All in Regulatory Update

FDIC Proposes to Rescind Annual Disclosure Statement Requirements

Adam Witmer
Regulatory Update

On October 25, 2018, the Federal Deposit Insurance Corporation (FDIC) issued a proposed rule to rescind and remove its regulations relating to the disclosure of financial and other information by FDIC-insured state nonmember banks. Upon the removal of the regulations, applicable FDIC-regulated banks would no longer be subject to the annual disclosure statement requirement found in those regulations. The financial and other information that has been subject to disclosure by individual banks pursuant to these regulations is publicly available through the FDIC's website.

CFPB Adds Innovation Page to Website

Adam Witmer
Regulatory Update

Earlier this month, the CFPB launched a new “Innovation” page on their website which promotes the initiatives of the newly formed Office of Innovation.  The Office of Innovation was formed in July of 2018 with a goal of encouraging consumer-friendly innovation and carrying on the work that was being done under Project Catalyst.  The new Innovation webpage comes just about a month after the CFPB proposed a revision to their policy to encourage trial disclosure programs (9/10/18).

Fall 2018 CFPB Rulemaking Agenda

Adam Witmer
Regulatory Update

On October 17, 2018, the CFPB published its rulemaking agenda for the Fall of 2018.  This is the second rulemaking agenda under Acting Director Mick Mulvaney. The agenda indicates that the information is current as of August 30, 2018 and identifies items the  CFPB “reasonably anticipates having under consideration during the period from October 1, 2018, to September 30, 2019.”

Agencies Release CRA Ratings from September 2018

Adam Witmer
Regulatory Update

As is the case each month, the FDIC and OCC have released lists of performance evaluations from financial institutions receiving ratings during September of 2018.  Banks and savings associations subject to CRA examinations - and especially their CRA Officers who are responsible for CRA compliance - can greatly benefit from reviewing CRA performance evaluations that their regulators publish on similarly sized banks.  Specifically, reviewing Outstanding performance evaluations can often show a bank what unique steps can be taken to get extra CRA credit during an examination while Substantial NonCompliance ratings can explain what an insufficient CRA program looks like.

CFPB Releases HMDA Filing Instruction Guide for 2019

Adam Witmer
HMDA, Regulatory Update

On October 23, 2018, the CFPB released the Filing Instruction Guide (FIG) for data collected in 2019.  This guide comes less than two months after the most recent version of the guide (August 2018), but is designed to be used for data collected during 2019.  The FIG is considered to be a “technical resource to help financial institutions file HMDA data collected in 2019 and reported in 2020.”

Agencies Release New Appraisal FAQs

Adam Witmer
Regulatory Update

On October 16, 2018, the OCC, Federal Reserve, and FDIC published new FAQs regarding appraisals and evaluations for real estate transactions.  These FAQs clarify existing regulatory requirements and guidance that is found in two previous issuances:the 2010 Interagency Appraisal and Evaluation Guidelines and the 2016 Interagency Advisory on Use of Evaluations in Real Estate-Related Financial Transactions.

OCC Updates Three Booklets

Adam Witmer
Regulatory Update

On October 15, 2018, the OCC issued a Bulletin (2018-38) announcing the updating of three booklets: “Agricultural Lending,” “Oil and Gas Exploration and Production Lending,” and “Trade Finance and Services.”  These booklets are part of the Comptroller’s Handbook and are used by examiners for their supervision and examinations of these areas.

Interagency Statement on Sharing of BSA/AML Resources Among Financial Insittutions

Adam Witmer
Regulatory Update, BSA, Compliance Management

On October 3, 2018, the main federal regulators, along with FinCEN, released a statement regarding instances in which banks and credit unions may decide to enter into collaborative arrangements to share resources to manage their Bank Secrecy Act (BSA) and anti-money laundering (AML) obligations more efficiently and effectively.  While this guidance may not be beneficial for a majority of financial institutions, this may be beneficial for very small institutions with a low-risk profile and less-complex structures, or those institutions who are owned by the same organization.

Agencies Grant CIP Exemption for Insurance premium Finance Loans

Adam Witmer
BSA, Regulatory Update

On September 28, 2018, FinCEN, the OCC, Federal Reserve, FDIC, and NCUA released joint guidance which grants financial institutions an exemption from CIP requirements for loans extended to customers to facilitate purchases of property and casualty insurance policies.  The justification for this exemption is based on the fact that these types of loans present a low risk of money laundering due to their very specific purpose. Those entities that extend loans to customers for such purposes should…

A Checklist of TRID 2.0 Changes

Adam Witmer
Regulation Z, Regulatory Update, TRID

As the October 1, 2018 compliance date of TRID 2.0 is quickly approaching, it is important for each financial institution to ensure that all applicable changes to the integrated disclosure rules have been both understood and effectively implemented.  Released on July 7, 2017, the 2017 final rule (known as TRID 2.0) amends and clarifies certain mortgage disclosure provisions implemented in Regulation Z. These changes are required for any application received on or after October 1, 2018.

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