FFIEC – Federal Computational Tools

On April 16, 2020, the Federal Financial Institutions Examination Council (FFIEC), on behalf of its member agencies, announced the availability of FFIEC Federal Disclosure Computational Tools, including the Annual Percentage Rate (APR) Computational Tool and the Annual Percentage Yield (APY) Computational Tool. The FFIEC member agencies collaborated to develop the Federal Disclosure Computational Tools, which will assist financial institutions in their efforts to comply with the consumer protection laws and regulations.

These tools replace the previous tools provided by the Comptroller of the Currency (OCC) – APRWIN and APYWIN.

The APR Computational Tool is designed to streamline the process by which examiners and financial institutions can verify finance charges and annual percentage rates included on consumer loan disclosures subject to the Truth-in-Lending Act and its implementing regulation, Regulation Z. This web-based tool supports the verification of disclosed APR calculations related to unsecured and secured installment and construction loans, including real estate secured loans. The APR Computational Tool also supports verification of compliance with the Military Annual Percentage Rate (MAPR) limits under the Military Lending Act.

The APY Computational Tool supports verification of APYs on consumer deposit account disclosures subject to the Truth-in-Savings Act, including advertisements and periodic statements.

The computational tools are available at: https://www.ffiec. gov/calculators.htm.

Federal Reserve – FraudClassifier Model

On June 18, 2020, the Federal Reserve announced the FraudClassifier model – a set of tools and materials to help provide a consistent way to classify and better understand the magnitude of fraudulent activity and how it occurs across the payments industry. The FraudClassifier can help address the industry-wide challenge of inconsistent classifications for fraud involving ACH, wire, or check payments. The key advantage of the Fraud-Classifier model is the ability for organizations to use it to classify fraud independently of payment type, payment channel or other payment characteristics. The model presents a series of questions, beginning with who initiated the payment to differentiate payments initiated by authorized or unauthorized parties. Each of the classifications is supported by definitions that allow for consistent application of theFraudClassifier model across the industry.

The Fraud Definitions Work Group also developed and recommended an industry adoption roadmap, which outlines a strategy and potential steps to encourage voluntary industrywide use of the FraudClassifier model.

The press release is available at: https://www.federalreserve. gov/newsevents/pressreleases/ other20200618a.htm.

Institutions can learn more and sign up for access to educational resources and support tools for the model by visiting FedPaymentsImprovement.org.

CFPB – Elder Fraud Tool

On June 10, 2020, the Consumer Financial Protection Bureau (CFPB) released an online resource to help communities form networks to increase their capacity to prevent and respond to elder financial abuse. The Elder Fraud Prevention and Response Networks Development Guide (Networks Development Guide) offers planning tools, templates, and exercises to help communities create a collaborative network to fight elder fraud or refresh or expand an existing network.

The Networks Development Guide is an online tool that includes a meeting model on how to set up a retreat and training event to rally stakeholders and community leaders. The guide also provides resources for reconvening after the retreat to help community leaders take further action to expand network capabilities.

The guide is available at: www. consumerfinance.gov/eldernet- works.

InCompliance Quarterly Newsletter-Subscribe Here