John C Lettera Esq 2 Westchester Park Drive

John C. Lettera, Esq. 2 Westchester Park Drive White Plains, New York 10604 Tel: (914) 481 -8900 Fax: (914) 481 -8905

Federal Banking Regulations Consumer Financial Protection Bureau (CFPB) Lettera & Mosiello LLP

• Dodd-Frank Compliance • Part 1002 - Reg B - Equal Credit Opportunity Act (ECOA) Compliance • Part 1003 - Reg C - Home Mortgage Disclosure (HMDA) Compliance • Part 1004 - Reg D - Alternative Mortgage Transaction Parity • Part 1005 - Reg E - Electronic Funds Transfer (EFT) Compliance • Part 1006 - Reg F - Fair Debt Collection Practices Act (FDCPA) Compliance • Part 1007 - Reg G - S. A. F. E. Act - Registration of Residential Mortgage Loan Originators • Part 1008 - Reg H - S. A. F. E. Act - State Compliance and Bureau Registration System • Part 1009 - Reg I - Disclosure Requirements - Depository Institutions Lacking FDIC Insurance • Part 1011 - Reg K - Purchasers’ Revocation Rights, Sales Practices and Standards • Part 1012 - Reg L - Special Rules of Practice • Part 1013 - Reg M - Consumer Leasing • Part 1014 - Reg N - Mortgage Acts and Practices - Advertising • Part 1015 - Reg O - Mortgage Assistance Relief Services • Part 1016 - Reg P - Privacy of Consumer Financial Information • Part 1022 - Reg V - Fair Credit Reporting (FCRA) Compliance • Part 1024 - Reg X - Real Estate Settlement Procedures Act (RESPA) Compliance • Part 1026 - Reg Z - Truth in Lending (TILA) Compliance • Part 1030 - Reg DD - Truth in Savings Compliance • Unfair, Deceptive, or Abusive Acts or Practices (UDAAP) Compliance Lettera & Mosiello LLP

Federal Deposit Insurance Corp. (FDIC) • Bank Secrecy Act (BSA) Compliance Tools • Part 323 - Appraisals • Part 326 - Minimum Security Devices and Procedures and Bank Secrecy Act Compliance • Part 337 - Unsafe and Unsound Banking Practices • Part 339 - Loans in Areas Having Special Flood Hazards • Part 343 - Consumer Protection in Sales of Insurance • Part 345 - Community Reinvestment • Part 362 - Activities of Insured State Banks and Insured Savings Associations • Part 363 - Annual Independent Audits and Reporting Requirements • Part 364 - Standards for Safety and Soundness • Part 365 - Real Estate Lending Standards Lettera & Mosiello LLP

Federal Emergency Management Agency (FEMA) • National Flood Insurance Program (NFIP) Lettera & Mosiello LLP

Federal Reserve (FRB) • Bank Secrecy Act (BSA) Compliance Tools • Part 201 - Reg A - Extensions of Credit By Federal Reserve Banks • Part 204 - Reg D - Reserve Requirements of Depository Institutions • Part 206 - Reg F - Limitations on Interbank Liabilities • Part 207 - Reg G - Disclosure and Reporting of CRA-Related Agreements • Part 208 - Reg H - Membership of State Banking Institutions in the Federal Reserve System • Part 209 - Reg I - Issue and Cancellation of Federal Reseve Bank Capital Stock • Part 210 - Reg J - Collection of Checks/Other Items by FRB Banks & Fund Transfers by Fedwire • Part 211 - Reg K - International Banking Operations • Part 212 - Reg L - Management Official Interlocks • Part 215 - Reg O - Loans to Executive Officers, Directors and Principal Shareholders of Banks • Part 218 - Reg R - Exceptions for Banks from the Definition of Broker • Part 219 - Reg S - Reimbursement for Providing Financial Records; Recordkeeping Requirements • Part 221 - Reg U - Credit by Bankers - Purchasing or Carrying Margin Stock • Part 223 - Reg W - Transactions Between Member Banks and Their Affiliates • Part 224 - Reg X - Borrowers of Securities Credit • Part 225 - Reg Y - Bank Holding Companies and Change in Bank Control Lettera & Mosiello LLP

• Unfair, Deceptive, or Abusive Acts or Practices (UDAAP) Compliance • Part 228 - Reg BB - Community Reinvestment Act (CRA) Compliance • Part 229 - Reg CC - Availability of Funds and Collection of Checks • Part 232 - Reg FF - Obtaining and Using Medical Information in Connection with Credit • Part 233 - Reg GG - Prohibition on Funding of Unlawful Internet Gambling • Part 235 - Reg II - Debit Card Interchange Fees and Routing • Part 238 - Reg LL - Savings and Loan Holding Companies • Part 239 - Reg MM - Mutual Holding Companies • Part 242 - Reg PP - Definitions Relating to Title I of the Dodd-Frank Act • Part 243 - Reg QQ - Resolution Plans • Part 244 - Reg RR - Credit Risk Retention • Part 246 - Reg TT - Supervision and Regulation Assessments of Fees • Part 248 - Reg WW - Liquidity Risk Measurement Standards • Part 251 - Reg XX - Concentration Limit • Part 252 - Reg YY - Enhanced Prudential Standards Lettera & Mosiello LLP

Federal Trade Commission (FTC) • E-Sign Act Compliance Tools • Part 600 -698 Fair Credit Reporting Act (FCRA) Compliance • Part 901 - Fair Debt Collection (FDCPA) Compliance Lettera & Mosiello LLP

Housing and Urban Development & Federal Housing Administration (HUD/FHA) • Servicemembers Civil Relief Act of 2003 (SCRA) Lettera & Mosiello LLP

Office of the Comptroller of the Currency (OCC) • Bank Secrecy Act (BSA) Compliance Tools • Part 2 - Sales of Credit Life Insurance • Part 14 - Consumer Protection in Sales of Insurance • Part 21 - Minimum Security Devices and Procedures, SAR and BSA Compliance Program • Part 22 - Loans in Areas Having Special Flood Hazards • Part 25 - Community Reinvestment Act (CRA) Compliance • Part 32 - Lending Limits • Part 34 - Real Estate Lending and Appraisals Lettera & Mosiello LLP

U. S. Department of the Treasury (Treasury) • FINCEN Compliance Tools • OFAC Compliance Tools • Part 1010 - General Provisions • Part 1020 - Rule For Banks Lettera & Mosiello LLP

RESPA/TILA • Loan Estimate must be delivered within 3 days after application has been made. • Closing Disclosure must be delivered to consumer 3 days prior to closing. • Applies To – • Most closed end consumer mortgage loans Does Not Apply To: – Home equity lines of credit – Reverse mortgages – Mortgage loans secured by a mobile home or by a dwelling that is not attached to real property – A creditor who makes five or fewer mortgages in a year – Cash or commercial loans – Certain no interest loans secured by subordinate liens made for purpose of down payments or similar home buyer assistance, property rehab, energy efficiency or foreclosure avoidance or prevention Lettera & Mosiello LLP

Definitions & Use Of Business Day § General – a day on which the creditor’s offices are open to the public for carrying on substantially all of its business functions § Specific- all days except Sundays and the legal public holidays specified in 5 U. S. C. 6103 (a), such as New Year’s Day, the Birthday of Martin Luther King, Jr. , Washington’s Birthday, Memorial Day, Independence Day, Labor Day, Columbus Day, Veterans Day, Thanksgiving Day and Christmas Day § § § When Do I Use the General Definition of Business Day? § To measure three business days from Application to provide original Loan Estimate § To measure three business days from an event to provide revised Loan Estimate When Do I Use the Specific Definition of Business Day? § To measure waiting periods to closing for delivery of closing disclosure § For mailing assumptions § Post-Consummation Escrow Disclosure Can a lender always use the Specific definition? § Yes Lettera & Mosiello LLP

Application ‘Application’ is defined by 6 elements: -Borrower Name -Property Address -Income -Estimated Value of Property -Social Security Number -Mortgage Loan Amount Lender may request additional information such as the Purchase Agreement, loan and property type to assist in preparation of Loan Disclosure, however, if items are not received, Creditor must still deliver loan estimate once they receive the 6 elements. Creditors may delay receiving the 6 th piece of information such as the SS# until they receive certain other information such as the loan type etc. , but once all 6 are received you must deliver the Loan Estimate within 3 business days. Creditors are limited to collecting only a fee necessary to obtain credit report until the consumer gives intent to proceed after receiving the loan estimate. Lettera & Mosiello LLP

Loan Estimate – Timing § Must be delivered or placed in mail within 3 business days of receiving consumer’s application for a loan § Creditor-based definition of ‘business day’ applies to timeframe to deliver or place in mail-same as current law. § Any day on which creditor’s offices are open to the public for conducting substantially all of its business functions. § Delivery in person-receipt upon delivery § Anything other than delivery in person—’mailing rule’ applies § Deemed receipt 3 business days after mailing or delivery by any other method, including electronic. § General definition of ‘business day’ applies. § Or may rely on proof of actual receipt. § If multiple applicants /consumers all must be shown on Loan Estimate, but delivery can be to just one § Loan Estimate also must be delivered or placed in mail at least 7 business days before consummation § Same as MDIA for TILA initial disclosures. § General definition of ‘business day’ applies. § Consumer may waive or modify waiting period based on a bona fide personal financial emergency. § Waiver or modification often not an issue as a practical matter, but if you are thinking about waiver or modification, forget about it! Lettera & Mosiello LLP

CLOSING DISCLOSURE § Closing Disclosure can be delivered in 3 ways § Hand Delivery – you know the consumer received the form the same day you delivered it § Mail – if no receipt of when consumer received the disclosure, a presumption exists that consumer received it 3 days after it was mailed § Email – if no evidence exists that the consumer received the email, the same presumption is made as if you mailed the disclosure, 3 business days-specific definition of ‘business day applies § The consumer must authorize the delivery of the Estimate and Disclosure via email § Receipt is only verified upon return email from the consumer, acknowledging receipt § Read receipts will not serve as verification of delivery § Consumer has to acknowledge they can receive and open attachments § E-sign laws apply Lettera & Mosiello LLP

Penalties and Liability § $5, 000 per day, per violation § $25, 000 per day for reckless violations § $1, 000 per day for knowing violations Lettera & Mosiello LLP

ADVERTISING AND MARKETING CFPB enforcement is geared towards eliminating (i) kick-back schemes, (ii)agreements that force consumers to choose services they can shop for, and (iii) illegal compensation that has been traditionally tied to higher interest rates Lettera & Mosiello LLP

REMAINING COMPLIANT • Apply print advertising rules to social media • Use disclosures when necessary • Clearly state your rates and terms • Make the equal housing logo easy to find • Make sure you always use your fully licensed name • Keep your NMLS# visible • Gain permission to quote someone • Know your state regulations • Don’t say “government loan program” unless the loan really is • Convey your message differently to avoid disclosures • Be aware of trigger words that require disclosures Lettera & Mosiello LLP

SAFE ACT • The legal name of the mortgage company • The NMLS ID of the company • Full, physical business address • The business phone number – the land-line is required. • The name of the originator as it appears on the NMLS website • The NMLS ID of the originator • The equal housing opportunity logo Lettera & Mosiello LLP

Types of Mortgage Fraud • Loan Originator Fraud • Reverse Mortgage Fraud • Short Sale/Preforeclosure Sale Fraud • Home Rehabilitation Fraud (203 K) • Good Neighbor Next Door Fraud • Down Payment Assistance Fraud • Equity Skimming/Foreclosure Rescue Lettera & Mosiello LLP

Don’t Do It Lettera & Mosiello LLP