http://www.bankersonline.com/topstory/topstory.html - Sep 2, 2014 12:39:40 AM - Nov 30, 2004 5:07:27 PM
- OFAC Update8/29/14
August 29, 2014
- Bureau's HMDA proposal published The CFPB's previously announced proposal to amend its Home Mortgage Disclosure regulation (Regulation C, 12 CFR Part 1003) was published [79 FR 51731] in this morning's Federal Register. The proposal would add several new reporting requirements (under HMDA amendments made by section 1094 of the Dodd-Frank Act), clarify several existing requirements, and make changes to institutional and transactional coverage under Regulation C. With publication, the two-month comment period on the proposal has opened, and it will end on October 29, 2014.
- OCC revises EFTA bookletOCC Bulletin 2014-43 has been issued to announce the revision of the "Electronic Fund Transfer Act" booklet of the Comptroller's Handbook, replacing a booklet issued in October 2011. The revised booklet provides updated guidance to examiners and bankers relevant to recent changes made to Regulation E regarding remittance transfers.
- Field hearing on auto finance The CFPB has it will hold a field hearing on auto finance on Thursday, September 18, at 11 a.m. EDT in Indianapolis, Indiana. The Bureau often uses its field hearings to announce significant actions related to the topic of the hearings.
- $125K CMP for NJ MSB The Financial Crimes Enforcement Center (FinCEN) has announced it has imposed a $125,000 civil money penalty on BPI, Inc., a New Jersey money services business, for willful and repeated BSA violations. BPI had been cited in 2005 and 2006 for violations, and showed no improvement in 2011. The deficiencies involved internal controls, independent testing and training. Before 2011, BPI had never filed a SAR. The MSB's employees also failed to obtain or verify required identification, or accepted expired ID documents. BPI ceased its MSB operations in 2014.
- Treasury posts FSAP review documents Treasury has announced the availability on its website of key documents for the 2015 U.S. Financial Sector Assessment Program (FSAP) review. The FSAP is a joint IMF-World Bank program that began in 1999 following the financial crisis in Asia. The FSAP provides an integrated analysis of financial stability and development issues, and generally includes financial sector analysis, stress testing, and an assessment of the observance and implementation of international standards and codes. The first set of documents includes financial sector "self-assessments," which review U.S. observance and compliance with three international standards and core principles:
- Core Principles for Effective Banking Supervision issued by the Basel Committee on Banking Supervision;
- Insurance Core Principles issued by the International Association of Insurance Supervisors; and
- Objectives and Principles of Securities Regulation issued by the International Organization of Securities Commissions
- July FHFA mortgage interest rate index The Federal Housing Finance Agency (FHFA) has released its July 2014 National Average Contract Mortgage Rate Index, which shows little change from June to July.
- G.20 Finance Companies report The Federal Reserve has released the June 2014 G.20 Finance Companies Owned and Managed Receivables Outstanding and Auto Loans: Terms of Credit Report.
- FDIC Quarterly Banking Profile
The FDIC has announced the publication of the Second Quarter 2014 issue of its Quarterly Banking Profile. Chairman Gruenberg issued a statement prior to the release of the report. FDIC insured commercial banks and savings institutions reported aggregate net income of $40.2 billion in the second quarter of 2014, up $2.0 billion (5.3 percent) from earnings of $38.2 billion reported a year earlier. The increase in earnings was mainly attributable to a $1.9 billion (22.4 percent) decline in loan-loss provisions and a $1.5 billion (1.4 percent) decline in noninterest expenses. Approximately 57.5 percent of the reporting institutions had year-over-year growth in quarterly earnings. The proportion of banks that were unprofitable during the second quarter fell to 6.8 percent from 8.4 percent.
- FinCEN ruling on application of MSB regulations
FinCEN has released a ruling, FIN-2014-R009, responding to a letter seeking an administrative ruling about a company's possible status as a money services business under the Bank Secrecy Act. The company is currently engaged in two types of activities:
FinCEN determined that the company would not be considered an MSB. The ruling is specific to the company and the facts included in the company's ruling request.
- acting as an ISO, soliciting merchants to offer them the credit and debit card processing services of two counterparties, under a marketing and sponsorship agreement
- acting separately as a payment processor for merchant credit and debit card transactions and automatic clearing house ("ACH") transfers.
- OCC Orlando workshop
The Office of the Comptroller of the Currency will host a workshop in Orlando, Florida, October 6–8, 2014, for directors of national community banks and federal savings associations. "Mastering the Basics: A Director's Challenge" provides practical information on the roles and responsibilities of board participation.
August 28, 2014
- Bank settles with OFAC OFAC has that Branch Banking & Trust Company, Winston-Salem, North Carolina, has agreed to pay $19,125 to settle potential civil liability for one apparent violation of the Sudanese Sanctions Regulations.
- SEC Adopts NRSRO credit rating agency reform rules The SEC has adopted new requirements for credit rating agencies to enhance governance, protect against conflicts of interest, and increase transparency. The new rules are designed to improve the quality of credit ratings and increase credit rating agency accountability. The changes, which implement 14 rulemaking requirements under the Dodd-Frank Act, apply to credit rating agencies registered with the Commission as nationally recognized statistical rating organizations (NRSROs). A fact sheet and highlights of the amendments and new rules were included in the text of the Commission's press release.
- Counter Terrorism and Kingpin Act designations Treasury has announced it has targeted the leadership and financial networks of Lashkar-e-Tayyiba (LT) by designating Muhammad Iqbal and Asma Money Exchangers as Specially Designated Global Terrorists (SDGTs) pursuant to Executive Order (E.O.) 13224. Iqbal and Asma Money Exchangers are being designated for providing financial, material, or technological support to, or financial or other services to or in support of, LT, a terrorist organization based in Pakistan. Asma Money Exchangers is also designated for being owned or controlled by Iqbal. As a result of this action, all property and interests in the United States or in the possession or control of U.S. persons in which Iqbal and Asma Money Exchangers have an interest are blocked, and U.S. persons are prohibited from engaging in transactions with them. Information regarding the designations has been posted in a BOL OFAC Update.
- Federal Reserve Board meeting notice The Federal Reserve has issued a notice that an open meeting of the Board of Governors will be held at 10:30 a.m. on Wednesday, September 3, 2014. On the agenda are:
- Final Rulemaking: U.S. Liquidity Coverage Ratio
- Proposed Rulemaking: Margin Requirements on Non-Cleared Swaps
- OFAC updates Ukraine-related sanctions FAQs Treasury's Office of Foreign Assets Control has issued updated FAQs regarding Ukraine-related sanctions.
- FDIC newsletter The Summer 2014 issue of FDIC Consumer News features tips on preparing financially for disability or death, plus basic strategies for helping family members or others who are facing a personal hardship. The edition also reports on enhancements to the FDIC webpages explaining deposit insurance, tips for rebounding from a bad credit history, and basics on new credit and debit cards that contain a computer chip for added security.
- FDIC Board meeting notice
A notice of the September 3, 2014, meeting of the FDIC Board of Directors has been posted. The discussion agenda includes:
The meeting will be webcast live and subsequently made available on demand approximately one week after the event.
- memorandum and resolution re: the Liquidity Coverage Ratio Final Rule
- memorandum and resolution re: Regulatory Capital Rules: Regulatory Capital, Revisions to the Supplementary Leverage Ratio
August 27, 2014
- Agencies join to protect student veterans The Consumer Financial Protection Bureau has posted an article announcing an agreement among the CFPB and the Departments of Veterans Affairs, Defense, and Education to better protect servicemembers, veterans, and their family members who are attending college. The agencies agreed to:
The parties have also launched an online student complaint system where students can report negative experiences at schools and training programs.
- Have a point of contact for sharing information
- Share complaints about schools
- Alert each other of suspected fraud, deception, or misleading practices
- Notify each other of any agency action that could lead to a college's loss of eligibility, a suspension of enrollment, or a termination of license
- CFPB publishes report on financial wellness at work The CFPB has its publication of "Financial Wellness at Work," a report to promote financial wellness in the workplace. The report contains case studies that are designed to educate employers about practices that can improve employees' financial health and increase worker productivity.
- FRB payment systems quarterly data The Federal Reserve has released second quarter 2014 data for:
- Discount rates meetings minutes The minutes of the Federal Reserve Board discount rates meetings on July 14 and July 28, 2014, have been released.
- OCC risk workshops in Dallas The OCC will host two workshops in Dallas at the Embassy Suites Dallas-Park Central, September 30 and October 1, for directors of national community banks and federal savings associations. Participants in the Credit Risk and Risk Assessment workshops will receive a pre-workshop reading package and course materials, and assorted supervisory publications. Each workshop is limited to the first 35 registrants.
- Regulation AA proposal published
The Federal Reserve Board's previously-announced proposal to repeal its Regulation AA (12 CFR Part 227) has been published [79 FR 51115] in this morning's , and the comment period is now open, through October 27, 2014.
- extend from July 21, 2015, to July 21, 2020, the sunset date on the temporary exception in § 1005.32(a) that allows insured institutions to provide estimates of certain costs in connection with foreign remittance transfers sent from a consumer's insured account
August 26, 2014
- FHA publishes mortgage amendements The Federal Housing Administration has published two final rules in today's to bring FHA mortgage regulations into alignment with the January 2014 Dodd-Frank Act Regulation Z changes made by the CFPB:
- The first [79 FR 50838] revises FHA's single family ARM program to align FHA interest rate adjustment and notification regulations with the Regulation Z requirements in section 1026.20(c). The Regulation Z change includes a temporary accommodation for the FHA program that expires January 10, 2015, the effective date of the FHA program change.
- The second [79 FR 50835] will end the previously-permitted practice of charging a mortgagor interest through the end of the month in which the mortgage is being paid off. The new rule allows mortgagees to charge interest only through the date the mortgage is paid, thus avoiding a conflict with strict new limitations on prepayment penalties in Regulation Z. The amendment is effective January 21, 2015.
- NCUA may issue CMPs for late call reports The NCUA has reported that 75 credit unions are facing potential civil money penalties (CMPs) for filing late second quarter Call Reports. The NCUA is reviewing the cases to determine whether any of the late filers have mitigating circumstances that warrant a waiver of penalties. The agency expects to notify late filers in September of the penalties, determined by three factors: size of the credit union, lateness in filing the Call Report and history of violations.
- CFPB seeks $7M for illegal debt-settlement fees The Consumer Financial Protection Bureau (CFPB) has it has filed a in federal district court against Global Client Solutions, a debt-settlement payment processor, for allegedly helping other companies collect tens of millions of dollars in illegal upfront fees from consumers. The Bureau has asked the court to approve a consent order that would require the company and its two owners to halt all illegal activities and to pay over $6 million in relief to consumers as well as a $1 million civil penalty.
- Cybersecurity simulation exercise announced Federal Reserve Financial Services has the Financial Services Information Sharing and Analysis Center (FS-ISAC) will host its free annual cybersecurity simulation exercise to help financial institutions assess their readiness in the event of a cyber attack. Participants may choose from two identical sessions on September 9–10 or September 16–17, 2014.
- July residential housing sales report HUD and the Census Bureau have released the report of new residential single-family housing sales in July 2014. Sales were at a seasonally adjusted annual rate of 412,000, 2.4 percent below the revised June rate of 422,000, and 12.3 percent above the July 2013 estimate of 367,000.
August 25, 2014
- Final rule issued amending Remittance Transfers Rule it has finalized revisions to the remittance transfers rule intended to preserve the rule's new consumer protections while providing federally insured institutions, such as banks and credit unions, with additional time to provide exact disclosures in certain cases. The amendments:
The CFPB also released a revised version of its compliance guide to reflect the changes.
- extend from July 21, 2015, to Julu 21, 2020, the sunset date on the temporary exception in § 1005.32(a) that allows insured institutions to provide estimates of certain costs in connection with foreign remittance transfers sent from a consumer's insured account
- clarify that U.S. military installations abroad are located in a State for purposes of the rule
- make clear that whether a transfer from an account is for personal, family, or household purposes may be determine by ascertaining the primary purpose of the account (particularly helpful for sole proprietorship accounts)
- clarify that faxes are considered writings for the purposes of the rule's disclosure requirements
- add language that permits oral completion and disclosures after receiving a remittance inquiry in writing
- further clarify two of the rule's error resolution provisions
- Fed proposes repeal of Regulation AA The Federal Reserve Board has issued a press release requesting comment on a proposal to repeal Regulation AA (Unfair or Deceptive Acts or Practices). The Dodd-Frank Act voided the Board's authority to write rules that address unfair or deceptive acts or practices, which are contained in Regulation AA. In coordination with the proposal, Interagency Guidance was issued by federal financial regulators clarifying the repeal of the credit practices rules applicable to banks, savings associations, and federal credit unions is not a determination that the prohibited practices contained in those rules are permissible. The OCC issued Bulletin 2014-42 and FDIC released FIL-44-2014 to further explain the purpose of the Interagency Guidance.
- FTC files complaint against debt relief scam The Federal Trade Commission has filed a complaint asking a federal court to shut down a scam that targeted financially distressed Americans by pitching a phony debt relief and credit repair program, and by falsely claiming the program was provided and funded by the federal government and endorsed by President Obama. According to the complaint, scammers would ask consumers for details of their outstanding debt, including account numbers, and then arrange bogus electronic payments that gave consumers the impression their debts were in fact being paid. The scammers would then tell consumers to pay the "service charge," typically through money transfer services such as Western Union or MoneyGram. Once consumers paid the charge, the scammers would reverse the payments made to consumers' bills, leaving consumers without the promised debt relief or improvements to their credit scores or limits.
- al-Qaida counter terrorism designations Treasury has announced it has imposed sanctions on two key financiers of the al-Qaida-linked terrorist organization Al Nusrah Front (ANF) and al-Qaida, in support of United National Security Council Resolution 2170 (UNSCR 2170), adopted on August 15, 2014. As a result of this designation, any assets these individuals may have under U.S. jurisdiction are frozen, and U.S. persons are generally prohibited from doing business with them. Under the U.N. resolution, the designees have also been added to the al-Qaida sanctions list and are subject to the associated international sanctions and travel ban. Information regarding the designations has been posted in a
- Goldman Sachs pays $3.15 billion to settle FHFA claim The Federal Housing Finance Agency (FHFA), as conservator of Fannie Mae and Freddie Mac, has a $3.15 billion settlement with Goldman Sachs, related companies and certain named individuals regarding claims alleging violations of federal and state securities laws in connection with private-label mortgage-backed securities (PLS) purchased by Fannie Mae and Freddie Mac between 2005 and 2007. Goldman Sachs will pay approximately $2.15 billion to Freddie Mac and approximately $1 billion to Fannie Mae
- Yellen on labor market dynamics and monetary policy
In a presentation at the Federal Reserve Bank of Kansas City Economic Symposium, Federal Reserve Board Chair Yellen discussed the labor market recovery and monetary policy.
- Communities to be suspended from NFIP
The Federal Emergency Management Agency has published two final rules in today's Federal Register to announce its suspension of communities from the National Flood Insurance Program due to noncompliance with flood plain management requirements of the program. The suspensions are scheduled as follows:
- Effective September 17, 2014, [79 FR 50561] listed communities in Indiana, Texas and Wisconsin
- Effective September 26, 2014, [79 FR 50556] listed communities in California, Florida, Kentucky, Pennsylvania and Texas