July 2018 Compliance Journal: Regulatory Spotlight

The below article is the Regulatory Spotlight section of the July 2018 Compliance Journal. The full issue may be viewed by clicking here.

Agencies Issue Policy Statement on Interagency Notification of Formal Enforcement.

The Board of Governors of the Federal Reserve System (FRB), the Federal Deposit Insurance Corporation (FDIC), and the Office of the Comptroller of the Currency (OCC) issued a policy statement on interagency notification of formal enforcement actions in coordination with the Federal Financial Institutions Examination Council (FFIEC) rescinding the existing policy statement and to incorporate and reflect current practices. The policy statement is applicable 06/12/2018. The notice may be viewed at: https://www.gpo.gov/fdsys/pkg/FR-2018-06-12/pdf/2018-12556.pdf. Federal Register, Vol. 83, No. 113, 06/12/2018, 27371-27372.

CFPB Issues Semiannual Regulatory Agenda.

The Bureau of Consumer Financial Protection (CFPB) issued its semiannual regulatory agenda as a part of the Spring 2018 Unified Agenda of Federal Regulatory and Deregulatory Actions. CFPB reasonably anticipates having the regulatory matters identified in the agenda under consideration during the period from 05/01/2018, to 04/30/2019. The next agenda will be published in fall 2018 and will update this agenda through fall 2019. The notice may be viewed at: https://www.gpo.gov/fdsys/pkg/FR-2018-06-11/pdf/2018-11229.pdf. Federal Register, Vol. 83, No. 112, 06/11/2018, 27234-27236.

CFPB Issues Correction to Request for Comment on Information Collection.

CFPB issued a correction to a request for comment on an information collection published in the Federal Register on 05/14/2018. The notice incorrectly included the word “Compliant” in one mention of the collection’s title when it should have read “Complaint.” The notice may be viewed at: https://www.gpo.gov/fdsys/pkg/FR-2018-06-15/pdf/2018-12908.pdf. Federal Register, Vol. 83, No. 116, 06/15/2018, 27975.

FFIEC Rescinds Policy Statement on Interagency Coordination of Formal Corrective Action.

The Federal Financial Institutions Examination Council (FFIEC) is rescinding its policy statement titled “Interagency Coordination of Formal Corrective Action by the Federal Bank Regulatory Agencies” that was issued on 02/20/1997. This action is being coordinated with the publication of a new policy statement in the Federal Register by the Board of Governors of the Federal Reserve System (FRB), the Federal Deposit Insurance Corporation (FDIC), and the Office of the Comptroller of the Currency (OCC), which reflects the current practices of the federal banking agencies with respect to the coordination of formal enforcement actions against federally regulated financial institutions and institution-affiliated parties. The rescission of the policy is effective 06/12/2018. The notice may be viewed at: https://www.gpo.gov/fdsys/pkg/FR-2018-06-12/pdf/2018-12557.pdf. Federal Register, Vol. 83, No. 113, 06/12/2018, 27329-27330.

FRB Finalizes Amendments to Regulation A.

The Board of Governors of the Federal Reserve System (FRB) adopted final amendments to its Regulation A to reflect FRB’s approval of an increase in the rate for primary credit at each Federal Reserve Bank. The secondary credit rate at each Reserve Bank automatically increased by formula as a result of FRB’s primary credit rate action. The amendments are effective 06/20/2018. The notice may be viewed at: https://www.gpo.gov/fdsys/pkg/FR-2018-06-20/pdf/2018-13270.pdf. Federal Register, Vol. 83, No. 119, 06/20/2018, 28526-28527.

FRB Finalizes Amendments to Regulation D.

FRB is amending Regulation D (Reserve Requirements of Depository Institutions) to revise the rate of interest paid on balances maintained to satisfy reserve balance requirements (IORR) and the rate of interest paid on excess balances (IOER) maintained at Federal Reserve Banks by or on behalf of eligible institutions. The final amendments specify that IORR is 1.95 percent and IOER is 1.95 percent, a 0.20 percentage point increase from their prior levels. The amendments are intended to enhance the role of such rates of interest in moving the Federal funds rate into the target range established by the Federal Open Market Committee. The amendments are effective 07/20/2018. The notice may be viewed at: https://www.gpo.gov/fdsys/pkg/FR-2018-06-20/pdf/2018-13267.pdf. Federal Register, Vol. 83, No. 119, 06/20/2018, 28527-28528.

FRB Issues Semiannual Regulatory Agenda.

The Board of Governors of the Federal Reserve System (FRB) issued its semiannual regulatory agenda as a part of the Spring 2018 Unified Agenda of Federal Regulatory and Deregulatory Actions. FRB reasonably anticipates having the regulatory matters identified in the agenda under consideration during the period from 05/01/2018, to 04/30/2019. The next agenda will be published in fall 2018 and will update this agenda through fall 2019. The notice may be viewed at: https://www.gpo.gov/fdsys/pkg/FR-2018-06-11/pdf/2018-11243.pdf. Federal Register, Vol. 83, No. 112, 06/11/2018, 27272-27273.

FRB Announces Financial Sector Liabilities.

FRB announced the financial sector liabilities for 2018. Aggregate financial sector liabilities is equal to $20,283,121,945,000. This measure is in effect from 07/01/2018 through 06/30/2018. The notice may be viewed at: https://www.gpo.gov/fdsys/pkg/FR-2018-07-03/pdf/2018-14241.pdf. Federal Register, Vol. 83, No. 128, 07/03/2018, 31148-31149.

FRB Proposes New Message Format for the Fedwire Funds Service.

FRB has proposed to adopt the ISO 20022 message format for the Fedwire Funds Service. ISO 20022 is an international standard that would replace the Fedwire Funds Service’s current, proprietary message format. The migration to ISO 20022 would take place in three phases beginning in 2020 and ending in 2023. Comments are due 09/04/2018. The notice may be viewed at: https://www.gpo.gov/fdsys/pkg/FR-2018-07-05/pdf/2018-14351.pdf. Federal Register, Vol. 83, No. 129, 07/05/2018, 31391-31396.

FRB Requests Comment on Information Collection.

FRB announced it seeks comment on the information collection titled Interagency Guidance on Managing Compliance and Reputation Risks for Reverse Mortgage Products. FRB also gave notice that it sent the collection to OMB for review. Comments are due 09/04/2018. The notice may be viewed at: https://www.gpo.gov/fdsys/pkg/FR-2018-07-03/pdf/2018-14303.pdf. Federal Register, Vol. 83, No. 128, 07/03/2018, 31146-31148.

FDIC Requests Comment on Information Collection.

The Federal Deposit Insurance Corporation (FDIC) announced it seeks comment on the information collection titled Assessment Rate Adjustment Guidelines for Large and Highly Complex Institutions. FDIC also gave notice that it sent the collection to OMB for review. Comments are due 08/08/2018. The notice may be viewed at: https://www.gpo.gov/fdsys/pkg/FR-2018-07-09/pdf/2018-14540.pdf. Federal Register, Vol. 83, No. 131, 07/09/2018, 31757-31758.

FDIC Issues Terminations of Receiverships.

  • FDIC as Receiver for former depository institutions, intends to terminate its receivership for the institutions listed in the notice. The liquidation of the assets for each receivership has been completed. To the extent permitted by available funds and in accordance with law, the Receiver will be making a final dividend payment to proven creditors. Based upon the foregoing, the Receiver has determined that the continued existence of the receiverships will serve no useful purpose. Consequently, notice is given that the receiverships shall be terminated, to be effective no sooner than thirty days after the date of this notice. If any person wishes to comment concerning the termination of any of the receiverships, such comment must be made in writing, identify the receivership to which the comment pertains, and be sent within thirty days of the date of this notice to: Federal Deposit Insurance Corporation, Division of Resolutions and Receiverships, Attention: Receivership Oversight Department 34.6, 1601 Bryan Street, Dallas, TX 75201. No comments concerning the termination of the above-mentioned receiverships will be considered which are not sent within this time frame. The notices may be viewed at: https://www.gpo.gov/fdsys/pkg/FR-2018-06-22/pdf/2018-13361.pdf. Federal Register, Vol. 83, No. 121, 06/22/2018, 29115;
    https://www.gpo.gov/fdsys/pkg/FR-2018-07-09/pdf/2018-14592.pdf. Federal Register, Vol. 83, No. 131, 07/09/2018, 31758.
  • FDIC as Receiver was charged with the duty of winding up the affairs of former depository institutions and liquidating all related assets. The Receiver has fulfilled its obligations and made all dividend distributions required by law. The Receiver has further irrevocably authorized and appointed FDIC-Corporate as its attorney-in-fact to execute and file any and all documents that may be required to be executed by the Receiver which FDIC-Corporate, in its sole discretion, deems necessary, including but not limited to releases, discharges, satisfactions, endorsements, assignments, and deeds. Effective on the termination dates listed in the final column of the chart in the notice, the Receiverships have been terminated, the Receiver has been discharged, and the Receiverships have ceased to exist as legal entities. The notices may be viewed at: https://www.gpo.gov/fdsys/pkg/FR-2018-07-09/pdf/2018-14591.pdf. Federal Register, Vol. 83, No. 131, 07/09/2018, 31757.

OCC Requests Comment on Information Collections.

  • The Office of the Comptroller of the Currency (OCC) announced it seeks comment on the information collection titled Procedures to Enhance the Accuracy and Integrity of Information Furnished to Consumer Reporting Agencies under Section 312 of the Fair and Accurate Credit Transactions Act (FACT Act). OCC also gave notice that it sent the collection to OMB for review. Comments are due 07/23/2018. The notice may be viewed at: https://www.gpo.gov/fdsys/pkg/FR-2018-06-22/pdf/2018-13384.pdf. Federal Register, Vol. 83, No. 121, 06/22/2018, 29153-29154.
  • OCC announced it seeks comment on the information collection titled Loans in Areas Having Special Flood Hazards. OCC also gave notice that it sent the collection to OMB for review. Comments are due 07/27/2018. The notice may be viewed at: https://www.gpo.gov/fdsys/pkg/FR-2018-06-27/pdf/2018-13745.pdf. Federal Register, Vol. 83, No. 124, 06/27/2018, 30220-30221.  

OCC Renews Minority Depository Institution Advisory Committee Charter.

OCC has determined that the renewal of the charter of the OCC Minority Depository Institutions Advisory Committee (MDIAC) is necessary and in the public interest. OCC hereby gives notice of the renewal of the charter. The notice may be viewed at: https://www.gpo.gov/fdsys/pkg/FR-2018-07-10/pdf/2018-14690.pdf. Federal Register, Vol. 83, No. 132, 07/10/2018, 31990.

HUD Issues Interpretive Rule on Loan Seasoning for Ginnie Mae Mortgage-Backed Securities.

The Department of Housing and Urban Development (HUD) issued an interpretive rule to clarify the scope of the provision of the recently enacted Economic Growth, Regulatory Relief, and Consumer Protection Act (Act) that prohibits the Government National Mortgage Association (Ginnie Mae) from guaranteeing the timely payment of principal and interest on a security that is “backed by a mortgage” that fails to meet certain “seasoning” requirements. With this new amendment, questions have arisen as to the effect of this provision on Ginnie Mae’s ability to guarantee Multiclass Securities where the trust assets consist of direct or indirect interests in certificates, previously lawfully guaranteed by Ginnie Mae, but with underlying mortgage loans that may not be in compliance with the seasoning requirements. The rule provides HUD’s interpretation that the statutory provision does not prohibit Ginnie Mae from making guarantees in this context. The interpretive rule is effective 06/29/2018. Comments are due 08/02/2018. The notice may be viewed at: https://www.gpo.gov/fdsys/pkg/FR-2018-07-03/pdf/2018-14354.pdf. Federal Register, Vol. 83, No. 128, 07/03/2018, 31042-31045.

HUD Finalizes Rule on the Removal of the FHA Inspector Roster.

HUD issued a final rule streamlining the inspection requirements for FHA single-family mortgage insurance by removing the regulations for the FHA Inspector Roster (Roster). The Roster is a list of inspectors approved by FHA as eligible to determine if the construction quality of a one- to four-unit property is acceptable as security for an FHA-insured loan. The removal of the Roster regulations is based on the recognition of the sufficiency and quality of inspections carried out by certified inspectors and other qualified individuals. The final rule is effective 08/02/2018. The notice may be viewed at: https://www.gpo.gov/fdsys/pkg/FR-2018-07-03/pdf/2018-14212.pdf. Federal Register, Vol. 83, No. 128, 06/03/2018, 31038-31042.

HUD Issues Semiannual Regulatory Agenda.

HUD issued its semiannual regulatory agenda as a part of the Spring 2018 Unified Agenda of Federal Regulatory and Deregulatory Actions. HUD reasonably anticipates having the regulatory matters identified in the agenda under consideration during the period from 05/01/2018, to 04/30/2019. The next agenda will be published in fall 2018 and will update this agenda through fall 2019. The notice may be viewed at: https://www.gpo.gov/fdsys/pkg/FR-2018-06-11/pdf/2018-11248.pdf. Federal Register, Vol. 83, No. 112, 06/11/2018, 27148-27149.

HUD Requests Comment on the Fair Housing Act’s Disparate Impact Standard. 

HUD is reviewing its 2013 final rule implementing the Fair Housing Act’s disparate impact standard, as well as the 2016 supplement to HUD’s responses to certain insurance industry comments made during the rulemaking. HUD is reviewing the final rule and supplement to determine what changes, if any, are appropriate following the Supreme Court’s 2015 ruling in Texas Department of Housing and Community Affairs v. Inclusive Communities Project, Inc., which held that disparate impact claims were cognizable under the Fair Housing Act and discussed standards for, and the constitutional limitations on, such claims. As HUD conducts its review, it is soliciting public comment on the disparate impact standard set forth in the final rule and supplement, the burden-shifting approach, the relevant definitions, the causation standard, and whether changes to these or other provisions of the rule would be appropriate. Comments are due 08/20/2018. The notice may be viewed at: https://www.gpo.gov/fdsys/pkg/FR-2018-06-20/pdf/2018-13340.pdf. Federal Register, Vol. 83, No. 119, 06/20/2018, 28560-28562.

HUD Requests Comment on Information Collections.

  • HUD announced it seeks comment on the information collection titled Comprehensive Listing of Transactional Documents for Mortgagors, Mortgagees and Contractors, Federal Housing Administration (FHA) Healthcare Facility Documents: Proposed Revisions and Updates of Information Collection. HUD also gave notice that it sent the collection to OMB for review. Comments are due 07/16/2018. The notice may be viewed at: https://www.gpo.gov/fdsys/pkg/FR-2018-06-29/pdf/2018-14081.pdf. Federal Register, Vol. 83, No. 126, 06/29/2018, 30769-30771.
  • HUD announced it seeks comment on the information collection titled Housing Trust Fund (HTF). HUD also gave notice that it sent the collection to OMB for review. Comments are due 09/04/2018. The notice may be viewed at: https://www.gpo.gov/fdsys/pkg/FR-2018-07-05/pdf/2018-14353.pdf. Federal Register, Vol. 83, No. 129, 07/05/2018, 31413-31415.

FEMA Issues Final Rule on Suspensions of NFIP Community Eligibility.

The Federal Emergency Management Agency (FEMA) issued a final rule which identifies communities in the states of Illinois, and Nebraska, where the sale of flood insurance has been authorized under the National Flood Insurance Program (NFIP) that are scheduled for suspension on the effective dates listed within the final rule because of noncompliance with the floodplain management requirements of the program. If FEMA receives documentation that the community has adopted the required floodplain management measures prior to the effective suspension date given in the final rule, the suspension will not occur and a notice of this will be provided by publication in the Federal Register on a subsequent date. The effective date of each community’s scheduled suspension is the third date listed in the third column of the tables in the final rule. The final rule may be viewed at: https://www.gpo.gov/fdsys/pkg/FR-2018-07-03/pdf/2018-14229.pdf. Federal Register, Vol. 83, No. 128, 07/3/2018, 31075-31077.

FEMA Issues Final Flood Hazard Determinations.

  • FEMA has issued a final notice which identifies communities in the state of Iowa, where flood hazard determinations, which may include additions or modifications of Base Flood Elevations (BFEs), base flood depths, Special Flood Hazard Area (SFHA) boundaries or zone designations, or regulatory floodways on the Flood Insurance Rate Maps (FIRMs) and where applicable, in the supporting Flood Insurance Study (FIS) reports have been made final. The FIRM and FIS report are the basis of the floodplain management measures that a community is required either to adopt or to show evidence of having in effect in order to qualify or remain qualified for participation in FEMA’s National Flood Insurance Program (NFIP). The final notice is effective 10/05/2018. The notice may be viewed at: https://www.gpo.gov/fdsys/pkg/FR-2018-06-14/pdf/2018-12738.pdf. Federal Register, Vol. 83, No. 115, 06/14/2018, 27791-27793.
  • FEMA has issued a final notice which identifies communities in the state of Wisconsin, where flood hazard determinations, which may include additions or modifications of Base Flood Elevations (BFEs), base flood depths, Special Flood Hazard Area (SFHA) boundaries or zone designations, or regulatory floodways on the Flood Insurance Rate Maps (FIRMs) and where applicable, in the supporting Flood Insurance Study (FIS) reports have been made final. The FIRM and FIS report are the basis of the floodplain management measures that a community is required either to adopt or to show evidence of having in effect in order to qualify or remain qualified for participation in FEMA’s National Flood Insurance Program (NFIP). The final notice is effective 09/28/2018. The notice may be viewed at: https://www.gpo.gov/fdsys/pkg/FR-2018-06-26/pdf/2018-13607.pdf. Federal Register, Vol. 83, No. 123, 06/26/2018, 29805-29807.

FEMA Issues Final Notices of Changes in Flood Hazard Determinations.

  • FEMA issued new or modified Base (1% annual-chance) Flood Elevations (BFEs), base flood depths, Special Flood Hazard Area (SFHA) boundaries or zone designations, and/or regulatory floodways (hereinafter referred to as flood hazard determinations) as shown on the indicated Letter of Map Revision (LOMR) for communities in the states of Illinois, Indiana, and Minnesota. Each LOMR revises the Flood Insurance Rate Maps (FIRMs), and in some cases the Flood Insurance Study (FIS) reports, currently in effect for the listed communities. The flood hazard determinations modified by each LOMR will be used to calculate flood insurance premium rates for new buildings and their contents. The effective date for each LOMR is indicated in the table in the final notice. The notice may be viewed at: https://www.gpo.gov/fdsys/pkg/FR-2018-06-14/pdf/2018-12741.pdf. Federal Register, Vol. 83, No. 115, 06/14/2018, 27788-27789.
  • FEMA issued new or modified Base (1% annual-chance) Flood Elevations (BFEs), base flood depths, Special Flood Hazard Area (SFHA) boundaries or zone designations, and/or regulatory floodways (hereinafter referred to as flood hazard determinations) as shown on the indicated Letter of Map Revision (LOMR) for communities in the states of Indiana, and Wisconsin. Each LOMR revises the Flood Insurance Rate Maps (FIRMs), and in some cases the Flood Insurance Study (FIS) reports, currently in effect for the listed communities. The flood hazard determinations modified by each LOMR will be used to calculate flood insurance premium rates for new buildings and their contents. The effective date for each LOMR is indicated in the table in the final notice. The notice may be viewed at: https://www.gpo.gov/fdsys/pkg/FR-2018-06-26/pdf/2018-13605.pdf. Federal Register, Vol. 83, No. 123, 06/26/2018, 29808-29810.
  • FEMA issued new or modified Base (1% annual-chance) Flood Elevations (BFEs), base flood depths, Special Flood Hazard Area (SFHA) boundaries or zone designations, and/or regulatory floodways (hereinafter referred to as flood hazard determinations) as shown on the indicated Letter of Map Revision (LOMR) for communities in the states of Illinois, and Indiana. Each LOMR revises the Flood Insurance Rate Maps (FIRMs), and in some cases the Flood Insurance Study (FIS) reports, currently in effect for the listed communities. The flood hazard determinations modified by each LOMR will be used to calculate flood insurance premium rates for new buildings and their contents. The effective date for each LOMR is indicated in the table in the final notice. The notice may be viewed at: https://www.gpo.gov/fdsys/pkg/FR-2018-06-27/pdf/2018-13741.pdf. Federal Register, Vol. 83, No. 124, 06/27/2018, 30187-30188.

FEMA Issues Correction to Changes in Flood Hazard Determinations.

On 04/05/2018, FEMA published in the Federal Register a changes in flood hazard determination notice that contained an erroneous table. The correction provides corrections to the table, to be used in lieu of the previously published table. The table provided in the correction represents the communities affected for Outagamie County, Wisconsin. The correction may be viewed at: https://www.gpo.gov/fdsys/pkg/FR-2018-06-13/pdf/2018-12643.pdf. Federal Register, Vol. 83, No. 114, 06/13/2018, 27623.

FEMA Removes Pilot Inspection Program Regulations.

FEMA is revising its regulations to remove a pilot inspection program under the National Flood Insurance Program (NFIP). This pilot inspection program applied to Monroe County, Florida. FEMA terminated this program on 06/28/2013, and is now removing the applicable regulations from the Code of Federal Regulations because they are no longer necessary. The rule is effective 07/05/2018. The notice may be viewed at: https://www.gpo.gov/fdsys/pkg/FR-2018-07-05/pdf/2018-14477.pdf. Federal Register, Vol. 83, No. 129, 07/5/2018, 31337-31340.

FEMA Requests Comment on Information Collections.

  • FEMA announced it seeks comment on the information collection titled Elevation Certificate/Floodproofing Certificate. FEMA also gave notice that it sent the collection to OMB for review. Comments are due 07/30/2018. The notice may be viewed at: https://www.gpo.gov/fdsys/pkg/FR-2018-06-29/pdf/2018-13992.pdf. Federal Register, Vol. 83, No 126, 06/29/2018, 30760-30761.
  • FEMA announced it seeks comment on the information collection titled Standard Flood Hazard Determination Form. FEMA also gave notice that it sent the collection to OMB for review. Comments are due 08/28/2018. The notice may be viewed at: https://www.gpo.gov/fdsys/pkg/FR-2018-06-29/pdf/2018-13991.pdf. Federal Register, Vol. 83, No. 126, 06/29/2018, 30758-30759.

Treasury Issues Semiannual Regulatory Agenda.

The Department of the Treasury (Treasury) issued its semiannual regulatory agenda as a part of the Spring 2018 Unified Agenda of Federal Regulatory and Deregulatory Actions. Treasury reasonably anticipates having the regulatory matters identified in the agenda under consideration during the period from 05/01/2018, to 04/30/2019. The next agenda will be published in fall 2018 and will update this agenda through fall 2019. The notice may be viewed at: https://www.gpo.gov/fdsys/pkg/FR-2018-06-11/pdf/2018-11278.pdf. Federal Register, Vol. 83, No. 112, 06/11/2018, 27192.

Treasury Opens Qualified Issuer Applications and Guarantee Applications for CDFI Bond Guarantee Program.

Treasury has opened Qualified Issuer Applications and Guarantee Applications for the Community Development Financial Institutions (CDFI) Bond Guarantee Program. Applications are due 07/12/2018. The notice may be viewed at: https://www.gpo.gov/fdsys/pkg/FR-2018-06-12/pdf/2018-12605.pdf. Federal Register, Vol. 83, No. 113, 06/12/2018, 27370-27371.

Treasury Requests Comment on Information Collections.

  • Treasury announced it seeks comment on the information collection titled Energy Efficient Homes Credit; Manufactured Homes. Treasury also gave notice that it sent the collection to OMB for review. Comments are due 08/24/2018. The notice may be viewed at: https://www.gpo.gov/fdsys/pkg/FR-2018-06-25/pdf/2018-13559.pdf. Federal Register, Vol. 83, No. 122, 06/25/2018, 29618-29619.   
  • Treasury announced it seeks comment on the information collection titled Revenue Procedure 2015–41 (Formerly 2006–9)—Section 482— Allocation of Income and Deductions Among Taxpayers. Treasury also gave notice that it sent the collection to OMB for review. Comments are due 08/27/2018. The notice may be viewed at: https://www.gpo.gov/fdsys/pkg/FR-2018-06-27/pdf/2018-13748.pdf. Federal Register, Vol. 83, No. 124, 06/27/2018, 30221-30222.
  • Treasury announced it seeks comment on the information collection titled Form 5310, Application for Determination for Terminating Plan, and Form 6088, Distributable Benefits from Employee Pension Benefit Plans. Treasury also gave notice that it sent the collection to OMB for review. Comments are due 08/27/2018. The notice may be viewed at: https://www.gpo.gov/fdsys/pkg/FR-2018-06-27/pdf/2018-13749.pdf. Federal Register, Vol. 83, No. 124, 06/27/2018, 30222.
  • Treasury announced it seeks comment on the information collection titled Requirements Respecting the Adoption or Change of Accounting Method; Extensions of Time to Make Elections. Treasury also gave notice that it sent the collection to OMB for review. Comments are due 08/27/2018. The notice may be viewed at: https://www.gpo.gov/fdsys/pkg/FR-2018-06-27/pdf/2018-13750.pdf. Federal Register, Vol. 83, No. 124, 06/27/2018, 30222-30223.

SBA Issues Semiannual Regulatory Agenda.

The Small Business Administration (SBA) issued its semiannual regulatory agenda as a part of the Spring 2018 Unified Agenda of Federal Regulatory and Deregulatory Actions. SBA reasonably anticipates having the regulatory matters identified in the agenda under consideration during the period from 05/01/2018, to 04/30/2019. The next agenda will be published in fall 2018 and will update this agenda through fall 2019. The notice may be viewed at: https://www.gpo.gov/fdsys/pkg/FR-2018-06-11/pdf/2018-11293.pdf. Federal Register, Vol. 83, No. 112, 06/11/2018, 27212-27216.

SBA Issues Peg Rate.

SBA publishes an interest rate called the optional peg rate on a quarterly basis. The rate is a weighted average cost of money to the government for maturities similar to the average SBA direct loan. The rate may be used as a base rate for guaranteed fluctuating interest rate SBA loans. The rate will be 2.875 percent for the July-September quarter of FY 2018. Pursuant to 13 CFR 120.921(b), the maximum legal interest rate for any third party lender’s commercial loan which funds any portion of the cost of a 504 project shall be 6 percent over the New York Prime rate or, if that exceeds the maximum interest rate permitted by the constitution or laws of a given state, the maximum interest rate will be the rate permitted by the constitution or laws of the given state. The notice may be viewed at: https://www.gpo.gov/fdsys/pkg/FR-2018-07-03/pdf/2018-14208.pdf. Federal Register, Vol. 83, No. 128, 07/03/2018, 31246-31247.

FCA Proposes Standards of Conduct and Referral of Known or Suspected Criminal Violations.

The Farm Credit Administration (FCA) proposes amendments to its regulations governing standards of conduct of directors and employees of Farm Credit System (FCS) institutions, excluding the Federal Agricultural Mortgage Corporation. The proposed rule would replace the original proposed rule, and would require every FCS institution to have or develop a Standards of Conduct Program based on core principles to put into effect ethical values as part of corporate culture. Comments are due 09/13/2018. The notice may be viewed at: https://www.gpo.gov/fdsys/pkg/FR-2018-06-15/pdf/2018-12874.pdf. Federal Register, Vol. 83, No. 116, 06/15/2018, 27922-27932.

FCA Issues Correction to Final Rule on Investments.

FCA is correcting a final rule that appeared in the Federal Register on 06/12/2018 that amends regulations governing investments of both Farm Credit System (FCS) banks and associations. The final rule strengthens eligibility criteria for investments that FCS banks purchase and hold, and implements section 939A of the Dodd-Frank Act by removing references to and requirements for credit ratings and substituting other appropriate standards of creditworthiness. The final rule revises FCA’s regulatory approach to investments by FCS associations by limiting the type and amount of investments that an association may hold for risk management purposes. The correction is effective 01/01/2019. The notice may be viewed at: https://www.gpo.gov/fdsys/pkg/FR-2018-07-02/pdf/2018-14107.pdf. Federal Register, Vol. 83, No. 127, 07/02/2018, 30833.

RBC Invites Applications for Technical Assistance for Rural Transportation Systems Grants. 

Rural Business-Cooperative Service (RBC) has invited applications for grants to provide Technical Assistance for Rural Transportation (RT) systems under the Rural Business Development Grant (RBDG) to provide Technical Assistance for RT systems and for RT systems to Federally Recognized Native American Tribes’ and the terms provided in such funding. Successful applications will be selected by RBC for funding and subsequently awarded from funds appropriated for the RBDG program. Applications are due 09/25/2018. The notice may be viewed at: https://www.gpo.gov/fdsys/pkg/FR-2018-06-27/pdf/2018-13752.pdf. Federal Register, Vol. 83, No. 124, 06/27/2018, 30102-30106. 

RHS Proposes Amendments to Single Family Housing Guaranteed Loan Program.

The Rural Housing Service (RHS) proposes amendments to the Single Family Housing Guaranteed Loan Program (SFHGLP) on the subject of Single Close Combination Construction to Permanent Loans. RHS proposes to amend the regulation to provide increased flexibility in loan terms that affect the costs of interim construction financing and the viability of combination construction to permanent loans on the secondary market in a manner which will enable more lenders to make these combination construction to permanent loans to SFHGLP borrowers. Specifically, RHS proposes to: Allow and define a maximum interest rate for interim construction financing that is different than the underlying rate; allow for the escrow or reserve of regularly scheduled principal, interest, taxes and insurance (PITI) payments; and remove the requirement for loan modification or re-amortization once construction is complete. Comments are due 08/20/2018. The notice may be viewed at: https://www.gpo.gov/fdsys/pkg/FR-2018-06-20/pdf/2018-13154.pdf. Federal Register, Vol. 83, No. 119, 06/20/2018, 28547-28550.

RHS Invites Applications for Section 514 Farm Labor Housing Loans and Section 516 Farm Labor Housing Grants for Off-Farm Housing for Fiscal Year 2018.

RHS announced the timeframe to submit pre-applications for Section 514 Farm Labor Housing (FLH) loans and Section 516 FLH grants for the construction of new off-farm FLH units and related facilities for domestic farm laborers and for the purchase and substantial rehabilitation of non-FLH property. The intended purpose of the loans and grants are to increase the number of available housing units for domestic farm laborers. Applications are due 08/27/2018. The notice may be viewed at: https://www.gpo.gov/fdsys/pkg/FR-2018-06-27/pdf/2018-13761.pdf. Federal Register, Vol. 83, No. 124, 06/27/2018, 30106-30113.

SEC Finalizes Amendments to Investment Company Liquidity Disclosure.

The Securities and Exchange Commission (SEC) is adopting amendments to its forms designed to improve the reporting and disclosure of liquidity information by registered open-end investment companies. SEC is adopting a new requirement that funds disclose information about the operation and effectiveness of their liquidity risk management program in their reports to shareholders. SEC in turn is rescinding the requirement in Form N–PORT under the Investment Company Act of 1940 that funds publicly disclose aggregate liquidity classification information about their portfolios. In addition, SEC is adopting amendments to Form N– PORT that will allow funds classifying the liquidity of their investments pursuant to their liquidity risk management programs to report multiple liquidity classification categories for a single position under specified circumstances. SEC also is adding a new requirement to Form N–PORT that funds and other registrants report their holdings of cash and cash equivalents. The amendments are final 09/10/2018. The notice may be viewed at: https://www.gpo.gov/fdsys/pkg/FR-2018-07-10/pdf/2018-14366.pdf. Federal Register, Vol. 83, No. 132, 07/10/2018, 31859-31877.

SEC Finalizes Amendments to Smaller Reporting Company Definition.

SEC finalized amendments to the definition of “smaller reporting company” as used in its rules and regulations. The amendments expand the number of registrants that qualify as smaller reporting companies and are intended to reduce compliance costs for these registrants and promote capital formation, while maintaining appropriate investor protections. SEC is amending the definition of “smaller reporting company” to include registrants with a public float of less than $250 million, as well as registrants with annual revenues of less than $100 million for the previous year and either no public float or a public float of less than $700 million. SEC is also amending other rules and forms in light of the new definition of “smaller reporting company,” including amendments to the definitions of “accelerated filer” and “large accelerated filer” to preserve the existing thresholds in those definitions. Qualifying as a “smaller reporting company” will no longer automatically make a registrant a non-accelerated filer. The Chairman of the SEC, however, has directed the staff to formulate recommendations to SEC for possible additional changes to the “accelerated filer” definition that, if adopted, would have the effect of reducing the number of registrants that qualify as accelerated filers. The final rule is effective 09/10/2018. The notice may be viewed at: https://www.gpo.gov/fdsys/pkg/FR-2018-07-10/pdf/2018-14306.pdf. Federal Register, Vol. 83, No. 132, 07/10/2018, 31992-32022.

SEC Issues Semiannual Regulatory Agenda.

SEC issued its semiannual regulatory agenda as a part of the Spring 2018 Unified Agenda of Federal Regulatory and Deregulatory Actions. SEC reasonably anticipates having the regulatory matters identified in the agenda under consideration during the period from 05/01/2018, to 04/30/2019. The next agenda will be published in fall 2018 and will update this agenda through fall 2019. The notice may be viewed at: https://www.gpo.gov/fdsys/pkg/FR-2018-06-11/pdf/2018-11245.pdf. Federal Register, Vol. 83, No. 112, 06/11/2018, 27280-272840.

NCUA Finalizes Rule on Mergers of Federally Insured Credit Unions.

The National Credit Union Administration (NCUA) finalized revisions to procedures a federally insured credit union (FICU) must follow to merge voluntarily with another FICU. The changes: revise and clarify the contents and format of the member notice; require merging credit unions to disclose certain merger-related financial arrangements for covered persons; increase the minimum member notice period; and provide a method for members and others to submit comments to NCUA regarding the proposed merger. In addition, NCUA has replaced its Merger Manual with revised model forms that conform to the requirements of this rule. The regulations now includes these forms. The rule is effective 10/01/2018. The notice may be viewed at: https://www.gpo.gov/fdsys/pkg/FR-2018-06-28/pdf/2018-13867.pdf. Federal Register, Vol. 83, No. 125, 06/28/2018, 30301-30314.

NCUA Finalizes Amendments to Chartering and Field of Membership Rules.

NCUA is amending its chartering and field of membership rules with respect to applicants for a community charter approval, expansion or conversion. NCUA will allow the option for an applicant to submit a narrative to establish the existence of a well-defined local community instead of limiting the applicant to a presumptive statistical community. Also, NCUA will hold a public hearing for narrative applications where the proposed community exceeds a population of 2.5 million people. Further, for communities that are subdivided into metropolitan divisions, NCUA will permit an applicant to designate a portion of the area as its community without regard to division boundaries. The final rule is effective 09/01/2018. The notice may be viewed at: https://www.gpo.gov/fdsys/pkg/FR-2018-06-28/pdf/2018-13869.pdf. Federal Register, Vol. 83, No. 125, 06/28/2018, 30289-30301.

DOL Finalizes Rule on Association Health Plans.

The Department of Labor (DOL) finalized regulation under Title I of the Employee Retirement Income Security Act (ERISA) that establishes additional criteria under ERISA section 3(5) for determining when employers may join together in a group or association of employers that will be treated as the “employer” sponsor of a single multiple-employer “employee welfare benefit plan” and “group health plan,” as those terms are defined in Title I of ERISA. By establishing a more flexible ‘‘commonality of interest’’ test for the employer members than DOL had adopted in sub-regulatory interpretive rulings under ERISA section 3(5), and otherwise removing undue restrictions on the establishment and maintenance of Association Health Plans (AHPs) under ERISA, the regulation facilitates the adoption and administration of AHPs and expands access to affordable health coverage, especially for employees of small employers and certain self-employed individuals. The regulation is effective 08/20/2018. The notice may be viewed at: https://www.gpo.gov/fdsys/pkg/FR-2018-06-21/pdf/2018-12992.pdf. Federal Register, Vol. 83, No. 120, 06/21/2018, 28912-28964.

Education Requests Comment on Information Collection.

The Department of Education (Education) announced it seeks comment on an information collection titled Federal Perkins/ NDSL Loan Assignment Form. Education also gave notice that it sent the collection to OMB for review. Comments are due 09/07/2018. The notice may be viewed at: https://www.gpo.gov/fdsys/pkg/FR-2018-07-09/pdf/2018-14603.pdf. Federal Register, Vol. 83, No. 131, 07/09/2018, 31740.

By, Ally Bates