New and Revised Policy Templates for September 2015
This new product was developed in response to the OCC’s Bulletin 2015-36 entitled “Tax Refund Related Products” dated 08/04/15 that provides guidance to outline safety and soundness measures that banks should follow if they offer tax refund related products. Those measures include:
- Ensuring that the bank’s board of directors maintains sound risk management policies, procedures, and practices to oversee all tax refund-related products.
- Implementing effective internal controls and review standards for advertising and solicitations.
- Providing appropriate disclosures that explain material aspects of the products to consumers.
- Implementing appropriate due diligence and adequate procedures to ensure that tax refund-related products provided by third parties comply with applicable guidance.
- Ensuring that Bank Secrecy Act (BSA) compliance risk management systems cover tax refund-related products.
- Providing training programs (including certification processes) that address regulatory requirements, internal policies and procedures, and responsibilities for maintaining an effective compliance program.
- Maintaining adequate capital and liquidity levels.
- Developing timely and accurate management information systems (MIS) for tax refund-related products.
- Ensuring the bank’s compliance with all applicable laws and regulations, including those involving consumer protection.
The update to this product is in response to the CFPB’s Bulletin 2015-03 entitled “Private Mortgage Insurance Cancelation and Termination” dated 08/04/15 that provides guidance to assist residential mortgage servicers and subservicers in their compliance with the private mortgage insurance (PMI) cancellation and termination provisions of the Homeowners Protection Act of 1998 (HPA). This compliance bulletin explains HPA requirements and describes examples from CFPB’s supervisory experience of PMI cancellation and termination procedures that violate the HPA or create a substantial risk of noncompliance.