Pub. 10 2015-2016 Issue 2

July/August 2015 23 Extraordinary Service for Extraordinary Members. Darlia Fogarty, director of compliance for Compliance Alliance, brings a wealth of knowledge and practical experience to participating banks and the Compliance Alliance staff. During her 12 years as a commissioned national bank examiner with theOCC, Fogarty developed an expertise in compliance while administering examinations in banks of all sizes. She contributed as a member of the OCC’s Retail Credit Team, with a Compliance Designation. In addition, Fogarty holds 10 years of experience as a compliance officer/auditor and four years as a compliance/audit consultant. She has spoken at a number of conventions, meetings, and schools throughout the years. Her articles can be found in state bankers association magazines, Compliance Alliance newsletters, and several other publications. Fogarty oversees the creation of tools and resources for Compliance Alliance and fields questions on a wide range of regulatory and compliance issues faced by banks of all sizes. Owned by 24 state bankers associations, including the Nebraska Bankers Association, Compliance Alliance monitors the needs of bankers to create, update, and continually provide the most sought-after banking regulation resources in the industry through a comprehensive suite of compliance management solutions. To learn how to put those resources to work for your bank, call (888) 353-3933, visit compliancealliance.com, or email info@compliancealliance.com. This regulation provides protection to service members and, in some cases, their spouses, dependents, and other persons subject to the obligations of service members. These protec- tions apply to loans contracted prior to entering military service, and do not make a distinction between consumer and commercial credit. Yet another regulation that makes no distinction between consumer and commercial customers is the Home Mortgage Disclosure Act (HMDA/Regulation C). Even though mort- gages are the primary focus of the requirements in this regu- lation, there are implications for certain commercial loans. HMDA requires reporting of multifamily loans, which are typically commercial loans. Some nuances in the regulations also can lead to confusion. For example, a customer takes out a loan for a business purpose to be secured by the customer’s primary residence. The loan would not be HMDA reportable at origination, but if it were refinanced, then it would become reportable. Why? The regulation requires all refinancings of dwelling-secured loans to be reported. Now you recognize the need for training. The Fair Credit Reporting Act (FCRA) is one more regula- tion that may be overlookedwhen listing regulations that have implications for compliance. While the regulation specifically states that its purpose is to regulate the furnishing and col- lecting of consumer credit information, there are instances in which commercial credit transactions involve a consumer. For instance, guarantors or co-makers, in many instances, are consumers. You will find adverse action requirements in this regulation as well. If the above regulations and the implications to commercial credit aren’t enough to persuade the commercial credit side of the bank to participate in consumer compliance training, remind your staff of the monetary penalties that accompany violations of many of these regulations, and hopefully training will be readily accepted.  Contact: Tennyson W. Grebenar, Stephen T. Johnson, or Karen L. Witt 303.623.9000 · www.LRRLaw.com With a national reputation for our financial institutions practice, our goal is to assist clients in structuring and operating their institutions to meet business objectives and regulatory requirements. Our Financial Services Group will help your business run smoothly. Experience works. Albuquerque | Casper | Colorado Springs | Denver | Las Vegas | Phoenix | Reno | Silicon Valley | Tucson