December 2018 Compliance Journal: Compliance Notes

The below article is the Compliance Notes section of the December 2018 Compliance Journal. The full issue may be viewed by clicking here.

The U.S. Senate has confirmed Kathy Kraninger as the next director of CFPB for a five-year term. In one of her first acts, Kraninger reversed a controversial move by her predecessor to rename the CFPB as BCFP. 

FHFA announced the maximum conforming loan limits for mortgages to be acquired by Fannie Mae and Freddie Mac in 2019.  In most of the U.S., the 2019 maximum conforming loan limit for one-unit properties will be $484,350, an increase from $453,100 in 2018. The announcement may be viewed at: https://www.fhfa.gov/Media/PublicAffairs/Pages/FHFA-Announces-Maximum-Conforming-Loan-Limits-for-2019.aspx  

FATF issued the December 2018 edition of its Business Bulletin. The Bulletin provides a brief update to the private sector on recent FAFT outcomes of interest, including updates from the FAFT 4th round of mutual evaluations. The bulletin may be viewed at: http://www.fatf-gafi.org/media/fatf/content/FATF-Business-Bulletin-December-2018.pdf 

CFPB issued a report on the financial well-being of older Americans. The report describes the distribution of financial well-being scores for adults ages 62 and older in the United States, and the relationship between financial well-being and age. The report shows that financial well-being generally increases with age, but declines again at later ages. The full report may be viewed at: https://s3.amazonaws.com/files.consumerfinance.gov/f/documents/bcfp_financial-well-being-older-americans_report.pdf

FRB issued a report of minority-owned depository institutions and their branches. The full report may be viewed at: https://www.federalreserve.gov/releases/mob/current/default.htm

FHFA released the first set of national statistics derived from the National Mortgage Database (NMDB) as a step toward implementing the monthly mortgage market survey public data disclosure required by the Housing and Economic Recovery Act of 2008 (HERA).  FHFA will continue to assess whether additional data may be released that meets the statutory requirements under HERA. The release may be viewed at: https://www.fhfa.gov/Media/PublicAffairs/Pages/FHFA-Releases-US-Mortgage-Statistics-from-the-National-Mortgage-Database.aspx 

CFPB announced the the beta launch of the HMDA Platform for data collected in 2018. The beta release provides financial institutions an opportunity to become familiar with the HMDA Platform and, in particular, determine whether their sample LAR data complies with the reporting requirements outlined in the Filing Instructions Guide for HMDA data collected in 2018. The beta release may be viewed at: https://ffiec.beta.cfpb.gov/filing/2018/ 

OCC issued its quarterly report on bank trading and derivatives activities, which is based on call report information provided by all insured U.S. commercial banks (including trust companies) and savings associations; reports filed by U.S. financial holding companies; and other published data. A total of 1,344 insured U.S. commercial banks and savings associations reported trading and derivatives activities at the end of the third quarter of 2018. A small group of large financial institutions continues to dominate trading and derivatives activity in the U.S. commercial banking system. During the third quarter of 2018, four large commercial banks represented 89.8 percent of the total banking industry notional amounts and 85.5 percent of industry net current credit exposure. The full report may be viewed at: https://www.occ.gov/topics/capital-markets/financial-markets/derivatives/pub-derivatives-quarterly-qtr3-2018.pdf 

NCUA has issued its Quarterly U.S. Map Review for the third quarter 2018. Among its findings, the report shows that Nationally, median asset growth over the year ending in the third quarter of 2018 was 1.7 percent. The full report may be viewed at: https://www.ncua.gov/analysis/Pages/industry/quarterly-map-review-third-quarter-2018.pdf

CFPB issued the 2018 Financial Literacy Annual Report regarding its financial literacy activities and strategy to improve the financial literacy of consumers. CFPB’s financial well-being research indicates that helping people to develop financial skill can make a positive difference in their financial lives. The  report provides an update on the Bureau’s strategy and work to improve the financial capability of Americans. The report may be viewed at: https://s3.amazonaws.com/files.consumerfinance.gov/f/documents/bcfp_financial-literacy_annual-report_2018.pdf

FDIC has updated the Affordable Mortgage Lending Guide, Part I: Federal Agencies and Government Sponsored Enterprises to reflect the most up-to-date information available about the mortgage products offered through federal housing programs, Fannie Mae and Freddie Mac. The publication describes federal programs that support home purchase, refinance, manufactured housing, and some home improvement lending by banks. It covers programs that are targeted to a variety of communities and individuals including rural, Native American, low- and moderate-income, and veterans. The updated guide may be viewed at: https://www.fdic.gov/consumers/community/mortgagelending/guide/part-1-docs/affordable-mortgage-lending-guide-part-1.pdf

CFPB issued its annual Fair Lending Report for calendar year 2017, which explains CFPB’s efforts to fulfill its fair lending mandate. The report may be viewed at: https://s3.amazonaws.com/files.consumerfinance.gov/f/documents/bcfp_fair-lending_report_12-2018.pdf

FHFA has released its semiannual report providing information about the sale of non-performing loans (NPLs) by Fannie Mae and Freddie Mac (the Enterprises). Through June 30, 2018, the Enterprises sold 98,061 NPLs with an aggregate unpaid principal balance (UPB) of $18.7 billion. The loans included in the NPL sales had an average delinquency of 3.1 years and an average current mark‐to‐market LTV ratio of 95 percent, not including capitalized arrearages. Average delinquency for pools sold ranged from 1.4 to 6.2 years. The full report may be viewed at: https://www.fhfa.gov/AboutUs/Reports/ReportDocuments/June2018_NPL_Sales_Report.pdf

FRB, FDIC, OCC, FinCEN, and NCUA issued a joint statement to encourage banks to consider, evaluate, and, where appropriate, responsibly implement innovative approaches to meet their Bank Secrecy Act/anti-money laundering (BSA/AML) compliance obligations, in order to further strengthen the financial system against illicit financial activity. The full statement may be viewed at: https://www.federalreserve.gov/newsevents/pressreleases/files/bcreg20181203a1.pdf

FTC has released the second edition of its Consumer Protection Data Spotlight. This edition focuses on a new development in the grandparent scam. The Data Spotlight may be viewed at: https://www.ftc.gov/news-events/press-releases/2018/12/latest-consumer-protection-data-spotlight-finds-seniors-sending

Michelle W. Bowman was sworn in as a member of the Board of Governors of the Federal Reserve System. The press release may be viewed at: https://www.federalreserve.gov/newsevents/pressreleases/other20181126a.htm

OCC released its latest edition of Community Development Investments on Bank Financing Access: Bank Financing for Rural Broadband Initiatives. The issue is intended to highlight the important role that national banks and federal savings associations can play in helping rural communities gain reliable, high-speed internet access through broadband networks. The full publication may be viewed at: https://www.occ.gov/publications/publications-by-type/other-publications-reports/cdi-newsletter/rural-broadband-nov-2018/rural-broadband-table-of-contents.html 

By, Ally Bates