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How to add predictive analytics into your risk program. Risk reports are often limited to historical insights and issues and do not provide guidance and insights into the future of the organization. Adding predictive analytics can allow your organization to detect emerging risks and create mitigation plans. This can be achieved by combining internal and external key risk indicators (KRIs) and key performance indicators (KPIs) with regulatory intelligence. This ensures that risk reports can detect more issues and highlight areas of concern. Click here to learn more.

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Free credit monitoring for some members of the military

The FTC has reported that, starting October 31, many members of the military will have access to free electronic credit monitoring to help them spot identify theft. The nationwide credit reporting agencies—Equifax, Experian, and TransUnion—are providing free electronic credit monitoring services to some active duty service members who are assigned to service away from their usual duty station and all active duty National Guard members. Credit monitoring services can alert consumers to mistakes or problems with their credit reports that might stem from the unauthorized use of their personal information to obtain credit.

There is a limitation on coverage for active duty service members to those assigned to service away from their usual duty stations, due to the wording of the Fair Credit Reporting Act amendments made by the 2018 Economic Growth, Regulatory Relief, and Consumer Protection Act (EGRRCPA). That limitation was not applied in the EGRRCPA amendments to National Guard members.


Guidance to reduce taxpayer regulatory burden issued

Treasury and the IRS have issued guidance to taxpayers (due to be published in the Federal Register on Monday, November 4) to eliminate costly documentation requirements, and have provided advance notice of their intent to streamline other regulations under section 385 of the Internal Revenue Code.


NCUA webinar registration open

The NCUA has announced that registration for its “Fair Lending and Consumer Compliance Regulatory Update” on November 19 is now open. The webinar is scheduled to begin at 2 p.m. EST and run approximately 90 minutes. Participants will be able to log into the webinar and view it on their computers or mobile devices using the registration link. Subjects to be covered include:

  • The agency’s new payday alternative loan (PALs II) rule
  • Findings from reviews of Home Mortgage Disclosure Act loan and application registers;
  • Regulation B adverse action notices; and
  • Elder financial abuse.


TFTC adds 25 Iranian targets

The Treasury Department has announced that the seven member nations of the Terrorist Financing Targeting Center (TFTC) jointly designated 25 targets affiliated with the Iranian regime’s terror-support networks in the region. Twenty-one of these targets comprised a vast network of businesses providing financial support to the Basij Resistance Force (Basij), a paramilitary force subordinate to Iran’s Islamic Revolutionary Guard Corps (IRGC).The four other targets were Hizballah-affiliated individuals who lead and coordinate the group’s operational, intelligence, and financial activities in Iraq. A chart describing the designated entities was also released.

For identity information on the designated parties, see BankersOnline's OFAC Update.


NCUA amends public unit and nonmember share rule

The NCUA Board has published [84 FR 58305] in today's Federal Register a final rule amending the NCUA’s public unit and nonmember share rule to allow federal credit unions (FCU) to receive public unit and nonmember shares up to 50 percent of the credit union’s net amount of paid-in and unimpaired capital and surplus less any public unit and nonmember shares. The rule also makes a conforming change to the NCUA’s regulations that apply the public unit and nonmember share limit to all federally insured credit unions (FICUs). The amendments will be effective January 29, 2020.


FDIC proposes to shed OTS regs

The FDIC has published [84 FR 58492] in today's Federal Register a proposed rule that would rescind and remove certain regulations transferred in 2011 to the FDIC from the former Office of Thrift Supervision pursuant to the Dodd-Frank Act. In addition to the removal of part 390, subpart S, the FDIC proposes to make technical changes to other parts of the FDIC’s regulations (Parts 303, 326, 337, and 353) so that they may be applicable on their terms to State savings associations.

Following the removal of the identified regulations, the regulations governing the operations of State savings associations will be substantially the same as those for all other FDIC-supervised institutions. Comments will be accepted for 32 days (by December 2, 2019).


Agencies simplify community bank capital requirements

The Federal Reserve Board, FDIC, and OCC announced Tuesday morning they have finalized a rule that simplifies capital requirements for community banks by allowing them to adopt a simple leverage ratio to measure capital adequacy. The community bank leverage ratio framework removes requirements for calculating and reporting risk-based capital ratios for a qualifying community bank that opts into the framework. o qualify for the framework, a community bank must have less than $10 billion in total consolidated assets, limited amounts of off-balance-sheet exposures and trading assets and liabilities, and a leverage ratio greater than 9 percent. This rule becomes effective January 1, 2020.

The agencies also finalized a rule to allow non-advanced approaches banks, including community banks, to elect to adopt simplifying changes to the capital rule beginning on January 1, 2020, a quarter earlier than the mandatory compliance date of April 1, 2020. The agencies issued the simplifying changes in July 2019.


Bureau revises threshold amounts for 2020

The CFPB has published final rules in this morning's Federal Register adjusting exemptions thresholds in Regulations Z and M for the year 2020.

  • [84 FR 58013] Comment 35(c)(2)(ii)-3.vii will be added to the Official Interpretations of § 1026.35 of Regulation Z to increase the threshold amount to $27,200 for the exemption from the special appraisal requirements for higher-priced mortgage loans.
  • [84 FR 58020] Comment 3(b)-3.xi will be added to the Official Interpretations of § 1026.3 of Regulation Z to increase the threshold amount to $58,300 for exempt consumer credit transactions (except for (1) those secured by real property or by personal property use or expected to be used as the principal dwelling of a consumer and (2) private education loans)
  • [84 FR 58017] Comment 2(e)-11.xii will be added to the Official Interpretations of § 1013.2 of Regulation M to increase the threshold amount to $58,300 for exempt consumer leases.

The BankersOnline Regulations pages for Regulations Z and M have been updated to include these changes.


Large firm resolution plan requirements changed

The Federal Reserve Board and the Federal Deposit Insurance Corporation have announced that they had finalized a rule that modifies their resolution plan requirements for large firms. The rule retains resolution plan elements in place for the largest firms, while reducing requirements for smaller firms that pose less risk to the financial system. The final rule is substantially the same as the proposal from earlier this year. It uses a separate framework developed by the banking agencies for application of prudential requirements, and establishes resolution planning requirements tailored to the level of risk a firm poses to the financial system. The changes will be effective 60 days following publication in the Federal Register.


Proposed rule to amend swap margin rules

The Fed, FDIC, OCC, FHFA, and Farm Credit Administration have announced a proposal to change the swap margin rules to facilitate the implementation of prudent risk management strategies at certain banks and swap entities. The swap margin rule would no longer require swap entities to hold initial margin for uncleared swaps with affiliates. However, inter-affiliate transactions would still be subject to variation margin requirements. Swap entities regulated by the FDIC, the OCC, and the Fed also would be subject to requirements under sections 23A and 23B of the Federal Reserve Act. Comments will be accepted for 30 days following publication.
UPDATE: Published 11/7/2019 with comments due in 32 days, or by 12/9/2019.


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