Top Story Lending Related

Treasury's Office of Foreign Assets Control has updated its FAQs regarding Cuba to add five new FAQs regarding vessel transactions with Cuba. OFAC also updated its Specially Designated Nationals List to remove 28 CUBA-designated listings. For identification information on the individuals and entities removed, see OFAC's SDN List Update.

HUD and the Census Bureau have announced the release of the results of the 2015 American Housing Survey focusing on 25 metropolitan areas across the country. The data released today includes detailed information on everything from monthly housing costs, hunger, and neighborhood characteristics including crime and the prevalence of rodents and cockroaches. The national report, released in November 2016, focused on nationwide data.

HUD has announced that it has charged Bank of America, N.A. and two of its employees with violating the Fair Housing Act by discriminating against prospective Hispanic mortgage borrowers in Charleston, South Carolina. The National Fair Housing Alliance (NFHA) filed a complaint with HUD claiming the bank discriminated against prospective borrowers who are Hispanic by failing to provide them with information about loan products or by offering them loan products with less attractive terms, as compared to prospective borrowers who are not Hispanic. Prior to filing its complaint, NFHA conducted a series of tests comparing the treatment of Hispanic and non-Hispanic testers who posed as prospective borrowers at a Bank of America branch in Charleston, South Carolina. HUD's charge alleges that these tests showed that the bank discriminated because of national origin by treating the Hispanic testers less favorably than the non-Hispanic testers.

The Consumer Financial Protection Bureau has issued a press release warning older borrowers that student loan servicing problems can jeopardize their long-term financial security. According to a Bureau report, Snapshot of older consumers and student loan debt, older borrowers struggling to make payments complain about obstacles to enrolling in income-driven payment plans and accessing their protections as cosigners. In the last decade, the number of older student loan borrowers has quadrupled and the amount of debt per older borrower has roughly doubled, as many take out loans for children or grandchildren. The CFPB Blog also provided four tips to help older borrowers address common problems with their student loans.

The OCC has released its Semiannual Risk Perspective for Fall 2016. which reports on the strategic, credit, operational, and compliance risks facing national banks and federal savings associations. The report includes an added focus on sales oversight, in the aftermath of the Wells Fargo scandal. Other highlights of the report include:

• Strategic risk remains high as banks consider business model changes and face challenges in growing revenue. Strategic planning remains important as banks adopt innovative products, services, and processes in response to the evolving demands for financial services and the entrance of new competitors, such as out-of-market banks and financial technology firms.
• Banks continue to ease underwriting practices to boost loan volume and to respond to competition from bank and non-bank lenders. These actions are evident in commercial, commercial real estate and auto lending. The level of risk is increasing due to increased risk layering, rising loan policy exceptions, increasing loan-to-value ratios, and weaker covenant protection.
• Operational risk remains a concern as banks face changing cybersecurity threats, increased reliance on third-party relationships, and the need for sound governance over sales practices.
• Banks face challenges meeting the integrated mortgage disclosure requirements and amended Military Lending Act regulatory requirements, and managing Bank Secrecy Act risks.

Comptroller Curry offered remarks during the press call on the report.

Treasury's Office of Foreign Assets Control has added two individuals to its SDN List, with the SDGT designation.

The FFIEC and HUD have published a list of updated resources for the collection of 2017 HMDA data. The linked resources include a technology preview, filing instructions for 2017 data and for 2018 and later data, a loan/application register (LAR) formatting tool, and FAQs.

The OCC has released its Mortgage Metrics Report for the third quarter of 2016. The report shows that 94.8 percent of mortgages included in the report were current and performing at the end of the quarter, compared with 93.9 percent a year earlier. The report also showed that foreclosure activity has declined. Reporting servicers initiated 47,955 new foreclosures during the third quarter of 2016, a 25.3 percent decrease from a year earlier.

The OCC and the FDIC issued the ratings received by financial institutions that were recently evaluated for compliance with the Community Reinvestment Act.

• Of the 18 national banks and federal savings associations on the OCC's list, eight received Outstanding ratings, and ten were rate Satisfactory.
• Of the 46 state nonmember banks reported by the FDIC, two banks received Outstanding ratings, and 44 were rated Satisfactory.

The minutes of the December 13–14, 2016, meeting of the Federal Open Market Committee (FOMC) have been released. A summary of economic projections made by Federal Reserve Board members and Reserve Bank presidents for the meeting was included as an addendum to the minutes.