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.