Press Release | January 22, 2018 | Contact: Richard Loconte, 212-709-1691

Financial Services Superintendent Maria T. Vullo today reminded all regulated entities and licensed persons covered by the Department of Financial Services’s (DFS) landmark cybersecurity regulation that the first certification of compliance requiring a statement to the Superintendent covering the prior calendar year must be filed electronically via the DFS cybersecurity portal on or prior to February 15, 2018. Superintendent Vullo also took the opportunity to announce that DFS will now be incorporating cybersecurity in all examinations, including adding questions related to cybersecurity to “first day letters,” which are notices the Department issues to commence its examinations of financial services companies, including examinations of banks and insurance companies for safety and soundness and market conduct.

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Pursuant to §597 of the New York Banking Law, licensed mortgage  bankers and registered mortgage brokers are required to file a Volume of Operations Report (“VOOR”) annually.

The Department is pleased to announce the 2016 VOOR will be accessible beginning Monday, May 22, 2017 at 9:00am EST. Correspondence outlining the filing requirements and password were mailed out to licensed mortgage bankers and registered mortgage brokers on May 17, 2017.  Kindly note, all VOOR filers will have six weeks from the date of this correspondence to electronically file the required VOOR information. 

click link for more information http://www.dfs.ny.gov/banking/voor.htm

he Consumer Financial Protection Bureau (CFPB) has issued a proposal to facilitate compliance with the 2015 updates to the Home Mortgage Disclosure Act (HMDA) rule. The changes proposed would help financial institutions comply with the 2015 HMDA Final Rule by clarifying the information they are required to collect and report about their mortgage lending.

You can access the proposal on the Bureau’s website.

The New York State Department of Financial Services (“DFS”) has been closely monitoring the evergrowing threat posed to information and financial systems by nation-states, terrorist organizations and independent criminal actors.  Recently, cybercriminals have sought to exploit technological vulnerabilities to gain access to sensitive electronic data.  Cybercriminals can cause significant financial losses for DFS regulated entities as well as for New York consumers whose private information may be revealed and/or stolen for illicit purposes.  The financial services industry is a significant target of cybersecurity threats.  DFS appreciates that many firms have proactively increased their cybersecurity programs with great success.    

Given the seriousness of the issue and the risk to all regulated entities, certain regulatory minimum standards are warranted, while not being overly prescriptive so that cybersecurity programs can match the relevant risks and keep pace with technological advances.  Accordingly, this regulation is designed to promote the protection of customer information as well as the information technology systems of regulated entities.  This regulation requires each company to assess its specific risk profile and design a program that addresses its risks in a robust fashion.  Senior management must take this issue seriously and be responsible for the organization’s cybersecurity program and file an annual certification confirming compliance with these regulations.  A regulated entity’s cybersecurity program must ensure the safety and soundness of the institution and protect its customers.    

It is critical for all regulated institutions that have not yet done so to move swiftly and urgently to adopt a cybersecurity program and for all regulated entities to be subject to minimum standards with respect to their programs.  The number of cyber events has been steadily increasing and estimates of potential risk to our financial services industry are stark.  Adoption of the program outlined in these regulations is a priority for New York State.
 
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REMINDER!

The 2016 VOOR report filing information will be available shortly on the NYSDFS website.  Watch your mail for your log-in information and make sure you file on-time.  Since the data requirements are the same as last year’s VOOR, you may want to get a head start on completing the information in anticipation of filing.  At this time, we do not know if the annual filing date will be extended.

Subject: Reduction of Federal Housing Administration (FHA) Annual Mortgage Insurance Premium (MIP) Rates 

Purpose: This Mortgagee Letter (ML) communicates revised annual MIP rates for certain FHA Title II forward mortgages. 

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The Bureau of Consumer Financial Protection (Bureau) is proposing various amendments to Federal mortgage disclosure requirements under the Real Estate Settlement Procedures Act and the Truth in Lending Act that are implemented in Regulation Z.

For more details click here 

On Thursday, June 23 the IRS notified vendors who provide tax transcripts (such as IVES vendors) that they would need to implement new requirements in order to continue providing tax transcript services. These new requirements are intended to better protect taxpayer information. The updated requirements include certain new assessments and certifications for vendors and lender clients. 

While the IRS has not made their new certification requirements available to the public, we have learned they will include items such as a requirement that lenders provide their vendors with the Social Security numbers of any individual authorized to use the tax transcript process. Some of the new requirements must be implemented by July 1 and thus demand your immediate attention. Other requirements must be implemented within 45 days.

The IRS has been contacted by various trade groups asking for a delay in the implementation date and is working for further clarity around the requirements. However, as of this writing the IRS has refused to delay the implementation. 

I strongly recommend that you reach out to your vendor today to obtain the requirements and complete the necessary certifications and assess the impacts on your business operations.  According to the IRS, vendors will be required to suspend access to the transcript service for any lender that fails to complete the required certification by midnight, Friday, July 1. 

Zahra Jafri, President