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NCUA issues temp rule to assist CUs

The National Credit Union Administration has published a final rule [85 FR 22010, 4/21/2020] to temporarily modify certain regulatory requirements to help ensure that federally insured credit unions (FICUs) remain operational and liquid during the COVID-19 crisis. Specifically, the Board is temporarily raising the maximum aggregate amount of loan participations that a FICU may purchase from a single originating lender to the greater of $5,000,000 or 200 percent of the FICU's net worth. The Board is also temporarily suspending limitations on the eligible obligations that a federal credit union (FCU) may purchase and hold. In addition, given physical distancing policies implemented in response to the crisis, the Board is tolling the required time frames for the occupancy or disposition of properties not being used for FCU business or that have been abandoned. These temporary modifications will be in place until December 31, 2020, unless extended.


FEMA has suspended communities in three states

FEMA has published a notice identifying communities in Iowa, Nebraska, and New Jersey that were scheduled for suspension from the National Flood Insurance Program on Friday, April 17 for noncompliance with the floodplain management requirements of the program:

  • Iowa: Emerson, Glenwood, Hastings, Malvern, Pacific Junction, Silver City, and unincorporated areas of Mills County
  • Nebraska: Unincorporated areas of Dodge County
  • New Jersey: Haledon, Little Falls, Pompton Lakes, and Totowa


FTC stops fake SBA lender

The Federal Trade Commission has charged a Rhode Island-based company and its owner with falsely claiming to be an approved lender for a federal coronavirus relief lending program and asked a federal court to immediately halt their misrepresentations. The Commission filed a complaint alleging that Ponte Investments, LLC, also doing business as SBA Loan Program and SBA Loan, and its owner John C. Ponte, have been falsely claiming an affiliation with the U.S. Small Business Administration and marketing themselves to small businesses as an approved lender under SBA’s Paycheck Protection Program. According to the FTC, the defendants are neither affiliated with the SBA in any way, nor are they SBA-authorized lenders.


Temporary Reg O change for PPP loans

The Federal Reserve Board has announced an interim final rule to bolster the effectiveness of the SBA's Paycheck Protection Program (PPP). The change will temporarily modify the Board's Regulation O so that certain bank directors and shareholders can apply for PPP loans for their small businesses. The SBA recently clarified that PPP lenders can make PPP loans to businesses owned by their outside directors and certain shareholders, subject to certain limits and without favoritism. The Board's change will allow those individuals to apply for PPP loans, consistent with SBA's rules and restrictions. The change only applies to PPP loans. The rule change is effective immediately upon publication and will be in place through June 30, 2020.

UPDATE: Published at 85 FR 22345 on 4/22/2020, with comments on the interim final rule due by June 8, 2020.


COVID-19 relief approved by NCUA

The National Credit Union Administration Board has announced its approval of three items:

  • A temporary final rule granting measures of regulatory relief to help ensure that federally insured credit unions remain operational and liquid during the COVID-19 pandemic.
  • An interim final rule that temporarily defers real estate-related appraisals and evaluations under the agency’s appraisal regulations because the public health crisis and social distancing directives have created difficulties for lenders to obtain required appraisals on a timely basis.
  • A final rule that increases the threshold level below which appraisals would not be required for residential real estate-related transactions from $250,000 to $400,000.


Final rule raising data reporting thresholds under HMDA

The Consumer Financial Protection Bureau has announced a final rule raising the loan-volume coverage thresholds for financial institutions reporting data under the Home Mortgage Reporting Act (HMDA).

The final rule, amending Regulation C, increases the permanent threshold for collecting and reporting data about closed-end mortgage loans from 25 to 100 loans effective July 1, 2020. The final rule will also amend Regulation C to increase the permanent threshold for collecting and reporting data about open-end lines of credit from 100 to 200, effective January 1, 2022, when the current temporary threshold of 500 of open-end lines of credit expires. In October 2019, the Bureau extended the temporary open-end threshold until January 1, 2022. But for today’s final rule, the open-end threshold would have reverted to 100 open-end lines of credit upon the expiration of the temporary threshold.

An Executive summary of the final rule includes guidance for institutions transitioning from being reporting institutions to excluded institutions for closed-end mortgage loans effective July 1, 2020.

KATHLEEN BLANCHARD will present a Live Webinar on the New HMDA Changes on May 29, 2020. REGISTER NOW!

The final rule was published at 85 FR 28364 on May 12, 2020.


Regulators webinar on working with customers affected by COVID-19

The FDIC, Fed, OCC, and NCUA will host a webinar for bankers on Friday, April 24, 2020, from 3:00 to 4:00 p.m. EDT, to discuss the revised Interagency Statement on Loan Modifications and Reporting for Financial Institutions Working with Customers Affected by the Coronavirus. The webinar will address accounting and regulatory reporting questions and clarify the interaction between current accounting principles and Section 4013 of the Coronavirus Aid, Relief, and Economic Security Act (CARES Act).

The webinar topics will include:

  • Clarifying the interaction between current accounting principles and Section 4013 of the CARES Act;
  • Supervisory considerations on past-due and nonaccrual regulatory reporting; and
  • Regulatory capital considerations.

Participants should preregister for the event. To accommodate the participation of as many financial institutions as possible, the agencies ask that each institution register no more than two representatives to attend the live session. Participants are encouraged to email questions in advance to Webinar materials will be archived for future viewing and can be accessed after the webinar at the registration link.


New FFIEC calculation tools announced

The Federal Institutions Examination Council has announced the availability of two FFIEC federal disclosure computational tools: the Annual Percentage Rate (APR) Computational Tool and the Annual Percentage Yield (APY) Computational Tool. These web-based tools facilitate supervision of financial institutions with regard to applicable laws and regulations and assist financial institutions in their efforts to comply with those laws and regulations. The OCC has discontinued use of its Annual Percentage Rate Calculation Program for Windows (APRWIN) and Annual Percentage Yield Calculation Program for Windows (APYWIN) in favor of the FFIEC Federal Disclosure Computational Tools. The OCC's APRWIN and APYWIN are no longer available for download.


Paycheck Protection Program Liquidity Facility up and running

The Federal Reserve announced yesterday that its Paycheck Protection Program Liquidity Facility is fully operational and available to provide liquidity to eligible financial institutions, which will help support small businesses. The Small Business Administration's Paycheck Protection Program, or PPP, guarantees loans extended by qualified lenders to small businesses so that those businesses can keep workers employed. The Federal Reserve's facility will support the effectiveness of the PPP by extending credit to financial institutions that make PPP loans, using such loans as collateral. Supplying financial institutions with additional liquidity will help increase their capacity to make PPP loans, if and when the SBA's PPP funds are replenished by Congress. Additional information on the facility, which is managed by the Federal Reserve Bank of Minneapolis on behalf of the Federal Reserve System, can be found HERE.


OSA Annual Servicemember Affairs Report for 2019

The CFPB’s Office of Servicemember Affairs (OSA) has posted its Annual Report for Fiscal Year 2019.The report is a review of OSA’s activities in fulfilling its statutory responsibilities over the course of FY19, which covers the period from October 1, 2018 to September 30, 2019. Of note to financial institutiions is section 3 of the report, which addresses military consumer complaints. As in past years, the leading complaint subjects were:

  • Credit or consumer reporting
  • Debt collection
  • Mortgages
  • Credit card
  • Checking or savings accounts


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