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CUES Online University
provides a weekly update of major releases from the Federal Reserve Board, Federal
Deposit Insurance Corporation, National Credit Union Administration, Office of
the Comptroller of the Currency, and Office of Thrift Supervision. The archives
will be available for two months.
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The Weekly Regulatory Update is now only available at our new site at: http://cuesuplus.org/new/regulatory-updates.shtml
| November 2, 2009 | October 4, 2009 |
| October 25, 2009 | September 27, 2009 |
| October 18, 2009 | September 20, 2009 |
| October 11, 2009 | September 13, 2009 |
Commercial Real Estate (CRE) Loans: Guidance on Prudent CRE Loan Workouts : Policy statement provides guidance on risk management practices for loan workouts that support prudent and pragmatic credit and business decision making. Ability to repay will be considered.
http://www.occ.treas.gov/ftp/bulletin/2009-32.html
Financial Regulators Adopt Guidance on
Prudent Commercial Real Estate Loan Workouts: The Federal Financial Institutions Examination Council (FFIEC) released a policy statement today supporting prudent commercial real estate (CRE) loan workouts. This policy statement, adopted by each of the financial regulators, provides guidance for examiners, and for financial institutions that are working with CRE borrowers who are experiencing diminished operating cash flows, depreciated collateral values, or prolonged delays in selling or renting commercial properties.
http://www.occ.treas.gov/ftp/release/2009-128.htm
Federal Reserve issues proposed guidance on incentive compensation: The Federal Reserve Board on Thursday issued a proposal designed to ensure that the incentive compensation policies of banking organizations do not undermine the safety and soundness of their organizations.
http://www.federalreserve.gov/newsevents/press/bcreg
/20091022a.htm
Federal Reserve announces new director of Banking Supervision and Regulation Division: The Federal Reserve Board announced the appointment of Patrick M. Parkinson as director of the Division of Banking Supervision and Regulation, effective immediately.
http://www.federalreserve.gov/newsevents/press/other
/20091020a.htm
Matz Tells Senators of NCUA’s Efforts to Protect Credit Union Members, Mitigate Risks: National Credit Union Administration Chairman Debbie Matz today told the Senate Banking, Housing and Urban Affairs Subcommittee on Financial Institutions that stress in the financial sector has translated into challenging times, but she is confident that the credit union industry will weather the storm.
http://www.ncua.gov/news/press_releases/2009/MA09-1014.htm
Comptroller Dugan Tells Senate Panel National Banks
Have Capacity to Withstand Declining Asset Quality
: Comptroller of the Currency John C. Dugan told a Senate subcommittee today that while credit quality is continuing to worsen, the vast majority of national banks are strong and have the financial capacity to withstand declining asset quality.
http://www.occ.treas.gov/ftp/release/2009-120.htm
Restructuring of check processing operations in the Fourth, Eleventh, and Twelfth districts, Regulation CC: The Federal Reserve Board approved amendments to Appendix A of Regulation CC that reflect the restructuring of the Federal Reserve Banks' check-processing operations, and provided notice relating to future changes to the regulation.
http://www.federalreserve.gov/newsevents/press/bcreg
/20091008a.htm
Annual adjustments for reserve calculations and deposit reporting, Regulation D: The Federal Reserve Board announced the annual indexing of the reserve requirement exemption amount and of the low reserve tranche for 2010. These amounts are used in the calculation of reserve requirements of depository institutions. The Board also announced the annual indexing of the nonexempt deposit cutoff level and the reduced reporting limit that will be used to determine deposit reporting panels effective 2010.
http://www.federalreserve.gov/newsevents/press/bcreg
/20091009a.htm
Federal Reserve announces changes to procedures for evaluating asset-backed securities pledged to the Term Asset-Backed Securities Loan Facility (TALF) : The Federal Reserve Board on two changes to the procedures for evaluating asset-backed securities (ABS) pledged to the Term Asset-Backed Securities Loan Facility (TALF). The TALF, which was authorized by the Board on November 24, 2008, helps market participants meet the credit needs of households and businesses by lending to investors in highly rated ABS and commercial mortgage-backed securities (CMBS).
http://www.federalreserve.gov/newsevents/press/monetary
/20091005b.htm
Federal Reserve Proposes Amending Reg. Z to Protect Credit Card Users The Federal Reserve Board on Tuesday proposed rules amending Regulation Z (Truth in Lending) to protect consumers who use credit cards from a number of potentially costly practices.
http://www.federalreserve.gov/newsevents/press/bcreg
/20090929a.htm
FDIC Proposes Prepayment of Assessments The Board of Directors of the Federal Deposit Insurance Corporation adopted a Notice of Proposed Rulemaking (NPR) that would require insured institutions to prepay their estimated quarterly risk-based assessments for the fourth quarter of 2009 and for all of 2010, 2011 and 2012. The FDIC estimates that the total prepaid assessments collected would be approximately $45 billion. The FDIC Board also voted to adopt a uniform three-basis point increase in assessment rates effective on January 1, 2011, and extend the restoration period from seven to eight years.
http://www.fdic.gov/news/news/press/2009/pr09178.html
Federal Reserve; FDIC; OCC; OTS Seek Comment on Interagency Guidance on Correspondent Concentration Risks The proposed guidance outlines the agencies’ expectations for identifying, monitoring, and managing correspondent concentration risks among financial institutions.
http://www.occ.treas.gov/ftp/bulletin/2009-31.html
NCUA Issues Supervisory Letter on Loan Modifications The Supervisory Letter discusses the objectives of a loan modification program and provides NCUA field staff with guidance for evaluating whether management has made a realistic assessment of risk and exercised the proper due diligence in developing, implementing, and monitoring these inherently higher risk programs.
http://www.ncua.gov/Resources/LettersCreditUnion.aspx
Week Ending September 27, 2009
Board issues revision to Regulation S regarding costs incurred by financial institutions in producing customer financial records: The Federal Reserve Board issued a revision to Regulation S, which sets the rates and conditions under which a government agency must reimburse a financial institution for costs incurred in producing customer financial records under the Right to Financial Privacy Act.
http://www.federalreserve.gov/newsevents/press/bcreg
/20090924b.htm
OCC Releases Consumer Advisory (PDF): “Reverse Mortgages: Are They for You?”: The Office of the Comptroller of the Currency (OCC) issued a consumer advisory to help consumers better understand reverse mortgages. Reverse mortgages generally are available to consumers who are 62 or older, and can be used to supplement retirement income or meet health care or other financial needs.
http://www.occ.treas.gov/ftp/advisory/2009-2.pdf
Week Ending September 20, 2009
Federal Reserve to implement consumer compliance supervision program of nonbank subsidiaries of bank holding companies and foreign banking organizations: The Federal Reserve, under a policy announced, will implement a consumer compliance supervision program in nonbank subsidiaries of bank holding companies (BHCs) and foreign banking organizations (FBOs) with activities covered by the consumer protection laws and regulations the Federal Reserve has the authority to enforce. The policy, which will take effect immediately, also provides for the investigation of consumer complaints against these nonbank entities.
http://www.federalreserve.gov/newsevents/press/bcreg
/20090915a.htm
Regulatory Capital-FAS 166/167 and ABCP Conduits: Notice of Proposed Rulemaking: Proposed rule to address the effect on regulatory capital resulting from implementation of FASB's changes to standards regarding transfer of financial assets and consolidation of variable interest entities.
http://www.occ.treas.gov/ftp/bulletin/2009-30.html
Week Ending September 13, 2009
NCUA Media Advisory: Hyland Addresses Questions on Proposed Changes to Corporate Rule: Speaking at First Carolina Corporate Credit Union’s Financial Conference in Charlotte, North Carolina, Board Member Gigi Hyland indicated her belief that proposed revisions to NCUA’s corporate regulation, Part 704, would be issued by year-end.
http://www.ncua.gov/news/press_releases/2009/MA09-0910a.htm
NCUA Chairman Matz Addresses Credit Union Concerns On Credit CARD Act Compliance: In response to credit union concerns about compliance with new requirements under the Credit Card, Accountability, Responsibility, and Disclosure Act of 2009 (Credit CARD Act), NCUA Chairman Debbie Matz underscored the NCUA’s commitment to consumer protection and ensuring credit union compliance, while recognizing some credit unions may have technical difficulties and the need for examiners to work with credit unions on a case-by-case basis.
http://www.ncua.gov/news/press_releases/2009/MR09-0828c.htm
Federal Reserve announces amounts of Term Auction Facility (TAF) credit offered at September auctions will be reduced to $75 billion: The Federal Reserve on Friday announced that the amounts of Term Auction Facility (TAF) credit offered at each of the two auctions in September will be reduced to $75 billion from $100 billion in August. Specifically, the Federal Reserve will offer $75 billion of 84-day credit on Tuesday, September 8, and $75 billion of 28-day credit on Monday, September 21.
http://www.federalreserve.gov/newsevents/press/monetary
/20090828a.htm
Hyland Urges Continued Collaboration Between State and Federal Regulators; Discusses Key Issues: Speaking to participants at the National Association of State Credit Union Supervisors (NASCUS) State System Summit, Board Member Hyland noted, “Over the past four years, NCUA and state supervisors have built a strong, collaborative working relationship. The dialogue and communication must continue as we work through these difficult economic circumstances.”
http://www.ncua.gov/news/press_releases/2009/MA09-0821.htm
NCUA Regulatory Alert Addresses Impending Disclosure Deadline: The National Credit Union Administration (NCUA) issued Regulatory Alert 09-RA-07 to all federally insured credit unions concerning Regulation Z amendments implementing provisions of the Credit Card Accountability Act designed to establish fair and transparent practices for open-end consumer credit plans, including credit cards.
http://www.ncua.gov/news/press_releases/2009/MA09-0819.htm
Agencies Seek Comment on Proposed Regulatory Capital Standards Related to Adoption of FASB Statements of Financial Accounting Standards Nos. 166 and 167: The federal banking and thrift regulatory agencies are seeking comment on a proposed regulatory capital rule related to the Financial Accounting Standards Board's adoption of Statements of Financial Accounting Standards Nos. 166 and 167. Beginning in 2010, these accounting standards will make substantive changes to how banking organizations account for many items, including securitized assets, that are currently excluded from these organizations’ balance sheets.
http://www.occ.treas.gov/ftp/release/2009-101.htm
Truth in Lending: Interim Final Rules: The bulletin describes recent Federal Reserve rules affecting notices of changes to credit card account terms, and it directs national banks to provide an additional disclosure to better inform consumers.
http://www.occ.treas.gov/ftp/bulletin/2009-29.html
Federal Reserve and Treasury Department announce extension to Term Asset-Backed Securities Loan Facility (TALF): The Federal Reserve Board and the Treasury Department announced that they approved an extension to the Term Asset-Backed Securities Loan Facility (TALF) and that, at this time, they do not anticipate any further additions to the types of collateral that are eligible for the facility.
http://www.federalreserve.gov/newsevents/press/
monetary/20090817a.htm
Federal Reserve announces new schedule of margins applicable for collateral pledged by depository institutions: The Federal Reserve on Wednesday announced a new schedule of margins applicable for collateral pledged by depository institutions to secure discount window and Term Auction Facility loans and for payment system risk purposes.
http://www.federalreserve.gov/newsevents/press/monetar
y/20090819a.htm
Helping Families Save Their Homes Act of 2009 - Title VII Tenant Protections: Guidance : On May 20, 2009, the Helping Families Save Their Homes Act of 2009, P.L. 111-22, was signed into law. Title VII of this law, the Protecting Tenants at Foreclosure Act, provides protections to tenants from eviction as a result of foreclosure on the properties they are renting. These provisions took effect on May 20, 2009, and will expire on December 30, 2012.
http://www.occ.treas.gov/ftp/bulletin/2009-28.html
Other Consumer Protection Laws and Regulations: New and Revised Examination Procedures: The Office of the Comptroller of the Currency (OCC) has revised recently the electronic version of the “Other Consumer Protection Laws and Regulations” booklet (Other Consumer booklet) of the Comptroller’s Handbook. These revisions include both new and revised procedures as well as the incorporation of procedures that were distributed previously in OCC bulletins.
http://www.occ.treas.gov/ftp/bulletin/2009-27.html
Board publishes "5 Tips for Dealing with a Home Equity Line Freeze or Reduction" : Homeowners in all regions of the United States are seeing their home equity lines of credit (HELOCs) frozen or reduced and wondering what they can do about it. The Federal Reserve's latest "5 Tips" guide explains consumers' rights and lenders' responsibilities when credit lines are reduced and provides information for those seeking to have a credit line reinstated.
http://www.federalreserve.gov/newsevents/press/other
/20090806a.htm
Flood Disaster Protection Act: Revised Interagency Questions and Answers Regarding Flood Insurance: On July 21, 2009, the Office of the Comptroller of the Currency, along with the Board of Governors of the Federal Reserve System, the Federal Deposit Insurance Corporation, Office of Thrift Supervision, National Credit Union Administration, and the Farm Credit Administration (the agencies), published in the Federal Register “Interagency Questions and Answers Regarding Flood Insurance” (2009 Interagency Questions and Answers).
http://www.occ.treas.gov/ftp/bulletin/2009-26.html
Other Consumer Protection Laws and Regulations: The OCC publishes the updated “Other Consumer Protection Laws and Regulations” (PDF 839KB) booklet, in the Comptroller’s Handbook on the Web, incorporating many examination procedures pertaining to consumer protection compliance.
http://www.occ.treas.gov/handbook/other.pdf
Federal Reserve approves final amendments to Regulation Z that revise disclosure requirements for private education loans: The Federal Reserve Board approved final amendments to Regulation Z (Truth in Lending) that revise the disclosure requirements for private education loans.
The amendments implement provisions of the Higher Education Opportunity Act (HEOA) enacted in August 2008. Under the amendments, creditors that extend private education loans must provide disclosures about loan terms and features on or with the loan application and must also disclose information about federal student loan programs that may offer less costly alternatives. Additional disclosures must be provided when the loan is approved and when the loan is consummated. The Board is also providing model disclosure forms that creditors could use to comply with the new disclosure requirements
.
http://www.federalreserve.gov/newsevents/press/
bcreg/20090730a.htm
Credit CARD Act of 2009-Interest Rate Increases/Consumer Protections: Guidancet: On May 22, 2009, the Credit Card Accountability Responsibility and Disclosure Act of 2009 (Credit CARD Act) was signed into law. This law amends the Truth in Lending Act, 15 USC 1601 et seq., to impose certain requirements on credit card issuers that raise cardholders’ annual percentage rates (APRs) based on factors including the credit risk of the cardholder, market conditions, and other factors.
http://www.occ.treas.gov/ftp/bulletin/2009-25.html
Agencies Release Revisions to Interagency Questions and Answers and Proposed New Questions Regarding Flood Insurance: The federal bank, thrift, credit union, and Farm Credit System regulatory agencies released revised interagency questions and answers regarding flood insurance and requested public comment on several new ones.
http://www.federalreserve.gov/newsevents/press
/bcreg/20090721a.htm
Federal Reserve proposes significant changes to Regulation Z (Truth in Lending) intended to improve the disclosures consumers receive in connection with closed-end mortgages and home-equity lines of credit: The Federal Reserve Board on Thursday proposed significant changes to Regulation Z (Truth in Lending) intended to improve the disclosures consumers receive in connection with closed-end mortgages and home-equity lines of credit (HELOCs). These changes, offered for public comment, reflect the result of consumer testing conducted as part of the Board's comprehensive review of the rules for home-secured credit. The amendments would also provide new consumer protections for all home-secured credit.
http://www.federalreserve.gov/newsevents/press
/bcreg/20090723a.htm
Fair Credit Reporting: Accuracy and Integrity of Consumer Report Information and Direct Consumer Dispute Regulations and Guidelines: The attached final rules and guidelines, as well as the related advance notice of proposed rulemaking, which were published in the Federal Register on July 1, 2009, implement section 312 of the Fair and Accurate Credit Transactions Act of 2003 (FACT Act).
http://www.occ.treas.gov/ftp/bulletin/2009-23.html
Board issues interim final rule amending credit card provisions of Regulation Z (Truth in Lending): The Federal Reserve Board approved an interim final rule amending Regulation Z (Truth in Lending) to require creditors to increase the amount of notice consumers receive before the rate on a credit card account is increased or a significant change is made to the account's terms. The amendments also allow consumers to reject such increases and changes by informing the creditor before the increase or change goes into effect.
http://www.federalreserve.gov/newsevents/press/bcreg
/bcreg20090715a.htm
Risk-Based Capital-Mortgage Modifications: Interim Final Rule: The Office of the Comptroller of the Currency (OCC) published in the Federal Register on June 30, 2009, an interim final rule concerning the risk-based capital treatment for one-to-four family residential mortgages modified under the U.S. Treasury Department’s Making Home Affordable Program (program). This bulletin transmits and briefly summarizes that interim final rule.
http://www.occ.treas.gov/ftp/bulletin/2009-22.html
Agencies Publish Final Rules and Guidelines to Promote Accurate Reports About Consumers: The federal financial regulatory agencies and the Federal Trade Commission published final rules and guidelines to promote the accuracy and integrity of information furnished to credit bureaus and other consumer reporting agencies, and widely used to determine consumers' eligibility for credit, employment, insurance, and rental housing.
As required by the Fair and Accurate Credit Transactions Act, the Board of Governors of the Federal Reserve System, Federal Deposit Insurance Corporation, Federal Trade Commission, National Credit Union Administration, Office of the Comptroller of the Currency, and Office of Thrift Supervision are publishing these final rules and guidelines, with an effective date of July 1, 2010.
http://www.federalreserve.gov/newsevents/press/bcreg
/20090702a.htm
Agencies Seek Comment on Proposed Interagency Guidance on Funding and Liquidity Risk Management: The federal bank, thrift, and credit union regulatory agencies are seeking comment on the proposed Interagency Guidance on Funding and Liquidity Risk Management. The Office of the Comptroller of the Currency, the Board of Governors of the Federal Reserve System, the Federal Deposit Insurance Corporation, the Office of Thrift Supervision, and the National Credit Union Administration are issuing this guidance to communicate consistent expectations on sound practices for the management of funding and liquidity risks, and to strengthen liquidity risk-management practices. This guidance brings the agencies' liquidity risk principles into alignment with the international guidance issued in September 2008 by the Basel Committee on Banking Supervision titled, Principles for Sound Liquidity Risk Management and Supervision.
http://www.federalreserve.gov/newsevents/press/bcreg
/20090630a.htm
Agencies Issue Interim Final Rule for Mortgage Loans Modified Under the Making Home Affordable Program: The federal bank and thrift regulatory agencies invited public comment on an interim final rule that provides that mortgage loans modified under the U.S. Department of the Treasury’s Making Home Affordable Program (MHAP) will retain the risk weight applicable before modification.
http://www.occ.treas.gov/ftp/release/2009-73.htm
Agencies Announce Notice of Proposed Rulemaking
for Community Reinvestment Act: The federal bank and thrift regulatory agencies proposed revisions to regulations implementing the Community Reinvestment Act (CRA) to require the agencies to consider low-cost education loans provided to low-income borrowers when assessing a financial institution's record of meeting community credit needs.
http://www.federalreserve.gov/newsevents/press/bcreg/
20090624a.htm
Revision to FDIC Rule 12 CFR 360: New Notice Requirements for Sweep Accounts: This bulletin reminds national banks of a new Federal Deposit Insurance Corporation (FDIC) rule that requires banks to provide notices to sweep account customers. Specifically, the rule requires that, beginning July 1, 2009, each depository institution prominently disclose, in writing to its sweep account customers, whether the customers’ swept funds are “deposits” within the meaning of 12 USC 1813(l), and, if not, the status of such funds in the event of the institution’s failure. Such notices must be included in all new sweep account contracts and in all sweep account contract renewals, effective July 1, 2009. For existing sweep accounts, these disclosures must be made within 60 days after July 1, 2009, and at least annually thereafter. In cases when, based on the rules for determining end-of-day balances, it is possible that an account’s sweep transaction may not be completed on the day of a bank’s failure, the bank must disclose this possibility along with the resulting status of such unswept funds.
http://www.occ.treas.gov/ftp/bulletin/2009-19.html
OCC Approves Final Rules and Guidelines Implementing Accuracy and Integrity Provisions of the FACT Act: The Office of the Comptroller of the Currency (OCC) has approved for publication in the Federal Register final rules and guidelines, which implement section 312 of the Fair and Accurate Credit Transactions Act of 2003 (FACT Act) regarding the accuracy and integrity of information furnished to consumer reporting agencies.
http://www.occ.treas.gov/ftp/release/2009-64.htm
Community Reinvestment Act: List of Distressed or Underserved Nonmetropolitan Middle-Income Geographies: The Office of the Comptroller of the Currency, along with the Board of Governors of the Federal Reserve System, the Federal Deposit Insurance Corporation, and the Office of Thrift Supervision, recently announced the availability of the 2009 list of distressed or underserved nonmetropolitan middle-income geographies in which bank revitalization or stabilization activities will receive Community Reinvestment Act (CRA) consideration as “community development.”
http://www.occ.treas.gov/ftp/bulletin/2009-18.html
Federal Agencies Propose Rule to Implement S.A.F.E. Act Mortgage Loan Originator Registration Requirements: The Federal financial institution regulatory agencies are together issuing for public comment proposed rules requiring mortgage loan originators who are employees of agency-regulated institutions to meet the registration requirements of the Secure and Fair Enforcement for Mortgage Licensing Act of 2008 (S.A.F.E. Act).
http://www.federalreserve.gov/newsevents/press/bcreg
/20090601a.htm
Deposits at FDIC-insured institutions are now insured up to at least $250,000 per depositor through December 31, 2013. On January 1, 2014, the standard insurance amount will return to $100,000 per depositor for all account categories except for IRAs and other certain retirement accounts which will remain at $250,000 per depositor. (This supersedes the October 3, 2008 changes.)
http://www.fdic.gov/news/news/financial/2009/fil09022.html
Federal Reserve announces final rule on senior perpetual preferred stock issued by banking holding companies to the Treasury and an interim final rule on subordinated debt issued by S-Corp and mutual bank holding companies to Treasury: The Federal Reserve Board announced the adoption of a final rule that will allow bank holding companies to include in their Tier 1 capital without restriction senior perpetual preferred stock issued to the U.S. Treasury Department under the Troubled Asset Relief Program (TARP). This rule makes final the interim final rule that the Board adopted in October 2008.
http://www.federalreserve.gov/newsevents/press/
bcreg/20090522a.htm
Expansion of Eligible Public Welfare Investments: Final Rule: The Office of the Comptroller of the Currency (OCC) published in the Federal Register on April 7, 2009, its final rule, "Community and Economic Development Entities, Community Development Projects, and Other Public Welfare Investments." The final rule expands national banks’ authority to make public welfare investments consistent with recent amendments to 12 USC 24(Eleventh). It authorizes a national bank and its subsidiaries to make public welfare investments directly or indirectly if the investments primarily benefit low- and moderate-income individuals, low- and moderate-income areas, or other areas targeted by a governmental entity for redevelopment, or if the investment would receive consideration under 12 CFR 25.23 (the Community Reinvestment Act regulations) as a "qualified investment." The final rule became effective upon publication.
http://www.occ.treas.gov/ftp/bulletin/2009-14.html
Board announces approval of final amendments to Regulation D pertaining to transfers from savings deposits and the establishment of excess balance accounts at Federal Reserve Banks: The Federal Reserve Board announced the approval of final amendments to Regulation D (Reserve Requirements of Depository Institutions) to liberalize the types of transfers consumers can make from savings deposits and to make it easier for community banks that use correspondent banks to receive interest on excess balances held at Federal Reserve Banks.
http://www.federalreserve.gov/newsevents/press/
monetary/20090520b.htm
Federal Reserve announces that certain high-quality commercial mortgage-backed securities will become eligible collateral under the Term Asset-Backed Securities Loan Facility (TALF): The Federal Reserve Board announced that, starting in July, certain high-quality commercial mortgage-backed securities issued before January 1, 2009 (legacy CMBS) will become eligible collateral under the Term Asset-Backed Securities Loan Facility (TALF).
http://www.federalreserve.gov/newsevents/press/
monetary/20090519b.htm
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