Top Story Lending Related

The Federal Housing Finance Agency (FHFA) has released its annual report on the single-family guarantee fees charged by Fannie Mae and Freddie Mac. The report discusses guarantee fees charged in 2015 and provides a five-year perspective on guarantee fees dating back to 2011.

FDIC seeks comments on appeals guidelines and lending guidance
The FDIC has announced it is seeking comments on updates to its guidelines for institutions to appeal certain material supervisory determinations and on draft examination guidance on third-party lending. The two items are part of a package issued by the FDIC Board to improve the transparency and clarity of the FDIC's supervisory policies and practices, and to ensure that institutions have clear and fair avenues to pursue when there are differences of opinion regarding supervisory matters. The proposed supervision appeals guidelines expand the circumstances under which banks may appeal a material supervisory determination. Comments on the supervision appeals guidelines will be accepted until 60 days after it is published in the Federal Register. The proposed third-party lending guidance outlines the risks that may be associated with third-party lending as well as the expectations for a risk-management program, supervisory considerations, and examination procedures related to third-party lending. Comments on the third-party lending guidance will be accepted until September 12, 2016.

Update: On August 4, 2016, the FDIC announced it had extended the comment deadline for its draft exam guidance on third-party lending to October 27, 2016.

The Federal Reserve has released May 2016 G.20 Owned and Managed Receivables Outstanding and Auto Loans: Terms of Credit data.

The Federal Reserve Board, OCC and FDIC have released the results of the regulators' review of the Shared National Credits (SNC) program which has been conducted since 1977. The latest review showed the level of adversely rated assets remained higher than in previous periods of economic expansion, raising the concern that future losses and problem loans could rise considerably in the next credit cycle. The elevated level of risk observed during the recent SNC examination stems from the high inherent risk in the leveraged loan portfolio and growing credit risk in the oil and gas portfolio.

HUD has reached a Conciliation Agreement with Philadelphia-based Citizens Bank of Pennsylvania and Providence, Rhode Island-based Citizens Bank, collectively known as Citizens Bank, settling allegations that the bank violated the Fair Housing Act when it told a female applicant that she would need to return to work before her application for a home equity line of credit could be approved. The woman filed a complaint alleging that Citizens Bank discriminated against her based on her familial status when it delayed the processing of her loan application because she was on maternity leave, despite the fact that she was receiving her full pay. Under the terms of the agreement, Citizens Bank will pay the woman $40,000, provide fair housing training to its staff, and adopt a parental leave policy making it clear that all loan products are to be made available, regardless of an applicant's parental status. Citizens Bank will also make a $75,000 donation to a HUD-approved fair housing or advocacy organization.

CFPB Director Richard Cordray hinted months ago that the Bureau was working on amendments to clarify and refine the "Know Before You Owe" TILA/RESPA Integrated Disclosure (TRID) Rule, and that it was likely to be ready in July 2016. The proposal was announced Friday, July 29, the last business day of the month. The Bureau reports that the proposed amendments memorialize the Bureau’s informal guidance on various issues and include clarifications and technical amendments. The Bureau is also proposing tolerance provisions for the total of payments, an adjustment to a partial exemption mainly affecting housing finance agencies and nonprofits, extension of coverage of the integrated disclosure requirements to all cooperative units, and guidance on sharing the disclosures with various parties involved in the mortgage origination process. Comments on the proposal are due by October 18, 2016.

Update: The proposed rule was published on August 15, 2016, at 81 FR 54317, in the Federal Register.

The Consumer Financial Protection Bureau has published [81 FR 49869] in this morning's Federal Register a CFR correction to add Comment 41(e)(5) Consumers in bankruptcy and paragraphs 1, 2 and 3 to Supplement I to Regulation Z. This portion of the Official Interpretations of the regulation was issued earlier (and is included on BankersOnline's Regulation Z § 1026.41 page), but was mistakenly omitted when updating the official Code of Federal Regulations.

The FFIEC's CRA/HMDA Software Downloads page has been updated to provide downloads of CRA and HMDA data entry software, version 2016 R-2. This version facilitates data entry for calendar year 2016 data that must be submitted by March 1, 2017.

The Federal Reserve Board has permanently barred Thomas H. Huston and T. Mark Huston, former officers of Columbus Junction State Bank, Columbus Junction, Iowa, from the banking industry for engaging in improper financial activity and concealing or attempting to conceal that activity from state and federal bank examiners. Thomas Huston and his son, Mark Huston, reportedly authorized a series of loans to one another which cumulatively exceeded federal and state lending limits to bank officers, and then concealed or attempted to conceal some of those violations from state and federal bank examiners. They also attempted to conceal from examiners the status of certain borrowers' overdue loans, and loans to affiliated borrowers that exceeded legal lending limits.

The Federal Emergency Management Agency (FEMA) appears to have cleared up a regulatory log jam, and has published three final rules in the Federal Register, each of which identifies communities where the sale of flood insurance has been authorized under the National Flood Insurance Program (NFIP) that are scheduled for suspension because of noncompliance with the floodplain management requirements of the program:

• 81 FR 49169 -- effective August 3, 2016, affecting communities in Arkansas, California and Nebraska
• 81 FR 49171 -- effective July 20, 2016, affecting communities in Maine, Maryland, Massachusetts, Missouri, and New Jersey
• 81 FR 49175 -- effective August 17, 2016, affecting communities in Alabama, Illinois, New Jersey and West Virginia