention.

Does anyone have any questions that would like for us to ask?
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David Dickinson
http://www.bankerscompliance.com

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#190598 - 05/19/04 03:10 PM Re: ABA NRCC Regulatory Questions
Anonymous
Unregistered

David and others lucky enough to be attending the conference,

Any chance you could ask the regulators TOTALLY OFF THE RECORD what they think the odds are that the small bank/large bank threshold will get raised to $500MM.
And also, any idea on when we would hear a decision on that issue one way or the other? (ie., by end of year, within 18 months, 2-years, when hell freezes over, etc.). Even knowing when there may be a decision on it will help our planning because we are currently at 230MM.

Thanks everybody.......

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#190599 - 05/19/04 06:30 PM Re: ABA NRCC Regulatory Questions
Pale Rider Offline
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under the Lone Star
Anon:
According to a story in today American Banker, it will move to $500 million when hell freezes over. Twenty-nine demos (and the lone independent) wrote letters to all the federal regulators demanding that the current CRA proposed changes be dropped from consideration because of the harm it would cause to LTM communities across the country (this is a barf alert).
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#190600 - 05/19/04 06:41 PM Re: ABA NRCC Regulatory Questions
Anonymous
Unregistered

Don,
Thanks for the laughs. What did you mean by "29 demos" (and the lone independent)....?

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#190601 - 05/19/04 06:59 PM Re: ABA NRCC Regulatory Questions
Andy_Z Offline
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Andy_Z
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On the Net
Democrats.

This will be interesting. I see a lot of consumer group input on this. They like that low threshold and a recent FDIC speech said 8,000 of the nations 9,000 banks are under $500MM. Raising that number makes things much easier for bankers, but will reduce the ammo in the gun put to the banker's "new and innovative" head.
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#190602 - 05/19/04 08:35 PM Re: ABA NRCC Regulatory Questions
Pale Rider Offline
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under the Lone Star
Andy is correct, I should have been more clear. It is 29 democrat senators and the one independent. That is a sizable group of senators.
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#190603 - 05/19/04 10:54 PM Re: ABA NRCC Regulatory Questions
David Dickinson Offline
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David Dickinson
Joined: Nov 2000
Posts: 18,748
Central City, NE
Quote:

David and others lucky enough to be attending the conference,

Any chance you could ask the regulators TOTALLY OFF THE RECORD what they think the odds are that the small bank/large bank threshold will get raised to $500MM.
And also, any idea on when we would hear a decision on that issue one way or the other? (ie., by end of year, within 18 months, 2-years, when hell freezes over, etc.). Even knowing when there may be a decision on it will help our planning because we are currently at 230MM.

Thanks everybody.......



We'll add it to the list. Good question.
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David Dickinson
http://www.bankerscompliance.com

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#190604 - 05/21/04 05:36 PM Re: ABA NRCC Regulatory Questions
Anonymous
Unregistered

A possible CIP question. In the "Frequently Asked Questions" CIP guidance issued by regulators January 2004, a question was asked about the situation where a person has had an account in the last twelve months but no longer has an account. The answer included the statement "a person would not be deemed to have an existing account at the bank if the person had a loan, paid it off, and twelve months later obtains a new loan." Was the intent to establish a specific twelve month time standard, or was this just a hypothetical example for guidance? What if the person comes back a week later, or two years later? Our bank believes we should be able to apply common sense to this situation. Once we have formed a reasonable belief that we know the customer's true identity and have that customer in our records, we don't think that person's identity can change just because time has elapsed.

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#190605 - 05/21/04 06:05 PM Re: ABA NRCC Regulatory Questions
David Dickinson Offline
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David Dickinson
Joined: Nov 2000
Posts: 18,748
Central City, NE
Let me take a stab at this (everyone is welcome to respond as well). The CIP exemption applies to "existing customers." The 12 months response was just a hypothetical example. I take the exemption to literally mean that if a person paid off a loan, had no other accounts with the bank and came back 1 week later to apply for a loan to not qualify for the exemption.

While I agree that this may not be common sense the rule had to draw a line in the sand somewhere. And anywhere else doesn't make more sense. Now, your risk of not knowing this person is very little. So your verification might be little if anything.
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#190606 - 06/04/04 02:12 PM Re: ABA NRCC Regulatory Questions
David Dickinson Offline
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David Dickinson
Joined: Nov 2000
Posts: 18,748
Central City, NE
Bad news! I'm very sick. I went home Tuesday running a fever. Tuesday I woke up very sick and went to the doctor. He said I had walking pneumonia. I have been running a fever since Tuesday and my body aches terribly. Yesterday was worse as my throat started to hurt every time I swallowed. My wife thinks I have strep throat on top of the pneumonia! I'm going to see the doctor again this morning.

I'll try to keep everyone posted, but right now I'm not very optimistic that I be flying tomorrow. Please pray for quick healing.
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David Dickinson
http://www.bankerscompliance.com

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#190607 - 06/04/04 02:43 PM Re: ABA NRCC Regulatory Questions
OnTheEdge Offline
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Joined: Apr 2002
Posts: 1,671
SmallTown, USA
Hope you are soon on the mend !
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#190608 - 06/04/04 02:44 PM Re: ABA NRCC Regulatory Questions
Kaos Offline
100 Club
Kaos
Joined: Dec 2002
Posts: 130
Here's hoping for a quick recovery! Chicago just won't be the same w/o you. I plan to be at the Fed breakout, if you need someone to ask questions.

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#190609 - 06/04/04 03:15 PM Re: ABA NRCC Regulatory Questions
Lestie G Offline

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Joined: May 2002
Posts: 3,603
Near the Land of Enchantment
David, I hope you bounce back quickly! I was really looking forward to meeting you tomorrow night! I have my question printed off and ready to go with me, though. I'll ask it in the OCC breakout!
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#190610 - 06/04/04 06:14 PM Re: ABA NRCC Regulatory Questions
David Dickinson Offline
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David Dickinson
Joined: Nov 2000
Posts: 18,748
Central City, NE
Thank you all for your kind words. I saw the doctor again this morning. He gave me a shot and a new antibiotic. He thought this would be over in 5 days (which would be Sunday). I changed my flight to Monday afternoon - so I'll be arriving around 4 pm on Monday. I'll miss the Saturday night dinner and the BOL Pizza Party on Sunday, but I'll still get to see you all on Monday - Wednesday (hopefully).

I am co-presenting the Lending Update at 1:15 on Tuesday. I would really like to get together with all of you right before then. If possible, could you all come to that room (I don't know where the Lending Update will be) at PM? This way you can all give me your feedback on the questions you asked.

If not, does anyone have a better idea of how we can all get together?
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David Dickinson
http://www.bankerscompliance.com

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