Top Story Compliance Related

The Federal Reserve Board has published its previously announced proposal to amend its Regulation M (12 CFR Part 213) to define its limited scope following enactment of the Dodd-Frank Act and the CFPB's issuance of its Regulation M. Both regulations implement the Consumer Leasing Act; the Fed's regulation only applies to certain motor vehicle dealers. Comments on the Fed's proposal are due by March 5, 2018.

The FDIC's first Financial Institution Letter of 2018, FIL-1-2018, includes materials and instructions for the Consolidated Reports of Condition and Income (Call Reports) for the December 31, 2017, report date. The agency requests that institutions complete as early as possible the preparation, editing, and review of their Call Report date and the submission of the data to their respective regulatory agencies' Central Data Repository. Except for certain institutions with foreign offices, completed Call Reports must be received by Tuesday, January 30, 2018.

From the FIL: "Institutions should note that Accounting Standards Codification Topic 740, Income Taxes, requires the tax effects of changes in tax laws or rates to be recognized in the period in which the law is enacted. Accordingly, the effects of the changes in tax laws and rates enacted on December 22, 2017, in the Tax Cuts and Jobs Act should be reflected in the Call Report for December 31, 2017. Because of the significance of these changes, the agencies plan to provide guidance to institutions that addresses the changes for purposes of the year-end 2017 Call Report in January 2018."

The FFIEC has updated the instructions on its Rate Spread Calculator page. The page includes a new link to the CFPB's rate spread calculator for loans with a final action date of January 1, 2018, or later.

The NMLS has announced the 2018 Renewal Period has ended as of December 31, 2017. The Reinstatement Period began on January 1 and ends at midnight ET on February 28. Review the State Licensing and Federal Registry Annual Renewal pages of the NMLS Resource Center for steps required for license or registration reinstatement. We remind you that any MLO whose registration has lapsed cannot perform MLO duties unless and until the registration has been reinstated.

The Federal Emergency Management Agency has published a Final Rule in the January 3, 2017, Federal Register identifying communities in the states of Florida, New York, Oregon, Texas and Washington that are scheduled for suspension from the National Flood Insurance Program on January 19, 2018, for noncompliance with the floodplain management requirements of the program.

The FDIC has released a list of orders of administrative enforcement actions taken against banks and individuals in November (and one in October). The FDIC issued a total of 29 orders and adjudicated decisions in November. The current release also includes one termination order issued in October. The administrative enforcement actions in November’s orders consisted of two consent orders; four Section 19 orders; 10 removal and prohibition orders; five civil money penalties; one order of restitution; five terminations of consent orders; and two adjudicated decisions.

Three of the civil money penalties were for flood insurance violations by banks in Puerto Rico ($153,850), Ohio ($7,200), and Missouri ($5,500). There were also two civil money penalties totaling $34,000 assessed against institution-affiliated individuals of state nonmember banks currently in receivership. One of those individuals was also ordered to make restitution of $210,000 to his former bank, and both were issued Prohibition Orders.

The Federal Emergency Management Agency has published a rule in the December 29, 2017, Federal Register identifying three communities in the State of Louisiana that are scheduled for suspension from the National Flood Insurance Program on January 5, 2018, for noncompliance with the floodplain management requirements of the program. The listed communities are:

• Unincorporated areas of Beauregard Parish;
• City of DeRidder (Beauregard and Vernon Parishes); and
• Town of Merryville (Beauregard Parish).

An open meeting with the NMLS Ombudsman will be held Friday, February 9, 2018, from 8:30 a.m. to 11:30 a.m. CT, in conjunction with the 2018 NMLS Annual Conference and Training in New Orleans, Louisiana. Conference registration is not required to attend the meeting. Suggested agenda items regarding NMLS, state licensing, and/or federal registration are requested and will be accepted until January 17, 2018, via email to ombudsman@nmls.org. Individuals who submit discussion items must attend the meeting to present their issue. Please provide the issue and any relevant information on your company's letterhead. The meeting will be in-person only; there will be no dial-in available.

OFAC has announced amendments to the Iran Stabilization and Insurgency Sanctions Regulations to implement an Executive Order which ended immunities granted to the development fund for Iraq and certain other Iraqi property and interests in property. The amendments also implement certain technical and conforming changes. This amendment is effective upon today's publication in the Federal Register.

The CFPB circulated an email notice yesterday that it has launched a HMDA Check Digit Tool and Rate Spread Calcualtor, both available on the CFPB/FFIEC Resources for HMDA filers webpage.