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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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11/18/2019

CFPB clarifies loan originator temporary status rules

The Bureau has issued an interpretive rule clarifying screening and training requirements for state-licensed mortgage companies that employ loan originators with temporary authority. The interpretive rule clarifies that the employer is not required to conduct the screening and ensure the training of loan originators with temporary authority. The state will perform the screening and training as part of its review of the individual’s application for a state loan originator license. The rule will be effective on November 24, 2019.

11/18/2019

NCUA Board meeting agenda

The NCUA has posted the agenda for its 10:00 a.m. EST November 21, 2019, Board meeting. The matters to be discussed include the quarterly report of the Share Insurance Fund, guidance on prohibitions imposed by statute, and Part 722 (Real Estate Appraisals) of NCUA Rules and Regulations.

11/15/2019

FDIC releases reports on growth of nonbank lending

The FDIC has released and published in the FDIC Quarterly a multi-part analysis of changes in the U.S. banking system since the 1950s, especially changes occurring since the financial crisis in 2008. These analyses address the shift in some lending from banks to nonbanks, how corporate borrowing has moved between banks and capital markets, and the migration of some home mortgage origination and servicing from banks to nonbanks. The featured articles include:

11/15/2019

FHA 2019 Annual Report sent to Congress

FHA has submitted its 2019 Annual Report to Congress on the economic condition of the agency’s Mutual Mortgage Insurance Fund (MMI Fund). FHA reports that at the end of fiscal year 2019, The FHA MMI Fund Capital Ratio for FY 2019 was 4.84 percent, the highest level since FY 2007. Highlights include:

  • Congress has set a mandatory minimum Capital Ratio of 2 percent for the MMI Fund. The Capital Ratio for FY 2019 was 4.84 percent, the highest level since FY 2007. The Capital Ratio is one indicator of the Fund’s financial health and includes both FHA-insured single family forward and reverse mortgage portfolios.
  • As detailed in the annual report, FHA had insurance-in-force on single family mortgages valued at almost $1.3 trillion at the end of this fiscal year.
  • The performance of the forward book of business posted a stand-alone capital ratio of 5.44 percent. The MMI Capital (formerly referred to as economic net worth) of the forward book of business also improved year-to-year by over 42 percent with a value of over $66.6 billion.

11/13/2019

FTC order stops student loan debt scheme

The Federal Trade Commission reports that a temporary restraining order obtained by the Commission halted an operation that bilked consumers out of millions of dollars by pretending to be affiliated with the U.S. Department of Education and falsely promising student loan debt relief. A complaint filed by the FTC against Arete Financial Group and several related companies alleged that the defendants used radio and television ads, as well as online ads and telemarketing calls in which they pretended to be affiliated with the Department of Education, to promise to enroll consumers in student loan forgiveness, consolidation, and repayment programs to reduce or eliminate their monthly payments and principal balances.

11/13/2019

Update on Fannie and Freddie credit risk transfer programs

The Federal Housing Finance Agency (FHFA) has issued its semi-annual Credit Risk Transfer Progress Report describing the status and volume of credit risk transfer transactions through the second quarter of 2019. The report provides a comprehensive picture of how the Enterprises transfer a substantial portion of credit risk to the private sector through a variety of transactions in both the single-family and multifamily markets.

11/13/2019

FDIC Board agenda released

The FDIC Board's agenda for its 10:00 a.m. EST, November 19, 2019, meeting has been released. The summary agenda includes memoranda and resolutions regarding:

  • Regulatory Capital Rule: Revisions to the Supplementary Leverage Ratio to Exclude Certain Central Bank Deposits of Banking Organizations Predominantly Engaged in Custody, Safekeeping and Asset Servicing Activities.
  • Regulatory Capital Treatment for High Volatility Commercial Real Estate (“HVCRE”) Exposures.
  • Final Rule Removing Transferred OTS Regulation, Part 390 Subpart M – Deposits.
  • Notice of Final Rulemaking Re: The Use and Remittance of Certain Assessment Credits.
  • Establishment of the FDIC Advisory Committee of State Regulators.

The Board's discussion agenda includes memoranda and resolutions regarding:

  • Regulatory Capital Rule: Standardized Approach for Calculating the Exposure Amount of Derivative Contracts.
  • Notice of Proposed Rulemaking on Conversion of the Statement of Policy for Section 19 of the Federal Deposit Insurance Act to a Regulation.
  • Notice of Proposed Rulemaking on Federal Interest Rate Authority.

11/12/2019

FinCEN GTOs reissued

FinCEN has announced the renewal of its Geographic Targeting Orders (GTOs) that require U.S. title insurance companies to identify the natural persons behind shell companies used in all-cash purchases of residential real estate. The renewed GTOs will be identical to the May 2019 GTOs with one modification: the new GTOs will not require reporting for purchases made by legal entities that are U.S. publicly-traded companies. Real estate purchases by such entities are identifiable through other business filings.

The terms of this Order are effective beginning November 12, 2019 and ending on May 9, 2020. It applies to purchases made without a bank loan or other similar form of external financing and paid for, at least in part, using currency or a cashier's, certified, traveler's, personal or business check, a money order in any form, a funds transfer, or virtual currency. Covered transactions are those involving residential real property in the:

  • Texas counties of Bexar, Tarrant, or Dallas;
  • Florida counties of Miami-Dade, Broward, or Palm Beach;
  • Boroughs of Brooklyn, Queens, Bronx, Staten Island, or Manhattan in New York City, New York;
  • California counties of San Diego, Los Angeles, San Francisco, San Mateo, or Santa Clara;
  • City and County of Honolulu in Hawaii;
  • Nevada county of Clark;
  • Washington county of King;
  • Massachusetts counties of Suffolk, or Middlesex; or
  • Illinois county of Cook

11/12/2019

Fed issued 5 outstanding CRA evals in October

Our monthly review of the Federal Reserve Board's released CRA evaluations revealed that the Board made public 17 evaluations of member banks in October, 12 of which were given a "satisfactory" rating. Congratulations to these five banks, whose evaluations were rated "outstanding":

11/08/2019

Consumer credit increases

The Federal Reserve has released September 2019 G.19 Consumer Credit data. Consumer credit increased at a seasonally adjusted annual rate of 5 percent during the third quarter. Revolving credit increased at an annual rate of 2-1/4 percent, while nonrevolving credit increased at an annual rate of 6 percent. In September, consumer credit increased at an annual rate of 2-3/4 percent.

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