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The OCC has released its 22nd Annual Survey of Credit Underwriting Practices, which indicates underwriting practices among national banks and federal savings associations eased for a fourth consecutive year in 2016.

The Federal Reserve Board has announced the execution of a written agreement with Rock Bancshares, Inc. and its subsidiary, Heartland Bank, both of Little Rock, Arkansas.

OFAC has announced its designation of seven individuals and eight entities under two Executive Orders related to Russia and Ukraine, and identified two vessels as blocked property. In addition, the names of twenty-six entities identified as subsidiaries of the Russian Agricultural Bank and Novatek were added to the Sectoral Sanctions Identification (SSI) list. See our December 20, 2017, OFAC Update for the details.

HUD has published a final rule requiring installation of broadband infrastructure at the time of new construction or substantial rehabilitation of multifamily rental housing that is funded or supported by HUD, with limited exceptions. The rule, which does not apply to multifamily rental housing that only has a mortgage insured by HUD's Federal Housing Administration or with a loan guaranteed under a HUD loan guarantee program, is effective January 19, 2017.

The CFPB has announced its filing of complaints against four Virginia-based companies — Spotsylvania Gold & Pawn, Inc.; Fredericksburg Pawn, Inc.; Pawn U.S.A., Inc.; and A to Z Pawn, Inc. The CFPB alleges that the companies misled their customers about the costs of their loans by disclosing deceptively low annual percentage rates (APRs) that did not reflect all of the fees and charges tacked onto the loans.

The Federal Reserve Board has released “Experiences and Perspectives of Young Workers,” a report presenting data collected in 2015 as part of the Board's second Survey of Young Workers, which provides a snapshot of the educational attainment, employment experience, job market outlook, and financial self-sufficiency of 18- to 30-year-olds.

The OCC, Federal Reserve, FDIC and NCUA have issued an interagency "Frequently Asked Questions on the New Accounting Standard on Financial Instruments – Credit Losses" to assist financial institutions and examiners with the new accounting standard, Accounting Standards Update 2016-13, Topic 326, “Financial Instruments – Credit Losses,” issued by the Financial Accounting Standards Board (FASB) on June 16, 2016. The FAQs:

• summarize key elements of the new accounting standard, focusing on such concepts as effective dates, scope, transition and measurement approaches;
• highlight areas within existing U.S. generally accepted accounting principles that will change with the new accounting standard;
• discuss initial supervisory views with respect to measurement methods, portfolio segmentation, use of vendors, scalability, data needs, and allowance processes; and
• outline certain steps that financial institutions are encouraged to take to prepare for the transition to the new accounting standard.

• OCC Bulletin 2016-45
• FDIC FIL-79-2016
• Federal Reserve Board SR 16-19

Related stories:

• FASB issues new guidance on credit losses accounting - June 16, 2016
• Agencies' statement on new accounting standard - June 20, 2016

The Federal Emergency Management Agency has published a final rule in this morning's Federal Register identifying communities in Brazoria, Chambers, Fort Bend, Galveston, Harris, and Montgomery Counties, Texas, that are scheduled for suspension from the National Flood Insurance Program (NFIP) on January 6, 2017, for noncompliance with the floodplain management requirements of the program.

The CFPB has posted a Bureau Blog article announcing the key areas on which its fair lending team will focus in 2017:

• Redlining. It will continue to evaluate whether lenders have intentionally avoided lending in minority neighborhoods.
• Mortgage and Student Loan Servicing. It will determine whether some borrowers who are behind on their mortgage or student loan payments may have more difficulty working out a new solution with the servicer because of their race or ethnicity.
• Small Business Lending. Congress expressed concern that women-owned and minority-owned businesses may experience discrimination when they apply for credit, and has required the CFPB to take steps to ensure their fair access to credit.

The CFPB has announced it issued a consent order against Moneytree, Inc., a financial services company headquartered in Seattle, Washington, that offers payday loans and check-cashing services, for misleading consumers with deceptive online advertisements and collections letters. The company also made unauthorized electronic transfers from consumers’ bank accounts. The CFPB has ordered the company to cease its illegal conduct, provide $255,000 in refunds to consumers, and pay a civil penalty of $250,000. See "CFPB trims Moneytree" in our Penalty pages for more information on this enforcement action.