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Top Story Lending Related


New payment deferral option from Fannie and Freddie

The Federal Housing Finance Agency has announced that Fannie Mae and Freddie Mac (the Enterprises) are making available a new payment deferral option. The payment deferral option allows borrowers, who are able to return to making their normal monthly mortgage payment, the ability to repay their missed payments at the time the home is sold, refinanced, or at maturity.

Servicers will begin offering the payment deferral repayment option starting July 1, 2020.

In addition to the new payment deferral option, borrowers with COVID-19 related hardships can still utilize other options that include reinstatement, repayment plan, or loan modifications based on their individual situations.


FEMA to suspend Tennessee communities from NFIP

The Federal Emergency Management Agency has published a notice at 85 FR 28499 in today's Federal Register that it intends to suspend on May 15, 2020, the City of Manchester and unincorporated areas of Coffee County, Tennessee, from the National Flood Insurance Program for noncompliance with the floodplain management requirements of the program.


FDIC proposes rule to lessen insurance assessment impacts

The FDIC has issued a press release and FIL-56-2020 to announce a notice of proposed rulemaking that would mitigate the deposit insurance assessment effects of participating in the Paycheck Protection Program (PPP) established by the SBA and the Paycheck Protection Program Lending Facility (PPPLF) and Money Market Mutual Fund Liquidity Facility (MMLF) established by the Federal Reserve System. The changes would:

  1. remove the effect of participation in the PPP and PPPLF on various risk measures used to calculate an insured depository institution’s assessment rate,
  2. remove the effect of participation in the PPPLF and MMLF programs on certain adjustments to an IDI’s assessment rate,
  3. provide an offset to an insured depository institution’s assessment for the increase to its assessment base attributable to participation in the MMLF and PPPLF, and
  4. remove the effect of participation in the PPPLF and MMLF programs when classifying insured depository institutions as small, large, or highly complex for assessment purposes.

To provide certainty to insured depository institutions regarding the assessment effects of participating in these programs, the FDIC is proposing an effective date by June 30, 2020, and an application date of April 1, 2020, which would ensure that the changes are applied to assessments starting in the second quarter of 2020. Comments will be accepted for seven days following publication in the Federal Register.


TALF term sheet updates

The Federal Reserve Board has announced additional information regarding borrower and collateral eligibility criteria for the Term Asset-Backed Securities Loan Facility (TALF). The facility was announced on March 23 as part of an initiative to support the flow of credit to U.S. consumers and businesses. To help ensure that U.S. consumers and businesses remain able to access credit at affordable terms, TALF will initially make up to $100 billion of loans available.

The Board also outlined the information it will publicly disclose for the TALF and the Paycheck Protection Program Liquidity Facility (PPPLF) on a monthly basis. The Board will disclose the name of each participant in both facilities; the amounts borrowed, interest rate charged, and value of pledged collateral; and the overall costs, revenues, and fees for each facility. The disclosures are similar to those announced in April for the Board facilities that utilize CARES Act funds. A TALF Term Sheet and FAQs were also posted.


Payroll Support Program - Aviation Industry participant list

Treasury has posted a list of its Payroll Support Program participants with amounts of assistance provided and, where applicable, financial instruments provided to the federal government as appropriate compensation for the provision of financial assistance. Approved applicants include all of the major passenger air carriers, more than 260 smaller passenger air carriers, and a significant number of cargo air carriers and contractors.


Agencies launch COVID-19 mortgage and housing assistance website

The CFPB has announced it has joined with the FHFA and HUD to launch a new website,, to provide assistance and information to homeowners and renters impacted by COVID-19. This joint website consolidates information on CARES Act mortgage relief, protections for renters, resources for additional help, and avoiding COVID-19 related scams. It also provides lookup tools for homeowners to determine if their mortgage is federally backed, and for renters to find out if their rental unit is financed by FHA, Fannie Mae, or Freddie Mac.


Colorado mortgage-loan servicer to pay consumers $1.275M

The CFPB has announced a settlement with Specialized Loan Servicing, LLC (SLS), a mortgage-loan servicer in Colorado. As of February 29, 2020, SLS serviced a portfolio of mortgage loans worth about $112.69 billion. The consent order requires SLS to pay $1.275 million in monetary relief to consumers in the form of redress and waiver of borrower deficiencies, pay a $250,000 civil money penalty to be deposited into the Bureau’s Civil Penalty Fund, and implement procedures to ensure compliance with the Real Estate Settlement Procedures Act (RESPA) and its implementing regulation, Regulation X. The Bureau’s investigation found that since January 2014, SLS violated RESPA and Regulation X by taking prohibited foreclosure actions against mortgage borrowers who were entitled to protection from foreclosure, and by failing to send or to timely send evaluation notices to mortgage borrowers who were entitled to them. SLS's actions were also found to have violated the Consumer Financial Protection Act of 2010.


Fed updates Muni Liquidity Facility term sheet

The Federal Reserve Board has published updates to the term sheet for the Municipal Liquidity Facility (MLF) to provide pricing and other information. The MLF, which was established under Section 13(3) of the Federal Reserve Act with approval of the Treasury Secretary, will offer up to $500 billion in lending to states and municipalities to help manage cash flow stresses caused by the coronavirus pandemic. An FAQ and a pricing index were also posted.


CFPB HMDA revisions published today

The CFPB's final rule amending Regulation C (HMDA) was published at 85 FR 28364 in today's Federal Register. The rule increases the threshold for reporting data about closed-end mortgage loans, so that institutions originating fewer than 100 closed-end mortgage loans in either of the two preceding calendar years will not have to report such data effective July 1, 2020. The Bureau is also setting the threshold for reporting data about open-end lines of credit at 200 open-end lines of credit effective January 1, 2022, upon the expiration of the current temporary threshold of 500 open-end lines of credit.

Kathleen Blanchard will present a BOL Learning Connect webinar—New HMDA Changes— on May 28, 2020. Register NOW!


FinCEN renews GTOs

The Financial Crimes Enforcement Network (FinCEN) announced the renewal of its Geographic Targeting Orders (GTOs) that require U.S. title insurance companies to identify the natural persons behind shell companies used in all-cash purchases of residential real estate in twelve metro areas. The renewed GTOs are identical to the November 2019 GTOs, and will be effective from May 10 through November 5, 2020. The purchase amount threshold remains $300,000 for each covered metropolitan area. An FAQ regarding the GTOs was also issued.


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