2015 LBA Compliance School

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Who Should Attend

Compliance Officers and Managers, Consumer Lenders,

Residential Real Estate Lenders, Personal and Retail Bankers,

Operations Officers, Legal Counsel, Auditors and Cashiers

2015 LBA Compliance

School

January 26-30, 2015

Hilton Baton Rouge Capitol Center

5555 Bankers Avenue, Baton Rouge, LA 70808 / Phone: (225) 387-3282 / Fax: (225) 343-3159

www.lba.org

Presented by:

Thomas Compliance Associates, Inc.

This week-long school covers the essential technical aspects of all

major compliance regulations. The school includes five programs.

Attend all five programs, or the individual programs of your choice.

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Program 1: Credit Compliance Part I

Monday January 26, 2015

8:30 a.m. – 4:30 p.m.

Member Fee: $225; Non-Member Fee: $425

Consumer loan product regulations are more complex and detailed than ever – and more significant changes became effective January 2014. With greater scrutiny comes higher risk of noncompliance and the likelihood of enforcement action and/or civil money penalties. This program offers a comprehensive discussion of consumer compliance regula-tions and effective assessment methods. Lenders and compliance officers will be better prepared to effectively audit, train and manage the bank’s compliance lending requirements. You’ll meet the pressing demands of lending compli-ance with new tools, skills and insights learned to take action in controlling lending risks.

Reg B: Equal Credit Opportunity Act

• Equal treatment and fair lending considerations

• Application stages: inquiries, incompletes, withdrawals, denials, and approvals • Adverse action rules and business loan denial options

• Collection of government monitoring information

• Prohibitions against certain requests (e.g., spousal inquiries)

• New requirements for providing copies of appraisals and evaluations

Fair Credit Reporting Act

• Credit report access prohibitions • Access to credit scores by consumers • Fraud/Active duty alerts

• FACTA lending notices

National Flood Act

• Biggert-Waters Flood Insurance Reform Act changes • Homeowner Flood Insurance Affordability Act • Covered transactions

• What is a pattern and practice of violations • When to pull flood determinations • New escrow rules for flood loans

• Furnishing flood notices and force placing insurance • Determining insurable value

• Determining condo coverage • Flood coverage rules and myths

• What examiners look for in a flood exam

Reg Z: Truth in Lending Act

• Reg Z coverage and disclosure rules

• Review the differences in TILs for mortgage and consumer lending • Disclosures required for a mortgage loan TIL

• Determining when early TIL errors affect the closing date • Calculating prepaid finance charges

• APR disclosure rules • Requirements for HPMLs

• Right of rescission rules and pitfalls

At the conclusion of this program, participants should be able to:

• Differentiate between an application and an inquiry for disclosure purposes, describe the eight stages of an application and identify the latest fair lending issues;

• Understand key regulatory provisions of lending rules such as furnishing adverse action notices, right of rescission and new FACTA disclosure requirements;

• Calculate flood insurance coverage for residential, commercial and condos using replacement cost value rules; and • Identify finance and prepaid charges, calculations, APR tolerances and payment streams on the Truth in Lending

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Program 2: Credit Compliance Part II

Tuesday January 27, 2015

8:00 a.m. – 4:30 p.m.

This program focuses on the additional regulatory requirements for mortgage lending – the most complex of all con-sumer loans. Current information is essential for managing an effective compliance program.

Regulation Z, Continued

• Ability-to-Repay Rule Requirements • Definition of a Qualified Mortgage

• Exempt QM lending provisions for certain lenders • Small Creditor Portfolio Qualified Mortgages • Temporary Exemption Agency/GSE QMs • Balloon Payment QMs

• Temporary Balloon Payment QMs • Safe Harbor for QMs

• Rebuttable presumption for HPML QMs

• New calculation thresholds for HOEPA (Section 32) Loans

Reg X: Real Estate Settlement Procedures Act (RESPA)

• Preparing good faith estimates and HUDs • Identifying “kick back” violations

• Learning how to disclose “no cost” loans

• Applying the right tolerance thresholds to loan charges • Curing charges that exceed tolerances

• Calculating escrow amounts on initial and ongoing disclosures

Reg C: Home Mortgage Disclosure Act (HMDA)

• Who must report

• Identifying what and when to report

• Capturing government monitoring information

• Identifying what loans are subject to rate spread reporting • Calculating rate spreads

• Setting HMDA audit sampling sizes • Discussing common violations

At the conclusion of this program, participants should be able to:

• Describe the new Ability-to-Repay and QM rules • Understand the QM exemption rules

• Prepare a Good Faith Estimate and HUD Settlement Statement according to RESPA and non-compliance curing errors • Prepare “no cost and paid outside of closing charges” plus testing for HUD tolerance exceptions

• Recognize when kickback provisions expose the bank to penalties, calculate the initial escrow statement and perform an ongoing annual accounting adjustment when there is a funding surplus, shortage or deficit

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Program 3: Compliance Management and Administration

Wednesday January 28, 2015

8:00 a.m. – 4:30 p.m.

As the complexity and pervasiveness of regulatory compliance increases, so does the importance of a structured compliance program. This program introduces a comprehensive compliance program that will satisfy regulators, mitigate regulatory risk and meet institutional goals.

Consumer Complaints

 Formal response to written (includes e-mail)  Direct from consumers

 Through regulatory agencies

 Through Better Business Bureau or other sources

 Responding to verbal complaints

 Tracking complaints (including verbal) to identify:  Inconsistencies

 Possible UDAAP issues  Possible fair lending issues

Preparing for Examination

 Planning ahead  Being prepared

 Controlling the examiner interview process  Handling exceptions

 Participating in the “wrap up” meeting  Potential penalties

Regulators’ Forum

• Representatives of the banking regulators will discuss current challenges, trends and findings, and answer questions from participants.

Regulatory Process

 Laws/regulations and bank’s involvement in the process

 Current regulatory trends

Compliance Management Systems

 Board and management oversight  Comprehensive program

 Policies and procedures  Risk assessment  Change control

 Maintaining compliance competence  Vendor management (from the compliance officer’s perspective)

 Corrective action

Audit/Review

 Monitoring

 Identifying activities that need to be periodically monitored

 Identifying how often monitoring should occur  Reporting monitoring findings

 Tracking identified issues  Independent Reviews

 Identifying areas, rules, or activities  Determining frequency

 Process review, transaction testing, or both  Oversight

At the conclusion of this program, participants should be able to:

• Understand alternative ways to develop risk-based compliance management systems • Develop and implement a comprehensive program

• Assess compliance risks for your bank

• Understand the keys to working with regulators and your bank’s senior management • Present a compliance program that demonstrates your competence and value

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Program 4: Deposit Compliance Part I

Thursday January 29, 2015

8:00 a.m. – 4:30 p.m.

Consumer deposit products, services and delivery methods have changed dramatically due to the Dodd-Frank Act. Regula-tory amendments and new interpretations have created an extremely complex deposit environment. This program pro-vides a comprehensive discussion on critical deposit account rules and discusses the implications of UDAAP and the sub-jectivity of enforcement. Compliance officers and personal bankers will be better prepared to identify solutions in the de-posit account front-line sales and operations areas.

Reg Q: Interest on Demand Deposits

• What’s left

• What are the premium rules

• Interest-bearing DDA vs. NOW accounts – they’re not quite the same

Reg D: NOW Eligibility and Savings/MMDA Limits

• Rules post-Reg Q • What changed

• Regulatory minimum and your bank’s early withdrawal penalty • Tracking transaction activity rules

• What are the reserve requirement rules; how do they impact compliance

Reg E: Electronic Funds Transfer Act

• Disclosures and notices • Resolving error claims • Electronic check conversion • Customer education

• Remote deposit capture • Mobile banking

• Foreign remittance rules

• Examination trends and frequent findings

Reg CC: Expedited Funds Availability Act

• Disclosures and notices • What’s new

• Implications of item posting order • Common hold notice errors • Check 21

Reg P: Privacy and Information Sharing “Opt Outs”

• Reg P rules

• New model form (01/01/11) • Connection with FCRA sharing • Do not market/Do not solicit policies

Fair Credit Reporting Act/ID Theft “Red Flags”

• Address discrepancies • Credit report alerts • Other “red flags” • Affiliate marketing • Annual report

At the conclusion of this program, participants should be able to:

• Identify the information that must be disclosed to deposit account customers • Recognize compliance solutions that can enhance sales and operations processes • Identify and correct deficiencies that might exist in deposit account disclosures; and • Understand deposit regulations with an eye toward UDAAP

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Program 5: Deposit Compliance Part II and BSA/AML Compliance

Friday January 30, 2015

8:00 a.m. – 3:30 p.m.

This program examines legal and regulatory requirements in several key areas that impact customer relationships throughout the bank. Emphasis is placed on recent changes, evolving BSA/AML developments, and the need to establish comprehensive programs bank-wide.

Reg DD: Truth in Savings Accounts (TISA)

• Disclosures and notices

• Unfair, Deceptive, or Abusive Acts or Practices (UDAAP)

• The higher-risk parts of the rules (e.g., inconsistent terminology, products/terms changes) • Advertising compliance

• Common disclosure errors

BSA, AML and USA Patriot Act

• Program components/pillars • Technical requirements • Completing CTRs • CTR exemptions

• Enterprise-wide risk assessment

• Customer due diligence and enhanced due diligence • Suspicious activity monitoring

• 314(a) searches

• 314(b) registration and advantages

• Core and Expanded Examination Procedures • Current trends/schemes

• Recent exam findings

• Applying lessons learned from enforcement actions

At the conclusion of this program, participants should be able to:

• Understand Truth in Savings (Reg DD) rules

• Understand latest enforcement trends for TISA/Reg DD including UDAAP • Establish a comprehensive BSA/AML program

• Demonstrate knowledge of the details and bank-wide impact of selected rules

Hotel Information

201 Lafayette Street

Baton Rouge, LA 70801

(225) 344-5866

To ensure the LBA group rate of

$149+tax per night,

please call 800-955-6962 and identify that you’re

booking with the Louisiana Bankers Association Compliance School room block or book online at

http://www.hilton.com/en/hi/groups/personalized/B/BTRCPHF-LBA-20150122/index.jhtml?WT.mc_id=POG

Sleeping room reservations must be made by

January 11, 2015

at 5:00pm or until the block of rooms

for LBA is filled, whichever is sooner.

*Please note: Louisiana Bankers Association has made arrangements with the Hilton Baton Rouge Capitol Center to cover all valet parking charges at the hotel for school attendees.

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School Instructors

TCA, the Thomas Compliance Associates, lnc., was born in 1991 when founder Tom Thomas became one of the first in banking to understand that banks needed access to high quality, affordable

compliance support if they were to cope with what today has become a torrent of new compliance requirements. Mr. Thomas created a bank compliance company that now is in its second generation of

leadership...serves nearly 300 banks nationwide...has a professional staff of 20 bank compliance experts...and has developed a business solutions approach to regulatory compliance.

Visit TCA at http://www.tcaregs.com/

James F. Dray, CRCM, President

Bank veteran Jim Dray brings a solid operations and compliance background to TCA clients. His compliance experience includes hands-on management at both community banks and large bank holding companies. Mr. Dray is a Certified Regulatory Compliance Manager (CRCM) with a diverse background in compliance risk management. Mr. Dray began his banking career at Aurora National Bank in 1983, progressing through the ranks to manage operations and compliance. Like many bankers whose talent is spotted early and who are targeted for management positions, his first job was as a teller at the bank; he later became operations manager. When Aurora National became part of GreatBanc, Inc., a bank holding company, Mr. Dray assisted in managing the compliance function for all four banks in the holding company. Mr. Dray also managed operations and compliance for Premier Bank in Wilmette and headed retail banking for Pan American Bank. Mr. Dray’s nearly 30 years of bank operations and compliance experience have helped to uniquely qualify him as a compliance professional. Mr. Dray is a BSA/AML specialist, and has conducted over 150 independent reviews for TCA member Banks. He is a regular speaker for the Illinois Bankers Association compliance school, where he teaches the BSA/AML portion of the school. Mr. Dray is a featured speaker for TCA, having presented topics to the Illinois Bankers Asso-ciation and the Chicago chapter of the Anti-money Laundering AssoAsso-ciation (AMLA). Mr. Dray joined TCA, Thomas Compliance Associates, Inc., in 2002. He was named Director of Audits and Education in mid-2006, Director of Client Services in 2007, and President of TCA in August 2009. Mr. Dray holds a Certified Regulatory Compliance Manager designation from the institute of Cer-tified Bankers.

Brian J. Crow, Compliance Associate

Brian Crow is a nationally recognized BSA/AML expert with a strong bank compliance management background and a welcome ability to provide focused educational support to TCA client banks. Mr. Crow most recently was BSA Administrator for a suburban Chicago bank, where his responsibilities included the bank’s annual assessment and audit documentation. Earlier, as Operations Of-ficer at the same bank, Mr. Crow monitored AML activity and helped install automated AML software that allowed the bank to tran-sition from paper to electronic CTRs. His activities were responsible for reducing debit card fraud by 95 percent at the bank. Mr. Crow has been, and continues to be, an education consultant for the Glia Group BOL Learning Connect program, conducting webi-nars that have covered VISA/MasterCard chargebacks, debit card compliance and fraud prevention for hundreds of banks. It was in this role that Mr. Crow was recognized as a Bankers Online Guru in 2011. Although he is qualified to provide compliance support covering a number of bank regulatory issues, Mr. Crow’s primary role at TCA will be as part of our BSA Compliance Team, a cadre of compliance professionals with specialized BSA/AML knowledge and experience. Like many of us, Mr. Crow began his banking career as a teller, working his way up to head teller and then branch management responsibilities. He earned a B.A. degree from Con-cordia University, River Forest, Illinois.

Tina Blankenship, CRCM, Vice President, Director of East Coast Operations

An experienced bank compliance officer with CRCM (Certified Regulatory Compliance Manager) credentials and relevant electronic payments experience outside banking, Tina Blankenship has primary responsibility for enhancing relationships with TCA’s East Coast client banks and adding to the company’s Eastern presence. She is based in TCA’s Sykesville, MD regional office. Immediately prior to joining TCA in July 2014, Ms. Blankenship provided compliance support to PayPal Credit, a buy-now-pay-later part of Pay-Pal, the online payment system that itself is a unit of eBay, Inc., the online auction and shopping service. Ms. Blankenship had been senior vice president of operations at Carroll Community Bank, Sykesville, where she was responsible for managing and coordinating the many aspects of compliance, BSA, bank security, information security, deposit operations, and human resources. Earlier in her career, Ms. Blankenship was a regulatory compliance specialist at Columbia Bank, Securityplus Federal Credit Union and Integrated Compliance Solutions. Ms. Blankenship is an active supporter of the Maryland Bankers Association, where she is a member of the Regulatory Affairs Committee.

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Cancellation Policy:

Due to facility commitments, cancellations must be received by close of business January 20, 2015. Cancellations received after January 20, 2015 will be charged a $100 cancellation fee per program cancelled. Substitutions are welcome at no additional charge.

Payment Options

□

Check (Made payable to the Louisiana Bankers Association)

□

V

isa

□

Ma

sterCard

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American Express

Card # ____________________________________ Expiration Date ______________________________________________ Amount to be charged on card $______________________________________________________________________________ Name on Card (Please Print) ________________________________________________________________________________ Billing Address___________________________________________________________________________________________ Signature _______________________________________________________________________________________________

Submit registration and view roster in the Education Section of LBA’s Website, www.lba.org

Registration Information

(For multiple registrations, please make copies)

Name

Email Address

Mr./Mrs./Ms. __________________________________________________________________________________________ Bank _________________________________________________________________________________________________ Street Address __________________________________________________________________________________________ City/State/Zip _________________________________________________________________________________________ Phone ____________________________________________ Fax ______________________________________________

2015 LBA Compliance School

January 26-30, 2015

Please choose the programs you would like to attend:

Program 1: Credit Compliance Part I

Monday January 26, 2015 8:30am-4:30pm

Member Fee: $225 Non-Member Fee: $425

Program 2: Credit Compliance Part II

Tuesday January 27, 2015 8:00am-4:30pm

Program 3: Compliance Management & Administration

Wednesday January 28, 2015 8:00am-4:30pm

Program 4: Deposit Compliance Part I

Thursday January 29, 2015 8:00am-4:30pm

Program 5: Deposit Compliance Part II & BSA/AML Compliance

Friday January 30, 2015 8:00am-3:30pm Member Fee: $225 Non-Member Fee: $425

5555 BANKERS AVE | BATON ROUGE, LA 70808 | PHONE: (225) 387-3282 | FAX: (225) 343-3159

Total Fee Due: $_________________

□ This training will be covered under SBET (Small Business Employee Training Program). Please provide an email address on the line below to

receive the necessary documentation for reimbursement: ________________________________________