Skip to content

Top Story Lending Related

09/18/2019

Treasury proposes FIRRMA regs

The Treasury Department announced yesterday it has issued two proposed regulations to comprehensively implement the Foreign Investment Risk Review Modernization Act of 2018 (FIRRMA) and to better address national security concerns arising from certain investments and real estate transactions. The regulations strengthen and modernize the Committee on Foreign Investment in the United States (CFIUS), an interagency committee authorized to review certain transactions involving foreign investment in the United to determine the effect of such transactions on the national security of the United States.

Comments on the proposed rules will be accepted through October 17, 2019. Treasury intends to issue final rules to take effect no later than February 13, 2020.

09/17/2019

Reminder on use of appraisal management companies

The OCC has issued Bulletin 2019-43 to remind banks that engage appraisal management companies (AMCs) of the new registration requirement for AMCs that became effective on August 10, 2019. Under this requirement, AMCs must register with the state or states in which they do business and must be subject to state supervision. Federal law bars AMCs from providing appraisal management services to financial institutions for consumer credit transactions secured by a consumer’s principal dwelling that are federally related transactions if the AMCs are not registered as required. The bulletin discusses considerations for banks with regard to confirming AMC registration as part of sound third-party risk management and suggests alternatives that banks can use when no registered AMCs are available.

The OCC's rules on banks' use of AMCs can be found in 12 CFR 34, subpart H. The same requirements are included in the Federal Reserve Board's Regulation H, subpart E, and the FDIC's requirements are found in 12 CFR 323 subpart B.

09/16/2019

Fannie and Freddie multifamily loan caps revised

The Federal Housing Finance Agency (FHFA) has announced a revised cap structure on the multifamily business of Fannie Mae and Freddie Mac (the Enterprises). The new multifamily loan purchase caps will be $100 billion for each Enterprise, a combined total of $200 billion in support to the multifamily market, for the five-quarter period Q4 2019 – Q4 2020. The new caps apply to all multifamily business – no exclusions.

A Fact Sheet and Revised Appendix A (Conservatorship Scorecard) were also posted.

09/13/2019

FTC charges operators of student loan debt relief schemes

The Federal Trade Commission announced yesterday it has charged the operators of two similar student loan debt relief schemes, and a financing company that assisted them, with bilking millions of dollars from consumers. The defendants allegedly charged illegal upfront fees that they led consumers to believe went toward consumers’ student loans, and falsely promised that their services would permanently lower or even eliminate consumers’ loan payments or balances. The defendants also signed customers up for high-interest loans to pay the fees without making required disclosures.

Complaints against:

09/11/2019

Bureau and states launch innovation network

The CFPB announced Tuesday the launch of the American Consumer Financial Innovation Network (ACFIN) to enhance coordination among federal and state regulators to facilitate financial innovation.

Initial state members of ACFIN are the attorneys general of Alabama, Arizona, Georgia, Indiana, South Carolina, Tennessee, and Utah. All state regulators have been invited to join.

09/11/2019

CFPB issues innovation policies

The CFPB has issued three new policies to promote innovation and facilitate compliance: the No-Action Letter (NAL) Policy, Trial Disclosure Program (TDP) Policy, and Compliance Assistance Sandbox (CAS) Policy.

No-action letters provide increased regulatory certainty through a statement that the Bureau will not bring a supervisory or enforcement action against a company for providing a product or service under certain facts and circumstances. The Bureau has issued its first NAL under the new NAL Policy in response to a request by HUD on behalf of more than 1,600 housing counseling agencies (HCAs) that participate in HUD’s housing counseling program. The no-action letter essentially states that the Bureau will not take supervisory or enforcement action under RESPA against HUD-certified HCAs that have entered into certain fee-for-service arrangements with lenders for pre-purchasing of housing counseling services. The Bureau also released a No-Action Letter Template for mortgage lenders to apply for a NAL for any HUD-required MOU between the mortgage lender and a participating counseling agency under a Housing Counseling Funding Agreement.

Under the new TDP Policy, entities seeking to improve consumer disclosures may conduct in-market testing of alternative disclosures for a limited time upon permission by the Bureau.

The CAS Policy enables testing of a financial product or service where there is regulatory uncertainty. After the Bureau evaluates the product or service for compliance with relevant law, an approved applicant that complies in good faith with the terms of the approval will have a “safe harbor” from liability for specified conduct during the testing period. Approvals under the CAS Policy will provide protection from liability under the Truth in Lending Act, the Electronic Fund Transfer Act, or the Equal Credit Opportunity Act.

UPDATE: The policies were published in the Federal Register 9/13/2019:
NAL policy: 84 FR 48229
TDP policy: 84 FR 48260
CAS policy: 84 FR 48246

09/11/2019

FDIC updates manuals

The FDIC has released the September 2019 updates to its Risk Management Manual of Examination Policies. Section 3.2 (Loans) has been updated with revised loan evaluation instructions, technical updates for accounting, appraisal thresholds, syndicated lending instructions, and various technical edits to update terminology.

The FDIC also announced the September updates to its Compliance Examination Manual. Section IV-3.1 (Fair Lending Scope and Conclusions Memorandum) was revised to reflect changes to pre-examination interview questions and information requests made during the examination planning proceess, and Section V-6.1 (Flood Disaster Protection) was updated to incorporate the private flood insurance final rule’s provisions pertaining to the mandatory and discretionary acceptance of private flood insurance by financial institutions, the qualification process and acceptance of mutual aid society plans in satisfaction of the flood insurance purchase requirement; and minor technical changes.

09/10/2019

OCC schedules 2 LA workshops

The OCC has announced it will host two workshops at the Federal Reserve Bank of Los Angeles, October 22 and 23, for directors of institutions supervised by the OCC:

  • The Compliance Risk workshop on October 22 focuses on the critical elements of an effective compliance risk management program. Topics of discussion include the Bank Secrecy Act, Flood Disaster Protection Act, Fair Lending, Home Mortgage Disclosure Act, Community Reinvestment Act, and other compliance hot topics.
  • The Operational Risk workshop on October 23 focuses on the key components of operational risk—people, processes, and systems. The workshop also covers governance, third-party risk, vendor management, internal fraud, and cybersecurity.

09/10/2019

July G.19 Consumer Credit data

The Federal Reserve System has released July 2019 G.19 Consumer Credit data. Consumer credit increased at a seasonally adjusted annual rate of 6-3/4 percent. Revolving credit increased at an annual rate of 11-1/4 percent, while non-revolving credit increased at an annual rate of 5-1/4 percent.

09/10/2019

Fed CRA evals released in August

Our review of the Federal Reserve's CRA evaluation ratings reveals that 18 ratings were made public in August. Sixteen institutions were rated Satisfactory. Two institutions received Outstanding ratings (links are to their evaluation reports):

Pages

Training View All

Penalties View All

Search Top Stories