All in Regulatory Update

Fed Deletes 6-Per Month Limit on Savings Deposits

Adam Witmer
Regulatory Update, Regulation D

On April 24, 2020, the Federal Reserve Board announced an interim final rule that amends Regulation D to delete the six-per-month limit on convenient transfers from the “savings deposit” definition. The rule was published in the Federal Register on April 28, 2020 and allows depository institutions to immediately suspend enforcement of the six transfer limit and to allow their customers to make an unlimited number of convenient transfers and withdrawals from their savings deposits at a time when financial events associated with the coronavirus pandemic have made such access more urgent. As justification for this change, the Fed explains that the Board’s recent action to reduce all reserve requirement ratios to zero has rendered this regulatory distinction unnecessary.

ICE Combats COVID-19 Fraud

Adam Witmer
Regulatory Update

On April 27, 2020, the U.S. Immigration and Customs Enforcement agency (ICE) released an online resource page to combat COVID-19 fraud schemes. Tagged “Operation Stolen Promise,” the new dedicated web page provides information to the public on COVID-19-related fraud schemes. In addition, the page also highlights the investigative efforts the agency is taking to counter threats posed by individuals and criminal organizations seeking to exploit the pandemic for illicit financial gain.

Similarly, the Department of Homeland Security issued a Fact Sheet on April 24, 2020 to highlight the steps the agency has taken to combat COVID-19-related fraud.

OCC Guidance on PPP Loans

Adam Witmer
Regulatory Update

On April 27, 2020, the OCC issued a bulletin (2020-45) to clarify and rescind its prior statement in Bulletin 2020-44, which was issued on April 25, 2020. The revised bulletin encourages banks providing loans under the SBA PPP to prudently document their implementation and lending decisions. Additionally, the bulletin further encourages banks to identify and track the PPP loans made to small business borrowers that have annual revenues of $1 million or less and are located in low- to moderate-income (LMI) areas.

FDIC Delays Efforts to Update Advertising of Membership Rules

Adam Witmer
Regulatory Update

On April 16, 2020, the FDIC announced it will temporarily postpone its efforts to modify its signage and advertising requirements, known as the advertising of membership rules. In their release, the FDIC explained that they remain committed to modernizing these rules at a future date to better reflect how banks and savings associations are transforming their business models to take deposits via physical branches, digital, and mobile banking channels.

NCUA Provides Appraisal Relief to Credit Unions

Adam Witmer
Appraisals, Regulatory Update

On April 20, 2020, the NCUA issued a final rule to provide appraisal relief to credit unions. The final rule does two main things. First, the final rule increases the residential appraisal threshold from $250,000 to $400,000. The raised threshold provides long-term regulatory relief to credit unions and members and aligns with the appraisal threshold adjustment that banking regulators made during 2019. The rule also increases flexibility for credit unions struggling with mortgage pipeline delays due to appraisals during the COVID-19 pandemic. Secondly, the NCUA has issued an interim final rule to temporarily allow credit unions to defer appraisals and written estimates of market value for up to 120 days after the closing of a loan. This flexibility will expire on December 31, 2020 and this, too, aligns with action taken by banking regulators. The NCUA explains that this deferral is intended to provide liquidity and relief to property owners affected by disruptions to property valuations caused by COVID-19 mitigation efforts. Both rules become effective upon publication in the Federal Register.

NCUA Temporarily Changes Regulatory Requirements for Credit Unions

Adam Witmer
Regulatory Update

On April 21, 2020, the NCUA published a temporary final rule in the Federal Register that modifies certain regulatory requirements to help ensure that federally insured credit unions remain operational and liquid during the COVID-19 crisis. Specifically, the NCUA is temporarily raising the maximum aggregate amount of loan participations that a credit union may purchase from a single originating lender to the greater of $5,000,000 or 200 percent of the credit union’s net worth. The NCUA is also temporarily suspending limitations on the eligible obligations that a federal credit union may purchase and hold. In addition, given physical distancing policies implemented in response to the crisis, the NCUA is tolling the required timeframes for the occupancy or disposition of properties not being used for federal credit union business or that have been abandoned.

OFAC Encourages Communication of COVID-19 Concerns

Adam Witmer
BSA, Regulatory Update

On 4/20/2020, OFAC issued a statement to encourage persons to communicate OFAC compliance concerns related to the coronavirus disease (COVID-19). Specifically, OFAC encourages persons, including financial institutions and other businesses, affected by the COVID-19 global pandemic to contact OFAC as soon as practicable if the person believes it may experience delays in its ability to meet deadlines associated with regulatory requirements administered by OFAC. This includes requirements related to filing blocking and reject reports within ten business days, responses to administrative subpoenas issued​, reports required by general or specific licenses, or any other required reports or submissions.

Load More