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Top Story Lending Related

07/07/2020

PPP loan data released

The SBA, in consultation with Treasury, yesterday announced it was releasing detailed loan-level data regarding the loans made under the Paycheck Protection Program (PPP). This disclosure covers each of the 4.9 million PPP loans that have been made. The release includes loan-level data, including business names, addresses, NAICS codes, zip codes, business type, demographic data, non-profit information, name of lender, jobs supported, and loan amount ranges.

The data release also includes overall statistics regarding dollars lent per state, loan amounts, top lenders, and distribution by industry. The loans have reached diverse communities proportionally, across all income levels and demographics.

07/06/2020

PPP extended to August 8

The president has signed S.4116 into law, extending the deadline for applications for Paycheck Protection Program loans to August 8, 2020, and separating the program from the SBA 7(a) program to ensure that 7(a) loans will continue to be available after the PPP deadline.

07/03/2020

FDIC releases CRA evaluations

The FDIC has issued its list of state nonmember banks recently evaluated for compliance with the Community Reinvestment Act (CRA). The list covers evaluation ratings that the FDIC assigned to institutions in April 2020. Of the 86 institutions listed, 75 were rated satisfactory, eight received an outstanding rating, and three were rated needs to improve.

The eight institutions garnering outstanding ratings are (links are to their evaluation reports):

07/03/2020

OCC CRA evaluations released

The OCC has released CRA evaluations for 21 national banks and federal savings associations that became public in June. Of the 21 evaluations, 11 are rated satisfactory, nine are rated outstanding, and one is rated needs to improve.

The nine institutions with outstanding ratings are (with links to their evaluation reports):

07/03/2020

CFPB proposes EGRRCPA-required HPML escrow exemption

The CFPB has issued a notice of proposed rulemaking that would amend Regulation Z to provide a new exemption available to certain insured depository institutions and insured credit unions from the requirement to establish escrow accounts for certain higher-priced mortgage loans (HPMLs), to implement an amendment to Regulation Z made by section 108 of the Economic Growth, Regulatory Relief, and Consumer Protection Act (EGRRCPA).

The proposed amendment generally would exempt from the Regulation Z HPML escrow requirement any loan made by an insured depository institution or insured credit union and secured by a first lien on the principal dwelling of a consumer if

  • the institution has assets of $10 billion or less;
  • the institution and its affiliates originated 1,000 or fewer loans secured by a first lien on a principal dwelling during the preceding calendar year;
  • the institution meets the requirement in § 1026.35(b)(2)(iii)(A) relating to making a covered transaction secured by a first lien on a property located in a "rural" or "underserved" area; and
  • the institution and its affiliates do not maintain an escrow account other than those established for HPMLs at a time when the creditor may have been required by the regulation to do so or those established after consummation as an accommodation to distresses consumers.

Comments on the proposal will be accepted for 60 days following Federal Register publication.

07/03/2020

West Virginia bank pays flood insurance penalty

The Federal Reserve Board has announced a civil money penalty of $24,500 has been assessed against Putnam County Bank, Hurricane, Virginia, in connection with the Bank's pattern or practice of unspecified violations of Regulation H, 12 CFR § 208.25, which implements the requirements of the National Flood Insurance Act.

07/03/2020

Airlines agree to Treasury loan terms

Treasury has announced that five airlines— American, Frontier, Hawaiian, Sky West, and Spirit—have signed letters of intent under which Treasury would extend loan loans under the CARES Act, which authorizes Treasury to make loans to eligible businesses related to losses incurred as a result of the coronavirus pandemic.

07/02/2020

Regulators joint statement on managing LIBOR transition

The members of the Federal Financial Institutions Examination Council (FFIEC) issued a statement yesterday highlighting the risks that will result from the transition away from LIBOR, and encouraged supervised institutions to continue their efforts to transition to alternative reference rates in order to mitigate financial, legal, operational, and consumer protection risks. The financial services industry uses LIBOR as a reference rate for many financial products and instruments that include loans, investments, and deposits to a range of customers, as well as borrowings and derivatives. While some smaller and less complex institutions may have limited exposure to LIBOR- denominated instruments, the transition to alternative reference rates will affect almost every institution.

The statement also highlights:

  • the legal and consumer compliance risks associated with inadequate fallback language, when the contractual language does not contemplate LIBOR’s permanent discontinuance;
  • the need for each financial institution to have risk management processes to identify and mitigate LIBOR transition risks that reflect the size and complexity of their exposure and third-party servicer arrangements; and
  • areas where supervisory staff will focus their reviews of LIBOR transition planning and risk mitigation efforts.

07/02/2020

New NMLS Ombudsman appointed

The Conference of State Bank Supervisors announced yesterday that ​Jim Payne, director of examinations and assistant deputy commissioner for the Consumer and Mortgage Lending Division of the Kansas Office of the State Bank Commissioner, will serve as the new NMLS ombudsman starting July 1.

The NMLS ombudsman provides state regulators and industry a neutral environment for discussing NMLS issues and policies governing the system. More than 226,000 state-licensed entities across the mortgage, debt, consumer finance and money services businesses industries rely on NMLS to manage their licensing requirements. Over 424,000 federally registered institutions and mortgage loan originators also depend on the system.

07/02/2020

More from CFPB's rulemaking agenda

The CFPB's Spring 2020 Rulemaking Agenda (see yesterday's Top Story) also indicates that the Bureau is participating in an interagency rulemaking to develop regulations to implement Dodd-Frank Act amendments to the Financial Institutions Reform, Recovery, and Enforcement Act of 1989 (FIRREA) concerning quality control standards for automated valuations models (AVMs).

The Bureau is also conducting an assessment of its TRID Rule (required not later than 5 years after the rule's effective date), with an assessment report due by October 2020. The CFPB also expects to conduct a review under the Regulatory Flexibility Act of Regulation Z rules implementing the Credit CARD Act of 2009 to consider the effect of the rules on small entities.

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