Skip to content

How to gain more from operational risk management practices.
Modern risk management technology solutions improve efficiency and provide greater visibility into risks. Today’s tools provide real-time visibility, action plans, enhanced reporting and business intelligence, and proactive notifications for operational risk. Real-time data empowers banks and financial services organizations to proactively manage risks and instantly detect and mitigate emerging issues. Click here to learn more.

Top Story Lending Related


Capital rule modified to accommodate MMLF participation

The OCC, Fed and FDIC have published an interim final rule at 85 FR 16232 in today's Federal Register to allow banking organizations to neutralize the effects of purchasing assets through the Federal Reserve's Money Market Mutual Fund Liquidity Facility (MMLF). This treatment will extend to the community bank leverage ratio. The interim rule is effective today, with comments accepted through May 7, 2020.



FDIC FIL-18-2020, issued yesterday, announced the FDIC understands that financial institutions and consumers may have questions about the potential impact of COVID-19. In response, the FDIC is providing two sets of frequently asked questions (FAQs), one for financial institutions and one for consumers. The FAQs address a variety of issues that may arise as financial institutions work with customers and communities affected by COVID-19. The FDIC recognizes that such efforts can be accomplished in a manner that is consistent with safe and sound banking practices, compliant with applicable laws (including consumer protection laws), and in the public interest. The FDIC will continue to add FAQs to the initial list, as needed, to address additional questions and issues that arise.


Joint statement on CRA and COVID-19

The Federal Reserve Board, the FDIC, and the Office of the Comptroller of the Currency (the agencies) have issued a Joint Statement on CRA Consideration for Activities in Response to COVID-19. The agencies recognize the potential for the Coronavirus Disease (COVID-19) to adversely affect the customers and operations of financial institutions. The agencies encourage financial institutions to work with affected customers and communities, particularly those that are low- and moderate-income. The agencies will provide favorable consideration under the Community Reinvestment Act of certain retail banking services, retail lending activities, and community development activities related to this national emergency.

The FDIC's FIL-19-2020 reports that the statement will be effective through the six-month period after the national emergency declaration is lifted, unless extended by the agencies.


Discount window borrowing up

The Federal Reserve Board is encouraged by the notable increase in discount window borrowing this week with banks demonstrating a willingness to use the discount window as a source of funding to support the flow of credit to households and businesses. This uptick follows the recent changes to the discount window announced by the Federal Reserve and the federal banking regulators' recent statement encouraging financial institutions to use the discount window.


NMLS creates COVID-19 Updates webpage

The Nationwide Multistate Licensing System (NMLS) has set up a new web page to list updates on NMLS operations and impacts as the coronavirus pandemic continues.

NMLS Coronavirus/COVID-19 Updates


Fed adds Money Market Fund Liquidity Facility

The Federal Reserve Board announced late Wednesday evening it has broadened its program of support for the flow of credit to households and businesses by taking steps to enhance the liquidity and functioning of crucial money markets. Through the establishment of a Money Market Mutual Fund Liquidity Facility, or MMLF, the Federal Reserve Bank of Boston will make loans available to eligible financial institutions secured by high-quality assets purchased by the financial institution from money market mutual funds. The MMLF will assist money market funds in meeting demands for redemptions by households and other investors, enhancing overall market functioning and credit provision to the broader economy.

A term sheet was released with the Board's announcement.

To ensure that financial institutions will be able to effectively use the MMLF, the Board, the FDIC and the OCC this morning they have issued an interim final rule to modify the agencies' capital rules so that financial institutions receive credit for the low risk of their MMLF activities, reflecting the fact that institutions would be taking no credit or market risk in association with such activities. The change, effective immediately, only applies to activities with the MMLF. There will be a 45-day comment period following publication in the Federal Register.


HUD to provide COVID-19 mortgage relief for 60 days

HUD Secretary Carson has authorized the Federal Housing Administration to implement an immediate foreclosure and eviction moratorium for single family homeowners with FHA-insured mortgages for the next 60 days. These moratoriums are part of the continued effort by the administration to address impacts to the financial well-being of America’s individuals, families, and businesses caused by Coronavirus (COVID-19). CFPB Director Kraninger issued a statement supporting the action.


Mortgage performance improves slightly

The OCC has reported a slight improvement in first-lien mortgage performance since the last quarter of calendar year 2019.

The OCC Mortgage Metrics Report, Fourth Quarter 2019 showed 96.5 percent of mortgages included in the report were current and performing at the end of the quarter, compared to 95.8 percent a year earlier. The report also showed that servicers initiated 22,248 new foreclosures during the fourth quarter of 2019­, a 3.5 percent increase from the previous quarter and a 24.6 percent decrease from a year prior. Servicers completed 13,147 mortgage modifications in the fourth quarter of 2019, and 78.2 percent of the modifications reduced borrowers’ monthly payments.


FHFA suspends foreclosures and evictions

The Federal Housing Finance Agency reported Wednesday that, to help borrowers who are at risk of losing their home, the agency has directed Fannie Mae and Freddie Mac to suspend foreclosures and evictions for at least 60 days due to the coronavirus national emergency. The foreclosure and eviction suspension applies to homeowners with a Fannie Mae- or Freddie Mac-backed single-family mortgage.

Earlier this month, FHFA announced that the Enterprises would provide payment forbearance to borrowers impacted by the coronavirus. Forbearance allows for a mortgage payment to be suspended for up to 12 months due to hardship caused by the coronavirus.


New Primary Dealer Credit Facility from Fed

The Federal Reserve Board announced yesterday that, to support the credit needs of American households and businesses, the Fed will establish a Primary Dealer Credit Facility, or PDCF. The facility will allow primary dealers of the New York Fed to support smooth market functioning and facilitate the availability of credit to businesses and households. The PDCF will offer overnight and term funding with maturities up to 90 days and will be available on March 20, 2020. It will be in place for at least six months and may be extended as conditions warrant. Credit extended to primary dealers under this facility may be collateralized by a broad range of investment grade debt securities, including commercial paper and municipal bonds, and a broad range of equity securities. The interest rate charged will be the primary credit rate, or discount rate, at the Federal Reserve Bank of New York.


Training View All

Penalties View All

Search Top Stories