Gateway Requirements Regarding Anti-Money Laundering Program (AML) and Suspicious Activity Report (SAR) Filing for Non-Bank Residential Mortgage Lenders and Originators
Background Information: On February 7, 2012, the US Department of the Treasury’s Financial Crimes Enforcement Network (FinCEN) issued a final rule requiring non-bank residential mortgage originators to establish an Anti-Money Laundering (AML) program and file Suspicious Activity Reports (SARS) under the Bank Secrecy Act (BSA).
Effective Date: Compliance with the new rule is required as of Monday, August 13, 2012.
Action Required: Clients must have a written Anti-Money Laundering program in place that is approved by the Client’s senior management or board of directors. Clients represent and warrant to Gateway with each loan registered and/or delivered that their AML Program exists and is fully compliant. Client further represents and warrants that they will not sell to Gateway any mortgage loan for which has been the subject of a Suspicious Activity Report (SAR).
Gateway Reminder – High Cost, Higher Priced or Predatory Mortgage Loans
Clients are reminded that Gateway will not purchase loans defined as high cost, higher priced or otherwise defined as predatory mortgages by:
- Federal law
- State law
- City/Village/Municipality or County law or ordinance, and/or
- Investor/Agency requirements.
Clients are responsible for ensuring all loans delivered to Gateway are originated and closed in accordance with all federal, state, city, county and agency high-cost/predatory lending regulations. Any loan delivered that meets the definition of a federal, state, city, county or agency high cost, higher priced, or predatory loan will not be purchased by Gateway and will be returned to the Client. Gateway will not allow the Client to refund excess fees and then redeliver the file. Any loan inadvertently purchased by Gateway that meets the definition of a high cost, higher priced or other defined predatory mortgage is subject to immediate repurchase.
This announcement should not be relied upon or treated as legal advice. Any questions regarding compliance with the laws and regulations addressed in this announcement should be directed to your own legal counsel or compliance department.