Top Story Compliance Related

A press release issued by Federal Reserve Board has announced that preliminary unaudited results indicate that the Reserve Banks provided for payments of approximately $77.7 billion of their estimated 2013 net income to the U.S. Treasury.

The Federal Reserve Board and the FDIC have announced the availability of the public portions of resolution plans for 116 institutions that generally had less than $100 billion in qualifying nonbank assets, which submitted plans for the first time in December 2013, the latest group to file resolution plans with the agencies.

Treasury has designated three individuals and three entities under its Specially Designated Global Terrorist (SDGT) program, and added their names to the SDN List. Information on the designations has been posted in a BOL OFAC Update.

Today is the effective date for several of the major CFPB mortgage-related amendments to Regulations X and Z. We burned the midnight oil (well, not quite, but it was late) last night to ensure that our Read a Reg pages were current this morning, with all the January 10 changes melded into the rules. At the top of each affected page is a link back to the earlier version of the page with the old verbiage, with then-pending amendments noted. We'll be doing the same job to blend in the interagency HPML and Bureau ECOA Appraisal Rules for January 18. That will leave our Read a Reg pages annotated with further HPML Appraisal Rule amendments effective July 18, 2015, and Regulation X and Z amendments effective August 1, 2015, implementing the Bureau's Integrated RESPA/TILA Loan Estimate and Closing Disclosure Rule.

A press release issued by Federal Reserve Board has announced that preliminary unaudited results indicate that the Reserve Banks provided for payments of approximately $77.7 billion of their estimated 2013 net income to the U.S. Treasury.

http://www.bankersonline.com/topstory/november01.html

• OTS Announces CRA Examination Schedule for First Quarter 2002

  The OTS published a list of 86 savings associations that are scheduled for Community Reinvestment Act (CRA) examinations during the first quarter of 2002. OTS 01-81 11/30/01

• FDIC Reports Commercial Banks Earn $17.4 Billion in the Third Quarter, 2001

  Insured commercial banks earned $17.4 billion in the third quarter of 2001, a drop of almost 10 percent
  from third quarter profits the year before, the Federal Deposit Insurance Corporation announced. FDIC:PR-83-2001 11/30/01

• Regulators issue final rule to change their regulatory capital standards

  The agencies are changing their regulatory capital standards to address the treatment of recourse obligations, residual interests and direct credit substitutes that expose banks, bank holding companies, and thrifts (collectively, banking organizations) primarily to credit risk. The final rule treats recourse obligations and direct credit substitutes more consistently than the agencies' current risk-based capital standards and adds new standards for the treatment of residual interests, including a concentration limit for credit-enhancing interest-only strips. 66FR59613 (text)
  66FR59613 (pdf) FDIC-PR-82-2001, FDIC:FIL-99-2001, FRB Press Release, OCC:NR 2001-96, OCC 2001-49 11/29/01

• FRB is Proposing to Amend its Risk-based Capital Guidelines

  The FRB is proposing to amend its risk-based capital guidelines to clarify that deferred tax assets in excess of the allowable amount (disallowed deferred tax assets) are included in the items that are deducted from tier 1 capital for the purpose of determining the maximum allowable amount of tier 2 capital that a banking organization may include in qualifying total capital and the maximum allowable amount of term subordinated debt and intermediate-term preferred stock that may be treated as supplementary capital. 66FR59176 text 66FR59176 pdf 11/28/01

• Treasury Issues Anti-Money Laundering Notice

  The notice provides interim guidance to financial institutions on how to comply with the requirements of sections 313 and 319(b) of the USA PATRIOT Act of 2001. These anti-money laundering provisions concern the relationship between U.S. financial institutions and foreign banking institutions. FRB:SR 01-29 Treasury Notice 11/27/01

• OCC Releases CRA Evaluations For 21 National Banks

  The OCC released a list of Community Reinvestment Act (CRA) performance evaluations that became public during the period of October 15 through November 14, 2001. OCC:NR 2001-95 11/28/01

• OCC Announces 10 New Enforcement Actions

  The OCC announced 10 new enforcement actions taken against national banks and individuals currently and formerly affiliated with national banks. OCC:NR 2001-94 11/28/01

• Large credit unions post strong 3rd quarter results

  Federally insured credit unions with assets over $50 million grew a significant 12.81 percent in the first nine months of 2001 while the number of institutions declined slightly, down from 1,558 to 1,547. These institutions represent 15 percent of federally insured credit unions and nearly 83 percent of federally insured credit union assets. NCUA Press Release 11/28/01

• FDIC Distributes Annual Report Form on Indebtedness of Executive Officers and Principal Shareholders to Correspondent Banks

  The FFIEC 004 report is designed to assist an institution's executive officers and principal shareholders in complying with the federal banking agencies' regulations implementing the Act. FDIC:FIL-98-01 11/27/01

• FDIC to Broadcast Preliminary Bank Earnings Live on the Web

  The FDIC will announce preliminary third-quarter 2001 earnings for the commercial banking industry on Thursday,
  November 29, at 10:00 a.m. FDIC Live Broadcast 11/27/01

• NCUA Issues Final Rule on Regulatory Flexibility Program

  The NCUA Board is issuing a final rule that will permit credit unions with advanced levels of net worth and consistently strong supervisory examination ratings to be exempt, in whole or in part, from certain NCUA regulations. The NCUA Board is also issuing a final amendment to the appraisal regulation to increase the dollar threshold from $100,000 to $250,000 for when an appraisal is required. 66FR58656 (text) 66FR58656 (pdf) 11/26/01

• FRB Publishes Correction to Reg K

  The FRB is adopting correcting amendments to the final rule published in the Federal Register of October 26, 2001, regarding international banking operations and the corresponding delegations of authority. 66FR58655 (text) 66FR58655 (pdf) 11/26/01

• OTS Announces 20 October CRA Ratings

  The OTS announced savings associations' Community Reinvestment Act (CRA) performance evaluation ratings that became available in October 2001. OTS 01-79 11/26/01

• OTS Releases October Enforcement Statistics

  The OTS reported that it issued one enforcement order to an institution during the month of October. OTS 01-80 11/26/01

• FRB Releases Minutes from Discount Rate Meeting

  The FRB released the minutes of its discount rate meetings from September 24 to October 2, 2001. 11/19/01

• OCC Issues Semiannual Assessment

  The amendment revises the formula to establish a minimum base amount for the semiannual assessment for the first assessment bracket ($0-$2 million) of the assessment schedule. This change will enable the OCC to modestly adjust its assessments to better align with its costs of supervision. 66FR57645 (text) 66FR57645 (pdf) Correction 66FR58786 (text) 66FR58786 (pdf)11/16/01

• FRB publishes annual adjustment of trigger fee for additional mortgage loan disclosures

  Under the revision to the FRB’s staff commentary to Regulation Z, the dollar amount of the fee-based trigger has been adjusted from $465 for 2001 to $480 for 2002 based on the annual percentage change reflected in the Consumer Price Index that was in effect on June 1, 2001. FRB Press Release
  11/15/01

• Fed Announces Results of Study of the Payments System

  American consumers and businesses make 80 billion retail payments annually, nearly 50 billion by check and 30 billion by electronic instruments, such as credit cards, debit cards and the Automated Clearing House (ACH), according to the first comprehensive studies of the retail payments system by the Federal Reserve System in more than 20 years. FRB Press Release 11/15/01

• Agencies Issue Order Against the State Bank of India

  Federal and state banking regulators announced the issuance of a joint Order to Cease and Desist and Order of Assessment of a Civil Money Penalty and Monetary Payment against the State Bank of India, Mumbai, India, and the bank's three branches in New York, New York, its branch in Chicago, Illinois, and its agency in Los Angeles, California. FDIC-PR-81-2001 11/15/01

• NCUA Issues Order of Prohibition

  The NCUA announced that it has issued an Order of Prohibition against Roslyn Keen, former manager of Millard Fillmore
  Hospital Federal Credit Union in Buffalo, New York. NCUA Press Release 11/15/01

• NCUA Chairman Addresses 4th Faith-Based Conference

  NCUA Chairman Dennis Dollar told 150 representatives of faith-based credit unions that they have “a bright future and fill an important niche in the credit union community” and encouraged them to consider adopting their surrounding communities as a way to help offer a low-cost alternative to predatory lenders. NCUA Press Release 11/15/01

• NCUA Chairman Dennis Dollar releases a statement regarding the U.S. Court of Appeals decision

  "The Court of Appeals’ decision issued represents a tremendous victory for NCUA and credit unions, but it is most of all a decisive win for the concept of consumer choice. We believe strongly that our field of membership rules adhered to both the letter and the spirit of the Credit Union Membership Access Act, and we are so pleased that the court overwhelmingly agreed. It is my hope that this unanimous ruling will be the beginning of the end to the nearly two decades of legal conflict pursued by the banking industry on both NCUA and America's credit unions. NCUA Press Release 11/15/01

• Court Dismisses ABA Challenge to NCUA's Field of Membership Rule

  The United States Court of Appeals dismissed the American Bankers Association suit against NCUA's field of membership regulation issued pursuant to the Credit Union Membership Access Act (CUMAA) November 9, 2001. The court found the ABA's arguments without merit and affirmed the district court's dismissal of the case, except for one claim dismissed as moot and another dismissed as unripe. NCUA Press Release 11/15/01

• FRB Releases Senior Loan Officer Opinion Survey on Bank Lending Practices

  The October 2001 Senior Loan Officer Opinion Survey on Bank Lending Practices focused on changes in the supply of, and demand for, bank loans to businesses and households over the past three months. The survey included supplementary questions on banks' internal credit risk ratings for business loan customers, loans for the purpose of share buybacks, and liquidity in the secondary market for business loans. 11/14/01

• FDIC FIL about OFAC Changes

  The FDIC has published FIL-972001 to notify state-chartered nonmember banks about the 11/7 OAC list changes. [The OFAC change itself was previously covered on BOL.] FDIC:FIL-97-2001 11/14/01

• FRB Issues Advisory on the use of forward equity transactions by banking organizations

  The FRB has determined that shares covered by forward equity arrangements should not be included in the Tier 1 capital of a bank holding company or a state member bank. The amount to be excluded would be equal to the common stock, surplus, and retained earnings associated with the shares. FRB:SR 01-27 11/12/01

• Chairman Greenspan Designate Representatives to Air Transportation Stabilization Board

  FRB Chairman Alan Greenspan today designated Governor Edward M. Gramlich to serve in his place as the chairman of the Air Transportation Stabilization Board. Treasury Secretary Paul O'Neill designated Under Secretary for Domestic Finance Peter Fisher to serve in his place as a Board member and Transportation Secretary Norman Mineta designated DOT General Counsel Kirk Van Tine to serve in his place as a Board member. FRB Press Release 11/12/01

• Challenges Faced by Women in Building and Maintaining Assets

  Remarks by Julie L. Williams, First Senior Deputy Comptroller and Chief Counsel, Office of the Comptroller of the Currency
  Before the McAuley Institute’s 7th National Women and Housing Conference OCC:NR 2001- 93 11/12/01

• NCUA Issues Order of Prohibition

  The NCUA announced that it has issued an Order of Prohibition against Elizabeth A. Maxwell, former manager of Greater Southwest Federal Credit Union in Sugar Land, Texas. NCUA Press Release 11/9/01

• Thrift Holding Companies May Engage in Activities Approved for Financial Holding Companies, Says OTS

  The OTS published a proposed rule revising its regulations to make clear that all thrift holding companies are authorized under the Gramm-Leach-Bliley Act of 1999 to engage in the same list of financial activities as financial holding companies are permitted by the Federal Reserve Board. Gramm-Leach-Bliley gave financial holding companies new powers to engage in activities that are financial in nature, incidental to a financial activity or complementary to a financial activity. 66FR56488 (text) 66FR56488 (pdf) OTS 01-77 11/8/01

• FDIC Report Says Risks in Banks' Loan Portfolios and Loan Administration have Increased Slightly

  FDIC examiners have reported increases in risks in banks' loan portfolios and in the way loans are administered, according to the agency's latest Report on Underwriting Practices, which covers the six months ending September 30, 2001. FDIC:PR-80-2001 11/8/01

• NCUA Chairman Visits New York Credit Unions Recovering from September 11 Attacks

  NCUA Chairman Dennis Dollar received a briefing from leaders of New York credit unions impacted by the tragedy on September 11, as well as NCUA regional staff and representatives of New York state regulatory authorities. NCUA Press Release 11/8/01

• Terrorist Additions to the OFAC SDN List

  OFAC has added additional entities and individuals to the list of SDGTs. The names have been inserted into all versions of the SDN list and the brochure on Terrorism. OCC:Alert 2001-14 11/7/01

• FRB Lowers Fed Funds Rate to 2 Percent

  The FOMC decided to lower its target for the federal funds rate by 50 basis points to 2 percent. In a related action, the Board of Governors approved a 50 basis point reduction in the discount rate to 1-1/2 percent. FRB Press Release 11/7/01

• FDIC Publishes Historical Statistics on Banking

  The Historical Statistics on Banking provides annual statistical information on the banking industry beginning in 1934. These data can be used to identify and analyze long-term trends and to develop benchmarks to evaluate the current condition of the banking and thrift industries. 11/7/01

• FDIC Issues November of Banks Examined for CRA Compliance

  The FDIC issued its monthly list of state nonmember banks recently evaluated for compliance with the Community Reinvestment Act (CRA). The list covers evaluation ratings that the FDIC assigned to institutions in August 2001. FDIC:PR-79-2001 11/6/01

• NCUA Holds Historic Public Budget Briefing Announces 33.5 Staff Reductions In 2002 And Projection Of Planned Budget Decrease in Agency's 2003 Budget

  NCUA held its first open budget briefing with the agency's three-member Board participating with the public in the historic event. The Budget Briefing and Public Forum was announced in September by NCUA Chairman Dennis Dollar as a way to “shed additional light” on the NCUA budget process and allow the credit union industry and interested parties the opportunity to provide views and opinions for the agency's consideration. NCUA Press Release 11/6/01

• Seidman Recounts OTS Accomplishments In Farewell Address to Thrifts

  In her farewell address to the thrift industry, Office of Thrift Supervision Director Ellen Seidman reviewed her four-year
  tenure, a time of enhanced profitability and stability for both OTS and the thrift industry. She focused on her actions to rebuild OTS, enhance communication between the agency and thrifts, and improve the thrift charter. OTS 01-76 11/6/01

• Crossing the Bridge to Self-Employment

  A guide to state and federal programs for people who seek to start their own businesses. 11/6/01

• OTS Outlines Refinements to Mutual Examination Process

  The OTS issued updated guidance on the examination of mutual institutions. OTS 01-75 11/5/01

• OCC Guidance Cautions National Banks on Third Party Relationships

  The OCC issued guidance on managing the risks that arise when national banks have business relationships with third
  parties. OCC:NR 2001- 92 11/5/01

• The National Infrastructure Protection Center (NIPC) issued Advisory 01-026 to advise computer users of the increased potential for distributed denial of service (DDoS) attacks. A previous advisory on DDoS attacks had been issued in September, but the NIPC notes that cyber protests and hacktivist activity have increased since the previous advisory (01-021) was issued and the potential for targeting U.S. organizations is higher than in September. 11/5/01

• Washington Postal Federal Credit Union responds to an onsite crisis

  After two postal workers died from anthrax inhalation at the Brentwood Road Mail Processing Center in northeast Washington, D.C., the facility was shut down Sunday, October 21, 2001. No one can enter the quarantined building for what may be up to 12 weeks. NCUA Press Release 11/2/01

• OTS Issues Proposed Rule to Clarify its Lending and Investment Regulations

  The OTS proposes to revise and clarify its lending and investment regulations to give savings associations greater flexibility in a changing marketplace. The proposed regulatory amendments are intended to help thrifts take better advantage of the flexibility available under the Home Owners' Loan Act (``HOLA''), to provide low-cost credit to their customers, and to invest in their communities while still operating safely and soundly. 66FR55131 (text),
  66FR55131 (pdf) Correction 66FR59050 11/1/01

• OCC Issues Correction to Final Rule the would Amend that Percentage of Capital and Surplus a Bank may Loan

  The OCC recently published a final rule amending part 32, the regulation governing the percentage of capital and surplus that a national bank may loan to any one borrower. Inadvertently, six cross-references in the existing regulation were not amended to reflect changes made by the final rule. 66FR55071 (text),
  66FR55071 (pdf), Original Published Final Rule 11/1/01

• FRB Approves Fee Schedules for Payment Services

  The price level for Federal Reserve priced services in 2002 is projected to increase 2.1 percent from the 2001 level. Because of fee reductions in recent years, the overall price level has risen only 3.5 percent since 1996. FRB Press Release 11/1/01

• FDIC Approves Sale Of Superior Federal Bank, FSB, Hinsdale, Illinois

  The Board of Directors of the FDIC approved the sale of the branches and deposits of Superior Federal Bank, FSB. The winning bidder is Charter One Bank, FSB, Cleveland, Ohio. FDIC:PR-78-2001 11/1/01

• Dollar Calls Overhead Transfer Funding Process Both Congressionally Authorized And Historically Successful

  NCUA Chairman Dennis Dollar has called the agency’s funding process in which a portion of the agency’s budget is allocated to the share insurance fund as an “overhead transfer” to cover insurance-related costs “legally strong and proven successful over 30 years of credit union growth and increased financial stability. NCUA Press Release 11/1/01

• NCUA Issues Order of Prohibition

  The NCUA announced that it has issued an Order of Prohibition against Jill Marie Swatloski, former branch manager of Valley
  Communities Credit Union in Mosinee, Wisconsin. NCUA Press Release 11/1/01

• FDIC Makes Public September Enforcement Actions; One Administrative Hearing Scheduled

  The FDIC released a list of orders of administrative enforcement actions taken against banks and individuals in September. One administrative hearing is scheduled for November. FDIC:PR-77-2001 11/1/01

• OTS Proposes Revising Lending Rule To Enhance Thrift Flexibility, Clarifies Existing Lending Rule, Starts Pilot Program To Ease Disparities

  The OTS proposed changing its lending and investment regulations to allow thrifts greater flexibility to provide low-cost credit to their customers and to invest in their communities while still operating safely and soundly. OTS also reminded thrifts of the lending and investment flexibility they already have under existing rules and announced a pilot program to alleviate competitive lending disparities for thrifts. OTS 01-74 11/1/01

The Federal Reserve Board has published the November 2013 update to the Consumer Compliance Handbook. [Full Manual (711-page PDF); Links to sections] A summary of changes was also released.

Federal Reserve Bank Services has posted the January 2014 issue of FedFocus, which features the results of the 2013 Federal Reserve Payments Study. Other articles discuss the FedTransaction Analyzer tool, the continuation of the America the Beautiful quarters program, business continuity, and new check adjustment webinars.

The Federal Reserve Board has published the November 2013 update to the Consumer Compliance Handbook. [Full Manual (711-page PDF); Links to sections] A summary of changes was also released.

Federal Reserve Bank Services has posted the January 2014 issue of FedFocus, which features the results of the 2013 Federal Reserve Payments Study. Other articles discuss the FedTransaction Analyzer tool, the continuation of the America the Beautiful quarters program, business continuity, and new check adjustment webinars.