ABA
Bank
Compliance
CONTENTS
FEATURES
8
Volume 30, No. 3
All-In: Internet Gambling Enforcement
BY MICHAEL CARSON AND ANDREW WIEDERHORN
The final rule to implement the Unlawful Internet Gambling Enforcement Act
(UIGEA) of 2006 is in effect (with a required compliance date of December 1, 2009).
It contains specific requirements for money transmitters, banks, and card system
participants. In this article, we will discuss the major provisions of the UIGEA and
how they apply to these payment systems and to compliance officers.
14 Getting on Track with Compliance Costs
BY NANCY DERR-CASTIGLIONE, CRCM
According to a recent study, compliance costs increased from 2.83 percent of net
income in 2002 to 3.69 percent in 2006. On average, the institutions in the survey
responded that compliance spending grew 159 percent within the past five years. But does the typical
compliance officer really know the cost of compliance to his or her institution? Probably not.
22 Understanding New UDAP and Regulation Z Rules
BY L. RICHARD FISCHER, OBREA O. POINDEXTER, AND BETHANY A. FRANK
On December 18, 2008, three agencies—the Federal Reserve Board, the Office of Thrift
Supervision, and the National Credit Union Administration—promulgated final rules prohibiting
certain credit card practices. The board promulgated final rules substantially revising the open-end credit provisions of Regulation Z (Truth in Lending) and making final changes to Regulation
DD (Truth in Savings). The board also proposed changes to Regulation E (electronic fund
transfers). Combined, these amendments are the most comprehensive rewrite of credit card rules
in decades.
DEPARTMENTS
Compliance Management 4
BY CARL G. PRY, CRCM
44
32 RESPA: Good Faith and Fairness
BY LUCY H. GRIFFIN
Regulatory Insider
BY BONITA G. JONES
On Monday, November 14, 2008, HUD’s final rule revising the good faith estimate (GFE) process
was published in the Federal Register. When the regulation takes final effect on January 1, 2010,
the process of issuing a GFE will change drastically, moving from providing an estimate of costs
to a disclosure of costs that will be subject to a 10 percent tolerance.
The Training Room 48
BY MAUREEN CAROLLO,
CRCM
Continuing Education Quiz
52
38 What Is a Comparative File Review?
BY PHILLIP R. FREER, JR., CRCM, AND CALVIN R. HAGINS, CRCM
One way to determine whether applicants or
borrowers have been treated consistently
in the lending process is to perform a
comparative file review. Either this review
can be performed statistically or manually;
the focus of this article is manually
performed reviews.
