Top Story Lending Related

The FDIC has released the ratings received by 67 state nonmember banks recently evaluated for compliance with the Community Reinvestment Act. Three of the banks were rated outstanding, 63 were found to be satisfactory, and one obtained a needs to improve rating.

The OCC has released a list of the CRA evaluation ratings received by 21 national banks and federal savings associations that became public during May. Five received an outstanding rating, fifteen were rated satisfactory and one garnered a needs to improve rating.

"CDFI Certification – Special Credit Union Version," a free 90-minute webinar for low-income credit unions interested in becoming certified as Community Development Financial Institutions, will be hosted by the NCUA on June 23 beginning at 2 p.m. ET.

The OCC has released its schedule of Community Reinvestment Act (CRA) evaluations to be conducted in the third quarter of 2016.

The OCC will host two workshops in Sioux Falls, South Dakota, at the Sheraton Sioux Falls & Convention Center, July 19-20, for directors of national community banks and federal savings associations. The Compliance Risk workshop on July 19 combines lectures, discussion, and exercises on the critical elements of an effective compliance risk management program. 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 Operational Risk workshop on July 20 focuses on the key components of operational risk—people, processes and systems. The workshop also covers governance, third-party risk, vendor management, and cybersecurity.

The Federal Reserve Board has published the June 2016 report of the summary of commentary on current economic conditions by federal reserve district. Commonly known as the Beige Book, this report is published eight times per year. Each Federal Reserve Bank gathers anecdotal information on current economic conditions in its District through reports from Bank and Branch directors and interviews with key business contacts, economists, market experts, and other sources.

The names of the 12 persons who will constitute the first-ever Housing Counseling Federal Advisory Committee (HCFAC) have been announced by HUD. Established under the Dodd-Frank Act, the advisory panel will help HUD's Office of Housing Counseling improve upon all the efforts to provide consumers with the knowledge they need to make informed and lasting housing decisions. Last April, HUD solicited nominations to serve on the first-ever federal advisory committee. Those selected are from the mortgage, real estate, consumer and housing counseling sectors. Brief bios of the HCFAC members were also released.

The Consumer Financial Protection Bureau announced today its anticipated proposed rule [PDF, 1334 pages] that would require lenders who offer covered loan products to determine whether borrowers can afford the full amount of each payment when it is due without having to reborrow within the next month and limit lenders' ability to roll such debt over. Covered loans would include payday loans, single-payment auto title loans and certain high-cost installment loans (those with an "all-in" APR over 36 percent to be repaid by creditor access to the consumer's deposit account or paycheck or secured by a vehicle title).

Under the proposal, loans of $500 or less could be offered with a "principal reduction feature" designed to keep consumers from being trapped in debt. Lenders could also offer two longer-term loan options with more flexible underwriting by adhering to certain limits, such as loans generally meeting the parameters of the NCUA's "payday alternative loans" program or loans payable in equal installments with terms not over two years with an all-in cost of 36 percent or less, plus a reasonable origination fee.

Another provision of the proposal would require a notice in advance of a lender's attempt to collect a payment on a covered loan from the consumer's deposit account, and cut off a lender's authorization for such account access after two unsuccessful attempts, unless the lender obtains a new authorization. Comments on the proposed rule will be accepted through September 14, 2016.

• Fact sheet on proposed rule
• Proposed model disclosure forms

The Bureau also announced an inquiry into other potentially high-risk loan products and practices that are not specifically covered by the proposed rule. A Request for Information was issued with a comment deadline of October 14, 2016. Also released was the text of CFPB Director Cordray's prepared remarks introducing the proposal and inquiry at the Field Hearing on Small-Dollar Lending, to be held today by the Bureau in Kansas City, Missouri.

Update: The September 14, 2016, comment deadline for the proposed rule has been added. The October 14 deadline is for the inquiry into other potentially high-risk loan products and practices.

The Federal Reserve has released the March 2016 G.20 finance companies report, which covers owned and managed receivables outstanding and terms of credit on auto loans.

The FDIC has issued a list of institutions that the agency has scheduled for a Community Reinvestment Act (CRA) examination during the third quarter of 2016.