Pub. 13 2018-2019 Issue 6

WWW.NEBANKERS.ORG 22 T WENTY-EIGHTEEN WAS A RATHER EXCITING YEAR FOR BANKING compliance. The Economic Growth, Regulatory Relief, and Consumer Protection Act (EGRRCPA) provided im- mense relief to community banks and also proved that acronyms don’t really have to be that short. Updates to the TILA/ RESPA Integrated Disclosures (TRID) and the Home Mortgage 2019 – What to Expect Next Sarah Sauceda, Associate General Counsel, Compliance Alliance Disclosure Act (HMDA) have kept everyone on their toes try- ing to guess what those pesky grey areas mean. Bank officers learned the true meaning of who a “beneficial owner” really is. And not unlike a Peach from Super Mario, those ever-present flood regulations have been saved once again from lapse. With those show-stoppers, I think I can speak for all of us when I say that twenty-nineteen has a lot to live up to. Though, it does look as though the new year will not disappoint! Major provisions set to take effect in 2019 include: expansion of the Same-Day National Automated Clearing House Association (NACHA) rules; adjustments to the Truth In Lending (TIL) an- nual thresholds; the Prepaid Account Rule Amendments; and Amendments to Regulations CC (Reg. CC). First up on this star-studded agenda are the NACHA expan- sions. In a nut-shell, this expansion to the Same-Day rules was implemented to enable faster fund availability for ACH transac- tions, elongate Same-Day ACH processing hours, and increase per-transaction dollar limitations. After the initial adoption of the Same-Day rules, the NACHA voting membership approved the aforementioned new set of rules which take effect in three separate phases. Each separate phase has a separate effective date. The first phase of the expanded rules provides enhanced access to same-day ACH transactions. It allows Same-Day ACH transactions to be submitted for an additional two hours each and every business day. This phase becomes effective on Sept. 20, 2019. The second phase of the expanded rules ups the per-transaction dollar limit from $25,000 to $100,000. This means that a single Same-Day ACH transaction will be limited to a maximum of $100,000. Any ACH transactions over that $100,000 limit won’t be rejected, though. They will just be processed for next-day settlement rather than Same-Day pro- cessing. This phase becomes effective on March 20, 2020. The third and final phase increases the speed of funds availability for certain, specific Same-Day ACH transactions and certain next- day ACH credits. This phase becomes effective on Sept. 18, 2020. Next on the agenda is the set of TIL threshold adjustments. Seasoned compliance professionals know, a TIL adjustment is not all that novel. However, they are important and worth men- tioning. These adjustments affect open-end consumer credit plans under the CARD Act in that the adjusted dollar amount for the safe harbor in respect to a first violation penalty fee will increase to $28 – up $1 from $27. Under that same CARD Act umbrella, the safe harbor for a subsequent violation penalty fee will also increase $1 to $39. For HOEPA loans, the adjusted total loan threshold will be $21,459, and the adjusted points-and-fees dollar trigger will be $1,077. Finally, the threshold adjustments for qualified mortgages are as follows: “Themaximumthresholds for total points and fees in2019will be 3 percent of the total loan amount for a loan greater than or equal to $107,747; $3,232 for a loan amount greater than or equal to $64,648 but less than $107,747; 5 percent of the total loan amount for a loan greater than or equal to $21,549 but less than $64,648; $1,077 for a loan amount greater than or equal to $13,468 but less than $21,549; and 8 percent of the total loan amount for a loan amount less than $13,468.”