Skip to content

How to gain more from operational risk management practices.
Modern risk management technology solutions improve efficiency and provide greater visibility into risks. Today’s tools provide real-time visibility, action plans, enhanced reporting and business intelligence, and proactive notifications for operational risk. Real-time data empowers banks and financial services organizations to proactively manage risks and instantly detect and mitigate emerging issues. Click here to learn more.

Top Story Lending Related


FDIC Supervisory Insights Fall 2018 issue posted

The FDIC has posted the Fall 2019 issue of Supervisory Insights, which contains two articles of interest to bank management:

  • "Commercial Real Estate Loan Concentration Risk Management" examines commercial real estate (CRE) exposure in the banking industry. The article also summarizes findings from recent risk management supervisory activities for FDIC-supervised insured depository institutions (IDIs) with CRE lending concentrations.
  • "Leveraged Lending: Evolution, Growth and Heightened Risk" provides an overview of the leveraged lending market, discusses the risks associated with leveraged lending, and includes observations regarding current underwriting practices from examinations at state nonmember insured depository institutions and information from the Shared National Credit Program.


Extension for comments on consumer reporting accuracy

The FTC and the CFPB have extended the deadline to submit comments on issues affecting the accuracy of consumer reports until January 31, 2020. Comments are requested on issues affecting the accuracy of both traditional credit reports and employment and tenant background screening reports. Comments were originally due by January 10, 2020.


Comment period reopened for proposed Swap Margin Rule

The Fed, FDIC, OCC, Farm Credit Administration, and the Federal Housing Finance Agency have announced they will reopen and extend until January 23, 2020, the comment period on a proposal to change the swap margin rules to facilitate the implementation of prudent risk management strategies at certain banks and swap entities. The agencies extended the comment period to allow interested persons more time to analyze the issues and prepare their comments, which were originally due by December 9, 2019.


OCC announces enforcement actions

The OCC has released a new list of enforcement actions taken against national banks, federal savings associations, and individuals currently and formerly affiliated with such institutions.

  • Mutual of Omaha Bank and a subsidiary were assessed a penalty for violations of the Flood Disaster Protection Act and implementing regulations.
  • a Fairfield, Iowa, bank was issued a consent cease and desist order
  • An executive director and a managing director of JPMorgan Chase Bank, N.A., Columbus, Ohio, were suspended from their positions at the bank and prohibited from further participation in the affairs of the bank or any other depository institution, pending final disposition of criminal proceedings alleging commodities fraud.


Revised URLA implementation dates set

Fannie Mae and Freddie Mac have announced the revised implementation timeline for their redesigned Uniform Residential Loan Application (URLA) and updated automated underwriting systems. Lenders may begin using the revised URLA and submitting loan applications to the new AUS September 1. 2020. All applications received on or after November 1, 2020, must use the revised URLA. Starting November 1, 2021, Fannie Mae and Freddie Mac will no longer accept applications using the current URLA format.


2019 CRA data entry software available

The FFIEC has posted a notice that Version 2019 for the CY 2019 CRA data due March 2, 2020, is now available.


Slight improvement in mortgage performance

The OCC has posted its Third Quarter 2019 Mortgage Metrics Report, which shows a slight improvement in the performance of first-lien mortgages in the federal banking system during the third quarter of 2019. The report showed 96.4 percent of mortgages included in the report were current and performing at the end of the quarter, compared to 95.4 percent a year earlier. The report also showed that servicers initiated 21,492 new foreclosures during the third quarter of 2019, a 0.4 percent increase from the previous quarter and a 24.6 percent decrease from a year ago. Servicers completed 13,950 mortgage modifications in the third quarter of 2019, and 73.0 percent of the modifications reduced borrowers’ monthly payments.


December 2019 SCOOS posted

The December 2019 Senior Credit Officer Opinion Survey (SCOOS) on Dealer Financing Terms collected qualitative information on changes over the previous three months in credit terms and conditions in securities financing and over-the-counter (OTC) derivatives markets. In addition to the core questions, the survey included a set of special questions about stress in overnight funding markets that occurred in mid-September 2019. The 22 institutions participating in the survey account for almost all dealer financing of dollar-denominated securities to nondealers and are the most active intermediaries in OTC derivatives markets. The survey was conducted during the period between November 5, 2019, and November 21, 2019. The core questions asked about changes between September 2019 and November 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.


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.


Training View All

Penalties View All

Search Top Stories