All in Regulatory Update

FHFA Acting Director’s Statement on Climate Change

Adam Witmer
Regulatory Update

On 12/27/21, the Federal Housing Finance Agency (FHFA) issued a statement by its Acting Director, Sandra L. Thompson, regarding climate change. According to Thompson, ​​ FHFA recognizes that climate change poses a serious threat to the U.S. housing finance system and as a member of the Financial Stability Oversight Council (FSOC), FHFA is committed to working collaboratively with other federal agencies to make tangible progress toward addressing climate change and its consequences.

2022 HMDA Exemption Threshold

Adam Witmer
Regulatory Update, HMDA

On December 23, 2021, the CFPB adjusted the HMDA exemption threshold from $48 million to $50 million. The adjustment is based on the 4.7 percent increase in the average of the CPI-W for the 12-month period ending in November 2021 (up from 1.6 in 2019 and 1.3 in 2020). Therefore, banks, savings associations, and credit unions with assets of $50 million or less as of Dec. 31, 2021, are exempt from collecting data in 2022.

Escrow Exemption Threshold for 2022

Adam Witmer
Regulatory Update, Regulation Z

On December 23, 2021, the CFPB announced the annual adjustment to the asset size threshold for certain creditors to qualify for an exemption to the requirement to establish an escrow account for a higher-priced mortgage loan under Regulation Z. For 2022, , the exemption threshold for creditors and their affiliates that regularly extended covered transactions secured by first liens is adjusted to $2.336 billion from $2.230 billion while for certain insured depository institutions and insured credit unions with assets of $10 billion or less (adjusted annually for inflation), the exemption threshold is adjusted to $10.473 billion from $10 billion.

DOJ and CFPB Issue Letters to Landlords and Mortgage Servicers

Adam Witmer
SCRA, Regulatory Update, MLA

On 12/20/2021, the Department of Justice and Consumer Financial Protection Bureau (CFPB) issued two joint letters to remind Landlords and Mortgage Servicers to Adhere to the CARES Act and Additional Legal Requirements Under the Servicemembers Civil Relief Act. The first letter was sent to landlords and other housing providers regarding protections for military tenants. The second letter was sent to mortgage servicers regarding military borrowers who have already exited or will be exiting COVID-19 mortgage forbearance programs in the coming weeks and months. The Justice Department and CFPB are calling on mortgage servicers and landlords to ensure that military homeowners and tenants are safeguarded during the pandemic and benefit equally from the nation’s economic recovery.

FinCEN Reveals Increase in SARs Related to Wildlife Trafficking

Adam Witmer
BSA, Regulatory Update

On 12/20/21, FinCEN released a Financial Threat Analysis on wildlife trafficking threat patterns and trend information identified in Bank Secrecy Act (BSA) data filed between January 2018 and October 2021. The result of the analysis shows that wildlife trafficking-related SARs filed between January 2018 and October 2021 trended significantly up and SARs filed in 2021 are on track to meet or exceed the amount of SARs filed in 2020 based on current trends.

OCC Updates Comptroller's OREO Handbook

Adam Witmer
Regulatory Update

On 12/20/21, the OCC issued an updated "Other Real Estate Owned" booklet of the Comptroller’s Handbook, which is prepared for use by OCC examiners in connection with the examination and supervision of national banks, federal savings associations, and federal branches and agencies of foreign banking organizations (collectively, banks).

CommunityBank of Texas Charged $8 Million for BSA Violations

Adam Witmer
Regulatory Update, BSA

On 12/16/21, FinCEN and the OCC announced on separate issuances that they assessed a total of $8 million civil money penalty on CommunityBank of Texas, N.A. (CBOT) for willful violations of the Bank Secrecy Act (BSA) and its implementing regulations. As a result of its own investigation, the OCC assessed a civil penalty of $1 million for related violations while FinCEN agreed with CBOT to a settlement of $7 million.

Agencies Release CRA Asset-Size Thresholds for 2022

Adam Witmer
CRA, Regulatory Update

On 12/16/21, the Federal Reserve Board and the FDIC issued the 2022 updated asset-size thresholds used to define "small bank" and "intermediate small bank" under their Community Reinvestment Act (CRA) regulations. Small bank means an institution that, as of December 31 of either of the prior two calendar years, had assets of less than $1.384 billion. Intermediate small bank means a small institution with assets of at least $346 million as of December 31 of both of the prior two calendar years and less than $1.384 billion as of December 31 of either of the prior two calendar years.

FinCEN Seeks Comments on Modernization AML/CFT Regulatory Regime

Adam Witmer
Regulatory Update, BSA

On 12/14/21, FinCEN issued a request for information (RFI) seeking comments on ways to streamline, modernize, and update the anti-money laundering and countering the financing of terrorism (AML/CFT) regime of the United States. The agency is particularly interested in ways to modernize risk-based AML/CFT regulations and guidance so that they can continue to protect U.S. national security in a cost-effective and efficient manner.

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