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Banker's Toolbox, Inc., leaders in compliance solutions for financial institutions, announced the acquisition of Georgia-based MainStreet Technologies (MST). MST is an industry leader in the loan risk management space. This acquisition adds to a strong and growing portfolio of compliance-related solutions and will continue to enhance the value Banker's Toolbox brings to both their customers and the industry. (Read full press release here.)

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OFAC extends expiration date of General Licenses

OFAC has announced its extension of the expiration date of certain general licenses related to EN+ Group plc and United Company RUSAL PLC. General Licenses 13D, 14A, and 16A have been amended to extend their expiration dates from October 23 to November 12, 2018, for transactions related to the companies and their subsidiaries.


Lender and appraisal company pay $240K for refinance discrimination

HUD has announced that LLC and Appraisal Management Services of America, Inc. agreed have to pay over $240,000 for allegedly refusing to refinance loans because of race and homes’ location on Native American lands.


Bureau plans Atlanta office

The Bureau of Consumer Financial Protection has announced plans to relocate its Southeast regional office from Washington, D.C. to Atlanta, Georgia. It already has regional offices in New York, Chicago, and San Francisco that are used mostly by supervision staff but also house enforcement attorneys and other Bureau personnel. Since the Bureau’s inception, the southeast regional team has been based temporarily at the Bureau’s D.C. headquarters. The move is anticipated to take place in late 2019.


Swap Margin Rule amendments approved

Five federal agencies (the Fed, FDIC, FHFA, OCC, and the Farm Credit Administration) have approved final amendments to swap margin requirements to conform with recent rule changes that impose new restrictions on certain qualified financial contracts of systemically important banking organizations (QFC Rules). Under the amendments, which will become effective 30 days after Federal Register publication, legacy swaps entered into before the applicable compliance date will not become subject to the margin requirements if they are amended solely to comply with the requirements of the QFC Rules.


Board requests comments on amendments to Regs H and K

The Federal Reserve Board has requested public comment on a proposal to amend Regulation H and Regulation K to repeal provisions that incorporate the Secure and Fair Enforcement for Mortgage Licensing Act (S.A.F.E. Act). The proposal reflects the transfer of the Board's rulemaking authority for the S.A.F.E. Act to the Bureau of Consumer Financial Protection. Entities that were subject to the Board's rules are now subject to the Bureau's rules. Comments on the proposal will be accepted for 60 days following publication in the Federal Register.


Second quarter mortgage performance unchanged

The OCC has released its Mortgage Metrics Report for the Second Quarter 2018, which showed 95.6 percent of mortgages included in the report were current and performing at the end of the quarter, compared to 95.4 percent a year earlier. The report also showed that servicers initiated 29,612 new foreclosures during the second quarter of 2018­, a 20.6 percent decrease from the previous quarter and a 17.7 percent decrease from a year ago. Servicers implemented 32,655 mortgage modifications in the second quarter of 2018, and 64.1 percent of the modifications reduced borrowers’ monthly payments.

The first-lien mortgages included in the OCC’s quarterly report comprise 33 percent of all residential mortgages outstanding in the United States or approximately 17.5 million loans totaling $3.28 trillion in principal balances.


All consumers can place free credit card freezes

The Federal Trade Commission and the Bureau of Consumer Financial Protection have announced that effective Friday, September 21, 2018, consumers concerned about identity theft or data breaches can freeze their credit and place one-year fraud alerts for free. Under the new Economic Growth, Regulatory Relief, and Consumer Protection Act, consumers in some states, those who previously had to pay fees to freeze their credit, will no longer have to do so. A credit freeze, also known as a security freeze, restricts access to a consumer’s credit file, making it harder for identity thieves to open new accounts in the consumer’s name. The new law also allows parents to freeze for free the credit of their children who are under 16, while guardians, conservators, and those with a valid power of attorney can get a free freeze for their principals. In addition, the new law extends the duration of a fraud alert on a consumer’s credit report from 90 days to one year. A fraud alert requires businesses that check a consumer’s credit to get the consumer’s approval before opening a new account.

Lenders are reminded that this added accessibility to credit freezes can impact consumer's ability to apply for credit. Lenders should consider reminding consumers to temporarily lift any credit freezes before applying for new credit.


Debt collection scheme halted by FTC

The Federal Trade Commission has announced that the operators of an illegal debt collection scheme have agreed to be permanently banned from the debt collection business in order to settle Commission charges that they falsely threatened to have people arrested if their debts were not paid. The defendants falsely claimed consumers would spend up to 120 days in jail or pay thousands of dollars in bail. Court orders impose a judgment of $22.5 million against Gregory MacKinnon, Vantage Point Services LLC, Joseph Ciffa and Bonified Payment Solutions, Inc. The orders impose a judgment of $4.4 million against Angela Burdorf and Payment Management Solutions Inc. The judgment against Ciffa and Bonified Payment Solutions will be suspended due to their inability to pay. The full judgment against Ciffa and Bonified Payment Solutions will become due immediately if they are found to have misrepresented their financial condition.


State Department adds to CAATSA Russia-related list

The Department of State has issued a Fact Sheet to announce that the president has issued a new Executive Order, “Authorizing the Implementation of Certain Sanctions Set Forth in the Countering Americas Adversaries Through Sanctions Act,” to further the implementation of certain sanctions in the Countering America’s Adversaries Through Sanctions Act of 2017 (CAATSA) with respect to the Russian Federation.

The Fact Sheet also said that the Secretary of State took two actions Thursday to implement his delegated authorities pursuant to section 231 of CAATSA and to further impose costs on the Russian Government for its malign activities. First, the Secretary added 33 additional persons—individuals and entities—to the CAATSA section 231 List of Specified Persons (LSP) for being a part of, or operating for or on behalf of, the defense or intelligence sectors of the Government of the Russian Federation. Those persons are identified in the Fact Sheet. This action increases the number of persons identified on the LSP to 72. Any person who knowingly engages in a significant transaction with any of these persons is subject to mandatory sanctions under CAATSA section 231.

Second, in consultation with the Secretary of the Treasury, the Secretary of State imposed sanctions on the Chinese entity Equipment Development Department (EDD) and its director, Li Shangfu, for engaging in significant transactions with persons on the LSP. These transactions involved Russia’s transfer to China of Su-35 combat aircraft and S-400 surface-to-air missile system-related equipment.

Identifying information on EDD and Li Shangfu and links to additional resources connected to this State Department action can be found in our OFAC Update.


Eight public housing authorities receive $8M

HUD has announced awards of $8 million in grant funding to eight public housing authorities to keep residents safe and secure. The funding was offered through HUD’s Capital Fund Emergency Safety and Security Program and Capital Fund Emergency and Disaster Program.


2020 W-4 form to be redesigned

The Treasury Department has announced that the IRS will implement a redesigned W-4 form for tax year 2020, a timeline that will allow for continued work to refine the new approach for the form. As a result of the enactment of the 2017 Tax Cuts and Jobs Act, Treasury and the IRS are revising the wage withholding system and Form W-4, Employee’s Withholding Allowance Certificate. In June, the IRS released a draft redesigned form for public comment and received many helpful suggestions for improvements, which they are working to integrate.


OCC September enforcement actions and terminations

The OCC has released information on recent enforcement actions against national banks, federal savings associations, and individuals currently and formerly affiliated with national banks and federal savings associations. An Order of Prohibition and for a Civil Money Penalty of $1,000 was issued against a former General Lender and Vice President of the Minnesota National Bank, Sauk Centre, Minnesota. Two terminations of existing enforcement actions were also included in the agency's announcement.


HUD and Puerto Rico announce $1.5B hurricane relief agreement

HUD Secretary Ben Carson and Puerto Rico's Governor Ricardo Rosselló have announced the formal execution of a $1.5 billion grant agreement to help citizens in Puerto Rico recover from Hurricanes Irma and Maria. The signing of the agreement paves the way to speed recovery dollars needed to restore damaged and destroyed homes, businesses and infrastructure.


Community Banking in the 21st Century Conference

The FDIC is joining the FRB and the Conference of State Bank Supervisors (CSBS) in sponsoring the sixth annual Community Banking in the 21st Century research and policy conference . The conference, which brings together community bankers, academics, policymakers and bank supervisors from around the country, will meet October 3–4 at the Federal Reserve Bank of St. Louis.


NCUA Board approves appraisals amendment

The NCUA has announced that its Board yesterday unanimously approved two items on its agenda:

  • A proposed rule amending the agency’s regulation requiring real estate appraisals for certain transactions to provide a measure of regulatory relief
  • A request from the Texas Credit Union Department to revise its member business lending rule to provide parity with the NCUA’s rule following changes made in June 2018


More ISIS financial facilitators designated

OFAC has announced the designation of two Islamic State of Iraq and Syria (ISIS) financiers in accordance with Executive Order 13224, which targets terrorists and those providing support to terrorists or acts of terrorism. Both individuals are citizens of Trinidad and Tobago. For identification information, see our OFAC Update.


SEC shuts down $345M Ponzi scheme

The Securities and Exchange Commission reports that a federal court order has been issued halting an ongoing Ponzi-like scheme that raised more than $345 million from over 230 investors across the U.S. The SEC also obtained an emergency asset freeze and the appointment of a receiver. The Commission's complaint alleged that Kevin B. Merrill, Jay B. Ledford and Cameron Jezierski attracted investors to their scheme by promising significant profits from the purchase and resale of consumer debt portfolios. But in fact, the defendants were allegedly using a web of lies, fabricated documents, and forged signatures in an elaborate scheme to entice investors and perpetuate the fraud. Rather than direct investor funds to the acquisition and servicing of debt portfolios as promised, the defendants allegedly used the funds to make Ponzi-like payments to earlier investors. The SEC also alleges that Merrill and Ledford stole at least $85 million of the investor funds to maintain lavish lifestyles, spending millions of dollars on luxury items.


Bureau report on geography of credit invisibility

The CFPB has released a new research report on the geographic patterns of credit invisibility. Consumers who are “credit invisible” have no credit histories. This is the third in a series of Bureau studies on consumers with limited credit histories.


Bureau offers support for organizations serving economically vulnerable

The CFPB has announced it is looking for about 40 organizations that are interested in using the Bureau's toolkit, "Your Money, Your Goals," and related materials to help build the financial well-being of the people they serve. Members of the Your Money, Your Goals 2019 cohort will receive training, materials, and technical assistance, including support to develop and execute their "Your Money, Your Goals" implementation plans.


FTC shuts down fake doc ID theft operation

The operators of websites that sold fake pay stubs and other documents used to facilitate identity theft and other frauds have agreed to permanently shut down their businesses as part of separate settlements with the Federal Trade Commission. In separate cases filed by the FTC, the Commission alleged that Katrina Moore, Steven Simmons, and George Jiri Strnad II and their affiliated companies operated websites that sold customers a variety of fake financial and other documents – such as pay stubs, income tax forms, and medical statements – which can be used to facilitate identity theft, tax fraud, and other crimes.


Proposed high volatility commercial real estate rule

A joint press release from the Fed, FDIC, and OCC invites public comment on a proposal to modify the agencies' capital rules for high volatility commercial real estate exposures, as required by the Economic Growth, Regulatory Relief, and Consumer Protection Act. The proposal also asks for comment on certain terms contained in the revised definition of high volatility commercial real estate. The changes, when finalized, would apply to all banking organizations subject to the agencies' capital rules. Comments on the proposal will be accepted for 60 days following Federal Register publication.

The FDIC also issued FIL-50-2018 concerning the proposal.


U.S.-UK working group meeting

U.S. and UK participants held the inaugural meeting of the U.S.-UK Financial Regulatory Working Group on September 12 in London. The Working Group was formed to deepen bilateral regulatory cooperation with a view to the further promotion of financial stability; investor protection; fair, orderly, and efficient markets; and capital formation in both jurisdictions.

Participants discussed the outlook for financial regulatory reforms and future priorities, including possible areas for deeper regulatory cooperation to facilitate further financial services activity between U.S. and UK markets. They also discussed the implications of the UK’s exit from the EU on financial stability and cross-border financial regulation, including a particular concern about contract continuity including servicing existing financial contracts after exit, noting the importance of reducing potential cliff-edge risks for business and consumers. Participants also discussed the U.S.-UK financial regulatory issues resulting from the UK’s exit from the EU, and recognized the importance of maintaining bilateral activity of U.S. and UK financial services firms.


July TIC data

Treasury has released Treasury International Capital (TIC) data for July 2018. The sum total in July of all net foreign acquisitions of long-term securities, short-term U.S. securities, and banking flows was a net TIC inflow of $52.2 billion. Of this, net foreign private inflows were $71.6 billion, and net foreign official outflows were $19.4 billion. Foreign residents increased their holdings of long-term U.S. securities in July; net purchases were $40.6 billion. Net purchases by private foreign investors were $54.4 billion, while net sales by foreign official institutions were $13.8 billion. U.S. residents decreased their holdings of long-term foreign securities, with net sales of $34.2 billion.


OCC proposes to amend recovery planning guidelines

The OCC has published [83 FR 47313] a notice of proposed rulemaking in today's Federal Register that would amend its enforceable guidelines relating to recovery planning standards for insured national banks, insured federal savings associations, and insured federal branches (Guidelines) to increase the average total consolidated assets threshold for applying the Guidelines from $50 billion to $250 billion. The proposed changes would also decrease from 18 months to 12 months the time within which a bank should comply with the Guidelines after the bank becomes subject to them. Finally, the proposal would make technical amendments to remove outdated compliance dates. Comments on the proposal are due by November 5, 2018.


NACHA approves expanding Same Day ACH

NACHA announced yesterday that its membership has approved three new rules to expand the capabilities of Same Day ACH for all financial institutions and their customers. The first expands access to Same Day ACH by allowing Same Day ACH transactions to be submitted to the ACH Network for an additional two hours every business day (until 4:45 p.m. ET), starting September 18, 2020. The second increases the Same Day ACH per-transaction dollar limit to $100,000, effective March 20, 2020. The third increases the speed of funds availability for certain Same Day ACH and next-day ACH credits, effective September 20, 2019.


Treasury adds to TFI team

Treasury has announced two additions to the senior leadership team in its Office of Terrorism and Financial Intelligence (TFI). Isabel “Izzy” Patelunas was sworn in Monday as Assistant Secretary for TFI’s Office of Intelligence and Analysis (OIA). Andrea Gacki was named permanent Director of the Office of Foreign Assets Control (OFAC), after serving as Acting Director since May of this year.


FTC mails $10M+ to debit card customers

The Federal Trade Commission reported yesterday it is mailing more than 430,000 checks totaling more than $10 million to individuals who could not access money deposited to their NetSpend reloadable prepaid debit cards. According to an FTC complaint, many NetSpend customers were unable to access their funds, either because NetSpend denied or delayed activation of their card or because NetSpend blocked them from using it.


Bureau offers tool to track spending

The CFPB has posted an article announcing the availability of a spending tracker that can help individuals make decisions that can help them meet their goals and give them clarity around their spending habits.


Communities to be suspended from flood insurance program

The Federal Emergency Management Agency has published [83 FR 47077] in today's Federal Register a final rule identifying communities in Oregon, South Carolina and Wisconsin where the sale of flood insurance has been authorized under the National Flood Insurance Program (NFIP) that are scheduled for suspension on September 28, 2018, for noncompliance with the floodplain management requirements of the program:

  • OR: Bay City, Garibaldi, Manzanita, Nahalem, Rockaway Beach, Tillamook, Wheeler, and unincorporated areas of Tillamook County
  • SC: Camden, Sumter, and unincorporated areas of Kershaw, Lancaster, and Sumter counties
  • WI: Rothchild, Wausau, and Weston, and unincorporated areas of Marathon County


NCUA Board meeting notice

The NCUA Board has published [83 FR 46973] a notice of its next open meeting, at 10:00 a.m., Thursday, September 20, 2018. Matters for consideration include the Share Insurance Fund quarterly report, a board briefing on appointment of administrative law judges, NCUA rules on real estate appraisals, and the Texas Member Business Loan rule. A closed meeting will follow.


Thai-based aviation company targeted by OFAC

Treasury announced on Friday, September 14, that its Office of Foreign Assets Control (OFAC) designated Thailand-based My Aviation Company Limited for acting for or on behalf of Mahan Air, an Iranian airline previously designated for supporting Iran’s terrorism activities. The action was taken pursuant to Executive Order 13224, which targets terrorists and those providing support to terrorists or acts of terrorism. Our OFAC Update includes identification information on the company.


Bureau blogs on key financial skills

The CFPB has posted an article, "Facing a money decision? Check whether you use the 3 skills that stand out in people with high financial well-being," focusing on how consumers can find and use information to inform their financial decisions. The three skills needed are knowing when to look for information to fill a gap in one's knowledge; knowing where to find information that can be trusted; and knowing how to act on one's decision, to stay on track.

The Bureau also released a report, Pathways to financial well-being: The role of financial capability; a 10-question financial skills scale; and additional resources for financial educators.


Discrimination charge lodged against New Orleans landlord

HUD has announced that it is charging a New Orleans landlord with housing discrimination for publishing an advertisement that discriminated against families with children. The ad, which was brought to HUD’s attention by the Greater New Orleans Fair Housing Action Center, included language that stated, “No Teenagers Please.”


New OFAC Ukraine/Russia related FAQs

OFAC has announced it has posted two new Frequently Asked Questions (FAQs) to provide guidance on ”maintenance” as that term is used in General Licenses 14 , 15, and 16.


Industrial production and utilization continue to rise

The Federal Reserve has posted the September 14, 2018, G.17 Industrial Production and Capacity Utilization Report. Industrial production rose 0.4 percent in August for its third consecutive monthly increase. Manufacturing output moved up 0.2 percent on the strength of a 4.0 percent rise for motor vehicles and parts; motor vehicle assemblies jumped to an annual rate of 11.5 million units, the strongest reading since April. Excluding the gain in motor vehicles and parts, factory output was unchanged. The output of utilities advanced 1.2 percent, and mining production increased 0.7 percent; the index for mining last decreased in January. At 108.2 percent of its 2012 average, total industrial production was 4.9 percent higher in August than it was a year earlier. Capacity utilization for the industrial sector moved up in August to 78.1 percent, a rate that is 1.7 percentage points below its long-run (1972–2017) average.


Regulators' statement on institutions affected by Florence

A joint press release was issued on Friday by the OCC, FRB, FDIC, NCUA, and the Conference of State Bank Supervisors which stated they recognize the serious impact of Hurricane Florence on the customers, members, and operations of many financial institutions and will provide appropriate regulatory assistance to affected institutions subject to their supervision. The agencies encourage institutions operating in the affected areas to meet the financial services needs of their communities. The FDIC also issued FIL-48-2018 on the topic.


Summary of Deposits released

The FDIC has released the results of its annual survey of branch office deposits for all FDIC-insured institutions. The FDIC's Summary of Deposits (SOD) provides deposit totals for each of the more than 88,000 domestic offices operated by more than 5,500 FDIC-insured commercial and savings banks, savings associations, and U.S. branches of foreign banks. The SOD includes historical data going back to 1994 that can be analyzed using online reports, tables, and downloads.


Quarterly CU data available

The NCUA has issued Second Quarter 2018 State Credit Union data, which indicate that federally insured credit unions generally saw continued positive trends in the second quarter of 2018. Nationally, overall membership continued to grow, concentrated in larger credit unions. Eighty-five percent of federally insured credit unions reported positive net income during the first half of 2018. Median loan growth was 5.4 percent and median asset growth was 2.1 percent during the year ending in the second quarter.


Citigroup pays $12.9M for misleading users of dark pool

The SEC has entered an order finding that Citigroup Global Markets Inc. misled users of a dark pool operated by one of its affiliates. The order found that Citigroup misled users with assurances that high-frequency traders were not allowed to trade in Citi Match, a premium-priced dark pool— a trading venue or marketplace that accepts, matches and executes orders to buy and sell securities without providing its best-priced orders for inclusion in the consolidated quotation data—operated by Citi Order Routing and Execution (CORE), when two of Citi Match’s most active users reasonably qualified as high-frequency traders and executed more than $9 billion of orders through the pool. It also found that Citigroup failed to disclose that over a period of more than two years, close to half of Citi Match orders were routed to and executed in other trading venues, including other dark pools and exchanges, that did not offer the same premium features as Citi Match. The order directs that Citigroup's subsidiaries pay in excess of $12.9 million in disgorgement, interest, and civil money penalties.


OFAC targets North Korea-controlled infotech companies

The Treasury Department has announced that OFAC made North Korea-related designations against two entities and one individual, targeting the revenue that North Korea earns from overseas information technology workers. OFAC designated Jilin, China-based Yanbian Silverstar Network Technology Co., Ltd., its North Korean CEO, Jong Song Hwa, and its Vladivostok, Russia-based sister company, Volasys Silver Star. For identification information, see our OFAC Update.


Treasury and IRS propose GILTI regs

Treasury and the IRS yesterday issued their first set of guidance on global intangible low-taxed income (GILTI). The 2017 Tax Cuts and Jobs Act requires U.S. shareholders to include GILTI generated by controlled foreign corporations (CFCs) in their gross income. Under the new law, a U.S. taxpayer owning at least 10 percent of the value or voting rights in one or more CFCs is required to include its global intangible low-taxed income as currently taxable income, regardless of whether any amount is distributed to shareholders. The rule affects U.S. individuals, domestic corporations, partnerships, trusts and estates.


OCC to hold workshops in San Francisco

The OCC will host two workshops at the Holiday Inn San Francisco-Golden Gateway, San Francisco, California, November 6–7, for directors of national community banks and federal savings associations.

  • The Credit Risk workshop on November 6 focuses on credit risk within the loan portfolio, such as identifying trends and recognizing problems. The workshop also covers the roles of the board and management, how to stay informed of changes in credit risk, and how to effect change.
  • The Operational Risk workshop on November 7 focuses on the key components of operational risk—people, processes, and systems. The workshop also covers governance, third-party risk, vendor management, and cybersecurity.


FDIC proposes reciprocal deposits rule

The FDIC has announced it is seeking comment on a proposed rule to implement Section 202 of the Economic Growth, Regulatory Relief, and Consumer Protection Act (EGRRCPA) to exempt certain reciprocal deposits from being considered as brokered deposits for certain insured institutions. Under the reciprocal deposit exception addressed in the proposed rule, well-capitalized and well rated institutions are not required to treat reciprocal deposits as brokered deposits up to the lesser of 20 percent of their total liabilities or $5 billion. Institutions that are not both well capitalized and well rated may also exclude reciprocal deposits from their brokered deposits under certain circumstances.

This rulemaking is the first of a planned two-part effort to revisit the agency's brokered deposit rules. For the second part, the FDIC plans to seek comments later this year on the agency's overall brokered deposit and rate cap regulations. FDIC FIL-47-2018 includes additional information on the proposal. Comments will be accepted for 30 days following Federal Register publication.


SEC monitoring Florence’s impact on capital markets

The SEC has reported it is closely monitoring the impact of Hurricane Florence on investors and capital markets. The SEC divisions and offices that oversee companies, accountants, investment advisers, mutual funds, brokerage firms, transfer agents, and other regulated entities and investment professionals will continue to closely track developments. They will evaluate the possibility of granting relief from filing deadlines and other regulatory requirements for those affected by the storm.


Bureau tips on using mobile payment services

An article on the Bureau Blog notes that with the development of new payment methods come new risks. Person-to-person payment services and mobile payment apps have become part of everyday life for millions of people. In addition to information about federal consumer protection laws and regulations that apply to those payment services, a list of tips consumers can use to protect themselves is provided.


Bureau sues providers of pension-advance products

The Bureau of Consumer Financial Protection announced it has filed a complaint against Future Income Payments, LLC (FIP), Scott Kohn, and several related entities. The complaint alleges that the defendants violated the Consumer Financial Protection Act by representing to consumers that their pension-advance products were not loans, were not subject to interest rates, and were comparable in cost to, or cheaper than, credit card debt when, in actuality, the pension-advance products were loans, and were subject to interest rates that were substantially higher than credit card interest rates. The Bureau also alleges that the defendants violated the Truth in Lending Act (TILA), by failing to disclose a measure of the cost of credit, expressed as a yearly rate.


Updated FCRA model disclosures

The Bureau of Consumer Financial Protection announced yesterday an interim final rule updating two model disclosures in Appendices I and K of Regulation V to reflect changes made to the Fair Credit Reporting Act by the EGRRCPA. The two disclosures—the Summary of Consumer Rights and the Summary of Consumer Identity Theft Rights—reflect the EGRRCPA amendments to the FCRA that requires nationwide consumer reporting agencies to provide free "national security freezes," and extend from 90 days to one year the minimum time that nationwide consumer reporting agencies must include an initial fraud alert in a consumer's file. The interim final rule also permits various compliance alternatives. It becomes effective as required by the EGRRCPA on September 21, 2018.


NCUA hurricane info webpage

The NCUA has announced it is closely monitoring Hurricane Florence, and has a hurricane information webpage with material on preparedness and recovery available for credit unions and members in the storm’s path. The agency will be ready to assist credit unions with maintaining or restoring operations, if necessary. The NCUA’s Office of Credit Union Resources and Expansion can provide urgent needs grants up to $7,500 to low-income credit unions that experience sudden costs to restore operations interrupted by the storm.


OCC updates 'Deposit-Related Credit' booklet

OCC Bulletin 2018-28 announces an update of the “Deposit-Related Credit” booklet of the Comptroller’s Handbook. The update:

  • provides general guidance on the risks associated with deposit-related credit products, such as check credit, overdraft protection, and deposit advance products
  • includes updates due to the rescission of OCC Bulletin 2013-40, “Deposit Advance Products: Final Supervisory Guidance,” and the issuance of OCC Bulletin 2018-14, “Installment Lending: Core Lending Principles for Short-Term, Small-Dollar Installment Lending”
  • provides information regarding the Military Lending Act as implemented by the U.S. Department of Defense’s 32 CFR 232.
  • incorporates references for OCC Bulletin 2017-21, “Third-Party Relationships: Frequently Asked Questions to Supplement OCC Bulletin 2013-29,” and OCC Bulletin 2017-43, “New, Modified, or Expanded Bank Products and Services: Risk Management Principles.”
  • incorporates the prohibition in the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010 against unfair, deceptive, or abusive acts or practices.


Reg CC liability amendments issued

The Fed has approved final amendments to the liability provisions of Regulation CC. In today's check collection environment, original paper checks may be unavailable for inspection in certain disputes between banks. When the original check is not available, the final amendments update Regulation CC to include a presumption that a substitute or electronic check was altered in certain cases of doubt. The presumption applies only to disputes between banks and only when one bank has transferred an electronic or substitute check to the other bank. As with existing rules under Regulation CC, the parties may, by mutual agreement, vary the effect of the amendments' provisions. In addition, the final amendments clarify that the presumption does not apply if it is contrary to another federal statute or regulation, such as the U.S. Department of the Treasury's rules regarding U.S. Treasury checks.

The amendments, which add paragraph 229.38(i) and related commentary, will become effective January 1, 2019. The changes have been posted to BankersOnline's Regulations pages for Regulation CC.


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