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The CFPB has posted a second version of its recent "Overview of the HMDA final rule" video for those who do not have YouTube access. It can be found under the Videos heading on the Bureau's HMDA rule implementation page.

The Federal Emergency Management Agency has published two final rules in today's Federal Register in which FEMA 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:

• Effective September 30, 2016—specified communities in Georgia and Oklahoma
• Effective October 20, 2016—specified communities in Alaska and California

The Federal Deposit Insurance Corporation's FIL-56-2016, issued yesterday, announced the release of updated technical assistance videos on the Ability-to-Repay and Qualified Mortgages Rule. The updated videos provide financial institution management, compliance officers, and staff with resources for a better understanding of the current requirements of the Ability-to-Repay and Qualified Mortgages Rule. The updated videos can be accessed HERE, in the FDIC's Directors' Resource Center pages.

The Board of Governors of the Federal Reserve System has released the minutes of the Federal Open Market Committee meeting of July 26–27, 2016. After assessing the outlook for economic activity, the labor market, and inflation, as well as the risks around that outlook, members decided to maintain the target range for the federal funds rate at 1/4 to 1/2 percent at this meeting. Members generally agreed that, before taking another step in removing monetary accommodation, it was prudent to accumulate more data in order to gauge the underlying momentum in the labor market and economic activity.

HUD has announced it will speed federal disaster assistance to the State of Louisiana and provide support to homeowners and low-income renters forced from their homes due to severe storms and flooding. HUD is assisting the state of Louisiana and local governments in re-allocating existing federal resources toward disaster relief, granting immediate foreclosure relief, making mortgage insurance available, making insurance available for both mortgage and home rehabilitation, and offering Section 108 loan guarantee assistance.

Federal Reserve Bank Services has announced that savings bond agents serving the Louisiana parishes of East Baton Rouge, Livingston, St. Helena, and Tangipahoa recently affected by severe weather and flooding are authorized to redeem Series EE and I paper savings bonds less than one year old presented during the months of August, September, and October, 2016.

The Department of the Treasury has announced that OFAC has designated two Mexican nationals and two Mexican companies pursuant to the Foreign Narcotics Kingpin Designation Act (Kingpin Act). Juan Manuel Alvarez Inzunza, a money launderer, and Jose Olivas Chaidez, a key narcotics trafficker, have been designated as Specially Designated Narcotics Traffickers (SDNTs) for materially assisting, supporting, or providing services to the Sinaloa Cartel and/or high-ranking Sinaloa Cartel members, including Joaquin “El Chapo” Guzman Loera and Ismael “El Mayo” Zambada Garcia and his top lieutenants. OFAC has also designated two Culiacan, Sinaloa-based companies, Nueva Atunera Triton, S.A. de C.V. and Operadora Eficaz Pegaso, which are owned, controlled, or directed by, or acting for or on behalf of, Juan Manuel Alvarez Inzunza. As a result of these actions, all assets of those designated that are within U.S. jurisdiction or are in the control of U.S. persons are frozen, and U.S. persons are generally prohibited from engaging in transactions with them. See our OFAC Update for identification information on the new listings and those removed.

Since June 2000, more than 1,900 entities and individuals have been named pursuant to the Kingpin Act for their role in international narcotics trafficking. Penalties for violations of the Kingpin Act range from civil penalties of up to $1,414,020 million per violation to more severe criminal penalties. Criminal penalties for corporate officers may include up to 30 years in prison and fines up to $5 million. Criminal fines for corporations may reach $10 million. Other individuals could face up to 10 years in prison and fines pursuant to Title 18 of the United States Code for criminal violations of the Kingpin Act.

Federal Reserve Financial Services (FRFS) has announced September 1, 2016, revisions to Operating Circular 4, "Automated Clearing House Items" (OC-4). The revisions address the:

• September 23 Phase 1 implementation of Same Day ACH services and pricing
• October 3 implementation of "ACH Network quality" fees, assessed against ODFIs and credited to RDFIs, for ACH items returned as "unauthorized."
• Planned enhancements to the compliance program for FedGlobal ACH Payments

The revised version of OC-4 and a complete summary of changes has been posted to the FRFS Operating Circulars webpage.

The Office of the Comptroller of the Currency has announced a proclamation allowing national banks and federal savings associations affected by storms and flooding in Louisiana to close. Senior Deputy Comptroller for Midsize and Community Bank Supervision Toney Bland said he expects that only those bank offices directly affected by the extreme weather will close. He added that those offices should make every effort to reopen as quickly as possible to address the banking needs of their customers.

The OCC press release also referred affected banks to OCC Bulletin 2012-28, "Supervisory Guidance on Natural Disasters and Other Emergency Conditions."

HUD and the Census Bureau have jointly announced the statistics for July 2016 on new residential construction:

• Building Permits: Privately owned housing units authorized by building permits in July were at a seasonally adjusted annual rate of 1,152,000, 0.1 percent below the revised June rate of 1,153,000, but 0.9 percent above the July 2015 estimate. Single-family authorizations in July were at a rate of 711,000, 3.7 percent below the revised June figure. Authorizations of units in buildings with five units or more were at a rate of 411,000 in July.
• Housing Starts: Privately owned housing starts in July were at a seasonally adjusted annual rate of 1,211,000, 2.1 percent above the revised June estimate of 1,186,000, but 5.6 percent above the July 2015 rate. Single-family housing starts in July were at a rate of 770,000, 0.5 percent above the revised June figure. The July rate for units in buildings with five units or more was 433,000.
• Housing Completions: Privately owned housing completions in July were at a seasonally adjusted annual rate of 1,026,000, 8.3 percent below the revised June estimate and 3.2 percent above the July 2015 rate. Single-family housing completions in July were at a rate of 743,000, 0.4 percent below the revised June rate. The July rate for units in buildings with five units or more was 275,000.

The NMLS has announced that, starting August 22, 2016, NMLS users who are not using Internet browsers that support TLS 1.2 will need to upgrade by October 8. After October 8, users who have not upgraded their browsers will be prevented from accessing NMLS until they have downloaded a version that supports TLS 1.2. An email has been sent to all State and Federal account administrators detailing the restriction. Should you have any questions, please visit the NMLS Resource Center Technical Requirements page or contact the NMLS Call Center.

The Federal Reserve System has released June 2016 G.17 industrial production and capacity utilization data. Industrial production rose 0.7 percent in July after moving up 0.4 percent in June. The advance in July was the largest for the index since November 2014. Manufacturing output increased 0.5 percent in July for its largest gain since July 2015. The index for utilities rose 2.1 percent as a result of warmer-than-usual weather in July boosting demand for air conditioning. The output of mining moved up 0.7 percent; the index has increased modestly, on net, over the past three months after having fallen about 17 percent between December 2014 and April 2016. At 104.9 percent of its 2012 average, total industrial production in July was 0.5 percent lower than its year-earlier level. Capacity utilization for the industrial sector increased 0.5 percentage point in July to 75.9 percent, a rate that is 4.1 percentage points below its long-run (1972–2015) average.

The Federal Reserve Board has posted its semiannual update of the Bank Holding Company Supervision Manual, which provides guidance for conducting inspections of bank holding companies and their nonbank subsidiaries.

FinCEN has announced the selection of Thomas P. Ott as Associate Director for its Enforcement Division. Mr. Ott will oversee FinCEN’s Bank Secrecy Act compliance and enforcement program. This includes developing and implementing compliance and enforcement strategies, supervising investigations, enforcement actions, and other activities that have industry-wide, national, and international impact.

The NCUA has reported it is monitoring the flooded areas of Louisiana and will work with federally insured credit unions affected by the recent severe flooding to help protect consumers and ensure continuity of services.

Treasury has released the Treasury International Capital (TIC) data for June 2016. The sum total in June of all net foreign acquisitions of long-term securities, short-term U.S. securities, and banking flows was a monthly net TIC outflow of $202.8 billion. Of this, net foreign private outflows were $162.4 billion, and net foreign official outflows were $40.4 billion. Foreign residents increased their holdings of long-term U.S. securities in June; net purchases were $7.billion. Net purchases by private foreign investors were $36.0 billion, while net sales by foreign official institutions were $28.4 billion. U.S. residents increased their holdings of long-term foreign securities, with net purchases of $11.2 billion.

The August issue of FedFlash has been posted by Federal Reserve Financial Service (FRFS). The issue features an article on what you should do with a suspect counterfeit note. Other articles include a reminder of testing and training opportunities for the billing data file layout changes, a check adjustments tip and reminder, the ACH network quality fee, the enhanced ACH Return Item Report, and the new layout for FRFS forms.

The FDIC has issued FIL-53-2016 to announce requests by the FDIC, FRB, and OCC for comment on the proposed new streamlined Call Report announced last week by the FFIEC and published yesterday in the Federal Register. Comments must be submitted by October 14, 2016.

The FDIC has issued FIL-54-2016 announcing steps intended to provide regulatory relief to financial institutions and to facilitate recovery in areas of Louisiana affected by severe weather.

The Federal Trade Commission has announced the agenda for its September 7 event on ransomware, which is one of the most challenging cybersecurity problems affecting consumers and businesses. Hackers use ransomware to gain access to consumer and business computers and encrypt files including photos, documents and other critical data, demanding a ransom in exchange for the key needed to decrypt the files. The event will take place at the FTC’s Constitution Center offices, 400 7th St SW, Washington, DC, and will begin at 1 p.m. and continue until 4:30 p.m.

The Federal Reserve Board and the U.S. Mint have issued an annual report to Congress on their collaborative efforts to develop the Presidential $1 Coin Program and improve the distribution and circulation of $1 coins. The report assesses the remaining obstacles to the efficient and timely circulation of $1 coins, the extent to which the goals of consultations with industry representatives, the vending industry, and other coin-accepting organizations are being met. It also provides a recommendation for legislative action.

The Federal Reserve Board has announced the issuance of a report to Congress on the effect of capital rules on mortgage servicing assets. An executive summary with the key conclusions of the study were also released.

The CFPB has published in today's Federal Register, at 81 FR 54317, the proposal it announced on July 29 (see our earlier Top Story) to amend Regulation Z to clarify and refine the Bureau's TRID Rule. Comments on the proposal are due by October 18, 2016.

The Federal Reserve Board has announced the execution of written agreements with First Bankshares, Inc., Barboursville, West Virginia (financial strength), and Liberty Bank, South San Francisco, California (BSA/AML deficiencies).

The Federal Reserve has released the results of the August 11 floating-rate offering of term deposits through its Term Deposit Facility. There were 32 participants who deposited a total of $58,594,010,000.

Federal Reserve Financial Services has announced that, In conjunction with the September 23, 2016, Phase 1 implementation of the ACH Rules change that provides for Same Day ACH entries, the FedACH SameDay Service will be modified to reflect the new rules. Most significantly, a financial institution’s opt in is no longer the trigger for participation in same day processing and settlement of its ACH transactions. Along with changes to the features of the FedACH SameDay Service, FedACH customers will see changes in origination pricing, receipt pricing, and the monthly account servicing fee.

The Federal Housing Finance Agency (FHFA) has announced an extension of the response period for its previously issued Single-Family Credit Risk Transfer request for information (RFI). The response period will now close on October 13, 2016. The RFI lays out FHFA's principles of credit risk transfer and seeks feedback on credit risk transfer policy issues and on proposals to adopt front-end credit risk transfer. Responses can be submitted electronically or via mail.

The NCUA has released the video of the July open meeting of the its Board.

The Federal Reserve Board has announced the members of its Community Depository Institutions Advisory Council (CDIAC) and the president and vice president of the council for 2017. The CDIAC advises the Board on the economy, lending conditions, and other issues of interest to community depository institutions. Members are selected from representatives of commercial banks, thrift institutions, and credit unions serving on local advisory councils at the twelve Federal Reserve Banks.

A workshop for directors of national community banks and federal savings associations will be hosted by the Office of the Comptroller of the Currency in St. Louis on September 19–21. The Building Blocks for Directors workshop combines lectures, discussion, and exercises to provide practical information on the roles and responsibilities of board participation for both new and experienced directors. The workshop focuses on directors’ duties and core responsibilities, discusses major laws and regulations, and increases familiarity with the examination process.

The Small Business Administration has published a proposed rule at 81 FR 52595 in the Federal Register to make changes to some of its lending program regulations for clarity and to increase participation in: The Surety Bond Guarantee (SBG) Program, the 7(a) Loan Program, the Microloan Program, and the Development Company Loan Program (504 Loan Program). In addition, the proposed changes will streamline the regulations by removing or revising any outdated regulations. Comments on the SBA proposal are due by October 11, 2016.

The Federal Housing Finance Agency (FHFA) has released the results of annual stress tests that Fannie Mae and Freddie Mac are required to conduct under the Dodd-Frank Act. The Act requires certain financial institutions with more than $10 billion in assets to conduct annual stress tests to determine whether they can absorb losses as a result of adverse economic conditions. The report provides updated information on possible ranges of future financial results for Fannie Mae and Freddie Mac under severely adverse economic conditions.

The NCUA has released a new guidebook to help credit unions better meet members’ needs for digital banking services. Going Digital: Strategies for Providing Digital Services provides step-by-step instructions for creating a strategic plan for analyzing members’ needs and tailoring digital products to meet those needs. It also details potential advantages and disadvantages to members and credit unions.

The Federal Financial Institutions Examination Council (FFIEC) has published a press release inviting public comment on a proposal for a new and streamlined Call Report for small financial institutions (those with domestic offices only and less than $1 billion in total assets). The streamlined Call Report would reduce the existing Call Report from 85 to 61 pages resulting from the removal of approximately 950 or about 40 percent of the nearly 2,400 data items in the Call Report. The proposed changes would eliminate certain data items and would reduce the reporting frequency of other data items. Additionally, for certain complex and specialized activities, the proposal would consolidate five schedules into a single new supplemental schedule. Comments will be accepted for 60 days following publication in the Federal Register.

Update: The Notice and Request for Comment was published at 81 FR 54190 in the August 15, 2016, Federal Register. Comments are due by October 14, 2016.

June 2016 G.19 consumer credit data have been posted by the Federal Reserve. Consumer credit increased at a seasonally adjusted annual rate of 5-1/4 percent during the second quarter. Revolving credit increased at an annual rate of 4-1/2 percent, while nonrevolving credit increased at an annual rate of 5-1/2 percent. In June, consumer credit increased at an annual rate of 4 percent.

The FFIEC has posted information on a revision of the methodology for determining average offer rates to reflect that a different source of survey data for the one-year variable rate mortgage product is being used to calculate the average prime offer rates for certain mortgage products.

The Federal Emergency Management Agency has published a final rule at 81 FR 52353 in today's Federal Register identifying communities where the sale of flood insurance has been authorized under the National Flood Insurance Program (NFIP) that are scheduled for suspension on September 16, 2016, for noncompliance with the floodplain management requirements of the program. Affected communities are portions of Prince George's County, Maryland, and portions of Northumberland County, Pennsylvania.

The Federal Reserve has posted the second quarter data for check services and automated clearinghouse services. The check services data show a decline in volume from a high point of 4.87 billion checks in the fourth quarter of 1992 to the most recent quarter's volume of 1.33 billion checks, or approximately 73%. Over the same period, commercial ACH item volume grew from 354 million to 3.223 billion, an increase of 810%.

Federal Reserve Bank Services (FRBS) has posted the August 2015 issue of FedFocus. It features articles on the Federal Reserve's conversion to a new internal cash transactional system, what to do with suspect counterfeit notes, gold and the Olympics, and Fed resources to help you handle service disruptions.

The FDIC has released a list of 38 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 May 2016. One bank received an outstanding rating, 35 were rated satisfactory, and two were rated "needs to improve."