Final rule for HUD-insured QMs published
The Housing and Urban Development Department (HUD) has published in today's Federal Register [78 FR 75215] a final rule to establish a definition of “qualified mortgage” (QMs) for the single family residential loans that HUD insures, guarantees, or administers that aligns with the statutory ability-to-repay criteria of the Truth-in-Lending Act (TILA) and the regulatory criteria of the definition of “qualified mortgage” promulgated by the Consumer Financial Protection Bureau (CFPB). The rule will be effective on January 10, 2014, the date on which the CFPB's Ability-to-Repay rule goes into effect. Under HUD's rule, Title I (property improvement loans and manufactured home loans), section 184 (Indian housing loans) and Section 184A (Native Hawaiian housing loans) insured mortgages and guaranteed loans will be designated as “safe harbor” QMs. Loans insured under National Housing Act Title II will be assigned safe harbor or rebuttable presumption of compliance status if they meet the points and fees limits requirements of the CFPB rule, with the determination of safe harbor status dependent upon whether the APR exceeds the APOR by the sum of the annual mortgage insurance premium and 1.15 percentage points or less (those exceeding that limit will be assigned rebuttable presumption status).
Volcker Rule finalized
A joint press release has been issued by the FRB, FDIC, OCC, SEC, and Commodity Futures Trading Commission announcing the issuance of final rules
developed jointly to implement section 619 of the Dodd-Frank Act (the “Volcker Rule”). The FRB also announced that banking organizations covered by section 619 will be required to fully conform their activities and investments by July 21, 2015. A fact sheet and community bank guide were also issued.
CFPB orders $34.1M in credit card refunds
The Bureau has ordered GE Capital Retail Bank and its subsidiary, CareCredit, to refund up to $34.1 million to potentially more than 1 million consumers who were victims of deceptive credit card enrollment tactics.
FDIC Advisory Committee meeting
The FDIC Advisory Committee on Systemic Resolution will meet in Washington on December 11, 2013, to discuss and receive updates on Title I and bankruptcy of a systemically important financial institution; Title II authorities for the resolution of Systemically Important Financial Institutions by the FDIC; Moody's recent action on U.S. bank holding companies; and international coordination on resolution of global systemically important financial institutions. The event begins at 8:45 ET, is open to the public and will be webcast. An agenda for the meeting was supplied by the FDIC.
FDIC approves Resolution Strategy
The FDIC has announced the approval for publication of a Single Point of Entry (SPOE) strategy for the resolution of Systemically Important Financial Institutions (SIFIs), with a request for comment.
December 10, 2013
FHFA increases guarantee fees
The Federal Housing Finance Agency (FHFA) will continue its gradual increase in Freddie Mac and Fannie Mae guarantee fees. The increase is a part of the Strategic Plan for Enterprise Conservatorships that was published in February 2012. The agency said that it has directed Freddie and Fannie to increase the fee for loans exchanged for mortgage-backed securities beginning April 1, 2014. For loans sold for cash, the increase will be effective with commitments starting March 1, 2014. The FHFA also released its Fifth Annual Report on single-family guarantee fees covering the years 2011 and 2012.
FRB Regulation J proposal published
The previously announced Federal Reserve Board proposal to amend Regulation J to enhance the efficiency of the payment system by adjusting its schedules of settlement times for checks and ACH items received from the Fed has been published [78 FR 74041] in the Federal Register. Comments on the proposal are due by February 10, 2014.
FTC launches redesigned website
The Federal Trade Commission has announced the launch of its redesigned website, FTC.gov.
November Housing Scorecard
HUD and Treasury have released the November 2013 edition of the Obama Administration's Housing Scorecard, a comprehensive report on the nation's housing market.
Outlook Live Year in Review webinar
The Federal Reserve's Consumer Compliance Outlook Live webpage features an announcement of a free one-hour audio conference, "Consumer Compliance Hot Topics—2013 Year in Review," on December 12, 2013, beginning at 2 p.m ET. The webinar is part of an ongoing series of events focused specifically on consumer compliance issues. The announcement includes a link for registering for the presentation.
HUD posts new FHA loan limits
HUD has announced the implementation of new FHA single-family loan limits beginning January 1, 2014, as specified by the Housing and Economic Recovery Act of 2008 (HERA).
FRB launches history web gateway
The Federal Reserve Board has issued a press release to announce the launch of its History Web Gateway, a new online resource with biographies, images, and essays on key events in the Fed's 100-year history.
Market risk capital final rule
The Federal Reserve System has announced the issuance of a final rule that makes technical changes to the Board's market risk capital rule. Also released were minor modifications to the Basel III revised capital framework.
RHS streamlines regulation
The Rural Housing Service (RHS) has published an Interim Final Rule [78 FR 73927] to streamline and re-engineer its Single Family Housing Guaranteed Loan Program (SFHGLP) regulation. The action was taken "to reduce regulations, improve customer service, achieve greater efficiency, flexibility, and effectiveness in managing the program. The effect of this action is to provide better service to participating lenders and investors by removing Rural Development internal administrative procedures and make the necessary adjustments to reduce SFHGLP risk of loss." The effective date of the rule is September 1, 2014. Comments are due by January 8, 2014.
Curry addresses Consumer Federation of America
In remarks before the Consumer Federation of America's annual Financial Services Conference in Washington, D.C., Comptroller Curry reviewed the 150-year history of the OCC, its mission statement and current responsibilities for consumer compliance examination and supervision authority to enforce the regulations that the Consumer Financial Protection Bureau (CFPB) writes.
G.19 Consumer Credit report
The G.19 Consumer Credit Report for October 2013 has been released by the Federal Reserve Board.
December 6, 2013
FRB service provider guidance SR Letter 13-19 has been issued by the Federal Reserve Board to announce Board guidance for FRB-supervised financial institutions on exercising appropriate risk management and oversight when using service providers. The guidance describes factors financial institutions should consider when choosing a service provider and how service providers should be overseen.
HUD program provides $63M for Colorado storm relief
HUD has announced its Community Development Block Grant (CDBG) Program will provide nearly $63 million to the State of Colorado to help communities recover from severe storms in September 2013 that produced devastating floods and mudslides.
Lew speaks at Pew Charitable Trusts
In remarks prepared for delivery at the Pew Charitable Trusts, Treasury Secretary Lew discussed the status of efforts to repair the weaknesses that shook the U.S. financial system to its core just a few years ago, the progress made in reshaping U.S. financial architecture, and what needs to be done to remain vigilant to make sure the financial system is safe in the future.
FRB amends Regulation HH
The Federal Reserve Board issued a final rule to amend Regulation HH to set out the conditions and requirements for a Federal Reserve Bank to open and maintain accounts for and provide financial services to financial market utilities designated as systemically important by the Financial Stability Oversight Council (FSOC).
OCC supervisory peer review
The OCC has released a peer review report prepared by a team of international regulators that the Comptroller had convened to provide an independent perspective on the OCC's approach to the supervision of large and mid-size banks and thrifts.
FDIC flood insurance and appraisals videos
An FDIC press release has announced the release of two new technical assistance videos to provide useful information to bank directors, officers, and employees on regulatory issues and proposed regulatory changes. The videos pertain to flood insurance and appraisals and evaluations.
Gruenberg on consumer banking and finance issues
FDIC Chairman Gruenberg spoke at the Consumer Federation of America 26th Annual Financial Services Conference in Washington, D.C., on the banking and financial issues which he feels are the most pressing that face today's consumers. He noted the FDIC periodically conducts national studies that explore households' financial behavior and banks' provision of services to underserved consumers.
NCUA Board meeting agenda
The agenda for the December 12, 2013, meeting of the NCUA Board has been posted.
OFAC retires archive files
OFAC has released important information about the future of two of its Palestinian Legislative Council List archive files.
December 5, 2013
FinCEN on FATF list update
FinCEN Advisory FIN-2013-A008 has been issued regarding the update of the Financial Action Task Force (FATF) list of jurisdictions with strategic AML/CFT deficiencies.
Fifth Third Bancorp pays $6.5M to settle SEC charges
A Securities and Exchange Commission press release has announced that Fifth Third Bancorp has agreed to pay $6.5 million to settle charges filed against it and its former chief financial officer alleging improper accounting for commercial real estate loans in the midst of the financial crisis. The CFO agreed to pay $100,000 and to be suspended from practicing as an accountant on behalf of any publicly traded company or other entity regulated by the SEC.
CRA ratings released
The FDIC has released the ratings received by 101 state nonmember banks recently evaluated for compliance with the Community Reinvestment Act (CRA). Three of the listed banks received an outstanding rating.
NCUA quarterly U.S. map review
The Third Quarter NCUA Quarterly U. S. Map Review has been published. The Review tracks performance indicators for federally insured credit unions in the 50 states, the District of Columbia, Puerto Rico, Guam and the Virgin Islands, and summarizes key state-level economic indicators, including unemployment rates and home price changes.
NCUA 2014 assistance grants
The NCUA has announced it will accept applications from February 3 through February 14, 2014, for its first round of 2014 technical assistance grants. Low-income designated credit unions can individually receive up to $16,500 in funding for the following grant categories: new Community Development Financial Institution (CDFI) certification; new products; and student internships.
December 4, 2013
Alabama bank agrees to OFAC CMP
OFAC has announced that Compass Bank, Birmingham, Alabama, has agreed to pay $19,125 to settle potential civil liability for one apparent violation of the Sudanese Sanctions Regulations. OFAC determined that Compass did not voluntarily self-disclose the violation, but the violation was a non-egregious case and not the result of willful or reckless conduct.
OFAC to change SDN file format
OFAC has also announced that on or about March 3, 2014, it will change the format in which SDN data files are issued. The change may impact automated SDN download processes and OFAC recommends that list users take steps to alter those processes to utilize an alternative .ZIP file format.
Agencies issue final rule to tweak BSA definitions
FinCEN and the Federal Reserve Board have issued a joint press release to announce a final rule amending the definitions of "funds transfer" and "transmittal of funds" under regulations implementing the Bank Secrecy Act (BSA). The amendments to the definitions maintain the current scope of funds transfers and transmittals of funds subject to the Bank Secrecy Act and are necessary in light of amendments to the Electronic Fund Transfer Act made by the Dodd-Frank Act. The rule was published [78 FR 72813] in today's Federal Register.
FDIC Board meeting notice
The notice of the December 10, 2013, meeting of the FDIC Board has been posted. A key agenda item for consideration is a proposed final interagency rule on Appraisals for Higher-Priced Mortgage Loans. The involved agencies published a "Supplemental Proposal" on August 8, 2013, that would amend section 1026.35(c) of Regulation Z to exempt (1) transactions secured by existing manufactured homes and not by land; (2) certain "streamlined" refinancings; and (3) transactions of $25,000 or less. The agencies can be expected to issue the final rule shortly after the FDIC Board votes on December 10.
CFPB issues Fall 2013 rulemaking agenda
The Bureau has posted a Fall 2013 semi-annual update to its rulemaking agenda, and provided a Blog article interpreting its plans.
GSEs update mortgage insurance policy requirements
A Federal Housing Finance Agency (FHFA) news release has announced that Fannie Mae and Freddie Mac have completed a major overhaul of their mortgage insurance master policy requirements. The updates include mandates on loss mitigation, claims, assurance of coverage, and enhanced communication. It is anticipated that the master policies will go into effect in 2014, after review and approval by state insurance regulators. Fannie and Freddie will provide guidance to lenders and servicers regarding specific effective dates.
Bureau to supervise nonbank student loan servicers
The Consumer Financial Protection Bureau has announced it is issuing a rule today that will allow the Bureau to supervise certain nonbank student loan servicers for the first time. The CFPB estimates that the new rule will provide the Bureau the authority to supervise the seven largest student loan servicers, which service the loans of more than 49 million borrower accounts, representing most of the activity in the student loan servicing market. A copy of the rule [link not operable at our press time] will be available later today. The Bureau also released a fact sheet on the rule.
NCUA publishes CUSO regulation changes
The National Credit Union Administration has published in today's Federal Register a final rule [78 FR 72537] to amend its credit union service organization (CUSO) regulation to increase transparency and address certain safety and soundness concerns. The final rule expands the requirements of the CUSO regulation that apply to federally insured, state-chartered credit unions (FISCUs) to address accounting, financial statements, and audits. The final rule also includes limits on the ability of “less than adequately capitalized” FISCUs to recapitalize their CUSOs. In addition, it adds several new requirements that apply to both federal credit unions (FCUs) and FISCUs. The rule becomes effective June 30, 2014.
CFPB field hearing on arbitration scheduled
The Bureau has announced a field hearing on arbitration to be held in Dallas, Texas on December 12, 2013 at 11 a.m. CST. Additional details, including the venue for the hearing, will be announced as the date approaches. The event is open to the public, but requires an RSVP.
FDIC stress test policy statement The Federal Deposit Insurance Corporation has published [78 FR 72534] a Policy Statement on the Principles for Development and Distribution of Annual Stress Test Scenarios. The policy statement affects FDIC-insured state nonmember banks and FDIC-insured state-chartered savings associations with total consolidated assets of more than $10 billion.
CU loan growth continues
The NCUA has released new credit union industry figures based on third quarter 2013 Call Report data. The loan growth trend that began in 2011 continues. Total loans in the industry rose 2.9 percent to $631.5 billion in the third quarter of 2013, a faster pace than in the previous quarter.
December 2, 2013
FRB proposes Daylight Overdraft and Reg J changes
A Federal Reserve Board press release has announced a request for public comment on proposed changes to part II of the Federal Reserve Policy on Payment System Risk (PSR policy) that are designed to enhance the efficiency of the payment system. The proposed changes are largely related to the posting rules for automated clearing house (ACH) and commercial check transactions that would impact Procedures for Measuring Daylight Overdrafts and Regulation J - Collection of Checks and Other Items.
FDIC enforcement actions
The FDIC has released a list of 42 enforcement actions taken in October. There were three consent orders, ten removal and prohibition orders, four civil money penalty (CMP) orders, ten section 19 orders, twelve terminations of orders, and various miscellaneous orders. Included was a $6,250 CMP assessment against a Kentucky bank for imposition of error resolution requirements upon consumers that were more onerous than permitted in Regulation E; a Flood Act CMP of $24,200 against an Alabama bank; and a $20,000 HMDA Act CMP against a Georgia bank.
Agencies propose liquidity rule
The OCC, FRB and FDIC have published a notice of proposed rulemaking in the Federal Register to request comment on a proposed rule that would implement a quantitative liquidity requirement consistent with the liquidity coverage ratio standard established by the Basel Committee on Banking Supervision. The proposed requirement is designed to promote the short-term resilience of the liquidity risk profile of internationally active banking organizations.
Illinois severe weather guidance
FDIC FIL-55-2013 has been issued as guidance to help financial institutions and facilitate recovery in areas of Illinois recently affected by severe storms, straight-line winds, and tornadoes.
Prohibition orders issued
The NCUA has announced prohibition orders against three individuals to prohibit them from participating in the affairs of any federally insured financial institution.
CRA exams scheduled The FDIC and OCC have released public lists of institutions for which they have scheduled CRA examinations during the first quarter of 2014.
FATCA IGAs with Cayman Islands and Costa Rica
A Treasury press release has announced that the United States has signed intergovernmental agreements (IGAs) with the Cayman Islands and Costa Rica to implement the Foreign Account Tax Compliance Act (FATCA). The Act, enacted in 2010, seeks to obtain information on accounts held by U.S. taxpayers in other countries. It requires U.S. financial institutions to withhold a portion of payments made to foreign financial institutions that do not agree to identify and report information on U.S. account holders.
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