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Inside TRC

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Wednesday, 9 Jul 2014

Bureau Interpretive Rule Clears the Way for Heirs to Take Over Mortgages When Loved Ones Die

Washington, D.C. – Today, the Consumer Financial Protection Bureau (CFPB) is issuing an interpretive rule to clarify that when a borrower dies, the name of the borrower’s heir generally may be added to the mortgage without triggering the Bureau’s Ability-to-Repay rule. This clarification will help surviving family members who acquire title to a property to take over their loved one’s mortgage, and to be considered for a loan workout, if necessary, to keep their home.

“Losing a loved one should not mean also losing your home. Today’s interpretive rule makes it clear that when family members inherit property, they can take over the mortgage without jumping through unnecessary hoops,” said CFPB Director Richard Cordray. “This gives heirs an opportunity to work with the lender to pay off the loan or seek a loan modification.”

The interpretive rule is available at: http://files.consumerfinance.gov/f/201407_cfpb_bulletin_mortgage-lending-rules_successors.pdf

Keeping your financial institution up to date on regulatory issues and your employees educated can be a daunting task. TRC can help. To learn more, contact us at info@trcinteractive.com or (800) 222-9909.

Wednesday, 25 Jun 2014

A recent article in BAI Banking Strategies indicated that a new report by the Center for Financial Services Innovation reveals that ten percent of consumers using a smartphone to deposit a check had it returned to the originating institution due to fraud -- a rate more than double that of other check-cashing methods.

According to the article, the fraud schemes most commonly involved going to a check-cashing outlet right after depositing the same check via smartphone. Mobile deposit leaves the actual check in the hands of the customer and creates the potential for this type of fraud. It has been suggested that one potential step to help eliminate at least some of this fraud would be to require a restrictive endorsement on any check that is sent via a smartphone for deposit.

For example, a financial institution would only accept checks sent for mobile deposit that contained the restrictive endorsement “Deposit via Mobile” or “Deposit sent by Phone” below the customer’s endorsement.

This would certainly not stop all fraud but could serve as a deterrent to some potentially fraudulent situations. For instance, a check presented to a check-cashing store, which has an erasure or blacked out information below the endorsement is going to raise suspicions.

To help keep your staff aware of the most recent fraud trends First Line of Defense provides “real life” transaction training. Keeping your financial institution up to date on issues such as these and your employees educated can be a daunting task. TRC can help. To learn more, contact us at info@trcinteractive.com or (800) 222-9909.

Wednesday, 18 Jun 2014

... at least according to a recent article by Bank Innovation. A recent survey indicates customers are NOT getting the guidance and advice they would like!

“More than half of bank customers in the U.S. — 51% — WANT their banks to proactively recommend services and products, according to the 2014 North America Consumer Digital Banking Survey from Accenture, which was recently released. Yet 70% of the more than 4,000 customers surveyed consider their bank relationship merely transactional!

One of the problems is that the financial service industry loves “initiatives”, which in most cases is a short-lived push to “create a sales culture.” Then, since it’s not properly initiated, trained, coached, incented, or supported, it gradually slides back to the routine where people defend “servicing”, and sales is again a dirty word!

Most of your customers WANT and NEED your expertise. Your staff actually enjoys helping. So why isn’t it working? Learn more about ALL the components of change and delivering the right message by contacting TRC Interactive today. Learn about TRC’s The Customer Experience and how you can be guided to a total, successful, sales initiative that results in, (here’s those words again) a sales culture!

To stay up to date on financial institution trends and news, frequently visit our blog. TRC Interactive also offers online, interactive training on various compliance related topics. To learn more, contact us at info@trcinteractive.com or (800)222-9909.

Wednesday, 4 Jun 2014

Answer this honesty…
Regulators walk in and ask to see your written Identity Theft Prevention Program. Are you nervous at all? If you are, put it on the top of your priority list.

With the recent retail breaches, identity theft has, once again, taken center stage. A very important aspect of an Identity Theft Prevention Program includes ensuring the ITPP is UPDATED periodically to reflect any changes in risk to your customers and your institution. Now is a very good time to review your program and update it as necessary. Because of recent breaches, anticipate that regulatory scrutiny of ITPP’s is likely to increase.

Equally important is training your staff on Identity Theft Red Flags to enhance and include the addition of the knowledgeable staff scrutiny to your already established ITPP. TRC provides solutions to help your staff become knowledgeable and confident in the fight against the crime of identity theft.

With all the new regulations and new issues arising weekly, it is important to remember to update training on existing rules and regulations. We do!

To stay up to date on regulatory trends and news, frequently visit our blog. TRC Interactive also offers online, interactive training on various compliance related topics. To learn more, contact us at info@trcinteractive.com or (800) 222-9909.

Wednesday, 14 May 2014

Preauthorized transfers from a saving account are limited to six per calendar month or statement cycle as required by Regulation D, Reserve Requirements of Depository Institutions. Reserve requirements are one of three monetary policy tools the Federal Reserve can use to control the money supply. The other two are open market operations and the discount rate.

The regulation requires depository institutions to maintain reserve balances with their Federal Reserve Bank or as cash within limits specified by law. In general reserve requirements are primarily imposed on transaction deposits to cover reasonable withdraw activity. To determine the amount of reserve requirements required to be held by an institution, deposits must be defined as transaction, savings, or time deposits.

A savings deposit is described in part as an account in which the depositor is permitted or authorized to make no more than six transfers and withdrawals, or a combination of such transfers and withdrawals, per calendar month or statement cycle (or similar period) of at least four weeks, to another account (including a transaction account) of the depositor at the same institution or to a third party by means of a preauthorized or automatic transfer, or telephonic (including data transmission) agreement, order or instruction, or by check, draft, debit card, or similar order made by the depositor and payable to third parties.

Savings deposits which exceed six preauthorized or automatic transactions per calendar month or statement cycle in essence become transaction deposits and in theory are then subject to reserve requirements.

In order to ensure that no more than the permitted number of withdrawals or transfers are made, for an account to come within the definition of “savings deposit,” a depository institution must monitor and in some cases restrict the excess withdrawals.

The short answer is that activity on savings deposits is restricted by Federal Regulation to differentiate between transaction deposits and savings deposits.

To stay up to date on financial institution trends and news, frequently visit our blog. To learn more about our online training solutions, contact us at info@trcinteractive.com or (800) 222-9909.

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