Exam council releases ‘disclosure computational tools’ for use with CRA, HMDA reporting

“Federal disclosure computational tools” for financial institutions to use in figuring compliance with anti-redlining rules, and mortgage disclosure requirements, were made available Thursday by the umbrella group for federal financial institution regulators.

In separate releases, the Federal Financial Institutions Examination Council (FFIEC) said it released the implements that include the annual percentage rate (APR) and annual percentage yield (APY) tools for use in computing compliance with rules applying the Community Reinvestment Act (CRA) and the Home Mortgage Disclosure Act (HMDA).

According to the FFIEC, its member financial regulator agencies (which includes input from state regulators through a separate committee) collaborated to develop the computational tools, which the exam council said will assist financial institutions in their efforts to comply with the consumer protection laws and regulations.

The APR computational tool, the council said, is designed to streamline the process by which examiners and financial institutions can verify finance charges and annual percentage rates included on consumer loan disclosures subject to the Truth in Lending Act and its implementing regulation, Regulation Z. “This web-based tool supports the verification of disclosed APR calculations related to unsecured and secured installment and construction loans, including real estate-secured loans,” the exam council said. “The APR Computational Tool also supports verification of compliance with the Military Annual Percentage Rate (MAPR) limits under the Military Lending Act.”

The APY computational tool, the council said, supports verification of APYs on consumer deposit account disclosures subject to the Truth in Savings Act, including advertisements and periodic statements.

FFIEC Announces Federal Disclosure Computational Tools