CFPB clarifies Escrows Final Rule
The Bureau has issued a Final Rule clarifying and making amendments to its previously issued 2013 Escrows Final Rule. The new final rule will be final unless a later final rule is issued. The new final rule establishes a temporary provision to ensure existing protections remain in place for higher-priced mortgage loans until the expanded provisions take effect in January 2014 and clarifies how to determine whether or not a county is considered "rural" or "underserved" for purposes of applying an exemption.
2013 Final List of rural and underserved counties
The CFPB has issued a final list determining both rural and underserved county status regarding the Escrows Rule based on the proposed rule posted by the Bureau on March 12, 2013. Because the methods for determining rural and underserved status have not changed from the proposed rule, this final list is identical to the preliminary list posted on March 12. Some counties' status as rural or non-rural may change from the 2013 list to the 2014 list because of updated information from the 2010 Census.
June 2013 HOEPA rates established
The Federal Reserve has posted the new reference rates that lenders must use to determine if loans for certain applications received in June 2013 will be subject to HOEPA under the APR trigger test. Use the FRB H.15 of selected interest rates to find the applicable release that lists the Treasury security with the same maturity term as your loan. To make the calculation, use the yield in effect on the 15th of the month that precedes the month you received the application.
More OFAC SDN Designations
Treasury has announced the designation of four senior officials of the Syrian government; one airline responsible for transporting weaponry to the Assad regime; and one privately owned television station for providing services to the Syrian government. To date, the United States has imposed sanctions on the Government of Syria, including its Central Bank and oil companies, and more than 100 individuals and entities under a number of our authorities. Information concerning the designations has been posted on the BOL OFAC Update Page.
NCUA Board Action Bulletin
A Bulletin has been issued by NCUA regarding the actions of its Board at the May 16, 2013 meeting. The Board approved a rule giving well-managed federally insured credit unions with more than $250 million in assets limited authority to purchase specified derivatives to manage interest-rate risk upon agency approval and a series of technical amendments, including the transfer of authority under the Dodd-Frank for rulemaking for certain consumer protection laws to the CFPB.
May 16, 2013
CFPB Posts Mortgage Rule Training Videos
The Consumer Financial Protection Bureau yesterday posted seven training videos on YouTube. There is one video about an hour long which is an overview, and separate short videos on the Ability-to-Repay and Qualified Mortgage Rule, 2013 HOEPA Rule, ECOA Valuations and TILA Higher-Priced Mortgage Loans Appraisal Rules, Loan Originator Compensation Rule, Mortgage Servicing Rules, and the TILA Escrow Rule. Videos are available on the CFPB YouTube channel.
CFPB publishes Credit Card Plans Terms notice
The Bureau published in the Federal Register a notice and request for comment on a proposal to the approval for an existing information collection, titled, Report of Terms of Credit Card Plans. The comment period will end on June 7, 2013.
Bureau adds tools in Spanish
The Bureau has announced a new web site for Spanish speaking consumers, consumerfinance.gov/es,where Spanish speaking consumers can find answers, in plain-language, to consumers' most common questions.
CFPB Consumer Advisory Board Meeting
Director Cordray and the members of the Consumer Advisory Board discussed the challenges and opportunities faced by new Americans in the consumer marketplace at its May 15, 2013 meeting in Los Angeles. Links are provided for Cordray's Remarks and the Agenda.
Should you refinance your student loan?
If this a question, your customer asks, an article on the CFPB Blog provides some answers to common questions received by the CFPB from consumers.
SDN List Additions
Treasury has announced the non-proliferation (NPWMD) and Iranian financial sanctions regulations (IFSR) designations of an exchange house and a trading company for aiding Iranian attempts to circumvent international economic sanctions and the addition of their names to the SDN List. See the BOL OFAC Update Page for the details.
The Treasury International Capital (TIC) data report for March 2013 has been released by Treasury. FRB TDF offering scheduled
A Press Release has been issued by the FRB announcing the scheduling on May 20, 2013, of a fixed-rate offering of term deposits with full allotment of tenders through its Term Deposit Facility (TDF).
Gruenberg on the state of the banking industry
In remarks to the Exchequer Club in Washington, D.C., FDIC Chairman Gruenberg commented on the state of the banking industry, the FDIC community banking and supervisory initiatives, and international coordination on resolution authority.
The May 2013 issue of FedFlash has been posted by FR Bank Services. The issue features articles regarding the Next Generation VPN Solution initiative, new FedReceipts RTNs, updated Computer Interface Protocol Specifications (CIPS), and processing location change for all Fed ACH reclamations.
Illinois Storm Relief FIL FIL-19-2013 has been issued by the FDIC announced a series of steps intended to provide regulatory relief to financial institutions and facilitate recovery in areas of Illinois affected by severe storms, straight-line winds, and flooding.
May 15, 2013
Kingpin Act Designation
Treasury has announced the designation of Mexican national Alfredo Andrade Parra under the Foreign Narcotics Kingpin Designation Act (Kingpin Act) for international narcotics trafficking and for his links to Los Zetas drug trafficking organization. His name has been added to the SDN List. Check out the BOL OFAC Update Page for the details.
FTC Annual Financial Acts Enforcement Letter
The FTC has issued a Press Release announcing the issuance of its annual letter to the CFPB on the agency's enforcement and related activities regarding the Truth in Lending Act (TILA), Consumer Leasing Act (CLA), Electronic Fund Transfer Act (EFTA), and Equal Credit Opportunity Act (ECOA).
NCUA Annual Report
NCUA has issued its 2012 Annual report which highlights the agency’s activities and accomplishments in 2012.
The Summary will link to the full report.
Cordray's Remarks to Realtors
In prepared remarks to the National Association of Realtors, CFPB Director Cordray, discussed foreclosure crisis, the actions of the Bureau, and requested realtors to contact the agency regarding problems they see in the marketplace.
Arizona Bank Closed
The FDIC has announced the closing of Central Arizona Bank, Scottsdale, AZ and the assumption of all of the deposits by Western State Bank, Devils Lake, ND. Central Arizona Bank is the 13th FDIC-insured institution to fail in the nation this year, and the second in Arizona.
May 14, 2013
Large BHC stress test deadline reminder
The Federal Reserve Board has issued a reminder that the eighteen large U.S. bank holding companies are required to submit the results of their company-run, mid-year stress tests to the Federal Reserve on July 5, 2013. Stress test summary instructions were attached to the Fed's press release.
FDIC ComE-IN meeting agenda
An FDIC press release has listed a link to the agenda and webcast of the May 16, 2013, meeting of the FDIC Advisory Committee on Economic Inclusion (ComE-IN). The meeting, which is open to the general public, is scheduled to run from 9:00 a.m. to 3:15 p.m. in the FDIC Board Room, on the sixth floor of the FDIC headquarters building at 550 17th Street NW, Washington, DC.
May 13, 2013
OFAC non-proliferation designations
Treasury has designated a Taiwan entity and an individual under Executive Order (E.O.) 13382, an authority aimed at freezing the assets of proliferators of weapons of mass destruction (WMD) and their supporters. Details can be found in BankersOnline's May 10, 2013, OFAC Update.
Two banks closed
The FDIC has announced the closing of Sunrise Bank, Valdosta, Georgia (deposits assumed by Synovus Bank, Columbus, Georgia), and Pisgah Community Bank, Asheville, North Carolina (deposits assumed by Capital Bank, N.A., Rockville, Maryland). The two banks are the 11th and 12th FDIC-insured institutions to fail in 2013.
FDIC to host FASB ASU teleconference
FDIC FIL-18-2013 announces a free 90-minute teleconference for interested bankers at 1:00 p.m. ET, May 16, 2013, to discuss the proposed Accounting Standards Update (ASU) issued by the Financial Accounting Standards Board (FASB). The proposal would change recognition and measurement of credit losses for financial and regulatory reporting purposes. Employees of all FDIC-supervised institutions are invited to participate.
April Housing Scorecard
Treasury and HUD have announced the release of the April 2013 Housing Scorecard, a comprehensive report on the nation's housing market. The latest data show important progress across many key indicators as home values continue to rise and home sales remained strong in April although officials caution that the overall recovery remains fragile.
Bernanke on monitoring the financial system
In a speech at the 49th Annual Conference on Bank Structure and Competition, Chairman Bernanke discussed the step-up of the Federal Reserve Board's efforts to monitor the financial system after the financial crisis. His comments included the focus on vulnerabilities and a review of the agency's financial stability monitoring program. He noted four components of the financial system that are closely followed are systemically important financial institutions (SIFIs), shadow banking, asset markets, and the nonfinancial sector.
OCC notice on cashing IFRPA checks
The OCC has issued a news release updating the volume of checks cashed or deposited under the Independent Foreclosure Review Payment Agreement (IFRPA). Financial institutions were reminded that, to help prevent fraud, the checks require positive identification for negotiation.
OCC clarifies Market Risk Capital rule
OCC Bulletin 2013-12 has been issued to clarify certain provisions of the Market Risk Capital rule. The focus of the Bulletin was on foreign exposures and the measurement of a parameter used in the simplified supervisory formula approach (SSFA) for securitization exposures.
OFAC issues $348K CMP
OFAC has announced the payment of a $348,000 civil money penalty (CMP) by a non-profit international marine mutual insurance association of merchant ship owners and charterers, to settle potential liability for 55 apparent violations of the Cuban Assets Control Regulations, the Sudanese Sanctions Regulations, and the Iranian Transactions Regulations.
SDN additions and updates
Treasury has announced the taking of a number of actions to identify a front company and vessels that have attempted to obscure Iranian oil deals using ship-to-ship transfers, and to designate an Iranian bank. OFAC also seized the opportunity to update its list of Specially Designated Nationals and Blocked Persons (SDN List) entries today for eight vessels blocked due to the interest of the National Iranian Tanker Company in the vessels. Details can be found in yesterday's BankersOnline OFAC Update.
Bureau focuses on student loan debt challenges
The CFPB has posted three articles concerning student loan debt on its Blog and Newsroom pages—
A report highlighting student debt as a roadblock to opportunity for consumers
Director Cordray's remarks at a field hearing on student loan debt
Reg delay proposal published
The CFPB has published in today's Federal Register [78 FR 27308] its previously announced proposal to temporarily delay the effective date of section 1026.36(i) of Regulation Z. As noted earlier, comments on the proposal close on May 25, 2013.
May FedFocus articles
Federal Reserve Financial Services has posted the May issue of FedFocus, with articles on expanded FedACH SameDay Service, which permits same-day clearing of domestic ACH transactions; the advantages of using the service's FedTransaction Analyzer® tool; and the October circulation date for the newest iteration of the $100 note.
May 9, 2013
Bureau to delay Reg Z prohibition on financing credit insurance
The CFPB has announced a proposal seeking comment on a delay in the June 1, 2013, effective date of § 1026.36(i) of Regulation Z, prohibiting the financing of credit insurance premiums in connection with certain consumer credit transactions secured by a dwelling. The proposal will be published in tomorrow's Federal Register. Comments will be accepted through May 25, 2013.
Some IFR borrowers to receive additional funds
A Federal Reserve Board press release has announced that borrowers whose mortgages were serviced by Goldman Sachs and Morgan Stanley who have received a check pursuant to the Independent Foreclosure Review payment agreement will receive an additional payment. The payments are being made to correct another in a series of missteps by the paying agent when payments were sent last week.
Another maternity leave discrimination settlement
HUD has announced it has reached two Conciliation Agreements with SunTrust Mortgage, Inc., settling allegations that the Richmond, Virginia, lender violated the Fair Housing Act by denying mortgage loans to couples in Port St. Lucie, Florida, and Ashland, Virginia, because the women were on maternity leave.
FINRA penalizes firms for weak AML programs
The Financial Industry Regulatory Authority (FINRA) has announced it has fined three firms a total of $900,000 for failing to establish and implement adequate anti-money laundering programs and other supervisory systems to detect suspicious transactions. FINRA also fined and suspended four executives involved.
Counterfeit cashier's checks alerts
The OCC has issued two Alerts on counterfeit cashier's checks bearing the names of Atlantic Coast Bank, Waycross, Georgia, and First Federal Bank of Florida, Lake City, Florida. The alerts have been added to the BankersOnline Alerts & Counterfeits page.
GAO faults SSA on Death Master File
The Government Accountability Office has issued a report that the Social Security Administration's procedures for handling and verifying death reports may allow for erroneous death information in the Death Master File (DMF) because SSA does not verify certain death reports or record others. Institutions, government agencies, and services that rely on the DMF for detecting the fraudulent use of decedents' SSNs may be obtaining inaccurate or incomplete information.
CRA ratings released
The OCC has released the ratings received by twenty-five national banks and federal savings associations that were recently evaluated for CRA compliance. Of the institutions evaluated, six were rated outstanding, 19 satisfactory, none needs to improve, and none in substantial noncompliance.
NCUA grant initiatives webinar
The NCUA has announced it will host a free webinar, "Multi-Initiative Grants for Low Income Credit Unions," on Wednesday, May 22, at 2 p.m. ET.
CFPB Twitter chat
The Bureau has announced it will host a Twitter chat on Older Americans and Money today, May 9, from 3–4 p.m. ET.
May 8, 2013
Bureau files against debt-relief providers
The CFPB announced that it has filed a complaint in federal district court against two debt-relief service providers that allegedly charged illegal advance fees for debt-settlement services. The suit asks for a halt to the two operations and the imposition of penalties and financial relief for their consumer victims.
OFAC Kingpin designations
The designation of eight Mexican nationals as Specially Designated Narcotics Traffickers (SDNT) under the Foreign Narcotics Kingpin Designation Act (Kingpin Act) has been announced by OFAC. The eight individuals operate as Sinaloa Cartel leaders within their specific area of operation along the Sonora-Arizona corridor of the U.S.-Mexico International Boundary. Details are available in BankersOnline's May 7, 2013, OFAC Update.
February Refinance Report
The Federal Housing Finance Authority (FHFA) has released its February 2013 Refinance Report, which shows that refinance volumes remained high as mortgage rates hovered near historic low levels.
G.19 Consumer Credit report
The March 2013 G.19 Consumer Credit Outstanding and Terms of Credit Report has been released by the Federal Reserve Board.
New York AG threatens action against BofA and Wells
New York's Attorney General Eric Schneiderman has announced his intention to sue Bank of America and Wells Fargo for repeat violations of the National Mortgage Settlement. The AG has informed the Monitoring Committee that oversees the Settlement that he intends to sue the banks for a total of 339 violations of four of the Settlement's servicing standards.
FDIC releases February CRA ratings
The FDIC has released a list of 88 CRA evaluations assigned to institutions in February 2013. The list includes 1 needs improvement, 3 outstanding, and 84 satisfactory ratings.
Fannie and Freddie to buy only qualified mortgages
Fannie Mae and Freddie Mac have been directed by the Federal Housing Finance Agency (FHFA) to limit their future mortgage acquisitions to loans that meet the requirements for a qualified mortgage, including those that meet the special or temporary qualified mortgage definition, and loans that are exempt from the "ability to repay" requirements under Regulation Z. Fannie and Freddie are issuing letters to lenders regarding the new limitations, which will be effective January 10, 2014.
SLOOS on bank lending practices
The Federal Reserve Board has released the April 2013 Senior Loan Officer Opinion Survey (SLOOS) on bank lending practices. Domestic banks, on balance, reported having eased their lending standards and having experienced stronger demand in several loan categories over the past three months.
Submit online questions for Senior ID Theft workshop
The Federal Trade Commission is soliciting online questions for today's Senior ID Theft Workshop. Participants watching the free webcast can submit questions to the panelists via Twitter, Facebook, or email. The link for the webcast will activate at 8:45 (Eastern) this morning, May 7, 2013.
FTC won't change COPPA Rule date
The Federal Trade Commission has announced that it will not delay the scheduled July 1, 2013, effective date for its updated Children's Online Privacy Protection Rule (COPPA Rule, 16 CFR Part 312), which was published January 17, 2013.
May 6, 2013
HUD to sell delinquent loans
HUD plans two auction sales of approximately 20,000 FHA-insured severely delinquent mortgage loans to be held on June 26 and July 10. HUD expects to sell more than 40,000 distressed loans this year through quarterly sales that reduce FHA's total claims costs and increase recovery on losses to FHA's Mutual Mortgage Insurance (MMI) Fund.
Federal ACH reclamations processing change
Treasury has announced that, effective June 3, 2013, the processing of all Federal government Automated Clearing House (ACH) reclamations for Treasury-disbursed payments (non-DFAS) will be handled by the Department of the Treasury, Bureau of the Fiscal Service's Philadelphia Financial Center.
Virginia CU liquidated
The NCUA has issued a release on the May 3, 2013, liquidation of Lynrocten Federal Credit Union, Lynchburg, Virginia, the sixth federally insured credit union liquidation of the year.
IFRP disbursements report
The OCC has provided another in its series of status messages on the Independent Foreclosure Review Payment program (IFRP) to announce the sending of over 233,000 checks in the fourth wave of disbursements, bringing the number of payments thus far to more than 3.9 million worth $3.4 billion. More than 1.8 million of the checks—nearly $1.7 billion in payments—had been cashed or deposited through May 2, 2013.
May 3, 2013
CFPB CARD Act amendment published
The Bureau has published in today's Federal Register its previously announced final rule amending the CARD Act provisions to remove the requirement that issuers consider the consumer's independent ability to pay for applicants who are 21 or older, and permit issuers to consider income and assets to which such consumers have a reasonable expectation of access. The amendments are effective today, May 3, 2013; compliance is required by November 4, 2013.
OFAC SDN List removals
OFAC has announced the removal of the names of one entity and eight individuals with the ZIMBABWE designation from the SDN List. See BankersOnline's May 2, 2013, OFAC Update for further information.
Written Agreement executed
The Federal Reserve Board has announced the execution of a Written Agreement with The Baraboo Bancorporation, Inc., Baraboo, Wisconsin.
FRB Basel Coordination Committee bulletins
Four Bulletins have been issued by the FRB Basel Coordination Committee (BBC):
BCC 13-3Guidance for Independent Verification of a Banking Organization's Advanced Approaches Systems
BCC 13-5Applying the Requirement for Conservatism to the Parameters in the Advanced Approaches
BCC 13-6Guidance for Internal Audit under the Advanced Approaches Rule
OCC schedules South Dakota workshops
The OCC will host two workshops in Sioux Falls, South Dakota, on June 11–15, for directors of national community banks and federal savings associations. The workshops are among 37 being offered nationwide to enhance and expand the skills of community bank directors.
CFPB publishes more Compliance Guides
The Consumer Financial Protection Bureau has announced the publication of three more Small Entity Compliance Guides for the—
Bureau publishes rules proposal
The CFPB has published in today's Federal Register its previously announced proposal to amend some of the final mortgage rules it issued in January 2013. The amendments clarify or correct provisions on the relation to State law of Regulation X's servicing provisions; the small servicer exemption from certain servicing rules; the use of government-sponsored enterprise and Federal agency purchase, guarantee or insurance eligibility for determining qualified mortgage status; and the determination of debt and income for purposes of originating qualified mortgages. Comments are due by June 3, 2013.
Community suspension lists published
FEMA has published three lists of communities to be suspended from eligibility for participation in the National Flood Insurance Program due to noncompliance with floodplain management requirements. The communities will be suspended effective May 16, 2013, June 3, 2013, or June 18, 2013, depending on the list in which they appear.
Treasury has released the statement of the Federal Open Market Committee (FOMC) after its May 1 meeting. The Committee decided to continue purchasing additional agency mortgage-backed securities at a pace of $40 billion per month and longer-term Treasury securities at a pace of $45 billion per month. They also decided to keep the target range for the federal funds rate at 0 to ¼ percent and currently anticipates that this exceptionally low range for the federal funds rate will be appropriate at least as long as the unemployment rate remains above 6½ percent.
OCC schedules Dallas workshop for directors
The OCC will host a workshop in Dallas at the Wyndham Dallas–Park Central, June 3–5, for directors of national community banks and federal savings associations. The fee is $90 and attendance is limited to the first 35 registrants.
Bureau report on complaints from servicemembers
The CFPB Office of Servicemember Affairs has published its semi-annual Report on complaints it has received from servicemembers, veterans, and their families. The Bureau Blog also discusses two of the complaints and how the Bureau handled them.
May 1, 2013
Fair Housing design and construction guidance
HUD and the Department of Justice have announced the release of new Guidance reinforcing the Fair Housing Act requirement that multifamily housing be designed and constructed to be accessible to those with disabilities.
Maternity leave discrimination claim settled
The settlement of allegations a lender denied a woman a mortgage loan because she was pregnant and on maternity leave has been announced by HUD. Refusing to approve a mortgage loan or to provide refinancing because a woman is pregnant or on maternity leave violated the Fair Housing Act's prohibitions against sex and familial status discrimination. Under the terms of the agreement, the lender will pay the woman $13,000 and adopt a parental leave policy with respect to loan applications to ensure compliance. In addition, its loan officers, processors, underwriters and decision makers will be trained on the Act and the new policy.
Prohibition Orders issued
The NCUA has announced orders prohibiting five individuals from participating in the affairs of any federally insured financial institution. In separate legal action, the five individuals had been found guilty of various crimes and ordered to make restitution payments totaling over $3.6 million.
Flooded offices may close
The OCC issued a proclamation allowing national banks and federal savings associations to close offices affected by the flooding along the Red River at their discretion.
A progress report has been issued by the FHFA on the establishment of a common securitization infrastructure for residential mortgage-backed securities. [SummaryFull Report]
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