Top Stories for December 2010

FRB Announces Enforcement Actions

On Thursday, the Federal Reserve Board announced the execution of Written Agreements with Baylake Corp. and Baylake Bank, both of Sturgeon Bay, WI; and with Santa Lucia Bancorp and Santa Lucia Bank, both of Atascadero, CA.   12/31/10

FDIC November Enforcement Actions

The FDIC made public its November enforcement actions in a Press Release on Thursday, 12/30/2010. The list includes 28 consent orders, 13 removal and prohibition orders, and 28 civil money penalties, among others.   12/31/10

Call Report for 12/31/2010

The FDIC issued FIL-94-2010 conveying information from the OCC, FRB and FDIC pertaining to the Consolidated Reports of Condition and Income (Call Report) for the December 31, 2010, report date. Key reporting changes noted in the FIL include new memorandum items for dollar amount and number of noninterest-bearing transaction accounts as of quarter-end and for data on reverse mortgages.   12/31/10

IOLTA Amendment Signed

On Wednesday, 12/29/2010, President Obama signed into law H.R.6398, an act to require the FDIC to fully insure Interest on Lawyers Trust Accounts (IOLTAs) under the temporary coverage provisions in 343 of the Dodd-Frank Act. This means that IOLTAs at FDIC-insured institutions will be provided the same deposit insurance coverage as noninterest-bearing transaction accounts beginning 12/31/2010 and ending on 12/31/2012. The FDIC has indicated that it will soon issue guidance relating to any changes to its notice requirements under 330.16(c) of its Deposit Insurance Regulations.   12/30/10

Sunset of SCRA Provisions Delayed

Also on 12/29/2010, President Obama signed into law the "Helping Heroes Keep Their Homes Act," S.4058, which postpones until 12/31/2012 the sunset of temporary amendments to 303 of the Servicemembers Civil Relief Act (50 App. USC 533) (SCRA). The amendments were originally scheduled to sunset on 12/31/2010.   12/30/2010

FRB Publishes Interim Final Rule for Truth in Lending

The Board is publishing for comment an interim rule amending Regulation Z, which implements the Truth in Lending Act (TILA). This interim rule revises the Board's interim rule published on September 24, 2010, which implemented certain requirements of the Mortgage Disclosure Improvement Act of 2008. The September 2010 interim rule requires creditors who extend consumer credit secured by real property or a dwelling to disclose summary information about interest rates and payment changes in a tabular format. This rule clarifies the requirements for adjustable-rate transactions that are "5/1 ARM" loans. It corrects the requirements for interest-only loans to clarify that the disclosures should reflect the date of the interest rate change rather than the date the first payment is due under the new rate. TXT; PDF   12/30/10

Joint Agencies Propose Rulemaking for Risk-Based Capital Standards

The Office of the Comptroller of the Currency (OCC), Board of Governors of the Federal Reserve System (Board), and the Federal Deposit Insurance Corporation (FDIC) propose to: Amend the advanced risk-based capital adequacy standards (advanced approaches rules) \1\ to be consistent with certain provisions of the Dodd-Frank Wall Street Reform and Consumer Protection Act (the Act) \2\ and amend the general risk-based capital rules \3\ to provide limited flexibility consistent with section 171(b) of the Act for recognizing the relative risk of certain assets generally not held by depository institutions. TXT; PDF  12/30/10

NCUA Proposes Rulemaking for Accuracy of Advertising and Notice of Insured Status

The NCUA Board proposes to revise certain provisions of NCUA's official advertising statement rule. Specifically, insured credit unions will be required to include the statement in all radio and television advertisements, annual reports, and statements of condition required to be published by law. The NCUA Board also proposes to define the term "advertisement" and to clarify size requirements for the official advertising statement in print materials. TXT; PDF  12/30/10

Third Quarter Mortgage Performance Steady - Foreclosures Increase

The OCC and OTS have released the Third Quarter 2010 Mortgage Metrics Report which indicates mortgages serviced by large banks and thrifts remained steady but the number of foreclosures increased. OCC NR; OTS NR; Report  12/30/10

FIs Repay TARP Funds

The Treasury has announced that six financial institutions (FIs) have repaid over $626 Million by repurchasing Troubled Asset Relief Program (TARP) Capital Purchase Program investments. TARP  12/30/10

FRB 2011 Financial Accounting Manual

The 2011 Financial Accounting Manual for Federal Reserve Banks has been released. FRB NR; Manual  12/30/10

Financial Reporting Bulletin Published

The OTS has published the December 2010 Financial Reporting Bulletin. Bulletin  12/30/10

RB - REO and Repo Assets Regulatory Bulletin

A Regulatory Bulletin (RB) has been published by the OTS regarding real estate owned (REO) and repossessed (Repo) assets. RB  12/30/10

CRA FILs Issued

Two FILs have been issued by the FDIC regarding the Community Reinvestment Act (CRA) annual asset-size threshold adjustment and revisions to interagency regulations. Threshold Adjustment FIL; Revisions FIL  12/30/10

FRB Publishes Interim Final Rule for Truth in Lending

The Board is publishing for comment an interim rule amending Regulation Z, which implements the Truth in Lending Act (TILA). This interim rule revises the Board's interim rule published on September 24, 2010, which implemented certain requirements of the Mortgage Disclosure Improvement Act of 2008. The September 2010 interim rule requires creditors who extend consumer credit secured by real property or a dwelling to disclose summary information about interest rates and payment changes in a tabular format. This rule clarifies the requirements for adjustable-rate transactions that are "5/1 ARM" loans. It corrects the requirements for interest-only loans to clarify that the disclosures should reflect the date of the interest rate change rather than the date the first payment is due under the new rate.TXT; PDF  12/29/10

Prompt Corrective Action Directive Executed

The FRB has announced the execution of a Prompt Corrective Action Directive with BankEast, Knoxville, TN. Directive  12/29/10

FRB Proposes Rulemaking for Debit Card Interchange Fees and Routing

The Board is requesting public comment on proposed new Regulation II, Debit Card Interchange Fees and Routing, which: establishes standards for determining whether an interchange fee received or charged by an issuer with respect to an electronic debit transaction is reasonable and proportional to the cost incurred by the issuer with respect to the transaction; and prohibits issuers and networks from restricting the number of networks over which an electronic debit transaction may be processed and from inhibiting the ability of a merchant to direct the routing of an electronic debit transaction to any network that may process such transactions. TXT; PDF  12/28/10

NCUA Publishes Final Rule in FR for Fiduciary Duties at Federal Credit Unions: Mergers and Conversions of Insured Credit Unions

NCUA is issuing final amendments to its regulations covering several related subjects. The final rule documents and clarifies the fiduciary duties and responsibilities of Federal credit union (FCU) directors, amends NCUA's indemnification regulation limiting indemnification of FCU officials and employees for liability arising from improper decisions that affect the fundamental rights of credit union members, and makes conforming changes to the standard FCU and corporate credit union bylaws, and adds new provisions establishing the procedures for insured credit unions merging into banks. TXT; PDF  12/28/10

OTS Publishes Final Rule in FR for Prohibited Service at Savings and Loan Holding Companies: Reinstitution of Expiration Date of Temporary Exemption

The OTS is revising its rules implementing section 19(e) of the Federal Deposit Insurance Act (FDIA), which prohibits any person who has been convicted of any criminal offense involving dishonesty, breach of trust, or money laundering (or who has agreed to enter into a pretrial diversion or similar program in connection with a prosecution for such an offense) from holding certain positions with respect to a savings and loan holding company (SLHC). Specifically, OTS is reinstituting and extending the expiration date of a temporary exemption granted to persons who held positions with respect to a SLHC as of the date of the enactment of section 19(e). The reinstituted and revised expiration date for the temporary exemption is December 31, 2012. TXT; PDF  12/28/10

CEO Letters - Underwriting and CRA

The OTS has issued two CEO Letters regarding the interagency underwriting standards for small business loans originated under the Small Business Lending Fund Program and the Community Reinvestment Act; joint final rulemaking neighborhood stabilization program. Underwriting; CRA  12/28/10

FSA and HRA Debit Cards IRS Guidance

The IRS has issued new guidance allowing the continued use of health flexible spending arrangement (FSA) and health reimbursement arrangement (HRA) debit cards for the purchase of prescribed over-the-counter medicines and drugs. A Q & A was also issued. Guidance; Q&A  12/28/10

News from FedACH Online

FRB Financial Services has posted the November 2010 issue of FedACH Online which features the news kiosk, heath care payments Q&A, and new international services. FedACH Online  12/27/10

CRA/HMDA Reporter

The December 2010 issue of the CRA/HMDA Reporter has been published and features a summary of the 2010 HMDA edit changes, how to report HMDA data regarding mergers and acquisitions of a branch, and FFIEC reporting resources. Reporter  12/27/10

Underwriting Standards for SBLF Program

A FIL has been issued by the FDIC concerning the issuance of a guidance regarding prudent underwriting standards for small business loans made under the Small Business Lending Funding (SBLF) Program. FIL; Guidance  12/27/10

Small Business Lending Forum Announced

The FDIC will host a forum regarding overcoming obstacles to small business lending on January 13, 2011, in Arlington, VA. The registration deadline is January 7, 2011, and may be made online. Forum Agenda; Registration  12/27/10

Vermont Severe Storm Guidance FIL

A FIL has been issued by the FDIC regarding guidance and regulatory relief to financial institutions and facilitate recovery in areas of Vermont affected by serve storms. FIL; Guidance  12/27/10

Counterfeit Checks Special Alerts

The FDIC has issued six Special Alerts regarding counterfeit checks bearing the name of the following financial institutions:

1. Eagle Community Credit Union, Lake Forest, CA (Counterfeit Official Checks);
2. High Point Bank and Trust Company, High Point, NC (Counterfeit Cashiers Checks);
3. First Chicago Bank & Trust, Itasca, NY Counterfeit Cashiers Checks);
4. Webster Bank, Waterbury, CT; (Counterfeit Official Checks);
5. Cashmere Valley Bank, Cashmere, WA (Counterfeit Cashiers Checks); and
6. First Farmers Bank and Trust Company, Converse, IN (Counterfeit Cashiers Checks).

Information regarding the counterfeit checks has been posted on the BOL Alerts & Counterfeits Page.  12/23/10

Unauthorized Banking Special Alert

A Special Alert has been issued by the FDIC regarding entities that may be conducting unauthorized banking activities in Canada and/or the United States.
Alert   12/23/10

NMLS Fee Payment Deadline for MLOs in Licensure Process

The Nationwide Mortgage Licensing System and Registry (NMLS) has issued a reminder that mortgage loan originators (MLOs) participating in pre-licensure education (PE) and testing certification process under state licensing requirements have until 12:00 midnight ET on December 31, 2010 to pay their certification invoices. Banks dealing with non-bank third parties in connection with residential mortgage loans will want to verify that the licenses of MLOs at those third parties remain valid after the end of the year. Certification   12/23/10

NMLS Registry Final Fees Announced

The Conference of State Bank Supervisors has posted the finalized fees and a response summary to the public comments submitted regarding the proposed fees for the NMLS Federal Registry. These are the fees for financial institution Mortgage Loan Originator registration, renewals, change of employment updates, etc.
Fees;
Summary   12/23/10

Reg Z Mortgage Disclosure Interim Rule

The FRB has announced and is requesting comment on an interim rule amending Reg Z. The interim rule clarifies certain aspects of a previously issued interim rule that implemented requirements of the Mortgage Disclosure Improvement Act (MDIA) requiring mortgage lenders to disclose examples of how a loan's interest rate or monthly payments can change. The September 24, 2010 interim rule was effective October 25, 2010, with compliance optional until January 30, 2011. The new interim rule, which amends subsection 226.18(s) and related Interpretations in Supplement I to the regulation, has an effective date of January 30, 2011 and a mandatory compliance date of October 12, 2011.
Interim Rule   12/23/10

Fed Publishes Regulation C Exemption Update

The Federal Reserve Board published in the Federal Register a final rule amending the staff commentary that interprets the requirements of Regulation C (Home Mortgage Disclosure). The staff commentary is amended to increase the asset-size exemption threshold for depository institutions based on the annual percentage change in the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPIW). The rule was first announced in our Top Stories of 12/21/2010, below.
Published Rule  12/23/10

Corrections to Regulation Z Interim Final Rule

The Federal Reserve Board published in the Federal Register corrections to its interim final rule published on October 28, 2010, amending Regulation Z to implement certain Valuation Independence provisions of the Dodd-Frank Act. The corrections and interim rule are effective 12/27/2010, with compliance optional until 4/1/2011.
Corrections  12/23/10

Check 21 FedReceipt Routing Numbers

FRB Financial Services has announced additional Check 21 related FedReceipt routing numbers.
Routing Numbers  12/23/10

Supervisory Insights Published

The Winter 2010 issue of Supervisory Insights has been published by the FDIC and features articles regarding trust preferred securities, the credit and consumer products/services survey, senior life settlements, and agricultural lending.
Supervisory Insights   12/23/10

SBLF Underwriting Standards Guidance Issued

The FRB and OCC have issued guidance on underwriting standards for lending under the Small Business Lending Fund (SBLF) Program.
Standards;
FRB SR Letter
OCC Bulletin;   12/23/10

FEDS Working Paper

A working paper in the Finance and Economics Discussion Series on the topic of The Contribution of the Minimum Wage to U.S. Wage Inequality over Three Decades: A Reassessment has been published by the FRB.
Abstract;
Full Paper   12/23/10

NCUA Proposes Rulemaking for Sample Income Data to Meet the Low-Income

The NCUA is proposing to permit federal credit unions that do not qualify for a low-income designation using the geo-coding software the NCUA has developed for that purpose to submit an analysis of a statistically valid sample of their member income data as evidence they qualify. Permitting FCUs to use a statistically valid sample of member incomes drawn from loan files or a survey will ease the burden on FCUs attempting to qualify for a low-income designation. TXT; PDF  12/22/10

NCUA Proposes Rulemaking for Share Insurance

Section 343 of the Dodd-Frank Wall Street Reform and Consumer Protection Act provides that, on a temporary basis, the NCUA Board shall fully insure the net amount that any member or depositor at an insured credit union maintains in a noninterest-bearing transaction account. Although this insurance coverage is self-implementing, and therefore already in place, this proposed rule: clarifies the definition of the term "noninterest-bearing transaction account"; provides that this new insurance coverage is separate from, and in addition to, other coverage provided in NCUA's share insurance rules; and imposes certain notice and disclosure requirements. TXT; PDF  12/22/10

Fiscal Services (Treasury) Publishes Interim Final Rule in FR for Federal Government Participation in the Automated Clearing House

The Department of the Treasury, Financial Management Service (FMS) is amending its regulation governing the use of the Automated Clearing House (ACH) system by Federal agencies to permit the delivery of Federal payments to prepaid debit cards that meet certain criteria. To be eligible to receive Federal payments, a card must provide the cardholder with pass-through deposit or share insurance and the card account must not have an attached line of credit or loan feature that triggers automatic repayment from the card account. In addition, the issuer of the card account must provide the cardholder with all of the consumer protections that apply to a payroll card under the Federal Reserve Board's Regulation E. TXT; PDF  12/22/10

Federal Benefit Payments Paper Checks to be Phased Out

The Treasury has issued a final rule requiring individual receiving paper checks for federal benefit payments to switch to direct deposit by March 1, 2013. Anyone applying for benefits on or after May 1, 2011 will receive payment electronically. Benefits  12/22/10

Counterfeit Checks Special Alerts

Three Special Alerts have been issued by the FDIC regarding counterfeit checks bearing the name of the following financial institutions:

1. Summit Bank, Arkadelphia, AK (Counterfeit Official Checks);
2. Paper City Savings Association, Wisconsin Rapids, WI (Counterfeit Bank Checks); and
3. FORUM Credit Union, Indianapolis, IN (Counterfeit Cashier's Checks)

Information concerning the counterfeit checks has been posted on the BOL Alerts & Counterfeits page.  12/22/10

OFAC CMPs Released

The civil money penalties (CMPs) recently assessed by OFAC for violations of various sanctions programs have been released. Two financial entities were cited. CMPs  12/22/10

Zimbabwe AG and Iranian Entities Added to OFAC List

The Treasury has designated the Zimbabwe Attorney General (AG) and Iranian entities tied to the Islamic Revolutionary Guard Corps (IRGC) and the Islamic Republic of Iran Shipping Lines (IRISL) and added their names to the SDN List. Information regarding the additions has been posted on the BOL OFAC page.  12/22/10

CRA Annual Asset-Sized Threshold Adjustments

The federal regulatory agencies have released the annual CRA asset-size threshold adjustments for small and intermediate small institutions. Adjustments; FRB PR; OCC NR; FDIC PR; OTS NR  12/22/10

Written Agreements Executed

The FRB has announced the execution of Written Agreement with City National Bancshares Corporation, Newark, NJ, and Community Shores Bank Corporation, Muskegon, MI. City National; Community Shores  12/22/10

FDIC Announces Winning Bidders

The three winning bidders for commercial real estate loans and residential acquisition and development loans have been announced by the FDIC. Winner 1; Winner 2; Winner 3  12/22/10

FOMC Authorizes Swap Agreement Extension Authorized

The Federal Open Market Committee (FOMC) has authorized an extension through August 1, 2011, of its temporary U.S. dollar liquidity swap arrangements with the Bank of Canada, the Bank of England, the European Central Bank, the Bank of Japan, and the Swiss National Bank. A Q & A regarding liquidity swaps has also been issued. Swaps Extension; Q&A  12/22/10

Owned and Managed Receivables Report

The G.20 Owned and Managed Receivables Outstanding and Auto Loans: Terms of Credit Report for October 2010 has been released by the FRB. G.20  12/22/10

OTS Annual Report

The annual report for fiscal year 2010 has been released by the OTS. Report  12/22/10

Joint Agencies Publish Final Rule in FR for Community Reinvestment Act Regulations

The OCC, the Board, the FDIC, and the OTS are adopting revisions to our rules implementing the Community Reinvestment Act (CRA). The agencies are revising the term "community development" to include loans, investments, and services by financial institutions that support, enable, or facilitate projects or activities that meet the "eligible uses" criteria described in Section 2301(c) of the Housing and Economic Recovery Act of 2008 (HERA), as amended, and are conducted in designated target areas identified in plans approved by the United States Department of Housing and Urban Development (HUD) under the Neighborhood Stabilization Program (NSP). TXT; PDF  12/20/10

FDIC Publishes Final Rule in FR for Designated Reserve Ratio

To implement a comprehensive, long-range management plan for the Deposit Insurance Fund (DIF or fund), the FDIC is amending its regulations to set the designated reserve ratio (DRR) at 2 percent. TXT; PDF  12/20/10

FDIC Regulatory Agenda

The FDIC has published in the Federal Register its semiannual regulatory agenda which contains information about FDIC's current and projected rulemakings, existing regulations under review, and completed rulemakings. Fed Register  12/20/10

Six Banks Closed; Deposits Assumed

The FDIC has announced the closing of the following banks:

1. The Bank of Miami, N.A., Miami, FL;
2. Chestatee State Bank, Dawsonville, GA;
3. Appalachian Community Bank, F.S.B., McCaysville, GA;
4. United Americas Bank, National Association, Atlanta, GA;
5. First Southern Bank, Batesville, AR;
6. Community National Bank, Lino Lakes, MN

The Bank; Chestatee; Appalachian; United; First; Community  12/20/10

CU In Receivership

The NCUA has placed in receivership and assumed control of operations of the AEA Federal Credit Union of Yuma, AZ.AEA  12/20/10

CRA Ratings Released

The ratings received by national banks recently evaluated for compliance with CRA has been released by the OCC. Ratings  12/20/10

Enforcement Actions Announced

The OCC has announced the enforcement actions recently taken against national banks and individuals currently or formerly affiliated with national banks. Actions  12/20/10

DSR and FOR Report

The Third Quarter 2010 household debt service ratio (DSR) and financial obligations ratio (FOR) report has been released by the FRB. Report  12/20/10

Trading Revenues Decline

The OCC has issued the Third Quarter Report on Bank Trading and Derivatives Activities which indicates trading revenues 27 percent lower than the third quarter of 2009. Report  12/20/10

FTC Comments on Strengthening HMDA Rules and Cost of Credit Reports

The FTC has submitted comments to the FRB regarding strengthening HMDA rules requiring mortgage lenders to collect and report data. In addition, the cost that consumer reporting companies are allowed to charge consumers for extra copies of their credit report is raised to $11 as of January 1, 2011. Comments  12/20/10

FRB Proposes New Regulation II

The Federal Reserve Board has requested comment on a proposed new Regulation II, Debit-Card Interchange Fees and Routing, that would establish standards for determining whether a debit card interchange fee received by a card issuer is reasonable and proportional to the cost incurred by the issuer for the transaction, and provide merchants increased routing options for debit card transactions. FRB PR; FR Notice   12/17/10

January HOEPA Rates Established

The Federal Reserve has posted the new reference rates that lenders must use to determine if loans for certain applications received in January 2011, will be subject to HOEPA under the APR trigger test. Use the FRB H.15 to find applicable release, which 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.
H.15   12/17/10

FEMA Preferred Risk Policy Eligibility Extension Announcement

A FIL has been issued by the FDIC regarding the previously announced two-year extension of FEMA Preferred Risk Policy (PRP) eligibility.
FIL   12/17/10

Market Risk and Basel II FILs

The FDIC has issued two FILs regarding the previously announced proposed rules concerning Market Risk and Basel II. Information regarding the proposed rules was posted in the December 14 and 16, 2010 BOL Top Stories, below.
Market Risk FIL;
Basel FIL  12/17/10

CMP for Failure to Register as MSB

FinCEN has assessed a $12,000 civil money penalty (CMP) against a money transmitter for failure to maintain a registration as a money services business (MSB).
CMP   12/17/10

Prompt Corrective Action Directive

The FRB has issued upon consent a Prompt Corrective Action Directive regarding The Park Avenue Bank, Valdosta, GA.
Directive  12/17/10

SARs Final Rules Bulletin

The OCC has issued a Bulletin regarding the issuance of final rules concerning the release of nonpublic OCC information and the confidentiality of a SAR. Information regarding the rules was posted in the December 3, 2010, BOL Top Stories, below.
Bulletin  12/17/10

Reg Z Exam Procedures Bulletin

The OCC also issued a Bulletin regarding the revision of the examination procedures for Reg Z.Bulletin  12/17/10

Geithner Before the Oversight Panel

In written testimony before the Congressional Oversight Panel, Secretary Geithner discussed the Troubled Asset Relief Program (TARP) and other government policies in response to the financial crisis.Testimony  12/17/10

FEDS Working Papers

The FRB has published two working papers in the Finance and Economics Discussion Paper Series (FEDS) on the topics of "Does Credit Scoring Produce a Disparate Impact?" and "Foreclosure's Wake: The Credit Experiences of Individuals Following Foreclosure". Credit Scoring Abstract; Credit Scoring Full Paper; Foreclosure Abstract; Foreclosure Full Paper  12/17/10

NCUA Board Meeting Results

The results of the December 16, 2010, meeting of the NCUA Board have been released.
Minutes  12/17/10

FRB Proposes Rulemaking for Consumer Leasing

Effective July 21, 2011, the Dodd-Frank Wall Street Reform and Consumer Protection Act (Dodd-Frank Act) amends the Consumer Leasing Act (CLA) by increasing the threshold for exempt consumer leases from $25,000 to $50,000. In addition, the Dodd-Frank Act provides that, on or after December 31, 2011, this threshold must be adjusted annually by any annual percentage increase in the Consumer Price Index for Urban Wage Earners and Clerical Workers. Accordingly, the Board is proposing to make corresponding amendments to Regulation M, which implements the CLA, and to the accompanying staff commentary. Because the Dodd-Frank Act also increases the Truth in Lending Act's threshold for exempt consumer credit transactions from $25,000 to $50,000, the Board is proposing similar amendments to Regulation Z elsewhere in today's Federal Register. TXT;
PDF  12/16/10

FRB Also Proposes Rulemaking for Truth in Lending

Accordingly, the Board is proposing to make corresponding amendments to Regulation Z, which implements TILA, and to the accompanying staff commentary. Because the Dodd-Frank Act also increases the Consumer Leasing Act's threshold for exempt consumer leases from $25,000 to $50,000, the Board is proposing similar amendments to Regulation M elsewhere in today's Federal Register. TXT;
PDF  12/16/10

CRA Ratings Released

The OTS has released the ratings received by savings associations recently evaluated for compliance with CRA. Ratings  12/16/10

CRA Final Rule

The federal bank and thrift regulatory agencies have announced a final rule which changes Community Reinvestment Act (CRA) regulations to support stabilization of communities affected by high foreclosure levels by encouraging depository institutions to support eligible development activities. Final Rule; FRB PR; FDIC PR; OCC NR   12/16/10

NCUA Transition Plan

The National Credit Union Administration (NCUA) has issued a letter with attachments and a fact sheet regarding the system transition plan and necessary considerations to corporate credit unions. Attachment 1Letter; Attachment 1; Attachment 2; Fact Sheet  12/16/10

NPRs Market Risk and Basel II

The FRB, OCC, and FDIC are seeking comments on notices of proposed rulemaking (NPRs) that would revise the market risk capital rules and amend Basel II consistent with Dodd-Frank. Market Risk NPR; Basel NPR; FRB PR; FDIC PR; OCC NR  12/16/10

FedFlash Online

The December 2010 issue of FedFlash has been posted online and features articles regarding the 2010 Holiday schedule, use of confirmation.com for Fedwires Securities Service account information, the addition of batch and item level monitoring to the RDFI File Alert Service, and the ending of FTD coupon processing on December 31, 2010. FedFlash  12/16/10

October TIC Data

The Treasury has released the Treasury International Capital Data for October 2010. TIC  12/16/10

Industrial Production and Capacity Utilization Report

The G. 17 November 2010 Industrial Production and Capacity Utilization Report has been released by the FRB. G.17  12/16/10

Cost of Funds Reports

The OTS has released the historical and current cost of funds reports for regulated institutions. Historical; Current  12/16/10

FTC Proposes Rulemaking for Telemarketing Sales

The Commission requests public comment on provisions of the FTC's Telemarketing Sales Rule concerning caller identification services and disclosure of the identity of the seller or telemarketer responsible for telemarketing calls.TXT; PDF  12/15/10

FDIC Posts New FAQ

The FDIC posted an FAQ on Tuesday, 12/14/10, that addresses its rules covering Temporary Unlimited FDIC Coverage for Noninterest-Bearing Transaction Accounts, as provided by 343 of the Dodd-Frank Act, and the termination of the Transaction Account Guarantee (TAG) program. The FAQ deals with implementation of the DFA provision, disclosure requirements, coverage of sweep accounts, and termination of the TAGP. FAQ  12/15/10

OFAC Designations and Removals

Twenty individuals and twenty-five entities have been designated as SDNTKs and had their names added to the OFAC SDN List. In addition, the names of sixteen individuals and one entity have been deleted from the SDN List and changes have been made to three existing designations. Information regarding the additions, deletions, and changes have been posted on the OFAC page.  12/15/10

Fed Funds Rate Unchanged

The Federal Open Market Committee (FOMC) has announced that the target rate for federal funds will be maintained at the current level and the expansion of its holdings of securities will continue. FOMC  12/15/10

Written Agreement Announced

The FRB has announced the execution of a Written Agreement with Weststar Financial Services Corporation, Asheville, NC. Written Agreement  12/15/10

CEO Letters and Bulletin

The OTS has issued CEO Letters regarding the evaluation and selection of private mortgage insurance providers and Reg E examination procedures concerning gift cards and overdraft protection. A Regulatory Bulletin was also issued regarding the Electronic Fund Transfer Act. CEO Ltr 1; CEO Ltr 2; Bulletin  12/15/10

Large Financial Institutions Risk Based Capital Floor NPR

The FDIC has issued a Notice of Proposed Rulemaking (NPR) regarding an interagency proposal to set the risk-based capital floor for large financial institutions. NPR  12/15/10

DRR Final Rule

A final rule to set the insurance fund's designated reserve ratio (DRR) at two percent of estimated insured deposits has been approved by the FDIC. Final Rule  12/15/10

Management of Ag Credit FIL

A FIL has been issued by the FDIC regarding the prudent management of agricultural credit through farming and economic cycles. FIL  12/15/10

Mortgage Loan Fraud Increases

The FinCEN has released the Mortgage Loan Fraud (MLF) SAR Filings reports for the first half of 2010, which indicate MLF rose by seven percent. MLF  12/15/10

314(a) Fact Sheet Updated

The FinCEN has updated the 314(a) Fact Sheet with data current as of December 14, 2010. 314(a)  12/15/10

Reg Z and Reg M Amendments Proposed

The FRB has proposed amendments to Reg Z (Truth in Lending) and Reg M (Consumer Leasing) to implement a provision of the Dodd-Frank Act that would expand the coverage of consumer protection regulations to credit transactions and leases from $25,000 to $50,000. FRB PR; Reg Z; Reg M  12/14/10

Prohibition Orders Issued

The NCUA has issued orders prohibiting two individuals from participating in the affairs of any federally insured financial institution and restitution payments of $1,400,000 and $32,789.10. Order 1; Order 2  12/14/10

OCC Large Bank Supervision Team

Changes to the OCC Large Bank Supervision Team, which supervises the largest national banks, federal branches and agencies, have been announced. Team  12/14/10

FedForward and FedReturn Non-Conforming Comments

The FRB has announced the expansion of the standard comment fields regarding FedForward and FedReturn rejected non-conforming items. Comments  12/13/10

Two Banks Closed: Deposits Assumed

The FDIC has announced the closing and the assumption of all deposits of Earthstar Bank, Southampton, PA. and Paramount Bank, Farmington Hills, MI. Earthstar; Paramount  12/13/10

FRB Meeting Webcast

The December 16, 2010, meeting of the FRB will be webcast live. Webcast  12/13/10

Appraisal and Evaluation Guidelines Bulletin

The OCC has issued a bulletin regarding the previously announced interagency appraisal and evaluation guidelines. Information concerning the guidelines was posted in the December 3, 6 and 10, 2010, BOL Top Stories. Bulletin  12/13/10

Large Commercial Banks Report

The report of the insured U.S. chartered commercial banks that have consolidated assets of $300 million or more, ranked by consolidated assets as of September 30, 2010, has been released. Report  12/13/10

Hizballah Fundraisers and Businesses Added to OFAC List

Treasury has designated two Hizballah fundraisers, a network of businesses they own or control, and a Hizballah diplomat as SDGTs and added their names to the SDN List. Information regarding the additions has been posted on the BOL OFAC Page.  12/10/10

Agencies Publish Appraisal Guidelines

The OCC, OTS, Fed, FDIC, and NCUA have jointly published in the Federal Register a notice of their Interagency Appraisal and Evaluation Guidelines to provide further clarification of the Agencies' appraisal regulations and supervisory guidance to institutions and examiners about prudent appraisal and evaluation programs. The Guidelines, including their appendices, update and replace existing supervisory guidance documents to reflect developments concerning appraisals and evaluations, as well as changes in appraisal standards and advancements in regulated institutions' collateral valuation methods. The Guidelines were first covered in our 12/03/10 Top Stories. TXT; PDF  12/10/10

Written Agreement Announced

The execution of a Written Agreement with TCSB Bancorp, Inc., Traverse City, Michigan, has been announced by the FRB. Written Agreement  12/10/10

Large Position Reports

Treasury has called for Large Position Reports from those entities whose reportable positions in the 0-3/4% Treasury Notes of September 2013 equaled or exceeded $2 billion as of close of business Wednesday, December 8, 2010. Reports   12/10/10

FHC List Updated

The FRB has updated the list of banking holding companies that have become or elected to be treated as a financial holding company (FHC) as of December 9, 2010. List   12/10/10

Matz Discusses CU Reforms

In testimony before the Senate Committee on Banking, Housing, and Urban Affairs, NCUA Chairman Matz discussed the actions of her agency to reform and strengthen the corporate credit union system and enable credit unions to continue serving consumers despite difficult economic times.Testimony   12/10/10

Third Quarter State Profiles

The FDIC has released the Third Quarter 2010 State Profiles which contain a summation of banking and economic conditions in each state. Profiles  12/10/10

Flow of Funds Report

The December 9, 2010, Z.1 Flow of Funds Report has been released by the FRB.
Z.1 Report   12/10/10

FinCEN Proposes Rulemaking for Anti-Money Laundering Program and Suspicious Activity Report Filing Requirements

FinCEN, a bureau of the Department of the Treasury, is issuing proposed rules defining non-bank residential mortgage lenders and originators as loan or finance companies for the purpose of requiring them to establish anti-money laundering programs and report suspicious activities under the Bank Secrecy Act. TXT;
PDF  12/09/10

IRS Publishes Temporary and Final Rules Requiring Electronic Funds Transfer of Tax Payments

The IRS published temporary and final regulations in the Federal Register relating to Federal tax deposits (FTDs) by electronic funds transfer. To coordinate with the decision by Treasury's Financial Management Service to discontinue processing FTD coupons, the IRS's new rules mandate the use of EFT for all FTDs, and the rules regarding tax coupons are being eliminated. The effective date is January 1, 2011. The November 2010 issue of Fedfocus announced that the last day financial institutions can accept FTD coupons is December 31, 2010. TXT;
PDF  12/09/10

Counterfeit Checks Special Alerts

Six Special Alerts have been issued by the FDIC regarding counterfeit checks bearing the name of the following banks:

1. Center Bank, Los Angeles, CA;
2. First Bank Richmond, Richmond, IN;
3. Farmers Deposit Bank, Eminence, KY;
4. Peoples Bank of the South, Lafollette, KY;
5. Sandy Springs Bank, Olney, MD;
6. Farmers State Bank, Mason City, IA

Information concerning the counterfeit checks has been posted on the BOL Alerts & Counterfeits page.  12/09/10

Tropical Storm Regulatory Relief Guidance

The FDIC has issued a FIL announcing a series of steps to provide regulatory relief to financial institutions and facilitate recovery in areas of the U.S. Virgin Islands affected by Tropical Storm Tomas. FIL  12/09/10

Electronic Noncash Payments Popular

A study by the Federal Reserve indicates that more than 75% of the 2009 noncash payments were made electronically. Summary; Study  12/09/10

Acceptance of Unfaced Currency Reminder

The Federal Reserve Financial Services has issued a reminder that starting April 1, 2011, Federal Reserve Banks will accept $1-20 denomination bills not faced portrait side forward. Unfaced Currency  12/09/10

FEDS Working Papers Published

Two working papers in the Finance and Economics Discussion Series (FEDS) have been published by the FRB on the topics of "Capital Taxation with Entrepreneurial Risk" and "Money and Inflation: Some Critical Issues". Capital Abstract; Capital Full Paper; Money Abstract; Money Full Paper  12/09/10

Non-Interest Bearing Accounts FDIC Insurance Seminars

The FDIC has issued a FIL announcing two free identical telephone seminars on December 14 and 16, 2010, for bank officers and employees that will explain the insurance coverage rules and disclosure requirements regarding the new temporary unlimited insurance coverage for noninterest-bearing transaction accounts at all FDIC-insured depository institutions. FIL; Seminar Registration  12/08/10

Consumer Compliance Handbook Updated

The FRB has published the December 2010 update to the Consumer Compliance Handbook. Handbook  12/08/10

Consumer Credit Report Released

The G.19 Consumer Credit Report for October 2010 has been released by the FRB. G.19  12/08/10

FHC Report Updated

The report of bank holding companies that have elected to become or be treated as financial holding companies (FHC) as of December 2, 2010, has been released by the FRB. Report  12/08/10

CA Letter - Interagency Exam Procedures Risk-Based Pricing Noticing

The FRB issued CA Letter regarding the interagency examination procedures for the regulation on risk-based pricing notices. CA Letter  12/07/10

New Treasury Website Launched

The Treasury has launched a fully redesigned website - http://www.treasury.gov - intended to improve the access to data and information on a day-to-day basis. Website  12/07/10

AML Plan for Non-Bank Lenders/Brokers and SAR Filings

The FinCEN has proposed a requirement for non-bank residential mortgage lenders and originators to establish AML programs and file SARs. AML  12/07/10

FRB Public Meetings

The list of public meetings regarding rulemaking to implement Dodd-Frank held by the FRB though December 6, 2010, has been released. Meetings  12/07/10

Citigroup Public Offering

The Treasury has announced the public offering of Citigroup common stock. Offering  12/07/10

CRA Ratings Released

The FDIC has released the ratings received by banks recently examined for CRA compliance. Ratings  12/06/10

SR and CEO Letters - Appraisal and Evaluation Guidelines

The FRB has issued a Supervision and Regulation (SR) Letter and the OTS a CEO Letter regarding the recently announced Interagency Appraisal and Evaluation Guidelines which were posted in the December 3, 2010, BOL Top Stories. SR Letter; CEO Letter  12/06/10

Bair Discusses Regulatory Reform

In a presentation at the Financial Services Conference of the Consumer Federation of America, Chairman Bair discussed the rationale for the new financial reforms and the way forward. Speech  12/06/10

TFR Data Released

The OTS has released the Aggregated Thrift Financial Report (TFR) data for the Third Quarter 2010. TFR  12/06/10

NCUA Proposes Rulemaking for Corporate Credit Unions - Extension of Comment Period

On November 18, 2010, the NCUA Board issued a proposed rule amending its corporate credit union rule. NCUA has received a request to extend the comment period set in the proposed rule and has determined to extend the comment period for an additional 30 days. TXT; PDF  12/06/10

Pakistani and Congolese Terrorists Added to OFAC List

The Treasury has designated three leaders of two Pakistani terrorist organizations and four individuals who are part of the leadership of the Democratic Forces for the Liberation of Rwanda and added their names to the SDN List. Information regarding the additions has been posted on the BOL OFAC Page.  12/03/10

SAR Confidentiality Regs and Notice of Sharing Guidance Published

The FinCEN has published in the Federal Register its Final Rule on confidentiality of Suspicious Activity Reports to clarify the scope of the statutory prohibition against a financial institution's disclosure of a SAR, address the statutory prohibition against SAR disclosure by the government, modify the safe harbor provision to include changes made by the USA PATRIOT Act, and make minor technical revisions. FinCEN also announced the availability of two Guidance documents that apply to depository institutions and to
securities broker-dealers, mutual funds, futures commission merchants interpreting the final rule. BOL first reported on the Final Rule and Guidance in our November 24, 2010 Top Stories. In a coordinated issuance, the OCC and OTS each published a Final Rule amending their regulations governing the confidentiality of SARs. All three Final Rules are effective 1/3/2011.
FinCEN Final Rule;
FinCEN Guidance Announcement;
OCC Final Rule;
OTS Final Rule  12/03/10

2011 OTS Assessments and Fees TB

The OTS has issued a Thrift Bulletin (TB) containing its assessments and fees for 2011.
TB  12/03/10

Data Download Program Interactive Graphics

The FRB has announced a new interactive graphics feature of the Data Download Program which allows users to create custom charts.
Graphics  12/03/10

Bair on Financial Reforms

In remarks to the Boston Club, Chairman Bair discussed the rational for the financial reforms and how they will address the need for greater responsibility and accountability.
Remarks  12/03/10

Companies Operating Consumer Debt Relief Scams Charged

The FTC has charged three debt relief operations with making unsubstantiated claims to lure consumers nationwide into paying thousands of dollars in up-front fees, but failing to reduce credit card debts as promised.
Scams  12/03/10

CRA Exam Schedule

The OCC has issued its First Quarter 2011 CRA examination schedule. Schedule  12/02/10

Beige Book Updated

The December 1, 2010, edition of the Beige Book has been published by the FRB. Summary; Full Report  12/02/10

FRB Releases Credit Transactions Details

The FRB has posted detailed information on its public website about more than 21,000 individual credit and other transactions conducted to stabilize markets during the recent financial crisis. Transactions  12/02/10

Bair and Walsh on Regulation of Bank Servicing and Foreclosures

In testimony before the Senate Banking Committee, Chairman Bair and Acting Comptroller Walsh discussed the regulation of bank mortgage servicing operations and foreclosure processes. Bair Statement; Walsh Oral Statement; Walsh Written Testimony  12/02/10

MSB List Updated

The FinCEN has updated the MSB List with data current as of November 2, 2010. MSB List  12/02/10

Foreign Exchange Rates

The G.5 Foreign Exchange Rates Report for November 2010, has been released by the FRB. G.5  12/02/10

CRA Exam Schedule

The FDIC has issued the list of institutions that are scheduled for a CRA examination during the first quarter of 2011. Schedule  12/01/10

Iranian Bank and Shipping Lines Subsidiaries Added to OFAC List

The Treasury has announced the designation as NPWMDs of five corporate officers and ten businesses affiliated with either the Islamic Republic of Iran Shipping Lines or Bank Mellat and the addition of their names to the SDN List. Information regarding the additions has been posted on the BOL OFAC page.  12/01/10

Four Written Agreements Announced

The FR has announced the execution of Written Agreements with the following bank holding companies:

1. Southport Financial Corporation, Kenosha, WI;
2. HarVest Bancorp, Inc., Gaithersburg, MD;
3. First South Bancorp, Inc., Spartanburg, SC;
4. FCB Financial Corp., Savannah, GA

Southport; HarVest; First South; FCB  12/01/10

Fall 2010 FDIC Consumer News

The Fall 2010 issue of the FDIC Consumer News has been published and features a quiz for consumers on financial scams. Consumer News  12/01/10

Discount Rate Meetings Minutes

The minutes of the October 18 through November 1, 2010, discount rate meetings of the FRB have been released. Minutes  12/01/10

Auction Results Announce

The results of the November 29, 2010, auction of $5 billion in 28-day term deposits have been announced by the FRB. Auction Results  12/01/10

G.20 Receivables and Terms of Credit Report

The FRB has released the September 2010 Owned and Managed Receivables Outstanding and Auto Loans: Terms of Credit Report. G.20  12/01/10