January 24, 2019 Course Updates – Summary of Changes

Regulations • Private Mortgage Insurance – 109 • CU - Private Mortgage Insurance – 17153 • Second Lien Real Estate Mortgage Loans - 117 • BOD - Community Reinvestment Act – 13440 • Community Reinvestment Act (CRA) for Small Institutions - 57 • Community Reinvestment Act (CRA) for Intermediate Small Institutions – 80 • Community Reinvestment Act (CRA) for Large Institutions - 4872 • Flood Insurance – 32 • CU - Flood Insurance – 16373 • BOD - Flood Insurance – 13408 • CU - BOD - Flood Insurance - 45899 • Commercial Compliance Overview – 29 • CU - Residential Mortgage A-B-C: Mortgage Regulations – 17156 • Residential Mortgage A-B-C - Mortgage Regulations - 49

Maintenance • Bank Secrecy Act for Operations – 97 • CU – Collection Practices and Loan Workouts – 19882 • Elder Financial Abuse – 66747 • CU - Elder Financial Abuse – 67323 • .CU - Elder Financial Abuse – 16357 • . Elder Financial Abuse – 92 • GM - Elder Financial Abuse – 97517 • Fair Debt Collection Practices Act (FDCPA) - 12 • CU - Fair Debt Collection Practices Act (FDCPA) – 17185 • FSC - Fair Debt Collection Practices Act - 13096 • Real Estate Settlement Procedures Act - Regulation X - 40019 • CU - Real Estate Settlement Procedures Act - Regulation X - 17197 • Federal Regulation of Real Estate Appraisals - 1899 • CU - Federal Regulation of Real Estate Appraisals - 17186 • Reserve Requirements - Regulation D – 45 • CU - Reserve Requirements - Regulation D – 23102 • DI - Sexual Harassment - 66745 • . DI - Sexual Harassment - 2151

January 2019 OnCourse Learning Course Updates • FSC - Sexual Harassment - 29978 • GM - DI - Sexual Harassment - 52966 • Truth in Lending Act - Regulation Z - 5442 • CU – Underwriting Home Mortgage 19951

Course Refresh Project • . DI - Sexual Harassment 2151 • DI - Sexual Harassment 66745 • Bank Secrecy Act for Operations 97 • . Electronic Funds Transfer Act - Regulation E 88 • BOD - Community Reinvestment Act13440 • CU - Reserve Requirements - Regulation D 23102 • Reserve Requirements: Regulation D 45 • CU - Collection Practices and Loan Workouts 19882 • Advertising Compliance 8 • CU - Advertising Compliance 16339 • CU - Fair Debt Collection Practices Act (FDCPA) 17185 • Fair Debt Collection Practices Act (FDCPA) 12 • FSC - Fair Debt Collection Practices Act 13096 • FSC - Sexual Harassment 29978 • CU - Federal Regulation of Real Estate Appraisals 17186 • DB - Federal Regulation of Real Estate Appraisals 48190 • Federal Regulation of Real Estate Appraisals 1899 • CU - Bank Secrecy Act for Deposit Operations Employees 19910 • GM Anti-Money Laundering (AML): Commission and Executive Board/Management Overview 34259 • A Borrower's Right to Privacy in a Mortgage Transaction 12271 • Accepting Negotiable Instruments 129 • Affiliate Transactions: Regulation W 4979 • Americans with Disabilities Act 45100 • AML for Lenders 858 • AML for Tellers 846 • Anti-Boycott 14 • Anti-Money Laundering 66739 • Anti-Tying 84 • Appraisal and Evaluation Interagency Guidelines 34814 • Bank Bribery Act 37 • Bank Broker/Dealer Exemptions: Regulation R 81 • Bank Secrecy Act for Deposit Operations Employees 49003 • Bank Secrecy Act for Tellers 66742 • BOD - AML for Directors and Senior Management 13 • BOD - Bank Secrecy Act for Directors and Senior Management 51

January 2019 OnCourse Learning Course Updates • BOD - Board Delegation of Operating Authority 45204 • BOD - Board's Role in Monitoring Performance 45207 • BOD - Compliance Management System 13289 • BOD - Elder Financial Abuse 13378 • BOD - Fair Lending Overview 13688 • BOD - Flood Insurance 13408 • BOD - Loans to Executive Officers: Regulation O 13496 • BOD - Preparing for a Compliance Examination 13290 • BOD - Security of Customer Information Guidelines 13562 • BOD - Strategic Planning for Financial Institutions 34843 • BOD - Unfair, Deceptive or Abusive Acts or Practices for the Financial Institution 13650 • Bomb Threats and Other Security Issues 164 • BSA CSRs - Is It Or Isn't It? 4462 • BSA for Front Lines: Connect The Dots 14465 • BSA for Front Lines: What Are Friends For? 14626 • BSA/AML for Trust 40 • Bureau of Consumer Financial Protection - BCFP 45105 • Cash Management Services 34815 • Change Management 45102 • CISA - 09 - Interactive Voice Response System 9115 • CISA - 11 - Media and Equipment 9121 • CISA - 19 - File Backup and Storage 9137 • Collection Practices and Loan Workouts 34819 • Commercial Compliance Overview 29 • Consumer Credit Lending Practices 34822 • Consumer Protection Through Accurate and Ethical Advertising 45138 • Countering Human Trafficking 84733 • CU - A Borrower's Right to Privacy in a Mortgage Transaction 45630 • CU - Accepting Negotiable Instruments 17203 • CU - Americans with Disabilities Act 45838 • CU - AML for Lenders 13830 • CU - AML for Tellers 13961 • CU - Analyzing Personal Financial Statements 16340 • CU - Appraisal and Evaluation Interagency Guidelines 19886 • CU - Bank Bribery Act 17205 • CU - Bank Secrecy Act 67363 • CU - Bank Secrecy Act for Lenders 67364 • CU - BOD - AML for Directors and Senior Management 16342 • CU - BOD - Bank Secrecy Act for Directors and Senior Management 16343

January 2019 OnCourse Learning Course Updates Regulations

Private Mortgage Insurance – 109

CU - Private Mortgage Insurance – 17153

Second Lien Real Estate Mortgage Loans – 117

The Federal Housing Finance Agency (FHFA) today announced the maximum conforming loan limits for mortgages to be acquired by Fannie Mae and Freddie Mac in 2019. In most of the U.S., the 2019 maximum conforming loan limit for one-unit properties will be $484,350, an increase from $453,100 in 2018.

The 2019 maximum conforming loan limit for one-unit properties will be $484,350, an increase from $453,100 in 2018. https://www.fhfa.gov/Media/PublicAffairs/Pages/FHFA-Announces-Maximum-Conforming-Loan-Limits- for-2019.aspx

January 2019 OnCourse Learning Course Updates BOD - Community Reinvestment Act – 13440

Community Reinvestment Act (CRA) for Small Institutions - 57

Community Reinvestment Act (CRA) for Intermediate Small Institutions – 80

Community Reinvestment Act (CRA) for Large Institutions - 4872

Beginning January 1, 2019, banks and savings associations that, as of December 31 of either of the prior two calendar years, had assets of less than $1.284 billion are small banks or small savings associations. Small banks and small savings associations with assets of at least $321 million as of December 31 of both of the prior two calendar years and less than $1.284 billion as of December 31 of either of the prior two calendar years are intermediate small banks or intermediate small savings associations. https://www.occ.gov/news-issuances/news-releases/2018/nr-ia-2018-139a.pdf

Flood Insurance – 32

CU - Flood Insurance – 16373

BOD - Flood Insurance – 13408

CU - BOD - Flood Insurance - 45899

On December 14, 2018, the OMB issued guidance to affected agencies on implementing the required annual adjustment, which included the relevant inflation multiplier.6 The OCC has applied that multiplier to the maximum CMPs allowable in 2018 for national banks and federal savings associations as listed in the 2018 CMP notice to calculate the maximum amount of CMPs that may be assessed by the OCC in 2019.7 There were no new statutory CMPs administered by the OCC during 2018

Per violation 2,187 for 2019, up from $2,133 for 2018 https://www.govinfo.gov/content/pkg/FR-2018-12-27/pdf/2018-27784.pdf

January 2019 OnCourse Learning Course Updates Commercial Compliance Overview – 29

Second Lien Real Estate Mortgage Loans – 117

CU - Residential Mortgage A-B-C: Mortgage Regulations – 17156

Residential Mortgage A-B-C - Mortgage Regulations – 49

The Bureau of Consumer Financial Protection (Bureau) is amending the official commentary that interprets the requirements of the Bureau’s Regulation C (Home Mortgage Disclosure) to reflect the asset-size exemption threshold for banks, savings associations, and credit unions based on the annual percentage change in the average of the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W). Based on the 2.6 percent increase in the average of the CPI-W for the 12-month period ending in November 2018, the exemption threshold is adjusted to increase to $46 million from $45 million. Therefore, banks, savings associations, and credit unions with assets of $46 million or less as of December 31, 2018, are exempt from collecting data in 2019.

Change of the asset-size exemption threshold for banks, savings associations, and credit unions from $45+L9 million to $46 million in assets as of December 31, 2018, regarding the collection of data in 2019. https://s3.amazonaws.com/files.consumerfinance.gov/f/documents/bcfp_final-rule_home-mortgage- disclosure-act_annual-adjustment_12-2018.pdf

January 2019 OnCourse Learning Course Updates Course Refresh Project The following courses have been reviewed and copy edited. This is an ongoing program to improve the flow of the courses, replace dated illustrations, charts, and timeliness of the text. In some cases, the reviews have been performed to coincide with regulatory updates or normal course maintenance.

• . DI - Sexual Harassment 2151 • DI - Sexual Harassment 66745 • Bank Secrecy Act for Operations 97 • . Electronic Funds Transfer Act - Regulation E 88 • BOD - Community Reinvestment Act13440 • CU - Reserve Requirements - Regulation D 23102 • Reserve Requirements: Regulation D 45 • CU - Collection Practices and Loan Workouts 19882 • Advertising Compliance 8 • CU - Advertising Compliance 16339 • CU - Fair Debt Collection Practices Act (FDCPA) 17185 • Fair Debt Collection Practices Act (FDCPA) 12 • FSC - Fair Debt Collection Practices Act 13096 • FSC - Sexual Harassment 29978 • CU - Federal Regulation of Real Estate Appraisals 17186 • DB - Federal Regulation of Real Estate Appraisals 48190 • Federal Regulation of Real Estate Appraisals 1899 • CU - Bank Secrecy Act for Deposit Operations Employees 19910 • GM Anti-Money Laundering (AML): Commission and Executive Board/Management Overview 34259 • A Borrower's Right to Privacy in a Mortgage Transaction 12271 • Accepting Negotiable Instruments 129 • Affiliate Transactions: Regulation W 4979 • Americans with Disabilities Act 45100 • AML for Lenders 858 • AML for Tellers 846 • Anti-Boycott 14 • Anti-Money Laundering 66739 • Anti-Tying 84 • Appraisal and Evaluation Interagency Guidelines 34814 • Bank Bribery Act 37 • Bank Broker/Dealer Exemptions: Regulation R 81 • Bank Secrecy Act for Deposit Operations Employees 49003 • Bank Secrecy Act for Tellers 66742 • BOD - AML for Directors and Senior Management 13 • BOD - Bank Secrecy Act for Directors and Senior Management 51 • BOD - Board Delegation of Operating Authority 45204

January 2019 OnCourse Learning Course Updates • BOD - Board's Role in Monitoring Performance 45207 • BOD - Compliance Management System 13289 • BOD - Elder Financial Abuse 13378 • BOD - Fair Lending Overview 13688 • BOD - Flood Insurance 13408 • BOD - Loans to Executive Officers: Regulation O 13496 • BOD - Preparing for a Compliance Examination 13290 • BOD - Security of Customer Information Guidelines 13562 • BOD - Strategic Planning for Financial Institutions 34843 • BOD - Unfair, Deceptive or Abusive Acts or Practices for the Financial Institution 13650 • Bomb Threats and Other Security Issues 164 • BSA CSRs - Is It Or Isn't It? 4462 • BSA for Front Lines: Connect The Dots 14465 • BSA for Front Lines: What Are Friends For? 14626 • BSA/AML for Trust 40 • Bureau of Consumer Financial Protection - BCFP 45105 • Cash Management Services 34815 • Change Management 45102 • CISA - 09 - Interactive Voice Response System 9115 • CISA - 11 - Media and Equipment 9121 • CISA - 19 - File Backup and Storage 9137 • Collection Practices and Loan Workouts 34819 • Commercial Compliance Overview 29 • Consumer Credit Lending Practices 34822 • Consumer Protection Through Accurate and Ethical Advertising 45138 • Countering Human Trafficking 84733 • CU - A Borrower's Right to Privacy in a Mortgage Transaction 45630 • CU - Accepting Negotiable Instruments 17203 • CU - Americans with Disabilities Act 45838 • CU - AML for Lenders 13830 • CU - AML for Tellers 13961 • CU - Analyzing Personal Financial Statements 16340 • CU - Appraisal and Evaluation Interagency Guidelines 19886 • CU - Bank Bribery Act 17205 • CU - Bank Secrecy Act 67363 • CU - Bank Secrecy Act for Lenders 67364 • CU - BOD - AML for Directors and Senior Management 16342 • CU - BOD - Bank Secrecy Act for Directors and Senior Management 16343

January 2019 OnCourse Learning Course Updates Bank Secrecy Act for Operations – 97

Q41 - Test question had wrong subsection provided as the correct answer in the feedback.

The correct answer is 314a instead of 314b.

CU – Collection Practices and Loan Workouts – 19882

Overall course challenge/P1

Older flash activity was replaced with Artisan question template questions. The deletion needed to be reset.

Elder Financial Abuse – 66747

CU - Elder Financial Abuse – 67323

.CU - Elder Financial Abuse – 16357

. Elder Financial Abuse – 92

GM - Elder Financial Abuse – 97517

Elder Financial Abuse Basics/ Perpetrators/p5

Activity needed to have a text edit. Captivate file updated and new Asset replaced it.

January 2019 OnCourse Learning Course Updates

Fair Debt Collection Practices Act (FDCPA) - 12

CU - Fair Debt Collection Practices Act (FDCPA) – 17185

FSC - Fair Debt Collection Practices Act - 13096

Q21 – question has an age of a minor that is conflicting with normal contract age of 18.

Old question read: Denise the debt collector is permitted to discuss the debt with the 16-year-old consumer's mother.

Correct answer was True.

Changed to read: Denise, a debt collector, is permitted to discuss the debt with a parent of a 21-year- old person with an outstanding debt.

Correct answer is False.

January 2019 OnCourse Learning Course Updates FDCPA Basics/What is the FDCPA?/p3

Table has an example with minor age that is confusing. Deleted highlight:

Examples of consumers include: The following are NOT considered consumers: • The spouse of a credit card holder who • A corporation that owes for owes a debt outstanding rent • The person who owes the outstanding • A parent of a 22-year-old person with account an outstanding debt • The parent of a 15-year-old person • A distant relative of the consumer with an outstanding debt contacted by a collector in an attempt • A person who owes a debt and lives in to obtain location information Europe, so long as the call originates • A plumber who, as a sole proprietor, from or comes into the United States purchased kitchen pipes and used • A plumber who, as a sole proprietor, those pipes in his business purchased kitchen pipes and put the pipes in his own residence • The administrator of an individual's probate estate • A person inadvertently contacted by a debt collector and asked to pay a debt

Real Estate Settlement Procedures Act - Regulation X - 40019

CU - Real Estate Settlement Procedures Act - Regulation X - 17197

Q32 - reported by customer to be confusing. Changed to read:

The Your Home Loan Toolkit contains which of the following information:

A. Amortization schedule, shopping with several lenders, escrow information B. Choosing the right down payment, understanding credit/credit scores, specific fees related to the loan C. Choosing the type of mortgage, escrow information, reviewing the loan estimate D. Understanding trade-off between points and interest rates, closing the mortgage, shopping with several lenders E. None of the above

F. Correct answer is D - Understanding trade-off between points and interest rates, closing the mortgage, shopping with several lenders

January 2019 OnCourse Learning Course Updates Federal Regulation of Real Estate Appraisals - 1899

CU - Federal Regulation of Real Estate Appraisals - 17186

Transaction Value below Threshold

Threshold points:

1. The appraisal threshold for any transaction secured by a single 1-to-4 family residential property, including a loan for construction or construction-permanent, is $250,000. 2. The new loan amount threshold level that triggers the requirement for an appraisal for commercial real estate transactions is $500,000 (an increase from $250,000) for banks and savings associations.

The definition of “commercial real estate transaction” has changed to: “a Real Estate-related financial transaction that is NOT secured by a single 1-4 family residential property”.

"Transaction value," in the case of a loan or other extension of credit, is defined as the amount of the loan or extension of credit – rather than the appraised value of the real estate.

The appraisal exemptions based on the above transaction value thresholds apply regardless of who the borrower is or the purpose of the loan. All transactions that fall under the thresholds continue to be subject to the requirements for Evaluations. The Commentary for the new Rule states that “the agencies have found that evaluations can be an effective valuation method for lower-risk transactions”.

Note: The $500,000 exemption for real estate loans secured by a commercial real estate went into effect on April 9, 2018, after comments received in response to a notice of proposed rulemaking amending the appraisal regulations from July 2017 were processed. The NCUA did not adopt the change for credit unions.

Remember: The appraisal threshold for residential construction loans secured by multiple 1-4 residential properties is $500,000 because these are now considered to be Commercial Real Estate Transactions.

There are exemptions to the HPML appraisal requirements:

• Qualified mortgages (QMs) • Mortgage loans of $26,700 or less (as of January 1, 2019, and subject to annual adjustment) • Loans with a maturity of 12 months or less if the purpose is a “bridge” loan (temporary financing” • Reverse mortgages

January 2019 OnCourse Learning Course Updates Reserve Requirements - Regulation D – 45

CU - Reserve Requirements - Regulation D – 23102

Q19

Old Question read:

A time deposit is any:

a) Savings account b) Deposit account in place for a minimum time period c) Deposit with a set maturity of at least seven days d) Deposit with a set maturity of at least one year

The correct answer is "Deposit with a set maturity of at least seven days."

Changed to:

Time deposit accounts are divided into which of the following categories:

a. Transaction accounts, club accounts, savings deposit accounts b. Only club accounts c. Only accounts that mature or are payable on a specific date or after a specific period of time d. Club accounts, savings deposit accounts, accounts that mature or are payable on a specific date or after a specific period of time e. None of the above

Correct Answer: D

January 2019 OnCourse Learning Course Updates DI - Sexual Harassment - 66745

. DI - Sexual Harassment - 2151

FSC - Sexual Harassment - 29978

GM - DI - Sexual Harassment - 52966

Harassment Basics/What is Sexual Harassment/p1

Feedback to make obvious that the example from California was just an illustration. It is useful to California customers, but does not apply to other states.

Sexual harassment is any verbal, physical, or visual conduct that is usually of a sexual nature that makes someone feel uncomfortable or unwelcome in the workplace.

The definition may vary based upon your state. For example, under California law, sexual harassment also includes harassment based on sex, gender, gender identity, gender expression, or sexual orientation.

The California Fair Employment and Housing Council defines “gender,” “gender identity,” and “gender expression” as follows. Check with your institution’s HR office for your state’s terms,

January 2019 OnCourse Learning Course Updates Truth in Lending Act - Regulation Z - 5442

Q26 update to question text did not save in Post test.

Question reads: All of the following would be included in the finance charge EXCEPT:

A Interest B Taxes C Points D Insurance required by the lender

Correct answer is B – Taxes.

CU – Underwriting Home Mortgage 19951

Chapter 3/Summary

Link to a reference was dead. The referenced site was closed as the organization no longer exists. The links in the screen below have been verified.

January 2019 OnCourse Learning Course Updates