Community Banks Call TILA, RESPA Top Compliance Concerns

tory compliance professionals at community banks will most likely spend a significant amount of their time meeting Truth in Lending Act (TILA) and Real Estate Settlement Procedures Act (RESPA) requirements during the next 12 months, according to a recent Wolters Kluwer Financial Services survey. The 242 community banks responding to the May survey were asked to choose what they believed their top three regulatory compliance concerns would be in the next 12 months. Compliance with TILA was a top regulatory concern, with 60% of respondents saying so, while RESPA followed closely, at 58%. Meeting Bank Secrecy Act (BSA) requirements was third, at 37%. The Wolters Kluwer Financial Services survey also found that 43% of respondents said mortgage lending was one of the three areas of their business they planned to grow the most in the next 12 months. The others were commercial lending, at 49%, and consumer lending, at 37%. "The survey results confirm that recent changes to TILA and RESPA will, indeed, place a significant compliance and operational risk management burden on community banks in the months to come," says Ken Newton, executive vice president of Banking for Wolters Kluwer Financial Services. "As these banks increase their presence in the mortgage space, they'll face a number of challenges in efficiently complying with these regulations." SOURCE: Wolters Kluwer Financial S


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