FinCEN Publishes Final Rules Regarding Anti-Money Laundering Program and Suspicious Activity Reports for Non-Bank Residential Mortgage Lenders and Originators
The Financial Crimes Enforcement Network (“FinCEN”) issued final rules requiring non-bank residential mortgage lenders and originators to develop anti-money laundering programs and report suspicious activities under the Bank Secrecy Act. The final rules are effective April 16, 2012. Compliance with the new rules is required August 13, 2012.
Under the final rules, each loan or finance company must develop and implement a written anti-money laundering program reasonably designed to prevent the loan or finance company from being used to facilitate money laundering or the financing of terrorist activities.
The final rules also provide that every loan or finance company shall file with FinCEN a report of any suspicious transaction relevant to a possible violation of a law or regulation. A loan or finance company may also file a report with FinCEN of any suspicious transaction that it believes is relevant to the possible violation of any law or regulation for which a report is not required.
U.S. Court Approves Multi-Billion Dollar Settlement with the Nation’s Five Largest Mortgage Servicers
The U.S. District Court for the District of Columbia has approved the consent judgments in connection with the $25 billion settlement against the country’s five largest mortgage servicers. The settlements, which involved the U.S. Department of Justice, HUD, and Attorneys General of 49 states, address issues concerning servicing and foreclosure practices.
Consumer Financial Protection Bureau Announces Plans to Propose Rules Regulating Mortgage Servicing Practices
The Consumer Financial Protection Bureau has announced plans to propose rules regulating mortgage servicing practices to make monthly mortgage payments more clear, require disclosures regarding interest rate adjustments and disclosures regarding force-placed insurance.