Maryland Legal Alert for Financial Services
Maryland Legal Alert July 2012
• 2012 MARYLAND LAWS UPDATE
• BSA/AML FOR RESIDENTIAL MORTGAGE LOAN ORIGINATORS: IT’S TIME TO COMPLY
• WORKSHOP (AUGUST 2, 2012) AND MATERIALS FOR BSA/AML COMPLIANCE
• LENDING LIMIT RULE CHANGES FOR BANKS
Our 2012 Maryland Laws Update for the financial services industry is now published and available for your enjoyment! Several important new laws and restrictions were adopted affecting Maryland financial services providers. If you have questions about any new laws and our lobbying efforts in connection with these laws, or would like us to mail you a hard copy of the update, please contact John Morton or any member of our Financial Services Group.
BSA/AML FOR RESIDENTIAL MORTGAGE LOAN ORIGINATORS: IT’S TIME TO COMPLY
As reported in our Maryland Legal Alert March 2012Maryland Legal Alert March 2012, every non-bank residential mortgage loan originator (RMLO) must have a written Anti-Money Laundering (AML) Program and be prepared to file suspicious activity reports by August 13, 2012. Federal regulations describing these requirements are found in the February 14, 2012 Federal Register. In brief, every RMLO needs a written AML program designed to prevent the business from being used to facilitate mortgage fraud, money laundering, and the financing of terrorist activities. The program needs to be tailored to fit the company’s own size, needs, and operational risks. An individual must be designated to ensure compliance with the program and staff needs to be trained to comply with the program and to identify and report “suspicious activities.” Independent monitoring for compliance is required. Maryland’s Commissioner of Financial Regulation reminded Maryland Mortgage Lender licensees of these new obligations in its most recent Mortgage Licensing Update (Issue 39, dated July 2, 2012). This suggests that Maryland examiners may be looking for compliance by Maryland Mortgage Lender licensees. (Note: These RMLO obligations do NOT apply directly to individual employees of a mortgage company.) Please see the information below about our August 2, 2012 Workshop or contact Margie Corwin directly if you have questions or would like assistance in developing policies and procedures by the August 13, 2012 deadline.
WORKSHOP (AUGUST 2, 2012) AND MATERIALS FOR BSA/AML COMPLIANCE
As described above, beginning August 13, 2012 every non-bank residential mortgage loan originator must develop a written AML program and be prepared to report “suspicious activities.” On August 2, 2012, we are offering a workshop for RMLOs. We will explain the new requirements, facilitate a roundtable discussion on how to comply, and assist in developing a unique written program for your business. Materials provided at the workshop will include a sample written Anti-Money Laundering Program. Click here for the draft Table of Contents for the workshop materials. The workshop costs $300 and will be held in our offices in Baltimore. Space is limited. Please contact Debbie Henry to register for the workshop. If you cannot attend the workshop, the materials will be available for purchase at a cost of $325. Please contact Margie Corwin if you cannot attend the workshop but would like to purchase the materials.
LENDING LIMIT RULE CHANGES FOR BANKS
The Office of the Comptroller of the Currency (OCC) has amended its lending limit rule on an interim basis to include credit exposures arising from derivative transactions and securities financing transactions. Securities financing transactions include repurchase agreements and reverse repurchase agreements so, when fully implemented, the rule will apply broadly. The regulatory burden will be reduced for community and mid-sized institutions because securities financing transactions involving certain government securities, including Type 1 securities, are excepted from lending limit credit exposures. This rule also consolidates the lending limits rules for national banks and federal and state savings associations, but preserves certain statutory exceptions that are unique to savings associations. Several options are provided for measuring credit exposures. The rule is effective on July 21, 2012, but includes a temporary exception for extensions of credit arising from derivative transactions or securities financing transactions until January 1, 2013. If you have any questions about how this rule may affect your institution, please contact Carla Witzel.