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Top Story Lending Related

12/20/2019

Fed report on small business online lender websites

The Federal Reserve Board has released Uncertain Terms: What Small Business Borrowers Find When Browsing Online Lender Websites, a report that examines the information that prospective small business borrowers encounter when researching and comparing credit products offered by online lenders. The report's analysis of a sampling of online content finds significant variation in the amount of upfront information provided, especially on costs. On some sites, descriptions feature little or no information about the actual products or about rates, fees, and repayment terms. Lenders that offer term loans are likely to show costs as an annual rate, while others convey costs using terminology that may be unfamiliar to prospective borrowers. Details on interest rates, if shown, are most often found in footnotes, fine print, or frequently asked questions.

12/20/2019

Bureau adjusts asset threshold for HPML escrow exemption

The CFPB will publish a final rule in the Federal Register for Monday, December 23, adjusting the asset-size threshold in section 1026.35(b)(2)(iii)(C) of Regulation Z for certain creditors to qualify for an exemption from the escrow requirement for higher-priced mortgage loans. Creditors with assets of less than $2.202 billion (including assets of certain affiliates) as of December 31, 2019, are exempt, if other requirements of Regulation Z also are met, from establishing escrow accounts for HPMLs in 2020, and in 2021 for loans applied for by April 1, 2021.

Comment 35(b)(2)(iii) on the BankersOnline Regulations page for section 1026.35 of Regulation Z has been updated.

12/19/2019

FHFA guarantee fees report sent to Congress

The Federal Housing Finance Agency has released its annual report on single-family guarantee fees charged by Fannie Mae and Freddie Mac. The Housing and Economic Recovery Act of 2008 requires the FHFA to conduct an ongoing study of the guarantee fees charged by the Enterprises and to submit a report to Congress each year.

12/19/2019

CFPB adjusts HMDA asset-size exemption

The CFPB is publishing in the December 20, 2019, Federal Register a final rule increasing the Regulation C (HMDA) asset-size exemption threshold for banks, savings associations and credit unions from $46 million to $47 million. Therefore, banks, savings associations, and credit unions with assets of $47 million or less as of December 31, 2019, are exempt from collecting data in 2020. The rule is effective on January 1, 2020. The change to comment 2(g)-2 of the Official Interpretations to Regulation C, has been posted to the BankersOnline Regulations page for section 1003.2 of Regulation C

12/19/2019

Bureau issues TRID construction loan guides

The CFPB has published additional guidance relating to disclosing construction and construction-permanent loans under the TRID Rule. There are two new Guides, one on disclosing construction and construction-permanent loans with a separate loan estimate and closing disclosure for each phase of the transaction, and one on using one combined loan estimate and one combined closing disclosure for both phases of a construction-permanent transaction.

12/18/2019

Fed releases December 2019 Compliance Supervision Bulletin

The Federal Reserve Board's Consumer Compliance Supervision Bulletin shares information about Federal Reserve examiners' observations and other noteworthy developments related to consumer protection. The December 2019 issue discusses Federal Reserve supervisory observations regarding fintech, or the use of technological innovation to provide financial products and services. Topics include:

  • Promoting effective fintech risk management
  • Online and mobile banking
  • Managing the fair lending risks of targeted internet-based marketing
  • Federal Reserve fintech resources

12/18/2019

NMLS Call Center holiday schedule

The NMLS has posted a notice that NMLS and the NMLS Call Center will be unavailable due to the holidays on December 25, and January 1. The NMLS Call Center will also close at 6:00 p.m. ET on Tuesday, December 24, but will remain open until 9:00 p.m. ET on Tuesday, December 31. We will add our reminder that there are only a few days left to complete renewals of institution and individual NMLS registrations.

12/17/2019

2018 Small Business, Small Farm, and CD data released

A joint news release from the three federal banking members of the Federal Financial Institutions Examination Council with Community Reinvestment Act responsibilities has announced the availability of data on small business, small farm, and community development lending reported by certain commercial banks and savings associations, pursuant to the CRA. A Fact Sheet on the 2018 data was also released.

An FFIEC disclosure statement on the reported 2018 CRA data, in electronic form, is available for each reporting commercial bank and savings association. The FFIEC also prepared aggregate disclosure statements of small business and small farm lending for all of the metropolitan statistical areas and non-metropolitan counties in the United States and its territories. These statements are available for public inspection on the FFIEC website.

12/16/2019

FEMA to suspend communities in 5 states from flood program

FEMA has published a notice [84 FR 68346] in today's Federal Register identifying communities in five states scheduled for suspension from the National Flood Insurance Program on Friday, December 20, 2019, for noncompliance with the floodplain management requirements of the program:

  • California: Carlsbad, Chula Vista, Coronado, Del Mar, Encinitas, National City, and Oceanside
  • Colorado: Arvada, Georgetown, Golden, Idaho Springs, and unincorporated areas of Clear Creek and Jefferson Counties
  • Iowa: Atkins, Beaman, Belle Plaine, Blairstown, Conrad, Dike, Ellsworth, Garrison, Grundy Center, Holland, Jewell, Kamrar, Morrison, Newhall, Norway, Reinbeck, Shellsburg, Urbana, Vinton, Webster City, Wellsburg, and unincorporated areas of Benton and Grundy Counties
  • Minnesota: Halstad
  • Texas: Austin, Leroy, Mount Calm, Taylor, Weir, West, and unincorporated areas of Aransas County

If any of the identified communities adopts and submits the required documentation of legally enforceable floodplain management measures before its actual suspension date, the community will not be suspended.

12/13/2019

FDIC and OCC proposal to modernize CRA

The FDIC and the OCC have announced a proposal to modernize the agencies’ regulations under the Community Reinvestment Act (CRA) that have not been substantively updated for nearly 25 years. The proposed rules are intended to increase bank activity in low- and moderate-income communities where there is significant need for credit, more responsible lending, greater access to banking services, and improvements to critical infrastructure. The proposals will clarify what qualifies for credit under the CRA, enabling banks and their partners to better implement reinvestment and other activities that can benefit communities. The agencies will also create an additional definition of “assessment areas” tied to where deposits are located—ensuring that banks provide loans and other services to low- and moderate-income persons in those areas.

Comptroller Otting and FDIC Chairman McWilliams issued statements regarding the publication of the joint notice of proposed rulemaking to modernize the Community Reinvestment Act (CRA) regulations. Comments on the proposal will be accepted for 60 days following Federal Register publication.

UPDATE: Published at 85 FR 1204 on 1/9/2020, with a 60-day comment period ending 3/9/2020.

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