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A North Carolina debt collection operation has been charged by the Federal Trade Commission with using intimidation and deception to take money from consumers for debts they did not owe, or that the defendants had no right to collect. A federal court order requested by a FTC complaint has temporarily halted the scheme and frozen its assets.

The OCC has announced it will host two workshops in Chicago on October 3 and 4, for directors of national community banks and federal savings associations.

• The Compliance Risk workshop on October 3 focuses on the critical elements of an effective compliance risk management program and on major compliance risks and critical regulations. Topics of discussion include the Bank Secrecy Act, Flood Disaster Protection Act, Fair Lending, Home Mortgage Disclosure Act, Community Reinvestment Act, and other compliance areas of interest.
• The Operational Risk workshop on October 4 focuses on the key components of operational risk—people, processes, and systems. The workshop also covers governance, third-party risk, vendor management, and cybersecurity.

The OCC has issued its CRA examination schedule for the fourth quarter 2017 and first quarter 2018.

The OCC is encouraging national banks and federal savings associations to work with customers affected by Hurricane Harvey. OCC Bulletin 2012-28 provides examples of steps national banks and federal savings associations may take to support customers affected by natural disasters.

• Waiving or reducing ATM fees.
• temporarily waiving late payment fees or penalties for early withdrawal of savings for affected customers.
• working with borrowers who have been affected by the event by
  • restructuring borrowers’ debt obligations, when appropriate, by altering or adjusting payment terms. Payment extensions should reflect individual borrower situations and generally should not exceed 90 days.
  • expediting lending decisions when possible, consistent with safety and soundness principles.
• reassessing the current credit needs of the community and helping meet those needs by originating or participating in sound loans to rebuild damaged property.
• contacting state and federal agencies, as well as other financial institutions, to help mitigate the effects of the event.

The agency stated that examiners will not criticize these types of responses as long as the actions are taken in a manner consistent with sound banking practices.

The Federal Reserve Board has announced it has issued an Order permanently prohibiting James M. Riley, a former City Executive at the Four Oaks Bank and Trust Company branch in Fuquay-Varina, North Carolina, from participating in the banking industry after determining he improperly approved loans for his own benefit. The Board found that Riley engaged in unsafe and unsound practices and potential violations of law by approving loans for two individuals who immediately transferred the loan proceeds to him.

The July Federal Housing Finance Agency (FHFA) Index indicates that nationally, interest rates on conventional purchase-money mortgages decreased from June to July, according to several indices of new mortgage contracts.

• The National Average Contract Mortgage Rate for the Purchase of Previously Occupied Homes by Combined Lenders Index was 3.99 percent for loans closed in late July, down 1 basis point from 4.00 percent in June.
• The average interest rate on all mortgage loans was 3.98 percent, down 2 basis points from 4.00 in June.
• The average interest rate on conventional, 30-year, fixed-rate mortgages of $424,100 or less was 4.14 percent, down 1 basis point from 4.15 in June.
• The effective interest rate on all mortgage loans was 4.08 percent in July, down 3 basis points from 4.11 in June. The effective interest rate accounts for the addition of initial fees and charges over the life of the mortgage.
• The average loan amount for all loans was $317,000 in July, down $1,900 from $318,900 in June.

The CFPB has published [82 FR 41158] in today's Federal Register a final rule amending the official interpretations for Regulation Z, which implements the Truth in Lending Act (TILA). The rule revises, as applicable, the dollar amounts for provisions implementing TILA and amendments to TILA. Specifically—

• For open-end consumer credit plans under TILA, the threshold that triggers requirements to disclose minimum interest charges will remain unchanged at $1.00 in 2018.
• For open-end consumer credit plans under the CARD Act amendments to TILA, the adjusted dollar amount for the safe harbor for a first violation penalty fee will remain unchanged at $27 in 2018 and the adjusted dollar amount for the safe harbor for a subsequent violation penalty fee will remain unchanged at $38 in 2018.
• For HOEPA loans, the adjusted total loan amount threshold for high-cost mortgages in 2018 will be $21,032. The adjusted points and fees dollar trigger for high-cost mortgages in 2018 will be $1,052.
• For the general rule to determine consumers’ ability to repay mortgage loans, the maximum thresholds for total points and fees for qualified mortgages in 2018 will be
  • 3 percent of the total loan amount for a loan greater than or equal to $105,158;
  • $3,155 for a loan amount greater than or equal to $63,095 but less than $105,158;
  • 5 percent of the total loan amount for a loan greater than or equal to $21,032 but less than $63,095;
  • $1,052 for a loan amount greater than or equal to $13,145 but less than $21,032; and
  • 8 percent of the total loan amount for a loan amount less than $13,145.

The rule will be effective January 1, 2018. The new interpretations paragraphs have been added to sections 1026.32, .43 and .52 in BankersOnline's Regulations pages for Regulation Z.

FDIC FIL-38-2017, issued Tuesday, encourages depositary institutions in Texas and Louisiana to consider all reasonable and prudent steps to assist customers in communities affected by recent storms. The FDIC said that prudent efforts to meet customer's cash and financial needs generally will not be subject to examiner criticism. Among the suggestions in the letter addressed to banks in the two affected states, the agency recommended—

• When consistent with safe-and-sound banking practices, waiving fees, increasing ATM cash limits, easing credit card limits, allowing loan customers to defer or skip payments, and delaying the submission of delinquency notices to credit bureaus.
• Using non-documentary verification methods permitted by the Customer Identification Program requirement of the Bank Secrecy Act for affected customers who cannot provide standard identification documents.

The FIL also included links to additional resources for affected banks and their customers:

• Meeting the Financial Needs of Customers Affected by Hurricane Harvey
• Frequently Asked Questions for Bank Customers in Areas Affected by Hurricane Harvey
• Lessons Learned From Hurricane Katrina: Preparing Your Institution for a Catastrophic Event

HUD has announced it will speed federal disaster assistance to the State of Texas and provide support to homeowners and low-income renters forced from their homes due to Hurricane Harvey. President Trump has issued a disaster declaration for the following counties (more counties may be added as more disaster data becomes available): Aransas, Bee, Brazoria, Calhoun, Chambers, Fort Bend, Galveston, Goliad, Harris, Jackson, Kleberg, Liberty, Matagorda, Nueces, Refugio, San Patricio, Victoria and Wharton. The president’s declaration allows HUD to offer mortgage/foreclosure relief and other assistance to certain families living in impacted counties.

The Office of the Comptroller of the Currency, the Board of Governors of the Federal Reserve System, the Federal Deposit Insurance Corporation, and state bank regulators have issued a statement on supervisory practices regarding financial institutions and borrowers affected by Hurricane Harvey. The institutions are encouraged to recognize the serious impact of Hurricane Harvey on the customers and operations of many financial institutions. The agencies will provide regulatory assistance to affected institutions subject to their supervision.