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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.


Top Story Lending Related

11/21/2019

CFPB to assess TRID rule

The CFPB has announced it is requesting public comment on an assessment it will conduct on the TRID Rule.

As part of its assessment, the Bureau stated it intends to address the TRID Rule’s effectiveness in meeting the purposes and objectives of Title X of the Dodd-Frank Act, the specific goals of the rule, and other relevant factors. Section 1022(d) of the Dodd-Frank Act requires the Bureau to publish a report of its assessment within five years after the effective date of the rule being assessed (the TRID Rule became effective on October 3, 2015).

The public is invited to comment on the feasibility and effectiveness of the assessment plan, recommendations to improve the assessment plan, and recommendations for modifying, expanding, or eliminating the TRID Rule, among other questions. The comment period will open upon publication of the notice in the Federal Register [expected on November 22] and will close on January 21, 2020.

11/20/2019

FDIC proposes two new rules

The FDIC’s Board of Directors has proposed two new rules:

  • Withdrawal and reenactment of 12 CFR part 303 subpart L (Applications Under Section 19 of the Federal Deposit Insurance Act) and amendment of 12 CFR part 308, subpart M (Procedures and Standards Applicable to Applications Pursuant to Section 19 of the FDIA) to formalize a longstanding agency policy related to individuals seeking to work in the banking industry with minor criminal offenses. The FDIC released a Fact Sheet on the proposal.
  • Amendments to 12 CFR part 331 (Federal Interest Rate Authority) to clarify the Federal law governing interest rates state banks may charge their customers by addressing marketplace uncertainty in the wake of a 2015 court ruling that called into question the enforceability of interest rate terms following the sale or assignment of a loan originated by a national bank to a third-party non-bank. A Fact Sheet on this proposal was also released.

Comments on both proposed rules will be accepted for 60 days following publication in the Federal Register.

Press releases:

11/20/2019

Final rule on treatment of HVCRE

The Federal Reserve, FDIC, and OCC have finalized a rule to modify the treatment of high volatility commercial real estate (HVCRE) exposures as required by the Economic Growth, Regulatory Relief, and Consumer Protection Act. The final rule clarifies certain terms contained in the HVCRE exposure definition, generally consistent with their usage in the Call Report instructions. The rule also clarifies the treatment of credit facilities that finance one- to four-family residential properties and the development of land, which is substantially similar to the proposal issued in July. Additionally, in response to comments on that proposal, the final rule provides banking organizations with the option to maintain their current capital treatment for acquisition, development, or construction loans originated between January 1, 2015, and the effective date of the final rule, April 1, 2020.

The rule affects OCC regulations at 12 CFR part 3, Federal Reserve Regulation Q (12 CFR part 217) and FDIC regulations at 12 CFR part 324.

11/20/2019

FHFA to re-propose Enterprise Capital Rule

The Federal Housing Finance Agency has announced plans to re-propose the entire regulation on capital requirements for Fannie Mae and Freddie Mac sometime in 2020. FHFA Director Mark Calabria stated, "The 2018 Capital Rule was proposed before FHFA began the process of retaining capital at the Enterprises as a first step toward ending [their] conservatorships. In fairness to all interested parties, the comments submitted during the previous rulemaking were submitted under a different set of assumptions about the future of the Enterprises. During the process of the rulemaking, important issues were identified that will be addressed in the re-proposal."

11/19/2019

OCC proposes 'Valid When Made' rule

The OCC announced yesterday it is soliciting comments on a proposed rule to clarify that when a national bank or savings association sells, assigns, or otherwise transfers a loan, interest permissible prior to the transfer continues to be permissible following the transfer. The proposal will address confusion about the effect of a transfer on a loan’s valid interest rate, including confusion resulting from a recent decision from the U.S. Court of Appeals for the Second Circuit (Madden v. Midland Funding, LLC).
The proposed rule would apply to all national banks and state and federal savings associations. Comments will be accepted for 60 days after publication in the Federal Register. The FDIC is also issuing a proposal that would address this issue.

11/19/2019

FHFA extends comment period on pooling practices

The FHFA has announced an extension of the comment deadline from December 19, 2019, to January 21, 2020, for input on potential changes to Fannie Mae and Freddie Mac Uniform Mortgage-Backed Security (UMBS) pooling practices. FHFA previously announced that it was seeking input on the Enterprises' pooling practices for the formulation of “To-Be-Announced" (TBA)-eligible UMBS. FHFA is also seeking public input about other policies and practices that might affect UMBS fungibility, including the Enterprises' oversight of UMBS prepayment speeds and alignment. Input should be submitted electronically.

11/19/2019

NMLS maintenance release scheduled

The NMLS has posted a notice that Maintenance Release 2019.11 is scheduled for November 24. The release contains system enhancements for Temporary Authority to Operate, which can be reviewed in the NMLS 2019.11 release notes.

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:

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