Top Stories for June 2013

Bank and business partner to refund $6.5 million

The CFPB has announced Consent Orders requiring U.S. Bank and its nonbank partner, Dealers' Financial Services, to refund $6.5 million to servicemembers who participated in their Military Installment Loans and Educational Services (MILES) auto loan program. The bank and Dealers' were found to have failed to properly disclose an allotment fee charged to participants, as well as the timing of the allotment payments. The Bureau said the companies also misrepresented the true cost and coverage of add-on products financed along with the auto loans. The CFPB also posted a companion Blog article regarding the military discretionary allotment system, which servicemembers were required to use to pay for cars bought through the MILES program. The Bureau stated that the companies' "responsible conduct" [see our June 26 Top Stories] was one of the factors considered when the Bureau decided not to impose civil penalties for the violations.(06/28/2013)

Wells to pay OFAC CMP

OFAC has announced an agreement with Wells Fargo Bank, N.A. under which the bank will remit $23,937 to settle potential civil liability for 804 apparent violations of the Foreign Narcotics Kingpin Sanctions Regulations. OFAC determined that Wells Fargo voluntarily self-disclosed the apparent violations, which constituted a non-egregious case.(06/28/2013)

NMLS background check fee reduced

The NMLS has announced its processing fee for criminal background checks will be reduced to $36.25 beginning July 1, 2013. This new fee will apply to all criminal background checks authorized in NMLS on or after July 1. Any criminal background checks authorized prior to that date will continue to generate a processing fee of $39.(06/28/2013)

OFAC additions and removals

Treasury has announced it has taken further steps to disrupt financing related to North Korea's ballistic missile and weapons of mass destruction (WMD) programs and proliferation activities. Daedong Credit Bank (DCB), its front company, DCB Finance Limited, and DCB Finance Limited's representative, Kim Chol Sam, were designated under Executive Order (E.O.) 13382, which targets proliferators of WMD and their supporters. Also designated was Son Mun San, the External Affairs Bureau Chief of North Korea's General Bureau of Atomic Energy. Several listings were also removed from the SDN List. See the BankersOnline June 27, 2013, OFAC Update for details.(06/28/2013)

Fed announces changes for PAID adjustments

Federal Reserve Financial Services previously announced changes to the requirements and edits associated with the Paid Item (PAID) investigation type will not be effective until the late third or early fourth quarter 2013. Additional changes affecting the PAID adjustment requests have been announced. For more information see the PAID section of the Check Adjustments Quick Reference Guide.(06/28/2013)

Mortgage broker to pay $7.5 million

The Federal Trade Commission has announced Mortgage Investors Corporation, one of the nation's leading refinancers of veterans' home loans, will pay a $7.5 million civil penalty, the largest fine the FTC has ever collected for allegedly violating Do Not Call provisions of the agency's Telemarketing Sales Rule. This case also represents the first action brought by the Commission to enforce the Mortgage Acts and Practices “ Advertising Rule, which allows the FTC to collect civil penalties for deceptive mortgage ads.(06/28/2013)

May mortgage interest rates declined

The May 2013 Federal Housing Finance Agency (FHFA) Index has been released and shows interest rates on mortgages decreased from April to May. Contract mortgage interest rates decreased 0.15 percent, according to an index of new mortgage contracts.(06/28/2013)

Mortgage performance improves

The OCC Mortgage Metrics Report for the First Quarter 2013 has been released and shows evidence that strengthening economic conditions, servicing transfers, home retention efforts, and home forfeiture actions have contributed to improving the performance of home mortgages in the first quarter of 2013. (06/28/2013)

Bureau nonbank supervision procedural rule

The CFPB has announced a final rule that establishes procedures to bring under its supervisory authority certain nonbanks whose activities it has reasonable cause to determine pose risks to consumers. Nonbanks subject to the rule are companies that offer or provide consumer financial products or services but do not have a bank, thrift, or credit union charter. [Update: Published in Federal Register (78 FR 40351) on 7/3/13] (06/27/2013)

CFPB sets Maine debt collection field hearing

The Bureau Blog has announced a field hearing on debt collection will be held on July 10, 2013, at 11 a.m. ET in Portland, Maine. The event is open to the public.(06/27/2013)

OFAC amends Counter-Terrorism Sanctions regs

OFAC has published a final rule amending its Global Terrorism Sanctions Regulations and the Terrorism Sanctions Regulations (31 CFR Parts 594, 595, and 597) to clarify the scope of prohibitions on the making of donations and that a person whose property and interests in property are blocked pursuant to those programs has an interest in all property and interests in property of an entity in which it owns, directly or indirectly, a 50 percent or greater interest. The amendments make certain other changes, and set at 180 days the maximum term of maturity for instruments in which funds may be invested or held within a blocked interest-bearing account.(06/27/2013)

CFPB issues 'Responsible Conduct' Bulletin

The Bureau Blog has announced the issuance of Bulletin 2013-06, on what kind of "responsible conduct" the CFPB generally looks for from those subject to its enforcement investigations. The Bureau said that when "providers of financial products and services show significant responsible conduct in our enforcement investigations, we will take that into account when deciding which cases to pursue and how to resolve the ones we do pursue."(06/26/2013)

New Money Market data collection proposed

The Federal Reserve Board has proposed new data collection requirements related to money market instruments. The proposal would require insured depository institutions with total assets of $26 billion or more, and U.S. branches and agencies of foreign banks with third party assets of $900 million or more, to report daily to the Federal Reserve on their federal funds transactions, Eurodollar transactions, and certificates of deposit. Comments will be due 60 days after the proposal is published in the Federal Register.(06/26/2013)

Enhanced FEMA GIS services

FEMA has announced the deployment of new Geographic and Information System services for the FEMA Map Service Center (MSC) and the FEMA Mapping Information Platform (MIP). These services include updates and enhancements which provide

• Easier use of the Map Product Search
• Replacement of the outdated MapViewer-Web with an updated National Flood Hazard Layer (NFHL) service for viewing in Google Earth and display in the FEMA GeoPlatform
• Improvement in the usability of the NFHL WMS service and its implementation in Google Earth
• Updating of the NFHL to the 2012 FIRM Database schema

In addition, access to the National Flood Hazard Layer (NFHL) through REST and WFS services is now available. Additional information is available via email to outreach@riskmapcds.com.(06/26/2013)

Single-family new home sales increase

A joint report from HUD and the Census Bureau indicate May 2013 sales of new single-family houses were at a seasonally adjusted annual rate of 476,000. This was a 2.1 percent above the revised April 2013 rate of 466,000 and is 29.0 percent above the May 2012 estimate of 369,000. The median sales price of new houses was $263,900 and the average sales price was $307,800.(06/26/2013)

FHFA HPI increases

The Federal Housing Finance Agency (FHFA) has announced a 0.7% rise in its April 2013 House Price index (HPI) over March figures.(06/26/2013)

Money laundering and legal professionals

The Financial Action Task Force (FATF) has conducted research that confirms criminals seek the advice or services of legal professionals to help in laundering criminal assets. Supported by case studies, the study examines the vulnerabilities of the legal profession for witting/unwitting involvement in money laundering and terrorist financing and identifies "red flag indicators" that will help raise awareness within the legal profession. [Summary; Full Report] (06/26/2013)

Minority-owned banks

The Federal Reserve has update the list of minority-owned financial institutions and their branched with data current as of March 31, 2013.(06/26/2013)

Large commercial banks

The March 31, 2013 update of the Large Commercial Banks report has also been released by the Fed.(06/26/2013)

CFPB posts second wave of revisions

The CFPB has announced the second bundle of proposed clarifications and some narrow revisions to its January 2013 mortgage rules on ECOA (Regulation B), RESPA (Regulation X) and TILA (Regulation Z). The Bureau indicates its proposal [171-page PDF] would resolve questions that have been identified during the implementation process and would help the rules deliver their intended value for consumers. The proposal”

• outlines procedures for obtaining follow-up information on loss-mitigation applications
• facilitates servicers' offering of short-term forbearance plans
• facilitates lending in rural or underserved areas
• clarifies provisions about financing of credit insurance premiums
• clarifies the definition of a loan originator
• clarifies the points and fees thresholds for manufactured housing employees
• revises effective dates of Loan Originator rule and ban on financing of credit insurance, asking whether their January 10, 2014, effective date should be advanced to January 1, 2014.

Comments on the proposal must be received on or before July 22, 2013.(06/25/2013)

New FinCEN guidance on e-filing problems

FinCEN has posted new guidance, FIN-2013-G002, for those who have problems submitting timely BSA and/or FBAR reports due to natural disasters, emergency situations, or other systemic issues, and for filers in remote areas without Internet access.(06/25/2013)

FinCEN reorganizes

FinCEN has also announced a reorganization of its divisions. Employees will now be organized by job function rather than the stakeholder that they currently serve.(06/25/2013)

Communities suspended from Flood Program

FEMA has published in the Federal Register a list of Massachusetts communities that are scheduled for suspension from participation in the National Flood Insurance Program on July 16, 2013, because of noncompliance with the floodplain management requirements of the program.(06/25/2013)

NCUA posts new economic videos

A new two-segment video featuring the June 2013 overview of key economic indicators and a discussion of the proposed rule on derivatives has been posted by NCUA on its YouTube channel.(06/25/2013)

OCC Flood CMPs

The OCC has announced two civil money penalties totaling $22,490 for violations of the Flood Disaster Protection Act. The details are posted on the BannkersOnline Flood Penalties Watch page.(06/24/2013)

Other enforcement actions

The Flood Act penalties were part of a list of enforcement actions recently taken by the OCC against national banks, federal savings associations, and individuals currently and formerly affiliated with national banks and federal savings associations, released on Friday.(06/24/2013)

FATF updates AML/CFT statements

The Financial Action Task Force (FATF) Plenary updated its statements identifying high-risk and non-cooperative jurisdictions. The updates included the discussion of a risk-base approach to prepaid cards, mobile payments and Internet-based payment services. The FATF also reviewed the impact of new voluntary tax compliance programs of Argentina and Turkey on anti-money laundering and countering the financing of terrorism (AML/CFT) measures.(06/24/2013)

Ohio CU placed into conservatorship

The NCUA has announced it has assumed control of service and operations at PEF Federal Credit Union of Highland Heights, Ohio. Additional information on the conservatorship of the Ohio institution was released in an FAQ document.(06/24/2013)

FTC expands credit card scam case

The FTC has announced the filing of an amended complaint adding eight additional defendants, including a payments processor, to a case filed in 2012. The initial case was brought against defendants behind the firm Treasure Your Success, which allegedly made deceptive "cardholder services" robocalls, promising to lower consumers' credit card rates in exchange for an up-front fee as high as $1,593.93.(06/24/2013)

CFPB Q&A on student loan rates

An article on the Bureau Blog addresses some of the questions submitted by consumers about the changes in federal student loan interest that are scheduled to take effect on July 1, 2013.(06/24/2013)

Financial Holding Companies report

The report of bank holding companies that have elected to become or be treated as financial holding companies as of June 20, 2013, has been posted by the Federal Reserve Board.(06/24/2013)

Trading Revenues report

The OCC has released its report on bank trading revenues and derivatives activities for the first quarter 2013. Insured U.S. commercial banks and savings institutions reported trading revenue of $7.5 billion in the first quarter of 2013, up $3.1 billion (72 percent) from $4.4 billion in the fourth quarter of 2012, and $466 million higher (7 percent) than in the first quarter of 2012.(06/24/2013)

Final rule on lending limits

The OCC has issued a final rule implementing section 610 of the Dodd-Frank Act, which applies the lending limit statute to credit exposures arising from derivative transactions and securities financing transactions, and makes other changes. Compliance will not be required until October 1, 2013. [Update: This rule was published in the Federal Register on June 25, 2013, at 78 FR 37930.](06/21/2013)

Treasury Small Business Lending Fund survey

The results of the First Annual Small Business Lending Fund (SBLF) Lending Survey indicate that over 90 percent of the participating community banks reported stronger small business lending with SBFL funding. (06/21/2013)

Cordray on rules implementation

In his recent presentation to the Exchequer Club in Washington, CFPB Director provided background on the Bureau's mission and commented on the challenge of regulatory implementation. He said that the Bureau expects to issue another set of changes to "ensure the effectiveness of [the] rules by making compliance easier." He added that he does not believe the implementation process should be slowed down, and that the Bureau expects all institutions to be in compliance by January 2014.(06/21/2013)

Servicers allegedly missing mark on Settlement

HUD has released a report received from the Monitor of the National Mortgage Settlement that some of the nation's largest mortgage servicers have failed to meet the standards established by the Settlement.(06/20/2013)

FOMC statement and economic projections

The Federal Open Market Committee (FOMC) has released the committee's statement from its June 18-19, 2013 meeting. In addition, the FRB has released tables and charts summarizing the economic projections and the target federal funds rate projections made by FRB members and Federal Reserve Bank presidents.(06/20/2013)

Bank fraud laundering scheme busted

U.S. Immigration and Customs Enforcement (ICE) has announced the arrest and charging of four individuals with various counts of bank fraud, money laundering and wire fraud. The defendants allegedly used straw buyers as loan applicants to obtain boat loans from financial institutions using false financial information and documentation.(06/20/2013)

CFPB posts new articles

The Bureau Blog has new articles discussing starting a small business when you have student debt and providing an update on the CFPB's proposed policy to encourage trial disclosure programs.(06/20/2013)

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.(06/19/2013)

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.(06/19/2013)

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."(06/19/2013)

OCC Chicago workshops for directors

The OCC 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. (06/19/2013)

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.(06/19/2013)

NCUA Board agenda revised

The agenda for the June 20, 2013, meeting of the NCUA Board has been revised.(06/19/2013)

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.(06/19/2013)

Deloitte suspended and will pay $10 million

New York Governor Cuomo has announced 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.(06/19/2013)

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.(06/18/2013)

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.(06/18/2013)

Household debt report

The Federal Reserve Board has released the household debt and financial obligations ratio report for the first quarter 2013.(06/18/2013)

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.(06/18/2013)

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.(06/18/2013)

FDIC BEA program application

FDIC 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. (06/18/2013)

NCUA Report

The June 2013 issue of 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.(06/18/2013)

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.(06/18/2013)

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.
[Highlights; Full Testimony](06/17/2013)

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.(06/17/2013)

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.(06/17/2013)

NCUA LUA

The NCUA has announced a Letter of Understanding and Agreement (LUA) with Valley Pride Federal Credit Union, Plains, Pennsylvania.(06/17/2013)

Cordray on restoring consumer confidence

In prepared 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.(06/17/2013)

Bureau launches mortgage rule implementation page

The CFPB has announced 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.(06/14/2013)

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.(06/14/2013)

OCC best practices booklet

The OCC has announced 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.(06/14/2013)

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. (06/14/2013)

CU collaboration webinar announced

The NCUA has announced 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. (06/14/2013)

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. (06/14/2013)

NCUA board meeting agenda

The agenda has been posted for the June 20, 2013, meeting of the NCUA Board.(06/14/2013)

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 OFAC Update.(06/13/2013)

Deposit insurance agencies to cooperate

The FDIC has announced 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.(06/13/2013)

SOD filing reminder

FDIC 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.(06/13/2013)

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.(06/13/2013)

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.(06/13/2013)

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.(06/13/2013)

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. (06/13/2013)

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.(06/12/2013)

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.(06/12/2013)

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.(06/12/2013)

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.(06/12/2013)

Written Agreement with Michigan holding company

The Federal Reserve Board has announced the execution of a Written Agreement with Northwestern Bancorp, Traverse City, Michigan.(06/12/2013)

Bureau ATR/QM amendments published

The CFPB's amendments to the Regulation Z Ability-to-Repay (ATR) and Qualified Mortgage (QM) standards, announced on May 29, 2013, have been published in this morning's Federal Register.(06/12/2013)

FRB GPRA annual performance plan

The 2013 Government Performance and Results Act (GPRA) Annual Performance Plan has been released by the Federal Reserve System.(06/12/2013)

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.(06/12/2013)

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—

• 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

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.(06/11/2013)

HUD to close offices Friday

HUD has issued a notice 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.(06/11/2013)

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.(06/11/2013)

FDIC publishes final 'predominately engaged' rule

The FDIC has published in the Federal Register 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.(06/11/2013)

Call Report changes

FDIC FIL-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.(06/11/2013)

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.(06/11/2013)

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.(06/11/2013)

Treasury CPP securities auctions

Treasury has announced 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.(06/11/2013)

Revised Reg Z Exam Procedures

Consumer 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.(06/10/2013)

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.(06/10/2013)

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.(06/10/2013)

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.(06/10/2013)

FDIC state profiles

The First Quarter 2013 FDIC State Profiles have been published.(06/10/2013)

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. (06/10/2013)

Consumer Credit report

The G.19 Consumer Credit report for April 2013 has been released by the FRB.(06/10/2013)

HUD settles claim with B of A and Fannie Mae

A HUD press release has announced a Conciliation Agreement with Bank of America and Fannie Mae, settling allegations that they violated the Fair Housing Act by denying a borrower's application to modify her mortgage because she did not provide sufficient information about the nature of her disability. She was applying for a loan modification through the Home Affordable Modification Program (HAMP).(06/7/2013)

REO issues with Wells Fargo resolved

HUD has also announced the execution of an agreement with Wells Fargo Bank N.A., the National Fair Housing Alliance, and 13 private fair housing organizations. Wells Fargo committed to ongoing enhancements in its best practices regarding the maintenance and marketing of Real Estate Owned (REO) properties after foreclosure. Wells will also invest $39 million in 45 communities across the country through various programs to support homeownership, neighborhood stabilization, property rehabilitation and housing development.(06/7/2013)

Senior Al-Qa'ida bomb maker designated

Treasury has announced the designation of a key improvised explosive device (IED) facilitator, 'Abd-al-Hamid al-Masli, for acting for or on behalf of al-Qa'ida (AQ). This is the latest in a series of Treasury designations under Executive Order (E.O.) 13224 targeting terrorist IED facilitators tied to al-Qa'ida, the Taliban, and Tehrik-e Taliban Pakistan (TTP) and their financial networks. The E.O. targets terrorists and their supporters. Information regarding the designation has been posted in an BOL OFAC Update.(06/7/2013)

FedFocus

Federal Reserve Bank Services has posted the June 2013 issue of FedFocus, which features an article, "Summer storm season is upon us. Is your institution prepared to weather the storm?" Other articles discuss FedLine User Enhancements migration, security features in the redesigned $100 note, and compliance risk and management support.(06/7/2013)

Western community and agricultural banks stronger

The OCC has reported community banks and thrifts in the western part of the United States are growing stronger as housing, commercial real estate, agriculture and other key business sectors in that region continue to improve.(06/7/2013)

OCC Bulletin on CFTC swap clearing rules

OCC Bulletin 2013-14 has been issued to remind OCC-supervised institutions to be aware of U.S. Commodity Futures Trading Commission (CFTC) swap clearing rules. The new rules make it unlawful for any person (including financial institutions) to engage in a swap that the CFTC has determined requires clearing unless the person submits the swap for clearing to a derivatives clearing organization (DCO) or an exception applies.(06/7/2013)

Status of proposed revisions to Call Report

The FDIC has issued FIL-24-2013 on the status of the proposed revisions to the Consolidated Reports of Condition and Income (Call Report) for 2013.(06/7/2013)

FDIC Supervisory Insights

FDIC FIL-22-2013 has been issued to announce the publication of the Summer 2013 issue of Supervisory Insights, which features articles of critical interest to examiners, bankers, and supervisors. One article details supervisory expectations for credit risk due diligence of the investment portfolio, provides examples of how to conduct due diligence, and lists questions examiners may consider when assessing an institution's credit risk management practices. Other articles regard mergers and acquisitions and the evolution of bank information technology examinations.(06/7/2013)

Nevada bank closed

The FDIC has announced the closing of 1st Commerce Bank, North Las Vegas, Nevada, and the assumption of all deposits by Plaza Bank, Irvine, California. This is the 15th FDIC-insured institution to fail this year, and the first to fail in Nevada since April 2011.(06/7/2013)

Leveraged lending guidance teleconference

FDIC FIL-23-2013 announces that a free 90-minute banker teleconference on leveraged lending guidance will be co-sponsored by the FDIC, FRB and OCC at 12:30 pm ET on June 19.(06/7/2013)

FFIEC infrastructure and cybersecurity working group

The FFIEC has announced the formation of a working group to further promote coordination across federal and state banking regulatory agencies on critical infrastructure and cybersecurity issues.(06/7/2013)

CFPB Blog item for graduates

The Bureau's Blog features a guide for recent graduates on what to expect during the first day and weeks of their first job.(06/7/2013)

FTC sues payment processor for scam involvement

The Federal Trade Commission has announced the agency has sued a payment processing business that allegedly assisted and facilitated a telemarketing credit card interest rate reduction scam. The complaint alleges the processor knew or should have known key facts regarding the scam, including "alarmingly high chargeback rates," yet continued to profit from processing the credit card transactions.
(06/6/2013)

MS-13 gang members designated

Treasury has announced the designation of six members of the notorious El Salvadoran gang Mara Salvatrucha (MS-13) under Executive Order (E.O.) 13581, which targets transnational criminal organizations (TCOs) and their supporters. Information regarding the Treasury action has been posted in a BankersOnline OFAC Update
(06/6/2013)

FinCEN reminder of e-filing mandate

FinCEN has issued a notice reminding financial institutions and MSBs that they must adopt the electronic filing formats required since April 1, 2013, for submission of Suspicious Activity Reports (SARs), Currency Transaction Reports (CTRs), Registration of Money Services Business (RMSBs), and Designations of Exempt Persons (DOEPs). Paper reports will be rejected and may result in the assessment of civil money penalties.(06/6/2013)

Treasury to sell more GM common stock

A Treasury press release reports the agency's intention, subject to market conditions, to sell 30 million additional shares of General Motors Company (GM) common stock in an underwritten public offering.(06/6/2013)

NMLS annual report

The NMLS fifth annual report is now available.(06/6/2013)

Beige Book

The Federal Reserve Board has published the June 5, 2013, issue of the Beige Book. It can be read on the FRB website or downloaded in PDF format.(06/6/2013)

FRB approves interim final Reg KK

The Federal Reserve Board has announced announcing the approval of an interim final rule (Regulation KK) implementing the prohibition against federal assistance to swaps entities under section 716 of the Dodd-Frank Act. The interim final rule is effective as of June 5, 2013. Comments will be accepted through August 4, 2013, and the interim final rule will be revised by the Board if necessary in light of the comments received.(06/6/2013)

FinCEN special measure proposal published

FinCEN's previously-announced proposal that would impose a special measure against Liberty Reserve S.A. as a financial institution of primary money laundering concern, has been published in this morning's Federal Register. Comments on the proposal are due by August 5, 2013.(06/6/2013)

FedACH courtesy calls to end

The Federal Reserve Financial Services has announced that the current practice of the Federal Reserve Banks to contact customers by telephone in cases of rejected FedACH files and batches will end on August 5, 2013, in order to streamline operations. The announcement said the calls duplicate the information already available via FedLine® access solutions.(06/6/2013)

Communities to be suspended from NFIP

FEMA has published 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. (06/6/2013)

OCC to hold Oklahoma workshop

The OCC will host a workshop, "Mastering the Basics: A Director's Challenge," in Tulsa, Oklahoma on July 8–10, for directors of national community banks and federal savings associations. Attendance is limited to the first 35 registrants.(06/6/2013)

CFPB small business fair

The Bureau has announced that it will host a small business fair on June 25, 2013, at its office in Washington, D.C.

CFPB interim exam procedures

The CFPB is sharing with the industry what it will be looking for in its examinations under the new mortgage rules by updating the applicable sections of the exam procedure manuals with new interim procedures for two laws — the Truth in Lending Act (TILA) and the Equal Credit Opportunity Act (ECOA). These documents are intended for use by CFPB examiners and the financial institutions and mortgage companies subject to the new regulations. The Bureau's press release says the new procedures "are the first round of updates for what will likely be multiple updates."(06/5/2013)

Iran OFAC designations

Treasury has issued a press release announcing the designation of a major network of front companies controlled by Iran's leadership. The network, Execution of Imam Khomeini's Order (EIKO), and 37 companies it oversees, were deemed subject to sanctions under Executive Order 13599, which blocks the property of the Government of Iran. Additional information is available in BOL's June 4, 2013, OFAC Update.(06/5/2013)

NACHA launches Dodd Frank 1073 Solutions Center

A NACHA press release has announced the launch of a 1073 Solutions Center to provide information, tools and resources to improve understanding of the Dodd-Frank Act section requiring consumer protections for international remittances (implemented in subpart B of the CFPB's Regulation E). The Center will also identify available solutions to help financial institutions meet compliance and business needs related to section 1073. (06/5/2013)

CRA ratings released

The FDIC has released a list of the ratings received by state nonmembers banks recently examined for compliance with CRA.(06/5/2013)

Security features in new $100 note

Federal Reserve Bank Services has posted a reminder of two new security features and three effective ones utilized in previous designs that are included in the design of the new $100 Federal Reserve note to be released for circulation starting October 8, 2013.(06/5/2013)

NCUA annual and first quarter reports

The NCUA has released its First Quarter 2013 state data report and announced the online posting of its annual reports from 2012 back to 1944.(06/5/2013)

FINRA fines Wells and Merrill Lynch

The Financial Industry Regulatory Authority (FINRA) announced that it has fined two firms a total of $2.15 million and ordered the firms to pay more than $3 million in restitution to customers for losses incurred from unsuitable sales of floating-rate bank loan funds. Wells Fargo Advisors, LLC (successor to Wells Fargo Investments, LLC) was ordered to pay a fine of $1.25 million and make restitution of above $2 million in customer losses. Merrill Lynch, Pierce, Fenner and Smith Incorporated (successor to Banc of America Investment Services, Inc.) was fined $900,000 and directed to reimburse 214 customers a total of about $1.1 million.(06/5/2013)

Guidance on new Iran Executive Order

OFAC has announced that the President has signed an Executive Order, "Authorizing the Implementation of Certain Sanctions Set Forth in the Iran Freedom and Counter-Proliferation Act of 2012 and Additional Sanctions With Respect to Iran (IFCA)." OFAC also posted a series of FAQs relating to implementation of IFCA and the Executive Order. IFCA is Subtitle D of the National Defense Authorization Act for Fiscal Year 2013.(06/4/2013)

Private auction of Treasury warrant positions

A Treasury press release has announced the start of private auctions for its warrant positions in 16 financial institutions. The auctions began at 4 p.m. Eastern Time yesterday, and will close at 6:30 p.m. Eastern Time tomorrow. During the auction period, appropriately qualified bidders will be able to submit bids at prices at or above the minimum bid price specified to them for each warrant position.(06/4/2013)

FRB legal interpretations

The FRB has released two legal interpretation letters—one to H&R Block, Inc., granting in part temporary relief from the Board's regulatory reporting requirements for savings and loan holding companies (SLHCs), and the other to General Electric Company granting in part and denying in part temporary relief and other modifications related to the SLHC reporting requirements. The letters address specific issues relating to each company's application only.(06/4/2013)

Last-minute update to rural/underserved lists

The CFPB on Friday announced it had updated key guidance in connection with the new Escrow Rule that became effective on Saturday, June 1. The updated final list of rural and underserved counties was announced. Additions to that list will primarily affect lenders making mortgage loans in selected U.S. territories. The Escrow Rule affects transactions for which applications are received on or after June 1, 2013.(06/3/2013)

FDIC enforcement actions

The FDIC has released a list of the administrative enforcement actions taken against banks and individuals in April 2013. Included were five civil money penalties totaling $38,350 for violations of the Flood Act, details of which have been posted on the BankersOnline Flood Penalties Watch page.(06/3/2013)

FDIC imposes over $1.7 million in restitution and CMPs

The FDIC has issued a press release to announce settlements with First California Bank, Westlake Village, California (FCB), and Achieve Financial Services, LLP, Austin, Texas (Achieve), for unfair and deceptive practices in violation of Section 5 of the Federal Trade Commission Act and violations of the Treasury Rule, 31 C.F.R. Part 210, governing the use of the Automated Clearing House system to deliver federal benefit payments to prepaid debit cards. The two firms will provide restitution of approximately $1.1 million to over 64,000 cardholders. In addition, the FDIC has assessed civil money penalties of $600,000 against FCB and $110,000 against Achieve.(06/3/2013)

Treasury adds to SDN List

Treasury has announced actions to thwart efforts to evade Iran Sanctions. Six individuals, eighteen entities and thirteen aircraft have been added to the SDN List. See the May 31, 2013, BOL OFAC Update page for further information.(06/3/2013)

OCC CRA exam schedule

The OCC CRA examination schedule for the third quarter 2013 has been released.(06/3/2013)

Housing funds available from HUD

HUD has announced the availability of $109 million in grants to revitalize public and HUD-assisted housing and transform communities through the agency's Choice Neighborhoods Program.(06/3/2013)

G.20 Finance Companies report

The Federal Reserve Board has released the March 2013 G.20 Finance Companies report.(06/3/2013)

FAC minutes

The FRB also released the minutes of the February 8 and May 17, 2013, meetings of the Federal Advisory Council (FAC).(06/3/2013)

Wisconsin bank closed

The FDIC has announced the closing of Banks of Wisconsin, Kenosha, Wisconsin dba Bank of Kenosha and the assumption of all deposits by North Shore Bank, FSB, Brookfield, Wisconsin.(06/3/2013)

Two CUs liquidated

The NCUA has announced the liquidation of First Kingdom Community Credit Union, Selma, Alabama (members' shares assumed by the new Riverdale Credit Union of Selma, Alabama). Also announced was the liquidation of NCP Community Development Federal Credit Union, Norfolk, Virginia (members' shares assumed by the new Chartway Federal Credit Union of Virginia Beach, Virginia).(06/3/2013)

NCUA Prohibition Orders

An NCUA press release has announced the issuance of orders prohibiting six individuals from participating in the affairs of any federally insured financial institution. The individuals had been ordered to make restitution totaling over $656,000.(06/3/2013)

CFPB releases complaints

The Bureau has announced on its Blog the availability of data on complaints the Bureau has received about credit reports and money transfers. The Consumer Complaint Database is now searchable by state, reports the Bureau.(06/3/2013)