Top Story Lending Related

The FDIC has issued FIL-65-2016 announcing the release of interagency examination procedures that reflect the Department of Defense's (DOD) 2015 amendments to the implementing regulations of the Military Lending Act of 2006 (MLA) and its August 2016 interpretive rule that provides guidance on certain questions received regarding compliance with the rule. The release of these examination procedures is part of the FDIC's ongoing efforts to inform supervised institutions about important bank regulatory developments and to promote transparency in the FDIC's supervisory program. The examination procedures should be helpful to financial institutions seeking to better understand the areas on which the FDIC will focus as part of the examination process. The FDIC is also providing guidance on its initial supervisory expectations in connection with its examinations of financial institutions for compliance with the MLA rule, saying "During early examinations, examiners will evaluate financial institutions' compliance management systems and overall efforts to come into compliance. Specifically, examiners will consider an institution's implementation plan, including actions taken to update policies, procedures, and processes; its training of appropriate staff; and its handling of early implementation challenges."

The OCC will host two workshops in Houston, Texas, November 29-30, for directors of national community banks and federal savings associations supervised by the OCC. The Risk Governance workshop on November 29 combines lectures, discussion, and exercises to provide practical information for directors to effectively measure and manage risks. The workshop also focuses on the OCC's approach to risk-based supervision and major risks in the financial industry. The Credit Risk workshop on November 30 focuses on credit risk within the loan portfolio, such as identifying trends and recognizing problems. The workshop also covers the roles of the board and management, how to stay informed of changes in credit risk, and how to effect change.

The Federal Reserve has released the September 2015 G.17 industrial production and capacity utilization report. Industrial production edged up 0.1 percent in September after falling 0.5 percent in August. For the third quarter as a whole, industrial production rose at an annual rate of 1.8 percent for its first quarterly increase since the third quarter of 2015. Manufacturing output increased 0.2 percent in September and moved up at an annual rate of 0.9 percent in the third quarter. In September, the index for utilities declined 1.0 percent; mining posted a gain of 0.4 percent, which partially reversed its August decline. At 104.2 percent of its 2012 average, total industrial production in September was 1.0 percent lower than its year-earlier level. Capacity utilization for the industrial sector edged up 0.1 percentage point in September to 75.4 percent, a rate that is 4.6 percentage points below its long-run (1972–2015) average.

U.S. Immigration and Customs Enforcement (ICE) has announced that Moses S. Hall, a disbarred California attorney, was recently arrested on federal charges of running a mortgage modification scheme that defrauded more than 75 distressed homeowners in Orange County by inducing them to pay more than $1.4 million for services he never provided. A federal grand jury indictment alleges Hall told distressed homeowners to stop making their mortgage payments, and instead direct their monthly mortgage payments to him, purportedly so he could use that money to negotiate with the banks. Instead, as detailed in the indictment, Hall used the victims’ money for himself. The charges stem from a probe by ICE, IRS Criminal Investigation Division, Homeland Security Investigations (HSI), and the U.S. Secret Service.

In a presentation at the "The Elusive 'Great' Recovery: Causes and Implications for Future Business Cycle Dynamics" 60th annual economic conference sponsored by the Federal Reserve Bank of Boston, Federal Reserve Board Chair Janet L. Yellen reflected on some ways in which the events of the past few years have revealed limits in economists' understanding of the economy. A video recording of the presentation is available.

The OCC has released a list of Community Reinvestment Act performance evaluations that became public during September. The possible ratings are outstanding, satisfactory, needs to improve, and substantial noncompliance. Of the 26 evaluations listed, ten carried outstanding ratings and 16 are rated satisfactory.

HUD has announced the awarding of a total of $500 million to help Louisiana, Texas and West Virginia to recover after severe flooding events that occurred earlier this year. The funds are provided through the agency’s Community Development Block Grant – Disaster Recovery (CDG-DR) Program.

The NCUA has announced it will host “Loan Underwriting: Back to the Basics!! – Looking Beyond the FICO Score,” a free 90-minute webinar, on November 9, 2016, beginning at 2 p.m. EST.

The CFPB has posted updated versions of two "Know Before You Owe" (TRID Rule) compliance guides. October 7, 2016, versions of the Small entity compliance guide and the Guide to loan estimate and closing disclosure forms are now available on the Bureau's TILA-RESPA Integrated Disclosure rule implementation page.

FDIC FIL-64-2016, issued October 11, announces steps intended to provide regulatory relief to financial institutions and to facilitate recovery in areas of North Carolina affected by Hurricane Matthew.