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The Federal Reserve Board has approved actions by the Boards of Directors of the Federal Reserve Banks of New York, St. Louis, and Minneapolis increasing the discount rate (the primary credit rate) at the Banks from 1½ percent to 1¾ percent, effective immediately.

The FRB has released the May 2017 G.17 Industrial Production and Capacity Utilization data. Industrial production was unchanged in May following a large increase in April and smaller increases in February and March. Manufacturing output declined 0.4 percent in May; the index is little changed, on net, since February. The indexes for mining and utilities posted gains of 1.6 percent and 0.4 percent, respectively, in May. At 105.0 percent of its 2012 average, total industrial production in May was 2.2 percent above its year-earlier level. Capacity utilization for the industrial sector edged down 0.1 percentage point in May to 76.6 percent, a rate that is 3.3 percentage points below its long-run (1972–2016) average.

The Federal Housing Finance Agency (FHFA) has released its 2016 Report to Congress. The statutorily-required report provides information about FHFA's 2016 examinations of Fannie Mae, Freddie Mac, 11 Federal Home Loan Banks (FHLBanks) and the FHLBanks' Office of Finance. The report also describes FHFA's actions as conservator of Fannie Mae and Freddie Mac during the year and it describes the Agency's regulatory guidance, research and publications.

• 2016 Report to Congress

The NMLS will undergo system maintenance starting Friday, June 16 to Saturday, June 17, and NMLS and Consumer Access will be unavailable from 9:00 p.m. (June 16) to 10:00 a.m. (June 17).

The Office of Foreign Assets Control has published a final rule effective today, June 16, 2017, removing from the Code of Federal Regulations the Burmese Sanctions Regulations as a result of the termination of the national emergency on which the regulations were based. OFAC has removed 31 CFR part 537.

The U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC) took action Thursday to disrupt an Islamic State of Iraq and Syria (ISIS) financial facilitation network by designating one individual and one entity pursuant to Executive Order 13224, which targets terrorists and those providing support to terrorists or acts of terrorism. Specifically, OFAC designated Umar al-Kubaysi and his company, Al-Kawthar Money Exchange, building upon OFAC’s December 2016 actions, which marked the first designations of ISIS-linked money services businesses. As a result of this action, all property and interests in property of those designated today subject to U.S. jurisdiction are blocked, and U.S. persons are generally prohibited from engaging in transactions with them.

Additionally, the Department of State designated ISIS members Mohammad Shafi Armar, Oussama Ahmad Atar, and Mohammed Isa Yousif Saqar Al Binali.

OFAC has added all four individuals and the money exchange to its SDN List. For ID information, see our OFAC Update.

Treasury issued the first in a series of reports to President Trump examining the United States’ financial regulatory system and detailing executive actions and regulatory changes that can be immediately undertaken to provide much-needed relief. Over the past four months, Secretary Mnuchin and other Treasury officials met with hundreds of stakeholders across the financial ecosystem, including community, independent, regional and large banks, regulators, FSOC members, consumer advocates, academics, analysts and investors. These listening sessions provided a very clear picture of redundancy, fragmentation, and inefficiency in our regulatory framework. The report detailed the following findings:

• Community financial institutions – banks and credit unions – are critically important to serve many Americans
• Capital, liquidity and leverage rules can be simplified to increase the flow of credit
• We must ensure our banks are globally competitive
• Improving market liquidity is critical for the U.S. economy
• The Consumer Financial Protection Bureau must be reformed
• Regulations need to be better tailored, more efficient, and effective
• Congress should review the organization and mandates of the independent banking regulators to improve accountability.

The Office of Foreign Assets Control has targeted an ISIS leader, Attallah Salman 'Abd Kafi al-Jaburi (al-Jaburi), pursuant to Executive Order 13224, which targets terrorists and those providing support to terrorists or acts of terrorism. Al-Jaburi is an Iraq-based, ISIS senior leader in charge of factories producing improvised explosive devices (IEDs), vehicle-borne improvised explosive devices (VBIEDs), and explosives, and he is involved in the development of chemical weapons. Additionally, the Department of State designated Marwan Ibrahim Hussayn Tah al-Azawi, an Iraqi ISIS leader connected to ISIS' development of chemical weapons for use in ongoing combat against Iraqi Security Forces. As a result of these actions, all property and interests in property of these individuals subject to U.S. jurisdiction are blocked, and U.S. persons are generally prohibited from engaging in transactions with them. For identifying information on these two individuals, and an unrelated entity also added to the Specially Designated Global Terrorists list, see our OFAC Update.

BOL Conferences' 2017 Lending Compliance Triage Conference has been scheduled for October 11–12 in Scottsdale, Arizona, and online. BankersOnline Gurus Kathleen Blanchard, John Burnett, Randy Carey, Mary Beth Guard, Jack Holzknecht; and Andy Zavoina continue to fine-tune the agenda. Topics currently being worked on include:

• ADA and websites
• TCPA
• HMDA - last minute preparations
• UDAAP
• Enforcement actions
• TRID compliance challenges
• Fair lending and redlining issues
• CRA
• Update on military lending
• ATR and QM checkup
• Flood insurance compliance update
• Loan servicing trouble spots
• Forgotten requirements

The agenda will change to address the most current lending compliance developments. Click HERE for more information and to REGISTER TODAY!

In his remarks at the June 8, 2017, meeting of the CFPB's Consumer Advisory Board, Bureau Director Richard Cordray announced that the comment period on the Bureau's request for information on small business lending, scheduled to close on July 14, 2017, will be extended for 60 days [to September 12, 2017].