New York, NY, April 13, 2012 --(PR.com
)-- Recently enacted regulations issued by the Financial Crimes Enforcement Network (FinCEN) will impact Residential Mortgage Lenders or Originators (RMLO). Non-bank lenders had previously been exempted from Anti-Money Laundering (AML) regulations. Lenders and Originators are urged to become familiar with these requirements prior to its mandatory compliance deadline.
On February 14, 2012, FinCEN published a new set of regulations that give non-bank mortgage lenders 6 months to install Anti-Money Laundering (AML) programs, including suspicious activity report (SAR) filing systems. In short, non-bank mortgage lenders, which had enjoyed an exemption since 2002, now will be treated like banks as far as AML matters are concerned. Compliance with the new regulations will be mandatory on August 13, 2012.
Specifically, the new regulations cover a residential mortgage lender or originator (RMLO), which is a person other than a chartered bank:
· to whom the debt arising from a residential mortgage loan is initially payable or to whom the obligation is initially assigned at or immediately after settlement; or
· who accepts a residential mortgage loan application on behalf of a lender or offers or negotiates terms of a residential mortgage loan on behalf of a lender or borrower
Cilento,who is a CPA and CMB along with Levin, an attorney have developed a program that establishes an AML compliance program built on FinCEN’s “four pillars”:
1. Policies/procedures/internal controls based on assessment of risks
2. Compliance officer
3. Ongoing training
4. Independent testing
If you wish to have a complimentary analysis regarding developing your AML compliance program, please contact us.
Joseph Cilento, CPA, CMB
Cilento Mortgage Advisory Corp.
Jonathan L. Levin LLC
Financial Institutions Regulatory Counsel
About Joe Cilento:
Our consulting practice assists mortgage lenders with regulatory compliance, product development, improving operations and IT capabilities, expand secondary market outlets and assess regulatory compliance and QC practices. Cilento has over 25 years of experience successfully assisting companies looking to access the securities markets through direct issuances of GNMA/FNMA MBS securities. Client companies may require assistance with obtaining GNMA/FNMA approval. Our services continue after Agency authority is obtained and may include assistance with developing the in-house resources required to pool and issue MBS securities and become an GNMA/FNMA direct seller/servicer. Other assignments involve improving the organizations capabilities in product development , secondary marketing and risk management, QC controls and regulatory compliance. The Company represents both buyers and sellers interested in joint ventures and merger & acquisition financing.
About Jonathan Levin:
Mr. Levin is the principal of Jonathan L. Levin LLC, which he founded in 2008 to provide regulatory counsel to financial institutions and people dealing with financial institutions.
In October 2006, Mr. Levin joined Bear, Stearns & Co. Inc. as Chief Compliance Officer and Chief Regulatory Counsel of their subsidiary bank. Prior to joining Bear Stearns, Mr. Levin was a partner in the global law firm of Reed Smith LLP. Throughout his career, he has counseled financial institutions on the full range of compliance issues and developed bank compliance programs. Mr. Levin began his career with the Office of the Comptroller of the Currency, where he served for more than 12 years as a Senior Attorney. His responsibilities included preparing Congressional testimony, evaluating the effectiveness of the national bank regulatory framework, and drafting national bank regulations and interpretations, as well as major banking legislation. Mr. Levin has written many banking articles, speaks regularly before banking organizations and is the author of several books, including The Guide to National Banking Law, published by McGraw-Hill. He earned his B.A. from Temple University and his J.D. from Georgetown University Law Center.