Top Stories for November 2013

Company to pay $91 million OFAC penalty

Treasury has announced a $91,026,450 settlement—a record amount outside of the banking industry—with Weatherford International Ltd. and its subsidiaries and affiliates (Weatherford) regarding potential liability for violations of Cuban Assets Control, Iranian Transaction and Sanctions, and Sudanese Sanctions regulations. The base penalty for the 586 violations totaled over $107 million. OFAC determined that Weatherford's conduct was willful, and various executives and senior management knew or had reason to know of the conduct that led to the violations. The penalty was mitigated because Weatherford had not been subject to prior OFAC penalties, took significant remedial steps to ensure future compliance, and substantially cooperated with OFAC's investigation.11/27/13

SDN List removals

OFAC has removed the names of various individuals and entities previously listed on the SDN List with counter narcotics designations. Information regarding the listings removed has been posted in a BankersOnline OFAC Update. 11/27/13

Commercial bank exam manual update

The Federal Reserve Board has published the October 2013 semi-annual update of the Commercial Bank Examination Manual. It can be viewed as one document (1,878 pages) or by section.11/27/13

October residential construction stats

HUD and the Census Bureau have issued a joint press release announcing October 2013 residential construction statistics.11/27/13

Discount rates meeting minutes

The minutes of the Federal Reserve Board discount rates meetings from October 7–October 28, 2013, have been released. 11/27/13

Third Quarter 2013 QBP - earnings decline

An FDIC press release has announced the publication of the September 30, 2013, issue of the Quarterly Banking Profile (QBP), which reports insured commercial banks and savings institutions aggregate net income of $36.0 billion in the third quarter of 2013, a $1.5 billion (3.9 percent) decline from the $37.5 billion in profits reported a year earlier. This is the first time since the second quarter of 2009 (17 quarters) that earnings registered a year-over-year decline. Chairman Gruenberg issued a press conference statement on the report. 11/27/13

NMLS reports

The NMLS has released the Third Quarter 2013 Nationwide View of State-Licensed Mortgage Entities and the NMLS Federal Registry Quarterly reports. 11/26/13

FHFA conservatorship reports

A Federal Housing Finance Agency (FHFA) news release has been issued to announce the release of a Progress Report on the initiatives contained in the Strategic Plan for the Enterprise Conservatorships and the 2013 Conservatorship Scorecard. 11/26/13

G.20 Finance Companies report

The Federal Reserve Board has released the September 2013 G.20 Finance Companies Owned and Managed Receivables Outstanding Report. 11/26/13

CFPB report on regulatory impact on banks

The Bureau has announced the results of a study it conducted on the operational effects of certain regulations for banks, in order to better understand the day-to-day activities financial institutions perform to comply with regulations. The Bureau reviewed operational activities of seven banks ranging in asset size from under $1 billion to over $100 billion by interviewing employees and executives. The study focused on activities relating to compliance with Regulations DD (Truth in Savings Act), E (Electronic Fund Transfer Act), P (Gramm-Leach-Bliley Act financial privacy requirements), V (Fair Credit Reporting Act), and relevant sections of the Fair Credit Reporting Act. 11/25/13

CDIAC meeting records released

The Federal Reserve Board has released the records of the April 5, 2013, and November 8, 2013, meetings of its Community Depository Institutions Advisory Council (CDIAC). 11/25/13

CU succession planning webinar

The NCUA will host a free succession planning webinar on December 17, 2013, at 2 p.m. ET. The session will discuss the importance of establishing an effective succession plan for all levels of a credit union's leadership and management. 11/25/13

NCUA Consumer Protection Update video

The NCUA has announced that the latest installment in its Consumer Protection Update series, which provides an overview of the protections provided by the Servicemembers Civil Relief Act and the Military Lending Act, is available on the NCUA You Tube channel. 11/25/13

Regulators issue final deposit advance products guidance

The OCC and the FDIC have announced the release of final supervisory guidance for financial institutions they regulate on the risks and agency expectations associated with deposit advance products. The two guidance documents, which are substantially alike, were first proposed in April of this year. [OCC Guidance; FDIC Guidance]11/22/13

Fed assesses flood CMPs

Two Civil Money Penalties (CMPs) for violations of the Flood Act have been assessed by the Federal Reserve Board, one in the amount of $5,645 against Midland States Bank, Effingham, Illinois, and the other in the amount of $3,990 against Maquoketa State Bank, Maquoketa, Iowa. Links to the Enforcement Orders have been posted on the BOL Flood Penalties Watch page.11/22/13

NCUA Board Action bulletin

The NCUA has issued a Board Action Bulletin announcing the actions taken at the NCUA Board's November 21, 2013, open meeting. The Board also announced that it anticipates that federally insured credit unions will pay no Corporate Stabilization Fund assessment in 2014. 11/22/13

Cordray comments at Clearing House conference

In prepared remarks at The Clearing House Annual Conference, CFPB Director Cordray shared his thoughts regarding how The Clearing House may be able to work effectively and productively with the CFPB. 11/22/13

Annual exemption threshold update

The Federal Reserve Board and the Consumer Financial Protection Bureau have announced they are increasing the dollar thresholds in Regulation Z (Truth in Lending) and Regulation M (Consumer Leasing) for exempt consumer credit and lease transactions. Transactions at or below the thresholds are subject to the protections of the regulations. The applicable threshold amount has been increased, effective January 1, 2014, to $53,500—an increase of $500 over the threshold applicable during 2013. 11/22/13

Cash America to pay $5M fine and refund $14M

The CFBP has announced it has issued its first enforcement action against a payday lender, with a Consent Order against Cash America International, Inc. The Order requires the Fort Worth, Texas lender to refund up to $14 million to consumers for robo-signing in connection with its collection efforts, illegally overcharging servicemembers in violation of the Military Lending Act, and impeding the Bureau's investigation by destroying records after being directed to preserve them. The refunds are in addition to the payment of a $5 million fine for the violations. 11/21/13

CFPB posts final TILA/RESPA disclosure rule

The CFPB has unveiled the 1,888-page final TILA-RESPA integrated disclosure rule. It has also posted articles on the CFPB Blog explaining differences between the Bureau's August 23, 2012, proposed rule and the final rule, and on how the new disclosures will improve the way consumers receive mortgage loan information.11/21/13

NMLS Call Center changes

The NMLS has posted a notice that its Call Center will be open weekdays from 9 a.m. to 9 p.m. ET. It has also set up a new toll-free number for the Call Center, 855-NMLS-123 (855-665-7123). 11/21/13

FOMC minutes and statement

The minutes and statement from the October 29–30, 2013, meeting of the Federal Open Market Committee (FOMC) have been released. 11/21/13

OTS documents rescinded

OCC Bulletin 2013-34 has been issued to announce the rescission of a specified list of Office of Thrift Supervision (OTS) compliance documents. 11/21/13

Integrated mortgage disclosures in August 2015

August 1, 2015, was established as the effective date for the long-anticipated final rule that will end over thirty years of overlapping, confusing early and consummation disclosures under the Real Estate Settlement Procedures Act (RESPA) and the Truth in Lending Act (TILA). The Consumer Financial Protection Bureau has announced its final rule that will require the use of integrated RESPA/TILA disclosures (the "Loan Estimate") within three business days of application for a residential mortgage loan to improve consumer understanding and facilitate comparison shopping. The rule will also require that the Closing Disclosure—also integrating RESPA and TILA requirements—be provided three business days before consummation of the loan.

In a Fact Sheet about the consumer testing of the "Know Before You Owe" disclosures released with the press announcement, the CFPB announced that it has postponed any redefinition of the Annual Percentage Rate on mortgage loans, which, according to the public feedback on the proposal, "might have affected the types of loans available to consumers." Instead, said the Bureau, the question of better defining the APR will be included as part of the agency's five-year review of the rule. Other key CFPB decisions announced in that document include:

• Inclusion in the final rule of Spanish-language versions of the disclosure forms
• The addition to the forms of checkboxes to make it clearer to consumers whether they will receive or pay cash at their mortgage closing
• Postponement of a proposed requirement to retain records in an electronic, machine-readable format, due to industry requests for a more specific data standard for such records
• Elimination in all but a few situations of a proposed requirement to provide corrected Closing Disclosures (with another three-day waiting period) in the event of changes. Redisclosures will, however, be required for substantial changes in the APR, changes in the loan product, and the additional of a prepayment penalty provision.
• A proposal to use the "precise" business day definition (which includes Saturdays) for determining the date by which the Loan Estimate must be delivered was dropped. Instead, the other Regulation Z business day definition (days on which the lender is open for business) will apply.

As of this writing, the complete Final Rule has not yet been posted by the CFPB. 11/20/13

JPMorgan in record settlement

The Department of Justice has announced a multi-party settlement with JPMorgan to resolve federal and state civil claims arising out of the packaging, marketing, sale and issuance of residential mortgage-backed securities (RMBS) by JPMorgan, Bear Stearns and Washington Mutual prior to Jan. 1, 2009. As part of the settlement, JPMorgan acknowledged it made serious misrepresentations to the public - including the investing public - about numerous RMBS transactions. Of the record-breaking $13 billion resolution, $9 billion will be paid to settle federal and state civil claims by various entities related to RMBS. Of that $9 billion, JPMorgan will pay $2 billion as a civil penalty to settle the Justice Department claims under the Financial Institutions Reform, Recovery, and Enforcement Act (FIRREA), $1.4 billion to settle federal and state securities claims by the National Credit Union Administration (NCUA), $515.4 million to settle federal and state securities claims by the Federal Deposit Insurance Corporation (FDIC), $4 billion to settle federal and state claims by the Federal Housing Finance Agency (FHFA), $298.9 million to settle claims by the State of California, $19.7 million to settle claims by the State of Delaware, $100 million to settle claims by the State of Illinois, $34.4 million to settle claims by the Commonwealth of Massachusetts, and $613.8 million to settle claims by the State of New York. JPMorgan will pay out the remaining $4 billion in the form of relief to aid consumers harmed by the unlawful conduct of JPMorgan, Bear Stearns and Washington Mutual. 11/20/13

December 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 December 2013 will be subject to HOEPA (Regulation Z § 32) 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. 11/20/13

Calvery testimony and remarks

FinCEN Director Calvery testified before a subcommittee of the Senate Banking Committee and discussed efforts to establish a meaningful regulatory framework for virtual currencies that intersect with the U.S. financial system. The Director also delivered remarks at the American Bankers Association/American Bar Association Money Laundering conference regarding the activities of the Bank Secrecy Act Advisory Group. 11/20/13

FRB Payment Systems quarterly updates

The Federal Reserve has posted the third quarter 2013 Fedwire Funds Service, Fedwire Securities Service, and National Settlement Service updates. 11/20/13

Community banks regulatory capital estimation tool

The federal bank regulatory agencies have issued a joint press release announcing the release of an estimation tool to help community banks understand the potential effects of the recently revised regulatory capital framework on their capital ratios. 11/20/13

Bureau issues report on financial marketing and education

A report, Navigating the Market, has been published by the CFPB. The report analyzes the amount of money spent on providing financial education to consumers and the amount spent trying to influence consumers' decisions about financial products. A Bureau news release on the report states that for every dollar put towards financial education, $25 is spent on financial marketing. 11/19/13

FTC stops Google Money Tree scammers

A settlement has been announced by the FTC concerning allegations that a payment processor used unfair tactics to open and maintain scores of merchant accounts which perpetrated the "Google Money Tree" work-at-home scheme and charged more than $15 million in unauthorized charges on consumers' debit and credit card accounts. Under the proposed settlement, Process America, Inc., and its owners agree to individual permanent injunctions on their activities. 11/19/13

Reserve Maintenance Manual updated

The Federal Reserve System has updated the Reserve Maintenance Manual to reflect the annual indexing of values used in the calculation of reserve requirements on the FR 2900 form. 11/19/13

Bureau files brief in tribal lending suit

The CFPB Monitor has reported that the CFPB has filed an amicus brief in the U.S. Court of Appeals for the Second Circuit in The Otoe-Missouria Tribe of Indians et al. v. New York Department of Financial Services et al., in which tribal lenders are appealing a district court ruling that the New York state financial regulator could take action to enforce state consumer protection laws against the lenders. 11/19/13

OCC extreme weather guidance

The Office of the Comptroller of the Currency has issued a news release encouraging national banks and federal savings associations to work with customers affected by the recent tornadoes in the Midwest United States. They are directed to review Bulletin 2012-28 which sets out supervisory guidance regarding a disaster that may affect a bank's operations or customers. 11/19/13

Calvery testifies on virtual currencies

In testimony before the Senate Committee on Homeland Security and Government Affairs, FinCEN Director Calvery discussed the agency's ongoing role in efforts to establish a meaningful regulatory framework for virtual currencies that intersect with the U.S. financial system. 11/19/13

CU liquidity and contingency funding video

The National Credit Union Administration has announced the availability of a new video to assist credit unions in liquidity and contingency funding plans. The video, on the NCUA YouTube channel, provides insights into the purpose of the agency's recent final rule on liquidity and contingency funding, who should follow the rule, compliance deadlines and additional resources available to credit unions. 11/19/13

The NCUA Report

The November 2013 issue of The NCUA Report has been posted. The issue highlights important NCUA Board actions and key issues that credit union volunteers and management need to be familiar with. 11/19/13

FEMA to suspend participating communities

The Federal Emergency Management Agency has published two notices in the November 18, 2013, Federal Register to identify communities where the sale of flood insurance has been authorized under the National Flood Insurance Program (NFIP) that are scheduled for suspension because of noncompliance with the floodplain management requirements of the program. The notice at 78 FR 68999 lists communities in Mason County, West Virginia and Wayne County, Michigan that will be suspended starting December 3, 2013. The other notice, at 78 FR 69001, lists communities in Webster County, Kentucky; Steuben County, Indiana; and Kay and Osage Counties, Oklahoma that will be suspended starting December 17, 2013. 11/18/13

Final revisions to interagency CRA Q&As

A joint press release has been issued by the federal bank regulatory agencies with responsibility for Community Reinvestment Act (CRA) rulemaking, to announce the publication of final revisions to "Interagency Questions and Answers Regarding Community Reinvestment." 11/18/13

OCC enforcement actions

The OCC has announced enforcement actions recently taken against national banks, federal savings associations, and individuals currently and formerly affiliated with such institutions. The actions include $186,880 in flood civil money penalties (CMPs) against three financial institutions. Information regarding the CMPs has been posted on the BOL Flood Penalties Watch page. 11/18/13

CFPB announces mortgage kickbacks complaint

The Bureau has announced its filing of a Complaint against Republic Mortgage Insurance Corporation (RMIC), for allegedly paying illegal kickbacks to mortgage lenders in exchange for business for over ten years under captive mortgage reinsurance arrangements. Under a proposed Consent Order, RMIC would pay a $100,000 civil money penalty and would cease participating in such arrangements. 11/18/13

November FedFlash

Federal Reserve Financial Services has published the November 15, 2013, issue of FedFlash. This installment features articles on a new Account Management webinar, the FedReturns mixed image cash letter deposit deadline, holiday currency information and the FedGlobal Formatting Aid. 11/18/13

Industrial production and charge-off reports

The Federal Reserve has released the October 2013 G.17 Industrial Production and Capacity Utilization Report and the Third Quarter 2013 Charge-Off and Delinquency Rates on Loans and Leases at Commercial Banks Report. 11/18/13

Cartel security boss and company designated

Treasury has announced the designations of Arnoldo Villa Sanchez, the chief of security for Hector Beltran Leyva, the leader of the Beltran Leyva drug trafficking organization, as a specially designated narcotics trafficker (SDNT) pursuant to the Foreign Narcotics Kingpin Designation Act (Kingpin Act). A private security firm owned and controlled by Arnoldo Villa Sanchez was also designated along with one of his associates. Information concerning the designations has been posted in a BOL OFAC Update. 11/15/13

Bernanke presentation to Union of Arab Banks

Chairman Bernanke delivered comments via prerecorded video at the 40th anniversary of the Annual Conference of the Union of Arab Banks. Bernanke spoke on the Federal Reserve Banks' interaction with Arab banking and financial communities. 11/15/13

Written agreement

The Federal Reserve Board has announced the execution of a Written Agreement with North Milwaukee Bancshares, Inc., Milwaukee, Wisconsin. 11/15/13

NCUA board meeting agenda

The agenda for the November 21, 2013, meeting of the NCUA board of directors has been posted. 11/15/13

CFPB holds auto finance forum

A CFPB news release has reported the comments offered by Chairman Cordray at the agency's Auto Finance Forum held yesterday at the CFPB's Washington headquarters. 11/15/13

Counter terrorism designations

The Treasury Department has announced the OFAC designations of two Nigerian entities as SDGTs and the addition of their names to the OFAC SDN List. Information regarding the entities has been posted in a BOL OFAC Update.11/14/13

CFPB Interpretive Rule published

The Bureau's Housing Counseling Organizations Lists Interpretive Rule, announced in connection with the November 8 unveiling of its tool to help consumers find such counselors, has been published [78 FR 68343] in today's Federal Register. The rule describes data instructions for lenders to use in complying with the requirement under the High-Cost Mortgage and Homeownership Counseling Amendments to the Truth in Lending Act (Regulation Z) and Homeownership Counseling Amendments to the Real Estate Settlement Procedures Act (RESPA Homeownership Counseling Amendments) Final Rule to provide a homeownership counseling list using data made available by the Bureau or Department of Housing and Urban Development (HUD). 11/14/13

FRB TDF offering

A Federal Reserve System press release has announced a fixed-rate offering on November 18, 2013 of term deposits with full allotment of tenders through its Term Deposit Facility (TDF). Twenty-eight-day term deposits with an interest rate of 0.26000 percent and a maximum tender amount of $1.25 billion will be offered. 11/14/13

Curry on community development and investment

In remarks at the National Community Investment Fund Conference, Comptroller Curry discussed ways to help Community Development Financial Institutions obtain grants and capital from fund sources and to broaden partnership opportunities. He also discussed the favorable treatment available for community development activities in recently-issued regulatory guidance. 11/14/13

New FinCEN rulings

FinCEN has issued rulings on Application of the Prepaid Access Rule to Closed Loop Prepaid Access Sold or Exchanged in a Secondary Market [FIN-2013-R003] and Whether a Company that Offers a Payment Mechanism Based on Payable-Through Drafts to its Commercial Customers is a Money Transmitter [FIN-2013-R002]. 11/14/13

OCC independent consultant standards

The Office of the Comptroller of the Currency has issued a news release and Bulletin 2013-33 to announce the publication of standards governing the use of independent consultants in enforcement actions involving significant violations of law, fraud, or harm to consumers. The standards describe the criteria the OCC will use in determining whether the agency would require a national bank or federal savings association to retain a consultant, as well as the institution's obligation to exercise due diligence to ensure the consultant has sufficient independence, capacity, resources, and expertise. 11/13/13

Boston field hearing location announced by CFPB

The CFPB will conduct a field hearing at the Back Bay Events Center in Boston, Massachusetts at 11 a.m. ET on November 20, 2013. The topic, Know Before You Owe: Mortgages, will be discussed by CFPB Director Cordray. Testimony will be received from consumer groups, industry representatives, and members of the public. The event is open to the public and requires an RSVP. Industry sources are anticipating the possibility that the event will also be used to announce the Bureau's final rule on integrated RESPA and TILA early and pre-consummation disclosures. 11/13/13

NACHA posts proposed rules changes

NACHA – The Electronic Payments Association has announced its publishing of two proposed rules that are complementary approaches to improving ACH Network quality by reducing the incidence of exceptions. Comments on the proposals will be accepted through January 13, 2014. 11/13/13

FATF report on West Africa terrorist financing

The Financial Action Task Force (FATF) has issued a report identifying the methods used by terrorists, terrorist groups, and their supporters in the West African region to collect, transfer and utilize funds. The report aims to help policymakers, regulatory and enforcement authorities as well as reporting entities, to gain a better understanding of the nature and dynamics of terrorist financing in the West African region. 11/13/13

Counterfeit cashier's check alerts

The OCC has issued two Alerts concerning counterfeit cashier's checks bearing the names of First National Bank Albany/Breckenridge, Albany, Texas and Liberty Savings Bank, FSB, Saint Cloud, Minnesota. Information regarding the counterfeit cashier's checks has been posted on the BOL Alerts & Counterfeits Page. 11/13/13

FDIC 2014 stress testing

An FDIC press release has announced the release of the economic scenarios for the 2014 stress testing of certain financial institutions with total consolidated assets of more than $10 billion for stress tests required under the Dodd-Frank Act. 11/13/13

CFPB issues homeownership counseling bulletin

CFPB Bulletin 2013 has been issued to provide guidance to lenders regarding the 2013 HOEPA Final Rule, which requires lenders to provide applicants for federally-related mortgages with a written list of HUD-approved housing counseling agencies. The list may be obtained from the CFPB website or generated by a lender using the HUD data. If a lender is unable to develop the list by the January 10, 2014 effective date, it can direct borrowers to the CFPB site. Suggested referral text is provided in the Bulletin. The Bureau also issued a press release to announce the availability of its housing counseling organization locator tool. 11/12/13

Debt collection ANPR published

The Bureau's previously-announced (see our Top Stories for November 6) Advance Notice of Proposed Rulemaking (ANPR) relating to consumer protection rules for debt collection practices has been published in today's Federal Register [78 FR 67847]. Any final rule resulting from the ANPR would become Bureau Regulation F. Comments are due by February 10, 2014. 11/12/13

October Housing Scorecard

Press releases issued by HUD and Treasury have announced the release of the October 2013 Housing Scorecard, a comprehensive report on the U.S. housing market.11/12/13

Bernanke on 'The Crisis'

In a presentation at the Fourteenth Jacques Polac Annual Research Conference in Washington, D.C., Federal Reserve Board Chairman Bernanke noted the recent global crisis is best understood as a classic financial panic transposed into the novel institutional context of the 21st century financial system. He compared and contrasted the crisis with historical financial events. Bernanke said, "The challenge for policymakers is to identify and isolate the common factors of crises, thereby allowing us to prevent crises when possible and to respond effectively when not." 11/142/13

CFPB issues financial adviser consumer guide

The Bureau has posted an article to aid senior consumers in their selection of a financial adviser. A guide, Know your financial adviser, has been released that contains questions that should be asked when shopping for an adviser. Seniors are also referred to the Bureau's previously released guide Money Smart for Older Adults—Prevent Financial Exploitation. 11/12/13

Mortgage company to pay for steering violations

The CFPB has announced a proposed consent order in its enforcement action against Castle & Cooke Mortgage, LLC. The Order, which requires court approval, calls for $9 million in restitution and a $4 million civil money penalty for alleged steering of consumers into costlier mortgages. Under the proposal, two of the company's officers, who are alleged to have paid out loan officer bonuses that were illegal under the current anti-steering provisions of Regulation Z, would be jointly and severally liable for the restitution and penalty payments. 11/08/13

2013 FFIEC CRA data collection guide

The FFIEC has released the 2013 Guide to CRA Data Collection and Reporting. The Guide provides a summary of responsibilities and requirements, directions for assembling the necessary tools, and instructions for reporting CRA data.11/08/13

Fed Payment Services quarterly updates

Federal Reserve Payment Services has issued its third quarter 2013 updates of the following reports:

• Commercial Checks Collected through Fed
• Commercial Checks Returned through Fed
• Government Checks
• Postal Money Orders
• ACH (Commercial)
• ACH (Government)
• $1 coin inventories, payment and receipts

11/08/13

Fed on stress test processes

The Federal Reserve Board has announced its issuance of a final policy statement describing the processes it will use to develop scenarios for future capital planning and stress testing exercises. Also issued were revised macroeconomic scenarios for the 2014 capital planning and stress testing program to correct a minor computational error for the projections of the five-year Treasury yield in the baseline and adverse scenarios. 11/08/13

November FedFocus

Federal Reserve Financial Services has published the November 2013 issue of FedFocus, which features articles on investing in technological enhancements to help deliver faster, more efficient payments processing. 11/08/13

NCUA holding Remittances and Mortgage Lending webinars

A news release from the NCUA has announced a free, two-part webinar series, "New Dodd-Frank Remittances and Mortgage Lending Rules," scheduled at 2 p.m. ET on Monday, November 18, 2013, and Wednesday, December 18, 2013. Click here to register for the November 18 session and here for the December 18 session. 11/08/13

Comptroller's Handbook updates

Bulletin 2013-30 and Bulletin 2013-31 have been issued by the OCC to announce the update of the "Insider Activities" and the addition of a new "Qualified Thrift Lender" booklets of the Comptroller's Handbook. 11/07/13

Bureau on payday loans

The CFPB has posted two payday loan articles on its Blog. One discusses how to submit a payday loan complaint and the other explains what military families should know about payday loans. 11/07/13

FDIC rule proposed

The FDIC has published a notice of proposed rulemaking to implement a section of the Dodd-Frank Act ("Dodd-Frank Act") prohibiting individuals or entities that have, or may have, contributed to the failure of a "covered financial company" from buying a covered financial company's assets from the FDIC. This proposed rule establishes a self-certification process that is a prerequisite to the purchase of assets of a covered financial company from the FDIC. Comments on the proposal are due by January 6, 2014. 11/07/13

Bureau considers debt collection rules

The Consumer Financial Protection Bureau today announced a first step toward considering consumer protection rules for the debt collection market. Through its Advance Notice of Proposed Rulemaking (ANPR), the Bureau is collecting information on a wide array of issues, including the accuracy of information used by debt collectors, how to ensure consumers know their rights, and the communication tactics collectors employ to recover debts. The Bureau also announced today that it will begin adding consumer complaints about debt collections to its public Consumer Complaint Database. Comments on the ANPR will be received for 90 days following its publication in the Federal Register. 11/06/13

HUD approves disaster recovery plans

HUD has announced the approval of disaster recovery plans for Massachusetts, Vermont, Tennessee, Alabama, Texas, Louisiana, North Dakota, Pennsylvania, and Joplin, Missouri. 11/06/13

$12.1M to be paid by Deutsche Bank subsidiary

A HUD press release has announced that MortgageIT, Inc., an indirect subsidiary of Deutsche Bank, has agreed to pay $12.1 million under a Conciliation Agreement with HUD, to resolve allegations that the residential lender discriminated against African American and Hispanic borrowers seeking mortgage loans. HUD had alleged that the lender's practices contributed to minority borrowers being charged higher APRs and fees than similarly-situated white borrowers, and denied minority applicants loans more often than similarly-situated white applicants. 11/06/13

FHFA to ban servicer expense reimbursements

The Federal Housing Finance Agency (FHFA) has announced that it has directed Fannie Mae and Freddie Mac to prohibit servicers from being reimbursed for expenses associated with captive reinsurance arrangements. A notice had been published in the Federal Register and reported in the March 29, 2013, BOL Top Stories regarding concerns that the practices expose Fannie Mae and Freddie Mac to potential losses as well as litigation and reputation risks. 11/06/13

2014 Reserve Requirements tweaks announced

The Federal Reserve Board has announced the annual indexing of the reserve tranche amounts used in determining the 2014 reserve requirements of depository institutions and deposit reporting panels. 11/06/13

Bureau publishes remittance rule safe harbor list

The CFPB has published in the Federal Register [78 FR 66251] the current "safe harbor" list of countries to which remittance transfers may be sent using estimates under § 1005.32(b)(1)(i)(A). The list includes the same countries listed earlier (Aruba, Brazil, China, Ethiopia and Libya). The list is effective as of October 28, 2013, when the remittance rule became effective. 11/06/13

Call for uniform derivatives contract language

An FDIC press release has been issued regarding a joint letter authored by the FDIC, Bank of England, German Federal Financial Supervisory Authority and Swiss Financial Market Supervisory to encourage the International Swaps and Derivatives Association, Inc. to adopt language in derivatives contracts to delay the early termination of those instruments in the event of the resolution of a global systemically important financial institution. 11/06/13

OCC director's workshops in Phoenix

The OCC will host its last two workshops for 2013 in Phoenix, Arizona on December 3–4 for directors of national community banks and federal savings associations. The "Compliance Risk: What Directors Need to Know" and "Credit Risk: A Director's Focus" workshops are designed exclusively for directors of institutions supervised by the OCC. The fee is $99 for each workshop and each session is limited to the first 35 registrants. 11/06/13

NCUA launches consumer protection update

A news release from the NCUA has announced the release of a three-part Consumer Protection Update and the posting of supporting content on the agency's YouTube site, to explain the new rules on international remittances and mortgage lending. 11/06/13

BofA settles HUD discrimination allegation

HUD has announced Bank of America (BofA) has agreed to pay $45,000 as part of Conciliation Agreements resolving allegations the lender discriminated against pregnant women seeking mortgage loans. HUD had alleged that BofA refused to refinance the mortgages of two couples in California and Texas, because the women were on maternity leave. 11/05/13

Marketable borrowing estimates

Treasury has announced its current estimates of net marketable borrowing for the October–December 2013 and January–March 2014 quarters. 11/05/13

SCOOS Report

The October 2013 Senior Credit Officer Opinion Survey (SCOOS) on Dealer Financing Terms has been released by the Federal Reserve Board. 11/05/13

CRA ratings

The list of state nonmember banks recently evaluated by the FDIC for compliance with the Community Reinvestment Act (CRA) has been released. Six banks received an Outstanding rating. 11/05/13

CFPB to revisit discrimination in auto lending

On March 21, 2013, the CFPB issued Bulletin 2013-02 to help lenders that offer auto loans through dealerships make sure they are following the law. The Bureau has posted an article discussing ways responsible lenders can make sure they are following the proper procedures. In addition, an auto finance forum will be held at the CFPB's Washington headquarters on November 14, 2013. It should be noted that the Bureau's involvement of banks in "policing" auto dealer loan pricing is under Congressional scrutiny. 11/05/13

NCUA publishes capital plan and stress testing proposal

The NCUA has published [78 FR 65583] in the Federal Register a proposal that would require federally insured credit unions with assets of $10 billion or more to submit capital plans annually and to subject those credit unions to stress testing. Comments on the proposal are due by December 31, 2013. 11/04/13>

FEMA community suspensions

The Federal Emergency Management Agency has published in the Federal Register a list of communities in Indiana, Michigan, Wisconsin, Texas, Colorado and Nevada where the sale of flood insurance has been authorized under the National Flood Insurance Program (NFIP), that are scheduled for suspension on November 20, 2013, because of noncompliance with the floodplain management requirements of the program. 11/04/13

Large bank stress testing scenarios

The Federal Reserve Board and the Office of the Comptroller of the Currency have announced the supervisory scenarios that will be used in the 2014 capital planning and stress testing program, as well as instructions to firms with timelines for submissions. 11/04/13

Counterfeit cashier's checks

The OCC has issued Alerts 2013-21 and 2013-22 regarding counterfeit cashier's checks bearing the names of Universal Bank, West Covina, California, and Urban Trust Bank, Lake Mary, Florida. Information concerning the alerts have been posted on the BOL Alerts & Counterfeits page. 11/04/13

Foreign exchange rates

The G.5 Foreign Exchange Rates report for October 2013 has been released by the FRB.11/04/13

Philadelphia CU in conservatorship

The NCUA has announced it has assumed control of service and operations at Mayfair Federal Credit Union, Philadelphia. Pennsylvania. 11/04/13

CFPB field hearing

The CFPB has announced a "Know Before You Owe: Mortgages" field hearing will be held in Boston on November 20, 2013, at 11 a.m. EST. The hearing is open to the public and requires an RSVP. 11/04/13

OCC Community Developments newsletter

The Fall 2013 issue of Community Developments Investments has been posted online by the OCC. The issue features information regarding how national banks and federal savings associations can be sources of financing for facilities that generate renewable energy, including wind energy installations, and in certain circumstances, they can invest in such facilities using the public welfare investment authority. 11/04/13

FDIC webinar announced

FDIC FIL-53-2013 has been published to announce a webinar titled Lending in Native Communities: From Opportunity to Success, to be held on November 22, 2013, from 3:00 p.m. to 4:00 p.m. (EST). The program will include examples of successful bank efforts to expand economic inclusion and lending in Native American, Alaska Native, and Hawaiian American communities. To participate, register by November 20.11/04/13

CFPB and community-based organizations

The Bureau has posted an article detailing how community-based organizations can do business with the agency. 11/04/13

OFAC Increases Sanctions on Fugitive Drug Lord

Treasury has announced the designation of 20 entities and one individual linked to Rafael Caro Quintero, a major Mexican narcotics trafficker and fugitive from U.S. justice for his role in the murder of an agent of the Drug Enforcement Administration. Caro Quintero was identified as a significant foreign narcotics trafficker pursuant to the Foreign Narcotics Kingpin Designation Act (Kingpin Act) in 2000. Each entity designated today is owned or controlled by one or more individuals previously designated because they act on behalf of Caro Quintero. Changes were also made to five existing listings. See the BOL OFAC Update Page for details. 11/01/13

Written Agreement with Pakistani bank

The Federal Reserve Board has announced the execution of a Written Agreement with United Bank Limited, Karachi, Pakistan, and United Bank Limited, New York Branch. The Agreement requires steps to address deficiencies relating to the Branch's risk management and compliance with applicable federal and state laws, rules, and regulations relating to anti-money laundering compliance, including the Bank Secrecy Act, the requirements of Regulation K to report suspicious activity and maintain an adequate BSA/AML compliance program, particularly with regard to international remittance services. 11/01/13

Information sharing fact sheet

FinCEN has issued a Section 314(b) Fact Sheet to encourage certain information sharing between financial institutions. 11/01/13

NCUA prohibition orders

The NCUA issued four orders in October 2013 prohibiting the named individuals from participating in the affairs of any federally insured financial institution. 11/01/13

Health FSAs Use-or-Lose Rule modified

Treasury and the IRS have issued a notice and fact sheet on the modification of the longstanding "use-or-lose" rule for health flexible spending arrangements (FSAs). To make health FSAs more consumer-friendly and provide added flexibility, the updated guidance permits employers to allow plan participants to carry over up to $500 of their unused health FSA balances remaining at the end of a plan year. 11/01/13

Federal Reserve Services 2014 fee schedule approved

The Federal Reserve Board has announced the approval of fee schedules, effective January 2, 2014, for payment services the Federal Reserve Banks provide to depository institutions (priced services). 11/01/13

Lew on world economy

In remarks prepared for delivery at the SelectUSA 2013 Investment Summit, Treasury Secretary Lew discussed the state of the world economy and the actions taken by various governments. 11/01/13

Foreign Securities Held report

The survey of U.S. portfolio holdings of foreign securities at year-end 2012 has been released by Treasury. 11/01/13

Auctions of CCP investments announced

Treasury has announced its intention to sell Capital Purchase Program (CCP) investments in seven entities held under the Troubled Asset Relief Program (TARP). Treasury expects to begin the auctions, which will be offered principally to domestic qualified institutional buyers and certain domestic institutional accredited investors, on or about November 4, 2013. The auctions are expected to close at 6:00 pm, Eastern time, on November 7, 2013. 11/01/13

G.20 Finance Companies report

The August 2013 G.20 Finance Companies Owned and Managed Receivables Outstanding and Auto Loans: Terms of Credit Report has been released by the Federal Reserve Board. 11/01/13