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The NCUA Board met on October 27, 2016, and announced that it unanimously approved five items:

• A proposed rule to provide further field-of-membership community charter options for federal credit unions.
• A final rule modernizing existing field-of-membership definitions for federal credit unions to improve consumer access to affordable credit.
• A final rule re-naming NCUA’s consumer office as the Office of Consumer Financial Protection and Access to clarify its function and role in promoting consumer access to affordable financial services.
• A final rule adjusting civil monetary penalties for inflation, as required by Congress.
• An interagency proposed rule to implement the private flood insurance requirements for loans in special flood hazard areas contained in a 2012 statute.

The OCC will host two workshops in Philadelphia at the Sheraton Suites Philadelphia Airport, December 6-7, for directors of national community banks and federal savings associations supervised by the OCC. The Risk Governance workshop on December 6 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 Compliance Risk workshop on December 7 combines lectures, discussion, and exercises on the critical elements of an effective compliance risk management program. The workshop also focuses on major compliance risks and critical regulations. Topics of discussion include the Bank Secrecy Act, Community Reinvestment Act, and the Truth-in-Lending (TILA) and the Real Estate Settlement Procedures Act of 1974 (RESPA) Integrated Disclosures Rule, also known as TRID.

The Federal Housing Finance Agency (FHFA) has announced that nationally, interest rates on conventional purchase-money mortgages were nearly flat from August to September, according to several indices of new mortgage contracts.

• The National Average Contract Mortgage Rate for the Purchase of Previously Occupied Homes by Combined Lenders Index was 3.61 percent for loans closed in late September, up 3 basis points from 3.58 percent in August.
• The average interest rate on all mortgage loans was 3.60 percent, up 1 basis point from 3.59 in August.
• The average interest rate on conventional, 30-year, fixed-rate mortgages of $417,000 or less was 3.73 percent, down 1 basis point from 3.74 in August.
• The effective interest rate on all mortgage loans was 3.73 percent in September, up 1 basis point from 3.72 in August.
• The effective interest rate accounts for the addition of initial fees and charges over the life of the mortgage.
• The average loan amount for all loans was $302,900 in September, down $19,800 from $322,700 in August.

The Department of Housing and Urban Development has published at 81 FR 74967 in today's Federal Register a proposal to revise HUD’s regulations governing floodplain management to require, as part of the decision making process established to ensure compliance with Executive orders on Floodplain Management and Federal Flood Risk Management, that a HUD assisted or financed (including mortgage insurance) project involving new construction or substantial improvement that is situated in an area subject to floods be elevated or floodproofed between 2 and 3 feet above the base flood elevation as determined by best available information.The proposal would also revise HUD’s Minimum Property Standards for one-to-four unit housing under HUD mortgage insurance and low-rent public housing programs. Comments on the proposal are due by December 27, 2016.

The OCC will establish an office dedicated to responsible innovation and implement a formal framework to improve the agency’s ability to identify, understand, and respond to financial innovation affecting the federal banking system. The Office of Innovation will be headed by a Chief Innovation Officer assigned to OCC Headquarters with a small staff located in Washington, New York, and San Francisco. The office will be the central point of contact and a clearinghouse for requests and information related to innovation. It will also implement other aspects of the OCC’s framework for responsible innovation, which include

• establishing an outreach and technical assistance program for banks and nonbanks,
• conducting awareness and training activities for OCC staff,
• encouraging coordination and facilitation,
• establishing an innovation research function, and
• promoting interagency collaboration.

The OCC expects the office to begin operations in the first quarter of 2017.

• OCC press release

The Federal Housing Administration (FHA) has issued Mortgage Letter 2016-15 announcing that, under certain circumstances, it will lower its required owner-occupancy standard for approved condominium developments effective immediately. FHA currently requires that approved condominium developments have a minimum of 50 percent of the units occupied by owners. However, the agency determined this requirement can be lowered to 35 percent for existing condo developments provided the project meets certain conditions.

HUD and the Census Bureau have released their September 2016 new residential sales report. Sales of new single-family houses in September were at a seasonally adjusted annual rate of 593,000, 3.1 percent above the revised August rate of 575,000, and 29.8 percent above the September 2015 estimate of 457,000. The median sales price of new houses sold in September 2016 was $313,500; the average sales price was $377,700. The seasonally adjusted estimate of new houses for sale at the end of September was 235,000. This represents a supply of 4.8 months at the current sales rate.

The Federal Housing Finance Agency (FHFA) has released its monthly House Price Index (HPI) for August 2016. U.S. house prices rose in August, up 0.7 percent on a seasonally adjusted basis from the previous month. The FHFA monthly HPI is calculated using home sales price information from mortgages sold to, or guaranteed by, Fannie Mae and Freddie Mac. From August 2015 to August 2016, house prices were up 6.4 percent.

The Consumer Financial Protection Bureau has announced the release of a Project Catalyst report highlighting various market developments that have the potential to produce benefits for consumers. These developments are emerging from FinTech startups and traditional financial institutions, and include new products, services, and trends. The report also provides an overview of Project Catalyst’s work to promote consumer-friendly innovation and outlines the importance of ensuring consumer protections are built into emerging products and services from the outset.

The four federal financial institution regulatory agencies have issued a joint press release announcing the issuance of an exception from the FIRREA appraisal requirements for real estate-related financial transactions in the parishes declared to be in a major disaster area due to the severe storms and flooding in Louisiana. The agencies will not require financial institutions to obtain appraisals for affected transactions for the time period specified if certain conditions are met. The exception is being made under the Financial Institutions Reform, Recovery, and Enforcement Act (FIRREA) and its implementing regulations. In addition, the FDIC issued FIL-70-2016 concerning the exception, which expires December 31, 2017.

• Federal Register document at 81 FR 75315, published October 31, 2016.