June 2018 Compliance Journal: Regulatory Spotlight

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

Agencies Finalize Amendments to the Securities Transaction Settlement Cycle.

The Federal Deposit Insurance Corporation (FDIC), and the Office of the Comptroller of the Currency (OCC) finalized a rule to shorten the standard settlement cycle for securities purchased or sold by national banks, federal savings associations, and FDIC-supervised institutions. The Agencies’ final rule is consistent with an industry-wide transition to a two business-day settlement cycle, which is designed to reduce settlement exposure and align settlement practices across all market participants. The final rule is effective 10/01/2018. The notice may be viewed at: https://www.gpo.gov/fdsys/pkg/FR-2018-06-07/pdf/2018-12267.pdf. Federal Register, Vol. 83, No. 110, 06/07/2018, 26347-26349.

Agencies Propose Amendments to Regulatory Capital Rules.

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 joint proposal to address changes to U.S. generally accepted accounting principles (U.S. GAAP) described in Accounting Standards Update No. 2016–13, Topic 326, Financial Instruments—Credit Losses (ASU 2016–13), including banking organizations’ implementation of the current expected credit losses methodology. Specifically, the proposal would revise the agencies’ regulatory capital rules to identify which credit loss allowances under the new accounting standard are eligible for inclusion in regulatory capital and to provide banking organizations the option to phase in the day-one adverse effects on regulatory capital that may result from the adoption of the new accounting standard. The proposal also would amend certain regulatory disclosure requirements to reflect applicable changes to U.S. GAAP covered under ASU 2016–13. In addition, the agencies are proposing to make amendments to their stress testing regulations so that covered banking organizations that have adopted ASU 2016–13 would not include the effect of ASU 2016–13 on their provisioning for purposes of stress testing until the 2020 stress test cycle. Finally, the agencies are proposing to make conforming amendments to their other regulations that reference credit loss allowances. Comments are due 07/13/2018. The notice may be viewed at: https://www.gpo.gov/fdsys/pkg/FR-2018-05-14/pdf/2018-08999.pdf. Federal Register, Vol. 83, No. 93, 05/14/2018, 22312-22339.

Agencies Extend Comment Period from Proposed Amendments to Enhanced Supplementary Leverage Ratio Standards.

The Board of Governors of the Federal Reserve System (FRB) and the Office of the Comptroller of the Currency (OCC) published proposed amendments to the enhanced supplementary leverage ratio standards for U.S. top-tier bank holding companies identified as global systemically important bank holding companies, or GSIBs, and certain of their insured depository institution subsidiaries in the Federal Register on 04/19/2018. The Agencies are now extending the comment period for the proposed amendments, comments are now due 06/25/2018. The notice may be viewed at: https://www.gpo.gov/fdsys/pkg/FR-2018-05-25/pdf/2018-11336.pdf. Federal Register, Vol. 83, No. 102, 05/24/2018, 24233.

CFPB Requests Comment on Information Collection.

The Bureau of Consumer Financial Protection (CFPB) announced it seeks comment on the information collection titled Consumer Compliant Intake System Company Portal Boarding Form Information Collection System. CFPB also gave notice that it sent the collection to OMB for review. Comments are due 07/13/2018. The notice may be viewed at: https://www.gpo.gov/fdsys/pkg/FR-2018-05-14/pdf/2018-10221.pdf. Federal Register, Vol. 83, No. 93, 05/14/2018, 22254-22255.

FFIEC Requests Comment on Information Collection.

The Federal Financial Institutions Examination Council (FFIEC) announced it seeks comment on the information collection titled Reporting information for the AMC Registry. FFIEC also gave notice that it sent the collection to OMB for review. Comments are due 06/14/2018. The notice may be viewed at: https://www.gpo.gov/fdsys/pkg/FR-2018-05-15/pdf/2018-10327.pdf. Federal Register, Vol. 83, No. 94, 05/15/2018, 22485-22486. 

FRB Requests Comment on Information Collections.

  • The Board of Governors of the Federal Reserve System (FRB) announced it seeks comment on the information collection Report of Selected Money Market Rates. FRB also gave notice that it sent the collection to OMB for review. Comments are due 07/17/2018. The notice may be viewed at: https://www.gpo.gov/fdsys/pkg/FR-2018-05-18/pdf/2018-10669.pdf. Federal Register, Vol. 83, No 97, 05/18/2018, 23276-23278.
  • FRB announced it seeks comment on the information collection Recordkeeping Requirements Associated with Changes in Foreign Investments (Made Pursuant to Regulation K). FRB 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-2018-05-22/pdf/2018-10912.pdf. Federal Register, Vol. 83, No. 99, 05/22/2018, 23682-23683.

FDIC Requests Comment on Information Collections.

  • The Federal Deposit Insurance Corporation (FDIC) announced it seeks comment on the information collection titled Interagency Biographical and Financial Report. FDIC also gave notice that it sent the collection to OMB for review. Comments are due 06/11/2018. The notice may be viewed at: https://www.gpo.gov/fdsys/pkg/FR-2018-05-11/pdf/2018-10093.pdf. Federal Register, Vol. 83, No. 92, 05/11/2018, 22061-22064.
  • FDIC announced it seeks comment on the information collection titled Interagency Bank Merger Act Application. FDIC also gave notice that it sent the collection to OMB for review. Comments are due 06/11/2018. The notice may be viewed at: https://www.gpo.gov/fdsys/pkg/FR-2018-05-11/pdf/2018-10093.pdf. Federal Register, Vol. 83, No. 92, 05/11/2018, 22061-22064.
  • FDIC announced it seeks comment on the information collection titled Recordkeeping and Confirmation Requirements for Securities Transactions. FDIC 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-2018-05-24/pdf/2018-11182.pdf. Federal Register, Vol. 83, No. 101, 05/24/2018, 24117-24118.
  • FDIC announced it seeks comment on the information collection titled Customer Assistance Forms. FDIC 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-2018-05-24/pdf/2018-11183.pdf. Federal Register, Vol. 83, No. 101, 05/24/2018, 24116-24117.
  • FDIC announced it seeks comment on the information collection titled Interagency Supervisory Guidance for the Supervisory Review Process of Capital Adequacy (Pillar 2) Related to the Implementation of the Basel II Advanced Capital Framework. FDIC also gave notice that it sent the collection to OMB for review. Comments are due 07/24/2018. The notice may be viewed at: https://www.gpo.gov/fdsys/pkg/FR-2018-05-25/pdf/2018-11292.pdf. Federal Register, Vol. 83, No. 102, 05/25/2018, 24306-24309.
  • FDIC announced it seeks comment on the information collection titled Credit Risk Retention. FDIC also gave notice that it sent the collection to OMB for review. Comments are due 07/24/2018. The notice may be viewed at: https://www.gpo.gov/fdsys/pkg/FR-2018-05-25/pdf/2018-11292.pdf. Federal Register, Vol. 83, No. 102, 05/25/2018, 24306-24309.
  • FDIC announced it seeks comment on the information collection titled Disclosure Requirements Associated with the Supplementary Leverage Ratio. FDIC also gave notice that it sent the collection to OMB for review. Comments are due 07/24/2018. The notice may be viewed at: https://www.gpo.gov/fdsys/pkg/FR-2018-05-25/pdf/2018-11292.pdf. Federal Register, Vol. 83, No. 102, 05/25/2018, 24306-24309.

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 notice may be viewed at: https://www.gpo.gov/fdsys/pkg/FR-2018-06-05/pdf/2018-12139.pdf. Federal Register, Vol. 83, No. 108, 06/05/2018, 26057-26058.
  • 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-2018-06-06/pdf/2018-12092.pdf. Federal Register, Vol. 83, No. 109, 06/06/2018, 26286.

OCC Requests Comment on Information Collections.

  • The Office of the Comptroller of the Currency (OCC) announced it seeks comment on the information collection titled International Regulation. OCC also gave notice that it sent the collection to OMB for review. Comments are due 06/28/2018. The notice may be viewed at: https://www.gpo.gov/fdsys/pkg/FR-2018-05-29/pdf/2018-11428.pdf. Federal Register, Vol. 83, No. 103, 05/29/2018, 24591-24592.
  • OCC announced it seeks comment on the information collection titled Bank Appeals Follow-Up Questionnaire. OCC also gave notice that it sent the collection to OMB for review. Comments are due 07/09/2018. The notice may be viewed at: https://www.gpo.gov/fdsys/pkg/FR-2018-06-08/pdf/2018-12347.pdf. Federal Register, Vol. 83, No. 111, 06/08/2018, 26745.

HUD Issues Notice Regarding Tribal HUD-VA Supportive Housing Program.

The Department of Housing and Urban Development (HUD) issued a notice consolidating all Tribal HUD-VA Supportive Housing Program requirements and establishes procedures for renewal funding, subject to the availability of future appropriations. The program provides rental assistance and supportive services to Native American veterans who are Homeless or At Risk of Homelessness living on or near a reservation or other Indian areas. The notice is effective 05/22/2018. The notice may be viewed at: https://www.gpo.gov/fdsys/pkg/FR-2018-05-22/pdf/2018-10909.pdf. Federal Register, Vol. 83, No. 99, 05/22/2018, 23710-23719.

HUD Issues Annual Indexing of Basic Statutory Mortgage Limits for Multifamily Housing Programs.

HUD has adjusted the Basic Statutory Mortgage Limits for Multifamily Housing Programs for Calendar Year 2018. The new rates may be viewed in the notice. The notice may be viewed at: https://www.gpo.gov/fdsys/pkg/FR-2018-06-04/pdf/2018-11854.pdf. Federal Register, Vol. 83, No. 107, 06/04/2018, 25683.

HUD Requests Comment on Information Collections.

  • HUD announced it seeks comment on the information collection titled Public Housing Agency Executive Compensation Information. HUD also gave notice that it sent the collection to OMB for review. Comments are due 06/20/2018. The notice may be viewed at: https://www.gpo.gov/fdsys/pkg/FR-2018-05-21/pdf/2018-10785.pdf. Federal Register, Vol. 83, No. 98, 05/21/2018, 23478-23479.
  • HUD announced it seeks comment on the information collection titled Survey to Assess Operational and Capacity Status of Housing Counseling Agencies after a Disaster. HUD 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-2018-05-22/pdf/2018-10907.pdf. Federal Register, Vol. 83, No. 99, 05/22/2018, 23719-23720.
  • HUD announced it seeks comment on the information collection titled Housing Choice Voucher (HCV) Program. HUD also gave notice that it sent the collection to OMB for review. Comments are due 07/24/2018. The notice may be viewed at: https://www.gpo.gov/fdsys/pkg/FR-2018-05-25/pdf/2018-11306.pdf. Federal Register, Vol. 83, No. 102, 05/25/2018, 24333-24334.
  • HUD announced it seeks comment on the information collection titled Public Housing Flat Rent Exception Request Market Analysis. HUD also gave notice that it sent the collection to OMB for review. Comments are due 07/24/2018. The notice may be viewed at: https://www.gpo.gov/fdsys/pkg/FR-2018-05-25/pdf/2018-11305.pdf. Federal Register, Vol. 83, No. 102, 05/25/2018, 24334-24335.

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 state of Illinois, 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-2018-05-22/pdf/2018-10844.pdf. Federal Register, Vol. 83, No. 99, 05/22/2018, 23610-23611.

FEMA Issues Final Flood Hazard Determinations.

  • FEMA has issued a final notice which identifies communities in the state of Michigan, 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 08/28/2018. The notice may be viewed at: https://www.gpo.gov/fdsys/pkg/FR-2018-05-14/pdf/2018-10151.pdf. Federal Register, Vol. 83, No. 93, 05/14/2018, 22278-22279.
  • FEMA has issued a final notice which identifies communities in the state of Ohio, 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 09/14/2018. The notice may be viewed at: https://www.gpo.gov/fdsys/pkg/FR-2018-05-14/pdf/2018-10153.pdf. Federal Register, Vol. 83, No. 93, 05/14/2018, 22277-22278.

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 state of Illinois. 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-2018-06-04/pdf/2018-11869.pdf. Federal Register, Vol. 83, No. 107, 06/04/2018, 25679-25682.
  • 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 state of 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-2018-06-04/pdf/2018-11942.pdf. Federal Register, Vol. 83, No. 107, 06/04/2018, 25676-25678.
  • 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, Minnesota, 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-2018-06-06/pdf/2018-12102.pdf. Federal Register, Vol. 83, No. 109, 06/06/2018, 26295-26298.

FEMA Issues Proposed Flood Hazard Determinations.

FEMA has requested comments on proposed flood hazard determinations, which may include additions or modifications of any Base Flood Elevation (BFE), base flood depth, Special Flood Hazard Area (SFHA) boundary or zone designation, or regulatory floodway on the Flood Insurance Rate Maps (FIRMs), and where applicable, in the supporting Flood Insurance Study (FIS) reports for communities in the states of Illinois, and Indiana. The FIRM and FIS report are the basis of the floodplain management measures that the community is required either to adopt or to show evidence of having in effect in order to qualify or remain qualified for participation in the National Flood Insurance Program (NFIP). Comments are due 09/05/2018. The notice may be viewed at: https://www.gpo.gov/fdsys/pkg/FR-2018-06-07/pdf/2018-12246.pdf. Federal Register, Vol. 83, No. 110, 06/07/2018, 26494-26495.

FEMA Issues Record of Decision for the Final National Flood Insurance Program Nationwide Programmatic Environmental Impact Statement.

FEMA announced the availability of the Record of Decision for the final nationwide programmatic environmental impact statement evaluating the environmental impacts of proposed modifications to the National Flood Insurance Program. The notice may be viewed at: https://www.gpo.gov/fdsys/pkg/FR-2018-05-25/pdf/2018-11210.pdf. Federal Register, Vol. 83, No. 102, 05/25/2018, 24328-24329.

Treasury Proposes Amendments to Filing Requirements for Information Returns Required on Magnetic Media.

The Department of the Treasury (Treasury) proposes amendments to the rules for determining whether information returns must be filed using magnetic media (electronically). The proposed regulations would require that all information returns, regardless of type, be taken into account to determine whether a person meets the 250-return threshold and, therefore, must file the information returns electronically. The proposed regulations also would require any person required to file information returns electronically to file corrected information returns electronically, regardless of the number of corrected information returns being filed. The proposed regulations will affect persons required to file information returns. Comments are due 07/30/2018. The notice may be viewed at: https://www.gpo.gov/fdsys/pkg/FR-2018-05-31/pdf/2018-11749.pdf. Federal Register, Vol. 83, No. 105, 05/31/2018, 24948-24950.

Treasury Requests Comment on Information Collections.

  • Treasury announced it seeks comment on the information collection titled Distributions From Pensions, Annuities, Retirement or Profit-Sharing Plans, IRAs, Insurance Contracts, etc. Treasury also gave notice that it sent the collection to OMB for review. Comments are due 07/10/2018. The notice may be viewed at:  https://www.gpo.gov/fdsys/pkg/FR-2018-05-11/pdf/2018-10024.pdf. Federal Register, Vol. 83, No. 92, 05/11/2018, 22124.
  • Treasury announced it seeks comment on the information collection titled Disability Funds—Financial Assistance Application. Treasury also gave notice that it sent the collection to OMB for review. Comments are due 07/24/2018. The notice may be viewed at: https://www.gpo.gov/fdsys/pkg/FR-2018-05-25/pdf/2018-11304.pdf. Federal Register, Vol. 83, No. 102, 05/25/2018, 24391.
  • Treasury announced it seeks comment on the information collection titled Application for Extension of Time for Payment of Tax Due to Undue Hardship. Treasury also gave notice that it sent the collection to OMB for review. Comments are due 08/07/2018. The notice may be viewed at: https://www.gpo.gov/fdsys/pkg/FR-2018-06-08/pdf/2018-12405.pdf. Federal Register, Vol. 83, No. 111, 06/08/2018, 26746-26747.
  • Treasury announced it seeks comment on the information collection titled Guidance Regarding Charitable Remainder Trusts and Special Valuation Rules for Transfers of Interests and Trusts. Treasury also gave notice that it sent the collection to OMB for review. Comments are due 08/07/2018. The notice may be viewed at: https://www.gpo.gov/fdsys/pkg/FR-2018-06-08/pdf/2018-12406.pdf. Federal Register, Vol. 83, No. 111, 06/08/2018, 26746.

FHFA Requests Comment on Information Collections.

  • The Federal Housing Finance Agency (FHFA) announced it seeks comment on the information collection titled Minimum Requirements for Appraisal Management Companies. FHFA 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-2018-05-16/pdf/2018-10430.pdf. Federal Register, Vol. 83, No. 95, 05/16/2018, 22681-22684.
  • FHFA announced it seeks comment on the information collection titled Minority and Women Inclusion. FHFA 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-2018-05-16/pdf/2018-10431.pdf. Federal Register, Vol. 83, No. 95, 05/16/2018, 22684-22685.

FSA Opens Applications for New Pilot Program.

The Farm Service Agency (FSA) is announcing the opportunity for interested veterans to apply for a new pilot program, Veteran Farmer Streamlined Eligibility Pilot Program, which will assist veterans in meeting the management experience requirements at a faster pace for either a Microloan or Downpayment Loan through the Farm Ownership Loan (FO) Program. The purpose of the Pilot Program is to provide an educational opportunity for veterans so that they can obtain agricultural production, financial, and managerial training at an accelerated pace that will then result in the veteran to be considered conditionally eligible for either a Microloan or Downpayment Loan through the FO Program. Applications are due 07/20/2018. The notice may be viewed at: https://www.gpo.gov/fdsys/pkg/FR-2018-06-04/pdf/2018-11873.pdf. Federal Register, Vol. 83, No. 107, 06/04/2018, 25640-25642.

FSA Requests Comment on Information Collection.

The Farm Service Agency (FSA) announced it seeks comment on the information collection titled Farm Loan Programs, Direct Loan Servicing—Special. FSA 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-2018-05-31/pdf/2018-11694.pdf. Federal Register, Vol. 83, No. 105, 05/31/2018, 24966-24967.

FCIC Issues Correction to Administrative Remedies for Non-Compliance.

The Federal Crop Insurance Corporation (FCIC) issued a correction to the General Administrative Regulations; Subpart R—Administrative Remedies for Non-Compliance regulations. The outdated reference to “7 CFR part 3017” will be removed and replaced by the correct reference of “2 CFR parts 180 and 417” in §§ 400.451 and 400.456. The correction is effective 06/01/2018. The notice may be viewed at: https://www.gpo.gov/fdsys/pkg/FR-2018-06-01/pdf/2018-11799.pdf. Federal Register, Vol. 83, No. 106, 06/01/2018, 25361.

RBC Invites Applications for Rural Economic Development Loan and Grant Programs for Fiscal Year 2018.

The Rural Business-Cooperative Service (RBC) issued a notice to invite applications for loans and grants under the Rural Economic Development Loan and Grant (REDLG) Programs for fiscal year (FY) 2018, subject to the availability of funding. This notice is being issued in order to allow applicants sufficient time to leverage financing, prepare and submit their applications, and give RBC time to process applications within FY 2018. Successful applications will be selected by RBC for funding and subsequently awarded to the extent that funding may ultimately be made available through appropriations. An announcement on the website at http://www.rd.usda.gov/newsroom/noticessolicitation-applications-nosas will identify the amount received in the appropriations. All applicants are responsible for any expenses incurred in developing their applications. Applications are due 06/30/2018. The notice may be viewed at: https://www.gpo.gov/fdsys/pkg/FR-2018-05-22/pdf/2018-10866.pdf. Federal Register, Vol. 83, No. 99, 05/22/2018, 23625-23630.

RUS Issues Correction to Policy on Audits of Borrowers and Grantees.

The Rural Utilities Service (RUS) issued a correction to a final rule published in the Federal Register on 05/07/2018 regarding its policy on audits. The original final rule contained an incorrect URL. The effective date for the final rule is delayed from 07/06/2018, to 07/23/2018. The comment due date for the final rule is extended to 06/22/2018. The notice may be viewed at: https://www.gpo.gov/fdsys/pkg/FR-2018-05-24/pdf/2018-11108.pdf. Federal Register, Vol. 83, No. 101, 05/24/2018, 24011-24012.

CFTC Proposes Amendments to Margin Requirements for Uncleared Swaps.

The Commodity Futures Trading Commission (CFTC) proposed amendments to the margin requirements for uncleared swaps for swap dealers and major swap participants for which there is no prudential regulator. Specifically, CFTC proposes to amend the definition of “eligible master netting agreement” in the CFTC Margin Rule to ensure that master netting agreements of firms subject to the CFTC Margin Rule are not excluded from the definition of “eligible master netting agreement” based solely on such agreements’ compliance with QFC Rules. CFTC also proposes that any legacy uncleared swap (i.e., an uncleared swap entered into before the applicable compliance date of the CFTC Margin Rule) that is not now subject to the margin requirements of the CFTC Margin Rule would not become so subject if it is amended solely to comply with QFC Rules. Comments are due 07/23/2018. The notice may be viewed at: https://www.gpo.gov/fdsys/pkg/FR-2018-05-23/pdf/2018-10995.pdf. Federal Register, Vol. 83, No. 100, 05/23/2018, 23842-23847.

SEC Proposes Modifications to the Definition of “Agency Debt Security.”

The Securities and Exchange Commission (SEC) proposed amendments to FINRA Rule 6710 to modify the definition of “Agency Debt Security.” FINRA requires members to report to the Trade Reporting and Compliance Engine (TRACE) transactions in Agency Debt Securities, which includes those debt securities issued or guaranteed by a Government-Sponsored Enterprise (GSE). Fannie Mae and Freddie Mac, both of which are GSEs, announced changes relating to the issuance structure of their credit risk transfer securities (CRTs). Currently, Fannie and Freddie issue CRTs as direct debt obligations, and therefore CRTs fall within the definition of “Agency Debt Security” for purposes of TRACE data categorization and dissemination. FINRA understands that under the new issuance structure, CRTs will be issued by a Fannie- or Freddie-sponsored trust rather than directly by Fannie or Freddie, and proceeds from the sale of the CRTs will be placed in a trust account and managed by a third-party trustee. As a result of CRTs being issued by a trust sponsored by a GSE instead of directly issued by a GSE, CRTs would no longer fall within the technical definition of “Agency Debt Security” and would be considered corporate debt for TRACE data and dissemination purposes. This outcome would be problematic for TRACE subscribers consuming data related to CRTs because transactions in CRTs would no longer be disseminated as part of the Agency Debt data set. In addition, the TRACE system would apply the corporate, rather than Agency, debt transaction size dissemination cap for unrated securities, specifically a $1 million dissemination cap for unrated corporate debt versus $5 million for unrated Agency Debt Securities. Thus, classifying CRTs as corporate debt would decrease transparency as to the actual size of the transaction given that unrated corporate debt is disseminated with the $1, rather than $5, million dissemination cap. Comments are due 06/14/2018. The notice may be viewed at: https://www.gpo.gov/fdsys/pkg/FR-2018-05-24/pdf/2018-11093.pdf. Federal Register, Vol. 83, No. 101, 05/24/2018, 24143-24145.

SEC Issues Technical Amendments to Rules of Practice and Rules of Organization; Conduct and Ethics; and Information and Requests.

SEC is making technical amendments to certain rules of organization and rules of practice to indicate that Commission materials will no longer be compiled and published as the “SEC Docket,” but will continue to be available on the SEC public website. The amendments are effective 06/01/2018. The notice may be viewed at: https://www.gpo.gov/fdsys/pkg/FR-2018-06-01/pdf/2018-11618.pdf. Federal Register, Vol. 83, No. 106, 06/01/2018, 25365-25366.

FASB Issues Statement of Federal Financial Accounting Standards.

The Federal Accounting Standards Advisory Board (FASB) has issued Statement of Federal Financial Accounting Standards 55, Amending Inter-entity Cost Provisions. The Statement is available on the FASB website at http://www.fasab.gov/accounting-standards/.  The notice may be viewed at: https://www.gpo.gov/fdsys/pkg/FR-2018-06-07/pdf/2018-12265.pdf. Federal Register, Vol. 83, No. 110, 06/07/2018, 26457.

FASB Proposes Staff Implementation Guidance 6.1.

FASB issued proposed Staff Implementation Guidance (SIG) 6.1, Clarification of Paragraphs 40–41 of SFFAS 6, Accounting for Property, Plant, and Equipment. The proposed SIG is available on the FASB website at http://www.fasab.gov/documents-forcomment/. Comments are due 05/31/2018. The notice may be viewed at: https://www.gpo.gov/fdsys/pkg/FR-2018-05-18/pdf/2018-10663.pdf. Federal Register, Vol. 83, No. 97, 05/18/2018, 23275.

NCUA Finalizes Amendments to Involuntary Liquidation of Credit Unions and Claims Procedures.

The National Credit Union Administration (NCUA) finalized amendments to part 709 of its rules to update and clarify the procedures that apply to claims administration for federally insured credit unions that enter involuntary liquidation. Specifically, the final rule amends the payout priority provision by specifying the conditions that claims in the nature of severance must meet to be allowed as provable claims. The final rule is effective 06/29/2018. The notice may be viewed at: https://www.gpo.gov/fdsys/pkg/FR-2018-05-30/pdf/2018-11588.pdf. Federal Register, Vol. 83, No. 104, 05/30/2018, 24651-24652.

NCUA Proposes Payday Alternative Loans.

NCUA proposed to amend the NCUA’s general lending rule to provide federal credit unions (FCUs) with an additional option to offer payday alternative loans (PALs). This proposal would not replace the current PALs rule (PALs I). Rather, it would be an alternative option, with different terms and conditions, for FCUs to offer PALs to their members. Specifically, this proposal (PALs II) would differ from PALs I by modifying the minimum and maximum amount of the loans, modifying the number of loans a member can receive in a rolling six-month period, eliminating the minimum membership requirement, and increasing the maximum maturity for these loans. NCUA is proposing to incorporate all other requirements of PALs I into PALs II. NCUA is also soliciting comments from interested stakeholders on the possibility of creating a third PALs loan program (PALs III), which could include different fee structures, loan features, maturities, and loan amounts. Comments are due 08/03/2018. The notice may be viewed at: https://www.gpo.gov/fdsys/pkg/FR-2018-06-04/pdf/2018-11591.pdf. Federal Register, Vol. 83, No. 107, 06/04/2018, 25583-25587.

NCUA Announces Funding Availability for Community Development Revolving Loan Fund.

NCUA announced the availability of funding for Low-Income Designated Credit Unions (LICUs) Applications for loans and technical assistance grants under the Community Development Revolving Loan Fund (CDRLF) program. The CDRLF program serves as a source of financial support in the form of loans and technical assistance grants that better enables LICUs to support the communities in which they operate. Important program application dates may be viewed in the table in the notice. The notice may be viewed at: https://www.gpo.gov/fdsys/pkg/FR-2018-05-31/pdf/2018-11689.pdf. Federal Register, Vol. 83, No. 105, 05/31/2018, 25056-25060.

NCUA Requests Comment on Information Collection.

NCUA announced it seeks comment on the information collection titled Joint Standards for Assessing the Diversity Policies and Practices. NCUA also gave notice that it sent the collection to OMB for review. Comments are due 07/05/2018. The notice may be viewed at: https://www.gpo.gov/fdsys/pkg/FR-2018-06-04/pdf/2018-11935.pdf. Federal Register, Vol. 83, No. 107, 06/04/2018, 25721.

Agriculture Requests Comment on Information Collection.

The Department of Agriculture (Agriculture) announced it seeks comment on the information collection titled Rural Community Development Initiative (RCDI). Agriculture also gave notice that it sent the collection to OMB for review. Comments are due 06/20/2018. The notice may be viewed at: https://www.gpo.gov/fdsys/pkg/FR-2018-05-21/pdf/2018-10675.pdf. Federal Register, Vol. 83, No. 98, 05/21/2018, 23414. 

By, Ally Bates