Call Now : 888.433.2666 or Contact Us

November 2020 - Compliance Alert

Consumer Financial Protection Bureau (CFPB)

CFPB and Other Regulatory Agencies Announce Current Threshold for Smaller Loan Exemption Will Remain the Same   

The Consumer Financial Protection Bureau, Federal Reserve Board, and Office of the Comptroller of the Currency announced that the current threshold for loan exemptions from special appraisal requirements for higher-priced mortgage loans will remain the same in 2021 as they were in 2020: $27,000. This threshold amount will go into effect on January 1, 2021. The amount is based on the annual percentage increase of the Consumer Price Index for Urban Wage Earners and Clerical Workers as of June 1, 2020.      

The Office of the Comptroller of the Currency (OCC) 

OCC and Other Regulatory Agencies Announce Interim Final Rule Providing Relief for Community Banking Organizations    

The Office of the Comptroller of the Currency and other regulatory agencies approved an interim final rule that provides reporting and regulatory relief for some community banking organizations on a temporary basis because of their growth from the COVID-19 response. This temporary increase in size due to COVID response programs like PPP could subject these community banking organizations to new reporting and regulatory requirements.  

 

Securities and Exchange Commission

SEC Announced Amendments to Enhance Certain Financial Disclosure Requirements in Regulation S-K   

The Securities and Exchange Commission adopted amendments that would enhance, modernize and simplify some financial disclosure requirements in Regulation S-K. The changes made are intended to focus the financial disclosures on material information, simplify compliance efforts for registrants and improve disclosure by making it more readable and eliminating repetition and non-material information.         

 

Federal Reserve Board

FRB Issues Final Rule Changing Annual Assessment Fees For Large Financial Company Regulation   

The Federal Reserve Board issued a final rule that modified the annual assessment fees required by the EGRRCPA for supervision and regulation of large financial companies. This rule is almost identical to the proposal issued in November of 2019, raising the threshold at which fees are assessed from $50 billion to $100 billion in total consolidated assets. This rule will be effective thirty days after publication in the Federal Register.    

 

National Credit Union Administration

NCUA and Other Agencies Release Fact Sheet Clarifying BSA Due Diligence for Banks Offering Services to Non-Profits and Charities     

The National Credit Union Administration and other banking regulatory agencies announced the release of a fact sheet that clarifies the need for credit unions and banks that work with non-profits and charities to base their due-diligence efforts to meet BSA requirements regarding these clients on the money laundering risks posed by the customer relationship. It highlights the importance of legitimate charities and non-profits using legitimate channels to transmit funds and have access to financial services, especially when responding to the COVID-19 pandemic. It also clarifies that these types of customers as a whole do not represent a uniform or unacceptably high risk for exploitation.    

October 2020 - Compliance Alert

Consumer Financial Protection Bureau (CFPB)

CFPB Issues Final Rule Extending GSE Patch    

The Consumer Financial Protection Bureau issued a final rule that extended the Government Sponsored Enterprise (GSE) Patch. The GSE Patch was scheduled to expire on January 10, 2021 but has been extended until the mandatory compliance date of a final rule that amends the QM loan definition in Regulation Z. The GSE Patch will still expire, however, if the GSEs (Fannie Mae and Freddie Mac) exit conservatorship as specified in Regulation Z, a provision which the Bureau will not amend. The hope is to provide a smooth transition away from the GSE Patch while still allowing access to fair mortgage credit when it expires.      

The Office of the Comptroller of the Currency (OCC) 

OCC and Other Agencies Issue Final Rule to Make Large Banks More Resilient    

The Office of the Comptroller of the Currency and the other federal bank regulatory agencies announced a final rule that would require large banks to maintain a set minimum level of stable funding for one year in order to strengthen the resilience of those banks. The net stable funding ratio (NSFR) final rule will require these large banks to maintain funding relative to each institution’s assets, derivatives, and commitments, reducing liquidity risk and increasing financial stability, which will support the ability of these banks to lend to households and business in both normal and difficult conditions.  

 

Securities and Exchange Commission

SEC Adopts Amendments to Auditor Independence Rules  

The Securities and Exchange Commission announced that it had finalized amendments to some auditor independence requirements on Rule 2-01 of Regulation S-X. The amendments are intended to reflect staff experience applying the auditor independence framework, modernizing the regulations and focus evaluations on specific relationships and services that may threaten an auditor’s impartiality to ensure investors are protected.        

 

Federal Deposit Insurance Corporation

FDIC Approves Interim Rule Providing Relief from Part 363 Audit and Reporting Requirements     

The Federal Deposit Insurance Corporation, in response to recent increased cash inflows resulting from PPP, MMLF, PPPLF and other government stimulus initiatives for some insured depository institutions (IDIs), issued a final interim rule that would temporarily provide relief for the IDIs which would be required to incur substantial costs outside of regulatory action. The rule allows IDIs with growth to determine their Part 363 requirements for the fiscal years ending in 2021 based on consolidated total assets as of December 31, 2019.   

 

National Credit Union Administration

NCUA Proposes Derivative Rule Changes and Approves Final Corporate Rule     

The National Credit Union Administration Board unanimously approved two items. The first was a proposed rule that modernizes the Administration’s derivatives rule, allowing for more flexibility for federal credit unions managing their interest rate risk through these financial tools. The second was a final rule updating and clarifying several provisions in their corporate credit union regulations.    

September 2020 - Compliance Alert

Consumer Financial Protection Bureau (CFPB)

CFPB Extends Comment Period for New Seasoned QM Category  

The Consumer Financial Protection Bureau has extended the comment period for a notice of proposed rule making (NPRM) that would create a new category seasoned qualified mortgages (Seasoned QMs). The original comment period ended on September 28, 2020, but to accommodate for the Jewish holiday of Yom Kippur, the period will now end on October 1, 2020.     

The Office of the Comptroller of the Currency (OCC) 

OCC Reports that Mortgage Performance Declined During Second Quarter of 2020   

The Office of the Comptroller of the Currency issued their OCC Mortgage Metrics Report, Second Quarter 2020.  The report on the performance of first-lien mortgages showed that 91.1 percent of mortgages included in the report were up to date and performing at the end of the second quarter of this year. Last year, that number was 96.1 percent. The percentage of mortgages that were past due for 60 or more days and mortgages held by bankrupt borrowers with payments overdue by 30 days or more increased from 5.3 percent in 2019 to 5.4 percent.  

 

Securities and Exchange Commission

SEC Votes to Modernize Its Shareholder Proposal Rule  

The Securities and Exchange Commission recently voted to amend its shareholder proposal rule. The rule governs the process by which shareholders include their proposals in a company’s proxy statement for consideration by all of the company’s shareholders. The new amendments would modernize the rule which has not been amended since 1998 and before that 1954.     

 

Federal Deposit Insurance Corporation

FDIC Releases Annual Summary of Deposits Survey Results   

The Federal Deposit Insurance Corporation released the results of their yearly branch-office deposits survey for all FDIC-insured institutions as of June 30, 2020. The Summary of Deposits (SOD) gives totals of deposits in each of the domestic offices operated by FDIC-insured commercial and savings banks, saving associations, and U.S. branches by foreign banks.  

 

National Credit Union Administration

NCUA Approves Final Rule Changing Real Estate Appraisal Regulations    

The National Credit Union Administration approved a final rule that postpones, for up to 120 days, the rule to obtain an appraisal or written estimate of the market value of a piece residential or commercial real estate following the closing of certain transactions regarding these types of properties. This final rule adopts the interim rule approved by the board in April without change.    

August 2020 - Compliance Alert

Consumer Financial Protection Bureau (CFPB)

CFPB Issues NPRM to Create New Qualified Mortgages Category  

The Consumer Financial Protection Bureau issued a Notice of Proposed Rule Making (NPRM) that would create a new category of seasoned qualified mortgages (Seasoned QMs). This new category would hopefully “encourage safe and responsible innovation in the mortgage origination market” according to CFPB Director, Kathleen L. Kraninger. The proposed rule would also ensure that a loan would not be disqualified from becoming a Seasoned QM if the consumer failed to make full payments but received a temporary payment accommodation due to a disaster or pandemic-related national emergency.   

The Office of the Comptroller of the Currency (OCC) 

OCC and Other Agencies Issue Clarifications of BSA Due Diligence Requirements for Politically Exposed Persons  

The Office of the Comptroller of the Currency and other regulatory agencies released a statement clarifying due diligence requirements under the Bank Secrecy Act (BSA) for customers who may be considered “politically exposed persons” (PEPs). The statement clarified that the due diligence given to these customers should be proportionate to the risk posed by the PEP relationship and that the customer due diligence does not create a regulatory requirement.  

 

Securities and Exchange Commission

SEC Proposes Amendments to CAT NMS Plan to Improve Data Security  

The Securities and Exchange Commission proposed amendments to the Consolidation Audit Trail national market system plan (the “CAT NMS Plan”) to enhance the data security of the Consolidation Audit Trail (CAT). The plan currently establishes a number of security and confidentiality requirements for CAT data, but the proposed amendments would further the actions taken by the SEC to limit the scope of sensitive information collected by CAT and improve security.    

 

National Credit Union Administration

Federal Financial Institutions Examination Council Issues Statement On COVID-19 Loan Accommodations  

The Federal Financial Institutions Examination Council issued a statement establishing new principles for risk management and consumer protection that institutions should consider while they work with borrowers now that COVID-related loan accommodation periods are ending and additional accommodations are considered. The agencies in the Federal Financial Institutions Examination Council encourage institution to continue to consider prudent additional accommodations for those still affected by the pandemic.  

 

Federal Reserve Board

FRB Highlights Enhanced Understanding of Central Bank Digital Currencies   

The Federal Reserve highlighted research and experimentation completed to better understand the opportunities and risks related to central bank digital currencies. The FRB looked at opportunities to use digital currency as a “complement to cash” and looked at the possible risks and rewards and experimented with the latest payment technologies.   

July 2020 - Compliance Alert

Consumer Financial Protection Bureau (CFPB)

CFPB Develops New Saving Tool to Boost the Financial Resilience of Workers 

The Consumer Financial Protection Bureau announced that under its Compliance Assistance Sandbox (CAS) Policy, it had issued a Compliance Assistance Statement of Terms Template (CAST Template) that would allow employers to create automatic savings accounts for their employees. The Template would serve as the basis for an application to be approved by the Bureau to create the program. The goal of the CFPB is to empower employers to help employees bolster their savings to become more financial resilient.  

The Office of the Comptroller of the Currency (OCC) 

OCC Proposes New True Lender Rule  

The Office of the Comptroller of the Currency proposed a new rule that would resolve some uncertainty when a national or federal financial institution makes a loan when in partnership with third parties, stating clearly the bank was the “true lender” if the bank is named as lender in the loan agreement or funds the loan as of the date of origination. The new rule is designed to encourage the relationships between banks and third parties and the innovation and affordable credit that have been the results of these relationships.  

 

Securities and Exchange Commission

SEC Issues New Guidance on Investment Advisers’ Responsibilities Regarding Proxy Voting  

The Securities and Exchange Commission voted to amend rules that govern proxy solicitations. The amended rules are intended to make sure the clients of proxy voting advice businesses can access clear and timely information to make voting decisions. The goal is to allow those who use proxy voting advice, such as investors, to make well informed decisions when voting without unnecessary costs or delays that could slow proxy voting advice.  

 

Federal Deposit Insurance Corporation 

FDIC and FRB Provide Information for Next Resolution Plans to Largest Domestic Banking Firms 

The Federal Deposit Insurance Corporation and the Federal Reserve Board provided information that will guide the next resolution plans of the eight largest domestic banking organizations, due July 1, 2021. The resolutions plans, also known as living wills, describe the institution’s strategy for fast and organized bankruptcy in case of financial issues or a total failure of the bank. The plans will be the first “targeted” resolution plans, which were introduced in updates to the resolution plan rule finalized last year.  

National Credit Union Administration

NCUA Announces that All COVID-19 Urgent Need Grants are Utilized  

The Federal Reserve recently published the FraudClassifier Model. The model is used to better classify and understand fraudulent activity – as well as the ways it occurs and how often it occurs across the financial industry. The model was developed by FRB fraud experts of the Fraud Definitions Work Group.

  • We switched to Banker’s Academy over a year ago from a different online training program. The cost savings was tremendous - which has been very helpful in this time of budget cuts. We found that the training content is precise, to the point, and always current. It doesn't have a lot Read More
  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112
  • 113
  • 114
  • 115
  • 116
  • 117
  • 118
  • 119
  • 120
  • 121
  • 122
  • 123
  • 124
  • 125
  • 126
  • 127
  • 128
  • 129