Top Story Lending Related

The CFPB has emailed institutions that participated in beta testing of the Bureau's HMDA Platform reminding them that the beta period will close on December 31, as the Bureau transitions to the filing period beginning January 1, 2018, for HMDA data collecting in 2017. All test accounts and test data from the beta period will be removed to complete the transition. In order to complete a submission during the filing period, users will need to create a new account at https://ffiec.cfpb.gov on or after January 1, 2018. The Bureau encourages financial institutions to continue providing feedback on their experience using the HMDA Platform and to direct any questions regarding the HMDA Platform to HMDAHelp@cfpb.gov.

The Board of Governors of the Federal Reserve System (“Board”) has published [82 FR 60281] final amendments to its Regulation A (Extensions of Credit by Federal Reserve Banks) to reflect the Board's approval of an increase in the rate for primary credit at each Federal Reserve Bank. The secondary credit rate at each Reserve Bank automatically increased by formula as a result of the Board's primary credit rate action.

The Board also published [82 FR 60282] final amendments to Regulation D (Reserve Requirements of Depository Institutions) to revise the rate of interest paid on balances maintained to satisfy reserve balance requirements (“IORR”) and the rate of interest paid on excess balances (“IOER”) maintained at Federal Reserve Banks by or on behalf of eligible institutions. The final amendments specify that IORR is 1.50 percent and IOER is 1.50 percent, a 0.25 percentage point increase from their prior levels.

Both amendments are effective today, but the new rates paid under Regulation D are retroactive to December 14.

The FDIC and the Fed have announced that the resolution plans of the eight largest and most complex domestic banking organizations did not have "deficiencies," which are weaknesses severe enough to trigger a resubmission process that could result in more stringent requirements. The agencies also jointly determined that the plans of four firms have "shortcomings," which are less-severe weaknesses that require additional work in their next plan: Bank of America, Goldman Sachs, Morgan Stanley, and Wells Fargo. Bank of New York Mellon, Citigroup, J.P. Morgan Chase, and State Street round out the list of organizations whose plans were evaluated.

HUD and the Census Bureau have jointly announced statistics on new residential construction for November 2017.

• Building Permits: Privately owned housing units authorized by building permits in November were at a seasonally adjusted annual rate of 1,298,000. This is 1.4 percent below the revised October rate of 1,316,000 but 3.4 percent above the November 2016 rate of 1,255,000. Single-family authorizations in November were at a rate of 862,000, 1.4 percent above the revised October figure of 850,000. Authorizations of units in buildings with five units or more were at a rate of 395,000 in November.
• Housing Starts: Privately owned housing starts in November were at a seasonally adjusted annual rate of 1,297,000. This is 3.3 percent above the revised October estimate of 1,256,000 and 12.9 percent above the November 2016 rate of 1,149,000. Single-family housing starts in November were at a rate of 930,000, 5.3 percent above the revised October figure of 883,000. The November rate for units in buildings with five units or more was 359,000.
• Housing Completions: Privately owned housing completions in November were at a seasonally adjusted annual rate of 1,116,000, 6.1 percent below the revised October estimate of 1,189,000 and 7.2 percent below the November 2016 rate of 1,203,000. Single-family housing completions in November were at a rate of 752,000, 4.6 percent below the revised October rate of 788,000. The November rate for units in buildings with five units or more was 353,000.

The Office of Information and Regulatory Affairs has posted the administration's report on the actions that administrative agencies plan to issue in the near and long term. The report indicates that the administration has said the guidance, FAQs and other sub-regulatory actions should not be used to add new or additional obligations and requirements. The CFPB intends to review inherited regulations, with a focus on credit card rules. One goal is to modernize the Bureau's database of credit card agreements to make it more useful. Small business lending and overdrafts continue to reflect "pre-rule activities" status through 2018. A proposed rule on third-party debt collection is now planned for February 2018, and the Bureau targets December 2018 for a proposed rule to make permanent the adjusted threshold for collection and reporting data on open-end credit.

FinCEN reports it is in the pre-rule stage for AML program requirements for persons involved in real estate closings and settlements and for investment advisers, and in the proposed rule stage regarding cross-border electronic transmittals of funds. The Fed, OCC and FDIC are planning to issue a final rule expanding the exemption for appraisals of commercial real estate, and a final rule implementing net stable funding ratio standards. The Labor Department is aiming at October 2018 for another run at a proposed rule on executive, administrative and professional employee exemptions from overtime and minimum wage requirements.

An article on the CFPB Blog provides simple steps to help individuals prioritize finances in the new year.

After the Equifax data breach, some people are considering placing a fraud alert, freeze, or lock on their credit files to help prevent identity thieves from opening new accounts in their name. To help consumers decide on a course of action, the Federal Trade Commission has posted a blog article describing each option and how it works, how long it lasts, and how much it costs.

Yesterday the FDIC released Crisis and Response: An FDIC History, 2008–2013, a history of the financial crisis focusing on the agency's response and lessons learned from its experience during a period in which the agency was confronted with two interconnected and overlapping crises — first, the financial crisis in 2008 and 2009, and second, a banking crisis that began in 2008 and continued until 2013. The history examines the FDIC's response, contributes to an understanding of what occurred, and shares lessons from the agency's experience.

• Press release

The Federal Housing Finance Agency (FHFA) has published the Underserved Markets Plans for 2018-2020 under the Duty to Serve program for Fannie Mae and Freddie Mac. The plans become effective January 1, 2018. FHFA issued a final rule on December 13, 2016 to implement the Duty to Serve provisions mandated by the Housing and Economic Recovery Act of 2008. The statute requires the Enterprises to serve three specified underserved markets – manufactured housing, affordable housing preservation, and rural housing – by increasing the liquidity of mortgage financing, for very low-, low-, and moderate-income families. The rule requires each Enterprise to adopt a three-year Underserved Markets Plan to fulfill this mandate. The activities proposed by the Enterprises to achieve the objectives in their Plans will continue to be subject to FHFA review and approval to ensure compliance with the Enterprises' Charter Acts, safety and soundness, and other conservatorship and regulatory requirements.

The Board of Governors of the Federal Reserve System has issued a final rule repealing its Regulation C, 12 CFR Part 203, effective 30 days after Federal Register publication. This was a housekeeping move, since authority for all rulemaking under the Home Mortgage Disclosure Act was passed to the CFPB under the Dodd-Frank Act.

UPDATE: Published on 12/22/2017. Will be effective 1/22/2018.

The Board also issued a proposed rule that would amend the Board's Regulation M, which implements the Consumer Leasing Act (CLA). Prior to enactment of the Dodd-Frank Act, the Board's Regulation M was the sole implementing regulation for the CLA. The Dodd-Frank Act transferred rulemaking authority under the CLA to the CFPB, with the exception of rules applicable to certain motor vehicle dealers. The Board's proposal would clarify the scope of the Board's Regulation M. Comments on this proposal are due within 60 days from Federal Register publication. UPDATE: Published on 1/3/2018. Comments due by 3/5/2018.