For some, it feels like spring will never get here – snow in May? For others, it seems like it came and went in December and January – 60’s and 70’s in New England? And then, there are those of us who are still waiting for the spring storms to arrive. Whatever the case may be, the not-so-many inclement weather days may have helped you put off until today what should have been done yesterday. And, compliance clutter may have gathered on your desk or laptop. With just a few more weeks before summer sets in, it is time to check your compliance clutter.
TRID: You’ve struggled, you’ve monitored, you’ve tested (and been tested). Time to compile your numbers and results. You may have had a reprieve for “good faith efforts for compliance” but two things are lurking. First the civil liability exposure. If you have non-compliant TRID issues, the potential for civil liability results should be reported to the Board. Second, good faith efforts are not going to last forever; we are six months into TRID – time to get it right! (Still need the right reference tools to help get it right? Contact [email protected] for purchasing our TRID Bundle, filled with How to and Quick Compliance Guides!)
HMDA: Your 2015 LAR is filed. Ensure your 2016 first quarter is correct and up-to-date. (Remember, you are required to ensure that the LAR data is updated within 30 days of each calendar quarter close.) Now, time to start looking at the new HMDA rules. The new rules are complex, opening LOTS of room for errors. Best you start studying up on them now. (Oh – and watch for Temenos’ HMDA Workshop this fall, packed with tools and materials to get you on track for mitigating those errors!)
Complaint Management: Have you checked the CFPB Complaint Database to see your institution is in there? Have you put in place a strong Complaint Management Program? Gone are the days of just taking care of Mr. and Mrs. Jones when they have an “issue”. Regulators are looking for “issues” to be tracked, compiled, analyzed, added to your risk assessments, monitoring schedules, fair lending and UDAAP reviews. (Technology solutions like Temenos’ account servicing platform can be used to effectively manage complaints according to your compliance department’s interpretations and guidelines.)
Compliance Management System Checkup: How robust is you CMS? Long-gone are the days of simply knowing the policies and procedures. Many are now regulatorily required. And most, if not all, examiners expect strong written policies and procedures, monitoring/audit schedules, robust risk assessments, thorough board reporting, and appropriate compliance training for all. Be sure your budgets can support an effective CMS. (For a deeper dive, check out our upcoming Temenos Compliance Journal which addresses CMS essentials.)
BSA/AML: Yes, it is time to dust off that policy and those procedures. When is the last time you took inventory of what is actually written versus the day-to-day practices? How can you be certain that your independent auditor addressed it all if you cannot remember what is actually in your BSA/AML Program? And now is the time to do it. Where FinCEN has issued new rules for CDD for financial institution customers who are legal entities such as corporations, trusts or partnerships. (Check out the Temenos Compliance Newsletter this week for highlights of what’s to come.)
As for the rest of the pile… time to blaze through it and get it done! And no, throwing or clicking it into the trash or recycle bin will not make it go away!
Keep your eye on the target – spring cleaning leads to time for summer fun!