November 2000
FRB Issues Proposal to Expand HMDA Reporting
The FRB has published a proposal to amend Regulation C, Home Mortgage Disclosure, to increase the
amount of information that institutions report on the Loan Application Register. The number of items
reported would increase from 13 to 17 items.
Article written by Lucy Griffin on Reg C Proposal
FRB Press Release (11/30/00)
FDIC Distributes the FFIEC 004 Form
The FDIC has sent out the FFIEC 004 report that may be used to comply with the reporting requirements of Title VIII of the Financial Institutions Regulatory and Interest Rate Control Act of 1978.
FDIC: FIL-82-2000 (11/30/00)
Greenspan Issues Statement on the Death of Henry B. Gonzalez
FRB Chairman Alan Greenspan issued the following statement: I was saddened to hear of the passing of former House Banking Committee Chairman Henry B. Gonzalez.
FRB Press Release (11/30/00)
FFIEC Releases Guidance on Technology Outsourcing
The FFIEC issued guidance on financial institutions' management of risk arising from technology services supplied by outside firms. FFIEC Press Release
(11/30/00)
FDIC Issues Notice on Risk Management Of Technology Outsourcing
The FDIC, together with the other federal regulators of banks, thrifts and credit unions, issued joint guidance on managing the risk exposure an institution faces when it uses outside firms for technology.
FDIC: FIL-81-2000 (11/29/00)
Large Credit Unions Post Continued Growth
The 1,505 federally insured credit unions with assets over $50 million posted continued growth through the first nine months of 2000 according to call report data.
NCUA Press Release (11/29/00)
HMDA Heads Up!
The Federal Reserve Board has scheduled a Board Meeting for Wednesday, November 29, 2000, to consider proposing modifications to Regulation C and the HMDA LAR. In spite of the FRB's low-key announcement, this proposal promises to be a bombshell. The FRB may propose to modify the LAR to incorporate information, such as the APR, designed to identify patterns and instances of predatory lending.(11/28/00)
Agencies Urge Banks and Thrifts to Evaluate Risks with Vendors
The OCC and OTS alerted national banks and federal thrifts that the agencies have significant safety and soundness, compliance and consumer protection concerns with banks and thrifts entering into contractual arrangements with vendors to fund so-called “title loans†and “payday loans.â€
OCC: NR 2000-88 and
OTS 00-99 (11/28/00)
OCC Issues Warning on Title Loan Companies
It has come to the attention of the OCC that title loan companies are approaching national banks urging them to enter into contractual arrangements to fund title loans. These arrangements also can
involve the sale to the title loan company of the loans or servicing rights to the loans. The OCC has significant safety and soundness, compliance, and consumer protection concerns with title lending and with these arrangements.
OCC: AL 2000-11 (11/28/00)
OCC Issues Advisory on Pay Day Lending
The OCC is issuing an advisory letter to ensure that any national bank that engages in payday lending does so in a safe and sound manner and does not engage in abusive practices that would increase the compliance, legal, and reputation risks associated with payday lending and could harm the bank's customers.
OCC: AL 2000-10 (11/28/00)
FDIC Publishes Enforcement Actions
The FDIC released a list of orders of administrative enforcement actions taken against banks and individuals in October. No administrative hearings are scheduled for December.
FDIC: PR-81-2000 (11/28/00)
OCC Puts Asset Management Handbook Online
The Comptroller's Handbook booklet "Asset Management" is now available on the Internet. The keystone of the Asset Management series of handbook booklets, the booklet provides an overview of the asset management business and guidance on sound risk management processes. (11/27/00)
OTS Sets Schedule for Implementing Changes to Thrift Financial Report
The OTS will phase in proposed changes to the Thrift Financial Report in response to thrift industry requests for more time to implement the changes. OTS will delay collecting information on subprime and high loan-to-value lending until September 2001, but will begin collecting consolidated financial data on savings and loan holding companies it regulates starting with the March 2001 TFR. OTS 00-98 (11/27/00)
FRB Issues Final Rule to Adjust Dollar Amount for Certain Mortgages
As reported last week, the FRB published in the Federal Register, a final rule amending the staff commentary that interprets the requirements of Regulation Z . The FRB is required to adjust annually the dollar amount that triggers requirements for certain mortgages bearing fees above a certain amount. The adjusted dollar amount for 2001 is $465. (11/27/00)
NCUA Issues Proposed Rule to Revise Regulations
The NCUA is proposing a revised regulation to categorize activities deemed to be within the incidental powers of a federal credit union. (11/27/00)
IRS Announces 2001 Standard Mileage Rates
The IRS announced the optional standard mileage rates to use for 2001 in computing the deductible costs of operating an automobile for business, charitable, medical or moving expense purposes. (11/27/00)
Pension Plan Limitations for Tax Year 2001
The IRS announced cost-of-living adjustments applicable to dollar limitations for pension plans and other items for Tax Year 2001. (11/27/00)
FRB Announces New Internet Resource
The FRB announced a new Internet resource designed to help bankers and bank examiners apply consumer regulations to Internet banking. The Checkers Bank (TCB) is a mock online bank whose website contains violations of federal consumer protection regulations. The TCB site highlights these violations for further investigation. (11/22/00)
FRB Publishes its Annual Adjustment to Reg Z Dollar Amounts
The FRB published its annual adjustment of the dollar amount that triggers additional disclosure requirements under the Truth in Lending Act for mortgage loans that bear rates or fees above a certain amount. FRB Press Release (11/22/00)
Regulators Publish Final Insurance Consumer Protection Rules
The OCC, FRB, FDIC and OTS are publishing final insurance consumer protection rules. These rules are
published pursuant to section 47 of the Federal Deposit Insurance Act (FDIA), which was added by
section 305 of the Gramm-Leach-Bliley Act (the G-L-B Act or Act). Section 47 directs the Agencies
jointly to prescribe and publish consumer protection regulations that apply to retail sales practices,
solicitations, advertising, or offers of any insurance product by a depository institution 1 or any person that is engaged in such activities at an office of the institution or on behalf of the institution. (11/22/00)
OCC's Fair Lending Examination Procedures Manual Available Online
The "Fair Lending Examination Procedures" booklet in the Comptroller's Handbook for Compliance is now available on the Web. The booklet, which supersedes "Fair Lending" booklet issued in October 1997, incorporates the Interagency Fair Lending Examination Procedures issued by the FFIEC in 1999. (11/21/00)
FDIC Seeks Comment on How to Avoid Purchasing or Investing in Predatory Mortgage Loans
The FDIC is seeking public comments on a draft staff advisory explaining how financial institutions may
avoid indirect associations with predatory lending. While the FDIC believes that very few banks are
directly engaged in predatory lending, banks might participate in predatory lending unknowingly through
loan purchases or securitizations from predatory lenders. (11/21/00)
FRB Issues Final Rule to Decrease the Amount of Net Transaction Accounts
The FRB is amending Regulation D to reflect the annual indexing of the low reserve tranche and the reserve requirement exemption for 2001, and announces the annual indexing of the deposit reporting cutoff level that will be effective beginning in September 2001. The amendments decrease the amount of net transaction accounts subject to a reserve requirement ratio of three percent in 2001. Read the final rule. (11/21/00)
OCC Publishes Electronic Listing of National Banks
The OCC has published an electronic listing of National Banks active as of 10/31/00. You can download either an Excel or PDF file. (11/20/00)
OTS Grants Federal Thrift Charter to Independent Insurance Agents
The Independent Insurance Agents of America Inc., Alexandria, Va., and four companies that will share ownership received approval from the OTS to organize a new federal thrift institution. (11/20/00) OTS 00-97
OTS Releases September Enforcement Statistics
The OTS reported that it completed seven enforcement actions during the month of September 2000. (11/20/00) OTS 00-93A
FDIC Publishes the FinCEN SAR Activity Review
This is the first edition of The SAR Activity Review, which will be published semiannually. The publication will provide feedback to financial institutions about suspicious activity reported to FinCEN by the institutions. (11/20/00) FIL-80-2000
NCUA Issues Order of Prohibition
The NCUA announced that it has issued an Order of Prohibition against James E. Chittick, Sr., former Chairman of the Board of Grand Terrace Federal Credit Union, located in Grand Terrace, California.
(11/17/00) NCUA Press Release
NCUA Issues Order of Prohibition
The NCUA announced that it has issued an Order of Prohibition against Janell Kay Smith, former employee of Food Industries Credit Union, located in Springfield, Oregon. (11/17/00) NCUA Press Release
FDIC Issues Alert on Unauthorized Bonds
The FDIC has learned that the City of Colon, Republic of Panama, issued approximately $300 million of Panamanian bonds without the authorization and backing of the Central Government. (11/17/00) FIL-79-2000
FDIC Issues Alert on Telemarketing Scam
The Royal Canadian Mounted Police has asked the FDIC to circulate to FDIC-supervised institutions information about a Canadian lottery telemarketing scam. Although it does not appear that banks are the primary targets of this scam, banks risk potential losses if uncollected funds are advanced to customers who are the targets and victims of this scam. (11/17/00) FIL-78-2000
OCC Releases CRA Evalations for 48 National Banks
The OCC released a list of CRA performance evaluations that became public during the period of
October 15 through November 14. (11/17/00) OCC: NR 2000-87
FRB Announces Annual Adjustment for Reserve Calculations and Deposit Reporting
The FRB announced the annual adjustments in the amount of net transaction accounts used in the calculation of reserve requirements and the cutoff levels used to determine the detail and frequency of deposit reporting. (11/17/00) FRB Press Release
FOMC Maintains Existing Stance of Monetary Policy
The Federal Open Market Committee at its meeting decided to maintain the existing stance
of monetary policy, keeping its target for the federal funds rate at 6-1/2 percent. (11/16/00)
FRB Press Release
FDIC Chairman Warns Risk Managers to Watch Markets
Rising risk levels in booming markets that are vulnerable to an economic downturn, particularly
commercial real estate, are of growing concern, FDIC Chairman Donna Tanoue said in a speech
to the Risk Management Association in Nashville. (11/15/00) FDIC: PR-80-2000
OCC Announces 6 New Enforcement Actions
The OCC announced 6 new enforcement actions taken against national banks and individuals currently and formerly affiliated with national banks. (11/15/00) OCC: NR 2000-86
OTS Releases August and October National CRA Ratings
The OTS issued savings associations' CRA performance evaluation ratings that became available in August
and October 2000. The September ratings were issued on October 5, 2000 and are available on the OTS web site. (11/14/00) OTS 00-95
NCUA Issues Order of Prohibition
The National Credit Union Administration announced that it has issued an Order of Prohibition against Terry Hacker, former loan manager of Hawaii Federal Credit Union, located in Honolulu, Hawaii. (11/14/00) NCUA Press Release
The OCC has been advised that effective October 12, 2000, the Registrar of International and Foreign Companies, Samoa, revoked International Business Bank Corporation, Ltd. Level 2, Chandra House
Apia, Samoa, company's "A" class banking license, No. 107. (11/10/00) FDIC FIL-75-2000
The FDIC has learned that a number of official checks drawn on the Bay State Savings Bank, Worcester, Massachusetts, are missing and presumed stolen. The instruments have serial numbers ranging from 046255303 through and including 046255650. The checks have the caption "Club Check" immediately below the caption "Official Check" and are presigned.(11/10/00) FDIC FIL-76-2000
The FDIC has published the second Bank Technology Bulletin issued by FDIC's Bank Technology Group. The subject of this bulletin is Internet domain names. The bulletins highlight current issues of concern to the banking industry.
(11/10/00) FDIC: FIL-77-2000
The 2001 price level for Federal Reserve payments services is projected to increase 4.2 percent from the 2000 level. Because of price reductions in recent years, the overall price level has risen only half a percent since 1996.
(11/9/00) FRB Press Release
As earlier reported from the FFIEC, The FFIEC has approved revisions to the reporting requirements for the Reports of Condition and Income (Call Report) for 2001. These revisions will become final upon approval by the U.S. Office of Management and Budget.
(11/9/00) FDIC FIL-74-2000
The FDIC announced that the Bank Insurance Fund (BIF) reported comprehensive income (net income plus unrealized gain on available-for-sale securities) of $1.141 billion for the first nine months of 2000. This is an increase of $1.254 billion over the same period last year. BIF reported a comprehensive loss of $198 million for 1999. As of September 30, 2000, the fund balance was $30.6 billion, up from $29.4 billion at year-end 1999. BIF revenues totaled $1.422 billion for the first nine months of 2000, including $1.359 billion in interest on investments in U.S. Treasury obligations and $36 million in deposit insurance assessments. (11/8/00) FDIC PR-79-2000:
As reported in the Federal Register, The federal bank and thrift regulatory agencies requested public comment on an advance notice of proposed rulemaking that considers the establishment of a simplified regulatory capital framework for non-complex institutions. (11/6/00) FDIC-PR-77-2000 and FIL-73-2000
As reported in the Federal Register, The federal bank and thrift regulatory agencies requested public comment on an advance notice of proposed rulemaking that considers the establishment of a simplified regulatory capital framework for non-complex institutions. (11/6/00) FRB Press Release
As reported in the Federal Register, The federal bank and thrift regulatory agencies requested public comment on an advance notice of proposed rulemaking that considers the establishment of a simplified regulatory capital framework for non-complex institutions. (11/6/00) OCC NR 2000-85
As reported in the Federal Register, The federal bank and thrift regulatory agencies requested public comment on an advance notice of proposed rulemaking that considers the establishment of a simplified regulatory capital framework for non-complex institutions. (11/6/00) OTS 00-94
The SAR Activity Review Trends, Tips and Issues
(11/6/00) FinCEN:
The FFIEC announced that it has approved revisions to the reporting requirements for the Reports of Condition and Income (Call Report) for 2001. (11/6/00) FFIEC Press Release
The OTS reported that it completed seven enforcement actions during the month of September 2000.
(11/3/00) OTS 00-93
This is an issuance from the FDIC relating to the ESIGN Act. The E-Sign Act, signed into law on June 30, 2000, provides a general rule of validity for electronic records and signatures for transactions in or affecting interstate or foreign commerce. Included among the E-Sign Act's provisions is a section addressing the use of electronic records for an institution that wishes to exclusively provide electronic disclosures to consumers in lieu of written disclosures.
(11/3/00) FIL-72-2000
The OCC, FRB, FDIC, and OTS
are considering developing a simplified regulatory capital framework applicable to non-complex banks and thrifts (non-complex institutions). The Agencies believe that the size, structure, complexity, and risk profile of many banking and thrift institutions (banking organizations or institutions) may warrant the application of a simplified capital framework that could relieve regulatory burden associated with the existing capital rules. (11/3/00)
The OTS is proposing to change its regulations concerning corporate governance to create a class of preapproved optional bylaw provisions that federally chartered savings associations may adopt. The proposal decreases regulatory burden on federal savings associations by permitting them to adopt certain bylaws expeditiously without prior OTS review. (11/2/00) OTS:
As earlier reported by the OTS. The OTS is proposing changes would update the rules to reflect existing practices and procedures; provide more predictable procedures for applicants; and provide greater flexibility to OTS in processing applications. OTS has also applied ``plain language'' drafting techniques, which should make the application processing rules easier to understand.
(11/2/00) OTS:
The FRB announced a new approach to pricing Federal Reserve Banks' automated clearinghouse (ACH) transactions intended to enhance competition in the provision of
services to depository institutions. (11/1/00) FRB Press Release:
As earlier published in the Federal Register, the FRB has adopted a final rule amending Regulation Z, which implements the Truth in Lending Act. The rule revises the disclosure requirements for credit and charge card solicitations and applications. (11/1/00) OCC 2000-28:
The OTS said it is issuing a regulatory proposal to have optional bylaws that savings associations could adopt without first obtaining OTS approval. By not requiring advance notice and allowing the thrift simply to notify OTS within 30 days of its action, the proposal reduces regulatory burden, OTS said. (11/1/00) OTS 00-92:
The OTS announced proposed changes to its applications processing rules that would help streamline the process, particularly in the early phases, and reduce the time and expense of handling applications. (11/1/00) OTS 00-91:
Director Ellen Seidman of the OTS announced that her agency will host its first ever All-Industry Leadership Conference for savings association chief executive officers and directors next April 23 and 24 in Atlanta. (11/1/00) OTS 00-90:
The occurrence of risky underwriting practices for construction, commercial (nonresidential) real estate, and home equity lending by banks has increased slightly in recent months, according to the FDIC's latest Report on Underwriting Practices. While the frequency of risky underwriting practices in these loan categories has not reached highs from two years ago, FDIC officials said the situation remains a concern.(11/1/00) FDIC PR-76-2000:
Feedback on SAR reporting released at ABA/ABA Money Laundering Seminar (11/1/00) FinCEN News Release:
