limitations on ATR claims brought as affirmative cases. In addition, after the statute of limitations on affirmative ATR claims expires, consumers can bring ATR claims as setoff/recoupment claims in a defense to foreclosure. If the file is ever taken to court, the importance of the documentation is critical for the bank to defend any challenges. Management should continue to reiterate the importance of documenting the amounts used for income calculations, as well as documenting the verification of the current employment. 5. Real Estate Settlement Procedures Act (RESPA) Section 8: One notable segment of increased protection activism is Section 8 of RESPA, which protects against inflationary pressures caused by kickbacks and referral payments in the residential real estate market. The current market pressures spawned by declining loan volumes create a strong tendency for loan officers to be “creative” or “innovative” with settlement service providers, including real estate agents — this leads to compliance risk and the need to determine whether lenders are potentially violating provisions of these sticky and often murky anti-kickback provisions. As compliance professionals, we need to be on heightened alert for lender relationships with realtors or other settlement service providers. Start with three basic questions to be alerted to situations that will most certainly require attention: 1. Is there a referral of a settlement service business? 2. Is there anything of value being exchanged between a settlement service provider and the bank? 3. If yes on both, what are the benefits received by both parties, and can the value of the service be measured? To answer these questions, management must understand the importance of compliance prior to entertaining any relationship with mortgage market players. Shaun Harms, CRCM/CBAP, is a principal in the regulatory compliance consulting/financial services national practice at Forvis Mazars. His experience is within the regulatory compliance area with a focus on community and middle-market financial institutions. He has more than 20 years of consulting experience and has worked with more than 200 banks on compliance and Bank Secrecy Act (BSA) programs. He is a featured speaker at events across the country on consumer compliance and BSA-related rules. KBA 0325 Blue Cross and Blue Shield of Kansas is an independent licensee of the Blue Cross Blue Shield Association. Get started today. Register or sign in: bcbsks.com/blueaccess BlueAccess, our secure member portal, puts you in control. It is your one-stop shop for understanding, managing and maximizing your health insurance benefits. • Track your claims • Access your ID Card • See wellness features Strive, Blue365, mental health resources The New BlueAccess is Here. Your health benefits, simplified. 35
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