http://www.bankersonline.com/topstory/topstory.html - Jun 20, 2013 12:20:50 AM - Nov 30, 2004 5:07:27 PM
June 19, 2013
- FRB BSA/AML Written Agreement The Federal Reserve Board has announced the execution of a Written Agreement with M&T Bank Corporation and Manufactures & Traders Trust Company (Bank), both of Buffalo, New York. M&T is a registered banking holding company that owns and controls the Bank. The Agreement calls for improvements in the holding company's enterprise-wide BSA/AML compliance program. A summary is available on BOL's BSA/AML Penalties page.
- SR Letter on Communication of Supervisory Findings The Fed has issued SR 13-13 to update and clarify existing examiner guidance concerning the communication of supervisory findings to banking organizations and institutions supervised by the Federal Reserve.
- Distressed or Underserved list released A joint press release has been issued by federal bank and thrift regulatory agencies announcing the availability of the 2013 list of distressed or underserved nonmetropolitan middle-income geographies where revitalization or stabilization activities will receive Community Reinvestment Act (CRA) consideration as "community development."
- OCC Chicago workshops for directorsOCC will host two workshops, "Risk Assessment for Directors" and "Credit Risk: A Director's Focus," in Chicago on July 30–31, for directors of national community banks and federal savings associations. There is a fee of $99 for each workshop, and attendance is limited to the first 35 registrants for each session.
- OCC Semiannual Risk Perspective The Spring 2013 issue of the OCC's Semiannual Risk Perspective has been released. This issue discusses strategic risk, cyber threats, the increased competition for limited commercial and industrial lending opportunities, the low interest rate environment, and BSA/AML risks.
- NCUA Board agenda revised The agenda for the June 20, 2013, meeting of the NCUA Board has been revised.
- Bureau issues two new notices with requests for comments The CFPB has issued a Paperwork Reduction Act (PRA) notice of a policy to encourage trial disclosure programs with a comment period closing July 18, 2013. The Bureau also issued a 60-day PRA notice regarding a telephone survey exploring consumer awareness of and perceptions regarding dispute resolution provisions in credit card agreements with, the comment period closing August 6, 2013.
- Deloitte suspended and will pay $10 million New York Governor Cuomo has an agreement with Deloitte Financial Advisory Services regarding the company's misconduct, violations of law, and lack of autonomy during its consulting work at Standard Chartered on anti-money laundering issues. Under the agreement, Deloitte agreed to a one-year, voluntary suspension from consulting work at financial institutions regulated by the New York State Department of Financial Services, will make a $10 million payment, and will implement a set of reforms designed to help address conflicts of interest in the consulting industry.
June 18, 2013
- July 2013 HOEPA rates set The Federal Reserve has posted the new reference rates that lenders must use to determine if loans for certain applications received in July 2013 will be subject to HOEPA under the APR trigger test. Use the FRB H.15 report of selected interest rates to find the applicable release that lists the Treasury security with the same maturity term as your loan. To make the calculation, use the yield in effect on the 15th of the month that precedes the month you received the application. Because June 15, 2013, was a Saturday, use the rate on June 14, 2013, the preceding business day.
- NMLS system unavailable during upgrade The NMLS will undergo system maintenance on Friday, June 21, starting at 9:00 pm ET. The system will be unavailable until the upgrade is complete, which is expected to be Saturday afternoon. The majority of changes are to accommodate the implementation of Advance Change Notice functionality, updated NMLS Education reporting and compliance tools, and the adoption of a new Education Management System.
- Household debt report The Federal Reserve Board has released the household debt and financial obligations ratio report for the first quarter 2013.
- FHC report The report of bank holding companies that have elected to become or be treated as financial holding companies as of June 14, 2013, has been posted by the FRB.
- Reserves Administration application available Federal Reserve Financial Services has announced the launch of Reserves Central–Reserve Account Administration, a new application that supports the administration of reserves accounts. The Fed has been working over the past year to implement changes to the policies, internal processes, and technologies that support the administration of reserve requirements. On June 27, 2013, the final changes will be effective. Further information on the data financial institutions will need to prepare for the changes, and on application features and functionality, is available on the Reserves Administration Enhancements Resource Center webpage.
- FDIC BEA program applicationFDIC FIL-28-2013 has been issued on the announcement by the U.S. Treasury Community Development Financial Institutions Fund (CDFI Fund) that it will award $17 million in financial incentives in fiscal year 2013 through its Bank Enterprise Award Program (BEA Program) to eligible FDIC-insured depository institutions. The deadline for submitting an application is July 12, 2013.
- NCUA Report
The NCUA Report has been published. It includes articles on the NCUA Board proposal limiting derivatives authority to manage interest-rate risk; a surprising success story; Board approval of amendments to agency regulations; and hurricane and disaster preparedness for credit unions.
- Bureau participates in Civic Hacking Day
The participants at the Washington, D.C. event for the National Day of Civic Hacking, were asked to analyze the CFPB's Consumer Complaint Database and challenged to come up with ways to empower consumers by building tools and visualizations using complaint data. Details of the Bureau's involvement in the event are included in a CFPB Blog article.
June 17, 2013
- Looking back on community bank failures The Government Accounting Office (GAO) has released the testimony delivered on June 13, 2013, before the Senate Committee on Banking, Housing, and Urban Affairs on a study of the factors that contributed to the failures of banks of less than $1 billion in assets from 2008-2011. The study looked at the factors in states with 10 or more failures, including the extent to which losses related to fair value accounting treatment affected the regulatory capital positions of failed banks; market factors that affected the FDIC's choice of resolution method and the costs that the Deposit Insurance Fund incurred as a result of these methods; and the effect of recent small bank failures on local communities. [HighlightsFull Testimony]
- FedFlash The June 2013 issue of FedFlash has been posted by Federal Reserve Bank Services. It features articles regarding the redesigned $100 note, a price change for FedLine Advantage; enhancements to AMI services; and a reminder of changes to Check Adjustment requirements and edits.
- NCUA town hall webinar Chairman Matz will host a free town hall webinar, open to the entire credit union industry and others interested, on Thursday, July 18, beginning at 3 p.m. ET. The webinar will discuss updates of various topics including CU industry performance, the regulatory modernization initiative, the proposed rule on derivatives and guidance on credit ratings and risk management.
- NCUA LUA The NCUA has announced a Letter of Understanding and Agreement (LUA) with Valley Pride Federal Credit Union, Plains, Pennsylvania.
- Cordray on restoring consumer confidenceprepared remarks for the Clinton Global Initiative Conference in Chicago, Chairman Cordray discussed the recent financial crisis, the deep recession that followed, and the need to restore consumer confidence in the financial markets for lending and savings products.
June 14, 2013
- Bureau launches mortgage rule implementation page The CFPB has the launch of a new Regulatory Implementation Page that consolidates all of its new 2013 mortgage rules and related implementation materials. The page provides easy access to the mortgage rules, compliance guides, videos, quick reference charts, and the 2013 rural or underserved counties list.
- Fannie and Freddie exams released The Federal Housing Finance Agency (FHFA) has released its fifth annual report to Congress, which contains details of the agency's 2012 examinations of Fannie Mae, Freddie Mac, and the Federal Home Loan Banks [SUMMARY; FULL REPORT]. Critical concerns were noted, but all three generated positive annual returns for the first time since 2006.
- OCC best practices booklet The OCC has it has posted a new booklet, A Common Sense Approach to Community Banking, on its website. The booklet shares the agency's perspective on the best practices that distinguish high-performing community banks. The booklet was previously distributed to national banks and federally chartered thrifts.
- Calvery discusses the virtual economy In remarks at the United States Institute of Peace in Washington, D.C., FinCEN Director Calvery discussed the potential, perplexities and promises of the virtual economy.
- CU collaboration webinar announced The NCUA has it will host a free webinar, "Credit Union Collaboration," on Tuesday, June 25, at 2 p.m. ET. The webinar is open to credit unions of all asset sizes.
- CFPB spotlight on scams targeting older adults The Bureau Blog features an article examining a grandparent scam and a pension advance scam that are used to defraud older adults.
- NCUA board meeting agenda The agenda has been posted for the June 20, 2013, meeting of the NCUA Board.
June 13, 2013
- Mexican drug trafficker connections designated Treasury has announced the designation of 18 individuals and 15 entities linked to Rafael Caro Quintero, a Mexican drug trafficker. In separate actions, OFAC has removed several counter narcotics listings from the SDN List. Information regarding these changes has been posted in a BOL
- Deposit insurance agencies to cooperate The FDIC has it has signed a memorandum of understanding with the Canada Deposit Insurance Corporation (CDIC) that formalizes and strengthens cross-border cooperation in the event of the failure of a large, complex financial institution operating in both countries.
- SOD filing reminderFDIC FIL-27-2013 reminds insured institutions of the required filing of the June 30, 2013, Summary of Deposits (SOD) survey. All survey responses are required by July 31, 2013. No filing extensions will be granted.
- Red Flags ID theft rule business guide revised The FTC has announced the availability of a revised guide designed to help businesses comply with the requirements of the Red Flags Rule, which protects consumers by requiring businesses to watch for and respond to warning signs or "red flags" of identity theft.
- OFAC CMP issued OFAC has announced the payment of $48,600 by a Florida non-financial entity to settle potential civil liability for alleged violations of the Iranian Transactions Regulations.
- Home refinance volume remains high The Federal Housing Finance Agency has released the March 2013 Refinance Report. Volumes remained high as mortgage rates rose slightly but stayed near historic low levels.
- FDIC and CFPB launch new tool for older adults The FDIC and CFPB have issued a joint press release to announce the launch of a new financial resource tool, Money Smart for Older Adults, to help older adults and their caregivers prevent elder financial exploitation. The new stand-alone training module developed by the agencies provides information to raise awareness among older adults and their caregivers on how to prevent, identify and respond to elder financial exploitation, plan for a secure financial future, and make informed financial decisions. A scripted instructor guide, participant/resource guide, and power point slides are available on the FDIC website
- OFAC Changes6/12/13
June 12, 2013
- Lebanese Hizballah operatives designated Treasury has announced the designation of four Lebanese supporters of Hizballah who are responsible for aiding the organization's attempts to extend its influence throughout West Africa. Information on the designations has been posted in a June 11, 2013, BankersOnline OFAC Update
- NMLS Ombudsman meeting scheduled An open meeting with the NMLS Ombudsman will be held on Tuesday, August 6, 2013, 9:00–11:30 a.m., prior to the AARMR Annual Regulatory Conference in Denver, Colorado. Conference registration is not required to attend the meeting. The meeting will be in-person only; there will be no dial-in available. See the Ombudsman's webpage for more information.
- Reserve requirements changes The Fed is implementing changes to the policies, internal processes, and technologies that support the administration of reserve requirements. Effective June 27, 2013, all depository institutions will move to a common two-week maintenance period, and carryover and routine penalty waivers will be replaced by a penalty-free band around reserve balance requirements. The Reserves Administration Enhancements Resource Center provides details.
- Curry: OCC rules make it easier for MDIs to raise capital In remarks at the 2013 Interagency Minority Depository Institutions and CDFI Bank Conference in Arlington, Virginia, Comptroller Curry noted the OCC has revised its policy statement on minority depository institutions (MDIs) to make it easier for those banks and thrifts to raise capital. The OCC's new policy statement adds discretionary language that allows the agency to continue to treat an existing minority institution as an MDI even if it no longer meets the 51 percent ownership criteria provided that it primarily serves the credit and economic needs of the community in which it is chartered and that the community is a predominantly minority community.
- Written Agreement with Michigan holding company The Federal Reserve Board has announced the execution of a Written Agreement with Northwestern Bancorp, Traverse City, Michigan.
- Bureau ATR/QM amendments published The CFPB's amendments to the Regulation Z Ability-to-Repay (ATR) and Qualified Mortgage (QM) standards, on May 29, 2013, have been in this morning's
- FRB GPRA annual performance plan The 2013 Government Performance and Results Act (GPRA) Annual Performance Plan has been released by the Federal Reserve System.
- OCC Announces Wisconsin workshops The OCC will host two workshops in Milwaukee, Wisconsin, at the Crowne Plaza Milwaukee Airport, July 16–17, for directors of national community banks and federal savings associations. The fee is $99 for each workshop. Participants receive a pre-workshop reading package, course materials, and assorted supervisory publications. Each workshop is limited to the first 35 registrants.
June 11, 2013
- Bureau releases overdrafts study In a news release this morning, the Consumer Financial Protection Bureau announced the release of an initial report on bank and credit union overdraft practices, saying that the report "raises concerns about whether the overdraft costs on consumer checking accounts can be anticipated and avoided." The Bureau reported that—
The data for the report released today comes principally from the large institutions subject to the Bureau's direct oversight for consumer compliance issues, augmented by information from a Bureau consumer survey. The CFPB also posted a factsheet on overdraft practices
- Consumers who opt in to overdraft coverage for ATM and debit card transactions end up with more costs
- Consumers who opt in to overdraft coverage are more likely to have their accounts involuntarily closed
- Complex transaction posting practices make it difficult for consumers to anticipate overdraft costs
- Overdraft coverage limits depend on multiple factors and can vary greatly between institutions
- Non-standard, complex fee structures also vary among institutions
- HUD to close offices Friday HUD has issued a it will close its offices nationwide this Friday, June 14, as a result of government-wide automatic spending cuts that took effect on March 1, 2013. Normal operations will resume on Monday, June 17.
- FRB manuals updated The FRB has published the April 2013 update of the Commercial Bank Examination Manual and the June 2013 update of the Reserve Maintenance Manual
- FDIC publishes final 'predominately engaged' rule in the a final rule establishing criteria for determining if a company is predominantly engaged in "activities that are financial in nature or incidental thereto" for purposes of Title II of the Dodd-Frank Act.
- Call Report changesFIL-26-2013 has been issued announcing the June 30, 2013, implementation of two revisions to the Call Report that were issued by the FFIEC for comment in February 2013. The revisions regard (1) the scope of an existing item for certain capital transactions with stockholders; (2) data reported by large institutions and highly complex institutions (generally, institutions with $10 billion or more in total assets) on certain higher-risk assets, real estate loans and commitments, and U.S. government-guaranteed assets; and (3) a new table of consumer loans by loan type and probability of default.
- Operating Circulars amended and retired Federal Reserve Financial Services has posted information on the amendment of Operating Circular 9, Federal Tax Payments and the Treasury Tax & Loan Depositaries, and the retirement of Operating Circular 8, Collateral
- CFPB advice to servicemembers with older family members The Bureau Blog features an article suggesting basic approaches for servicemembers who are planning for the long-term personal and financial care of an ill or older loved one.
- Treasury CPP securities auctions Treasury has the start of auctions for all of its Troubled Asset Relief Program's Capital Purchase Program preferred stock and subordinated debt positions in six institutions. The auctions began yesterday, June 10, and will close at 6:00 p.m., Eastern time, on June 13, 2013.
June 10 2013
- Revised Reg Z Exam ProceduresConsumer Affairs Letter CA 13-9 has been released by the Federal Reserve Board. It announces revised examination procedures for Regulation Z, which replace the current Regulation Z/TIL interagency examination procedures. The revisions primarily reflect recent amendments to the regulation issued by the CFPB, including the restriction of mandatory arbitration agreements in mortgage loans; revisions to existing escrow requirements on first-lien higher-priced mortgage loans; annual adjustments to the threshold for exempt consumer credit transactions and to the points and fees coverage trigger under HOEPA; limits to certain credit card fees; and removal of an "independent" ability to repay requirement for credit card applicants who are 21 or older.
- CFTC swap clearing rules
The Board has issued SR Letter 13-12 on the Commodity Futures Trading Commission (CFTC) swap clearing rules. This letter reminds supervised institutions that they need to consider the new CFTC rules. The Dodd-Frank Act added a section to the Commodity Exchange Act (CEA), which establishes a clearing requirement for swaps. It is unlawful for any person, including a financial institution, to engage in a swap, if the CFTC determines that swap is required to be cleared, unless the person submits the swap for clearing to a registered derivatives clearing organization (DCO). The FDIC has issued FIL-25-2013 on the same topic. The CFTC requirements become effective today.
- OCC appeals policy revised
OCC Bulletin 2013-15 provides guidance for bankers on the OCC's revised policy under which banks may appeal agency decisions and actions. The revisions were made to provide additional guidance on appealable matters. The new bulletin replaces OCC Bulletin 2011-44, dated November 1, 2011.
- Tennessee bank closed
The FDIC has announced the closing of Mountain National Bank, Sevierville, Tennessee, and the assumption of all deposits (other than Cede & Co. deposits), by First Tennessee Bank, National Association, Memphis, Tennessee. Mountain National is the 16th FDIC-insured institution to fail this year.
- FDIC state profiles
The First Quarter 2013 FDIC State Profiles have been published.
- Bureau Blog
The CFPB has two new articles on its Blog. The first is a request that interested parties assist the Bureau in designing a consumer survey on mandatory pre-dispute arbitration. The second is a discussion of whether it's wise to use a home equity loan to refinance student loan debt.
- Consumer Credit report
The G.19 Consumer Credit report for April 2013 has been released by the FRB.
- an announcement of the suspension, effective July 8, 2013, of specified communities from participation in the National Flood Insurance Program (NFIP) for their compliance with floodplain management requirements of the program.