Lending

Forvis Mazars can assess the adequacy of the bank’s established compliance management program and its regulation of technical performance with regulatory compliance matters. At the conclusion of the assessment, Forvis Mazars will be positioned to provide management with an objective perspective on compliance administration, help identify procedural weaknesses, and direct attention toward areas posing elevated risk of regulatory criticism or consumer litigation.

Our professionals assess transactions consummated since the institution’s most recent compliance examination. They employ a judgmental sampling process that involves randomly selecting individual files, verifying calculations for those transactions, and reviewing forms for accuracy and timeliness. If we identify a significant number of compliance deficiencies, we may recommend expanding the sample to determine the magnitude of violations.

Following a risk-based approach, we determine the scope and sample size based on several criteria including:

• The volume of loan activity
• New products introduced since the last regulatory exam
• Criticisms or violations identified during the bank’s last regulatory exam
• Discussions with the bank’s compliance officer

During this assessment, our professional will monitor the following laws and/or regulations, as applicable:

• Equal Credit Opportunity Act – Regulation B
• Home Mortgage Disclosure Act – Regulation C
• Fair Housing Act and Implementing Regulations
• Fair Credit Reporting Act/FACT Act – Regulation V
• Real Estate Settlement Procedures Act – Regulation X
• Flood Disaster Protection Act
• Truth-in-Lending Act – Regulation Z; with an emphasis on:
  • Closed-End Consumer Credit
  • HOEPA (Section 32) Mortgages
  • Construction Loan Disclosures
  • Higher Priced Mortgage Loans (Section 35)
  • Home Equity Lines of Credit
  • Right of Rescission
  • Adjustable Rate Mortgages
  • TRID requirements
• Unfair, Deceptive, or Abusive Acts or Credit Practices
• Secure and Fair Enforcement for Mortgage Licensing Act – SAFE Act
• Servicemembers Civil Relief Act
• Military Lending Act
• Homeownership Counseling Act
• Homeowners Protection Act of 1998
• Community Reinvestment Act (technical review)
• Advertising (including Websites/Social Media) for Loans
• Consumer Protection for Depository Institution Sales of Insurance

Forvis Mazars will provide a written statement regarding the adequacy of the overall compliance management program. Furthermore, we will assign grading for each law and/or regulation in the report based on the criticality of the compliance deficiency identified.