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November 2018 Compliance Journal: Regulatory Spotlight

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

Agencies Finalize Amendments to Appraisals for Higher-Priced Mortgage Loans Exemption Threshold Amount.

The Bureau of Consumer Financial Protection (CFPB), the Board of Governors of the Federal Reserve System (FRB), and the Office of the Comptroller of the Currency (OCC) are finalizing amendments to the official interpretations for their regulations that implement section 129H of the Truth in Lending Act (TILA). Section 129H of TILA establishes special appraisal requirements for “higher-risk mortgages,” termed “higher-priced mortgage loans” or “HPMLs” in the agencies’ regulations. Agencies’ rules exempted, among other loan types, transactions of $25,000 or less, and required that this loan amount be adjusted annually based on any annual percentage increase in the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI–W). If there is no annual percentage increase in the CPI–W, the agencies will not adjust this exemption threshold from the prior year. However, in years following a year in which the exemption threshold was not adjusted, the threshold is calculated by applying the annual percentage increase in the CPI–W to the dollar amount that would have resulted, after rounding, if the decreases and any subsequent increases in the CPI–W had been taken into account. Based on the CPI–W in effect as of 06/01/2018, the exemption threshold will increase from $26,000 to $26,700, effective 01/01/2019. The notice may be viewed at: https://www.gpo.gov/fdsys/pkg/FR-2018-11-23/pdf/2018-25400.pdf. Federal Register, Vol. 83, No. 226, 11/23/2018, 59272-59274.

Agencies Announce 2019 Regulation M Exemption Threshold Amount.

The Bureau of Consumer Financial Protection (CFPB), and the Board of Governors of the Federal Reserve System (FRB) are finalizing amendments to the official interpretations and commentary for the agencies’ regulations that implement the Consumer Leasing Act (CLA). The Dodd-Frank Act amended the CLA by requiring that the dollar threshold for exempt consumer leases be adjusted annually by the annual percentage increase in the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI–W). If there is no annual percentage increase in the CPI–W, the agencies will not adjust this exemption threshold from the prior year. However, in years following a year in which the exemption threshold was not adjusted, the threshold is calculated by applying the annual percentage change in the CPI–W to the dollar amount that would have resulted, after rounding, if the decreases and any subsequent increases in the CPI–W had been taken into account. Based on the annual percentage increase in the CPI–W as of 06/01/2018, the exemption threshold will increase from $55,800 to $57,200 effective 01/01/2019. The notice may be viewed at: https://www.gpo.gov/fdsys/pkg/FR-2018-11-23/pdf/2018-25396.pdf. Federal Register, Vol. 83, No. 226, 11/23/2018, 59274-59276.

Agencies Announce 2019 Regulation Z Exemption Threshold Amount.

The Bureau of Consumer Financial Protection (CFPB), and the Board of Governors of the Federal Reserve System (FRB) are finalizing amendments to the official interpretations and commentary for the agencies’ regulations that implement the Truth in Lending Act (TILA). The Dodd-Frank Act amended TILA by requiring that the dollar threshold for exempt consumer credit transactions be adjusted annually by the annual percentage increase in the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI–W). If there is no annual percentage increase in the CPI– W, the agencies will not adjust this exemption threshold from the prior year. However, in years following a year in which the exemption threshold was not adjusted, the threshold is calculated by applying the annual percentage change in the CPI–W to the dollar amount that would have resulted, after rounding, if the decreases and any subsequent increases in the CPI–W had been taken into account. Based on the annual percentage increase in the CPI–W as of 06/01/2018, the exemption threshold will increase from $55,800 to $57,200 effective 01/01/2019. The notice may be viewed at: https://www.gpo.gov/fdsys/pkg/FR-2018-11-23/pdf/2018-25398.pdf. Federal Register, Vol. 83, No. 226, 11/23/2018, 59276-59278. 

CFPB Proposes Civil Penalty Inflation Adjustments.

The Bureau of Consumer Financial Protection (CFPB) is proposing to amend its rule adjusting for inflation the maximum amount of each civil penalty within CFPB’s jurisdiction pursuant to the Federal Civil Penalties Inflation Adjustment Act of 1990, as amended by the Debt Collection Improvement Act of 1996 and further amended by the Federal Civil Penalties Inflation Adjustment Act Improvements Act of 2015. CFPB is proposing an amendment to specify that the adjusted civil monetary penalties only apply to assessments whose associated violations occurred on, or after, 11/02/2015 (the date the 2015 Inflation Adjustment Act amendments were signed into law). Comments are due 11/13/2018. The notice may be viewed at: https://www.gpo.gov/fdsys/pkg/FR-2018-10-12/pdf/2018-22217.pdf. Federal Register, Vol. 83, No. 198, 10/12/2018, 51653-51654.

CFPB Issues Supervisory Highlights.

CFPB is issuing the seventeenth edition of its Supervisory Highlights. In the issue of Supervisory Highlights, CFPB reports examination findings in the areas of auto finance lending; credit card account management; debt collection; deposits; mortgage servicing; mortgage origination; service providers; short-term, small-dollar lending; remittances; and fair lending. As in past editions, the report includes information on CFPB’s use of its supervisory and enforcement authority, recently released examination procedures, and CFPB guidance. The notice may be viewed at: https://www.gpo.gov/fdsys/pkg/FR-2018-10-18/pdf/2018-22726.pdf. Federal Register, Vol. 83, No. 202, 10/18/2018, 52816-52822.

FRB Finalizes Reserve Requirements of Depository Institutions.

The Board of Governors of the Federal Reserve System (FRB) is amending Regulation D, Reserve Requirements of Depository Institutions, to reflect the annual indexing of the reserve requirement exemption amount and the low reserve tranche for 2019. The Regulation D amendments set the amount of total reservable liabilities of each depository institution that is subject to a zero percent reserve requirement in 2019 at $16.3 million (up from 16.0 million in 2018). This amount is known as the reserve requirement exemption amount. The Regulation D amendments also set the amount of net transaction accounts at each depository institution (over the reserve requirement exemption amount) that is subject to a three percent reserve requirement in 2019 at $124.2 million (up from $122.3 million in 2018). This amount is known as the low reserve tranche. The adjustments to both of these amounts are derived using statutory formulas specified in the Federal Reserve Act. FRB is also announcing changes in two other amounts, the nonexempt deposit cutoff level and the reduced reporting limit, that are used to determine the frequency at which depository institutions must submit deposit reports. The rule is effective 11/29/2018. The notice may be viewed at: https://www.gpo.gov/fdsys/pkg/FR-2018-10-30/pdf/2018-23608.pdf. Federal Register, Vol. 83, No. 210, 10/30/2018, 54517-54519.   

FRB Requests Comment on Information Collections.

  • FRB announced it seeks comment on the information collection titled Disclosure Requirements of subpart H of Regulation H (Consumer Protections in Sales of Insurance). FRB also gave notice that it sent the collection to OMB for review. Comments are due 12/17/2018. The notice may be viewed at: https://www.gpo.gov/fdsys/pkg/FR-2018-10-17/pdf/2018-22551.pdf. Federal Register, Vol. 83, No. 201, 10/17/2018, 52452-52453.
  • FRB announced it seeks comment on the information collection titled Consolidated Bank Holding Company Report of Equity Investments in Nonfinancial Companies, and the Annual Report of Merchant Banking Investments Held for an Extended Period. FRB also gave notice that it sent the collection to OMB for review. Comments are due 01/04/2019. The notice may be viewed at: https://www.gpo.gov/fdsys/pkg/FR-2018-11-05/pdf/2018-24118.pdf. Federal Register, Vol. 83, No. 214, 11/05/2018, 55366-55368.

FDIC Proposes Rescinding Disclosure of Financial and Other Information Regulations.

The Federal Deposit Insurance Corporation (FDIC) proposes to rescind and remove its regulations relating to the disclosure of financial and other information by FDIC-insured state nonmember banks. Upon the removal of the regulations, all insured state nonmember banks and insured state-licensed branches of foreign banks would no longer be subject to the annual disclosure statement requirement found in those regulations. The financial and other information that has been subject to disclosure by individual banks pursuant to these regulations is publicly available through the FDIC’s website. Comments are due 11/26/2018. The notice may be viewed at: https://www.gpo.gov/fdsys/pkg/FR-2018-10-25/pdf/2018-23042.pdf. Federal Register, Vol. 83, No. 207, 10/25/2018, 53829-53832.

FDIC Requests Comment on Information Collections.

  • FDIC announced it seeks comment on the information collection titled Resolution Plans Required for Insured Depository Institutions With $50 Billion or More in Total Assets. FDIC also gave notice that it sent the collection to OMB for review. Comments are due 11/28/2018. The notice may be viewed at: https://www.gpo.gov/fdsys/pkg/FR-2018-10-29/pdf/2018-23500.pdf. Federal Register, Vol. 83, No. 209, 10/29/2018, 54351-54352.
  • FDIC announced it seeks comment on the information collection titled Certification of Compliance with Mandatory Bars to Employment. FDIC also gave notice that it sent the collection to OMB for review. Comments are due 11/29/2018. The notice may be viewed at: https://www.gpo.gov/fdsys/pkg/FR-2018-10-30/pdf/2018-23597.pdf. Federal Register, Vol. 83, No. 210, 10/30/2018, 54589-54590.
  • FDIC announced it seeks comment on the information collection titled Activities and Investments of Insured State Banks. FDIC also gave notice that it sent the collection to OMB for review. Comments are due 01/02/2018. The notice may be viewed at: https://www.gpo.gov/fdsys/pkg/FR-2018-11-02/pdf/2018-23987.pdf. Federal Register, Vol. 83, No. 213, 11/02/2018, 55167-55170.
  • FDIC announced it seeks comment on the information collection titled Privacy of Consumer Information. FDIC also gave notice that it sent the collection to OMB for review. Comments are due 01/02/2018. The notice may be viewed at: https://www.gpo.gov/fdsys/pkg/FR-2018-11-02/pdf/2018-23987.pdf. Federal Register, Vol. 83, No. 213, 11/02/2018, 55167-55170.
  • FDIC announced it seeks comment on the information collection titled Registration of Mortgage Loan Originators (SAFE Act). FDIC also gave notice that it sent the collection to OMB for review. Comments are due 01/02/2019. The notice may be viewed at: https://www.gpo.gov/fdsys/pkg/FR-2018-11-02/pdf/2018-23987.pdf. Federal Register, Vol. 83, No. 213, 11/02/2018, 55167-55170.
  • FDIC announced it seeks comment on the information collection titled National Survey of Unbanked and Underbanked Households. FDIC also gave notice that it sent the collection to OMB for review. Comments are due 01/07/2019. The notice may be viewed at: https://www.gpo.gov/fdsys/pkg/FR-2018-11-06/pdf/2018-24228.pdf. Federal Register, Vol. 83, No. 215, 11/06/2018, 55532-55533.

FDIC Issues Terminations of Receiverships.

  • FDIC as Receiver for former depository institutions, intends to terminate its receivership for the institutions listed in the notices. 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-2018-10-19/pdf/2018-22747.pdf. Federal Register, Vol. 83, No. 203, 10/19/2018, 53061.
    https://www.gpo.gov/fdsys/pkg/FR-2018-11-05/pdf/2018-24172.pdf. Federal Register, Vol. 83, No. 214, 11/05/2018, 55364.
    https://www.gpo.gov/fdsys/pkg/FR-2018-11-05/pdf/2018-24115.pdf. Federal Register, Vol. 83, No. 214, 11/05/2018, 55364.
  • 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 notice may be viewed at: https://www.gpo.gov/fdsys/pkg/FR-2018-11-09/pdf/2018-24500.pdf. Federal Register, Vol. 83, No. 218, 11/09/2018, 56079.

OCC Requests Comment on Information Collections.

  • The Office of the Comptroller of the Currency (OCC) announced it seeks comment on the information collection titled Interagency Appraisal Complaint Form. OCC also gave notice that it sent the collection to OMB for review. Comments are due 12/26/2018. The notice may be viewed at: https://www.gpo.gov/fdsys/pkg/FR-2018-10-26/pdf/2018-23395.pdf. Federal Register, Vol. 83, No. 208, 10/26/2018, 54174-54175.
  • OCC announced it seeks comment on the information collection titled Margin and Capital Requirements for Covered Swap Entities. OCC also gave notice that it sent the collection to OMB for review. Comments are due 01/07/2019. The notice may be viewed at: https://www.gpo.gov/fdsys/pkg/FR-2018-11-06/pdf/2018-24209.pdf. Federal Register, Vol. 83, No. 215, 11/06/2018, 55598-55560.
  • OCC announced it seeks comment on the information collection titled Consumer Protections for Depository Institution Sales of Insurance. OCC also gave notice that it sent the collection to OMB for review. Comments are due 01/08/2019. The notice may be viewed at: https://www.gpo.gov/fdsys/pkg/FR-2018-11-09/pdf/2018-24495.pdf. Federal Register, Vol. 83, No. 218, 11/09/2018, 56150-56151.
  • OCC announced it seeks comment on the information collection titled Market Risk. OCC also gave notice that it sent the collection to OMB for review. Comments are due 01/08/2019. The notice may be viewed at: https://www.gpo.gov/fdsys/pkg/FR-2018-11-09/pdf/2018-24494.pdf. Federal Register, Vol. 83, No. 218, 11/09/2018, 56148-56150.

HUD Requests Comment on Information Collections.

  • The Department of Housing and Urban Development (HUD) announced it seeks comment on the information collection titled New Construction Subterranean Termite Protection for New Homes. HUD also gave notice that it sent the collection to OMB for review. Comments are due 11/13/2018. The notice may be viewed at: https://www.gpo.gov/fdsys/pkg/FR-2018-10-12/pdf/2018-22243.pdf. Federal Register, Vol. 83, No. 198, 10/12/2018, 51695.
  • HUD announced it seeks comment on the information collection titled HOPE VI Implementation and HOPE VI Main Street Programs: Funding and Program Data Collection. HUD also gave notice that it sent the collection to OMB for review. Comments are due 12/10/2018. The notice may be viewed at: https://www.gpo.gov/fdsys/pkg/FR-2018-11-09/pdf/2018-24489.pdf. Federal Register, Vol. 83, No. 218, 11/09/2018, 56091-56092.
  • HUD announced it seeks comment on the information collection titled Office of Native American Program (ONAP) Training and Technical Assistance Evaluation Form. HUD also gave notice that it sent the collection to OMB for review. Comments are due 12/10/2018. The notice may be viewed at: https://www.gpo.gov/fdsys/pkg/FR-2018-11-09/pdf/2018-24491.pdf. Federal Register, Vol. 83, No. 218, 11/09/2018, 56095-56096.
  • HUD announced it seeks comment on the information collection titled Insurance Termination Request for Multifamily Mortgage. HUD also gave notice that it sent the collection to OMB for review. Comments are due 01/08/2019. The notice may be viewed at: https://www.gpo.gov/fdsys/pkg/FR-2018-11-09/pdf/2018-24488.pdf. Federal Register, Vol. 83, No. 218, 11/09/2018, 56093-56094.
  • HUD announced it seeks comment on the information collection titled Rural Capacity Building. HUD also gave notice that it sent the collection to OMB for review. Comments are due 01/08/2019. The notice may be viewed at: https://www.gpo.gov/fdsys/pkg/FR-2018-11-09/pdf/2018-24492.pdf. Federal Register, Vol. 83, No. 218, 11/09/2018, 56094-56095.
  • HUD announced it seeks comment on the information collection titled Voucher Management System (VMS), Section 8 Budget and Financial Forms. HUD also gave notice that it sent the collection to OMB for review. Comments are due 12/10/2018. The notice may be viewed at: https://www.gpo.gov/fdsys/pkg/FR-2018-11-09/pdf/2018-24490.pdf. Federal Register, Vol. 83, No. 218, 11/09/2018, 56092-56093.

HUD Issues Designation of Difficult Development Areas and Qualified Census Tracts.

HUD issued a notice designating 2019 “Difficult Development Areas” (DDAs) and “Qualified Census Tracts” (QCTs) for purposes of the Low-Income Housing Tax Credit (LIHTC) under Internal Revenue Code (IRC) Section 42, as enacted by the Tax Reform Act of 1986. The notice may be viewed at: https://www.gpo.gov/fdsys/pkg/FR-2018-10-22/pdf/2018-23000.pdf. Federal Register, Vol. 83, No. 204, 10/22/2018, 53282-53288.

HUD Announces Reverse Mortgage Loan Sales.

HUD announced its intention to competitively offer multiple residential reverse mortgage pools consisting of approximately 1,150 reverse mortgage notes secured by properties with a loan balance of approximately $230 million. The sale will consist of due and payable Secretary-held reverse mortgage loans. The mortgage loans consist of first liens secured by single family, vacant residential properties, where all borrowers are deceased, and no borrower is survived by a non-borrowing spouse. The sale will be held on 12/12/2018. The notice may be viewed at: https://www.gpo.gov/fdsys/pkg/FR-2018-11-07/pdf/2018-24395.pdf. Federal Register, Vol. 83, No. 216, 11/07/2018, 55733-55735.

FEMA Issues Final Flood Hazard Determinations.

  • The Federal Emergency Management Agency (FEMA)  has issued a final notice which identifies communities in the state of Illinois, 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 02/15/2019. The notice may be viewed at: https://www.gpo.gov/fdsys/pkg/FR-2018-10-25/pdf/2018-23343.pdf. Federal Register, Vol. 83, No. 207, 10/25/2018, 53892-53894.
  • FEMA has issued a final notice which identifies communities in the states of Indiana, and Minnesota, 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 12/21/2018. The notice may be viewed at: https://www.gpo.gov/fdsys/pkg/FR-2018-10-26/pdf/2018-23383.pdf. Federal Register, Vol. 83, No. 208, 10/26/2018, 54132-54133.
  • FEMA has issued a final notice which identifies communities in the states of Iowa, and 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 02/01/2019. The notice may be viewed at:  https://www.gpo.gov/fdsys/pkg/FR-2018-11-02/pdf/2018-23918.pdf. Federal Register, Vol. 83, No. 213, 11/02/2018, 55192-55194.
  • FEMA has issued a final notice which identifies communities in the states of Iowa, and Minnesota, 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 12/07/2018. The notice may be viewed at: https://www.gpo.gov/fdsys/pkg/FR-2018-11-05/pdf/2018-24072.pdf. Federal Register, Vol. 83, No. 214, 11/05/2018, 55381-55383.

FEMA Issues Notice of Changes in Flood Hazard Determinations.

FEMA has issued a notice which lists communities in the states of Indiana, Nebraska, and Wisconsin, where the addition or modification of Base Flood Elevations (BFEs), base flood depths, Special Flood Hazard Area (SFHA) boundaries or zone designations, or the regulatory floodway (hereinafter referred to as flood hazard determinations), as shown on the Flood Insurance Rate Maps (FIRMs), and where applicable, in the supporting Flood Insurance Study (FIS) reports, prepared by FEMA for each community, is appropriate because of new scientific or technical data. The flood hazard determinations will become effective on the dates listed in the table in the notice and revise the FIRM panels and FIS report in effect prior to the determination for the listed communities. From the date of the second publication of notification of these changes in a newspaper of local circulation, any person has ninety (90) days in which to request through the community that the Deputy Associate Administrator for Mitigation reconsider the changes. The flood hazard determination information may be changed during the 90-day period. The notice may be viewed at: https://www.gpo.gov/fdsys/pkg/FR-2018-11-05/pdf/2018-24199.pdf. Federal Register, Vol. 83, No. 214, 11/05/2018, 55386-55388.

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 Iowa, and Nebraska. 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 02/04/2019. The notice may be viewed at: https://www.gpo.gov/fdsys/pkg/FR-2018-11-05/pdf/2018-24198.pdf. Federal Register, Vol. 83, No. 214, 11/05/2018, 55379-55380.

FEMA Issues Major Disaster Declaration.

FEMA issued a notice that, in a letter dated 10/18/2018, the President issued a major disaster declaration under the authority of the Robert T. Stafford Disaster Relief and Emergency Assistance Act, 42 U.S.C. 5121 et seq. (the ‘‘Stafford Act’’), for the state of Wisconsin. The declaration authorizes FEMA to provide Individual Assistance and Public Assistance in the designated areas and Hazard Mitigation throughout the state. The declaration was issued 10/18/2018. The notice may be viewed at: https://www.gpo.gov/fdsys/pkg/FR-2018-11-02/pdf/2018-23919.pdf. Federal Register, Vol. 83, No. 213, 11/02/2018, 55191.

FinCEN Requests Comment on Information Collections.

  • The Financial Crimes Enforcement Network (FinCEN) announced it seeks comment on the information collection titled Suspicious Activity Report by Securities and Futures Industries. FinCEN also gave notice that it sent the collection to OMB for review. Comments are due 11/29/2018. The notice may be viewed at: https://www.gpo.gov/fdsys/pkg/FR-2018-10-30/pdf/2018-23645.pdf. Federal Register, Vol. 83, No. 210, 10/30/2018, 54659-54660.
  • FinCEN announced it seeks comment on the information collection titled Anti-Money Laundering programs for money services business, mutual funds, operators of credit card systems, and Providers of Prepaid Access. FinCEN also gave notice that it sent the collection to OMB for review. Comments are due 11/29/2018. The notice may be viewed at: https://www.gpo.gov/fdsys/pkg/FR-2018-10-30/pdf/2018-23645.pdf. Federal Register, Vol. 83, No. 210, 10/30/2018, 54659-54660.

Treasury Finalizes Regulations Regarding Tax Return Preparer Penalty.

The Department of the Treasury (Treasury) finalized regulations relating to the tax return preparer penalty. The final regulations are necessary to implement recent law changes that expand the scope of the tax return preparer due diligence penalty so that it applies to the child tax credit (CTC)/additional child tax credit (ACTC), and the American opportunity tax credit (AOTC) as well as to eligibility to file a return or claim for refund as head of household. The regulations affect tax return preparers. The regulations are effective 11/07/2018. The notice may be viewed at: https://www.gpo.gov/fdsys/pkg/FR-2018-11-07/pdf/2018-24411.pdf. Federal Register, Vol. 83, No. 216, 11/07/2018, 55632-55636.

Treasury Proposes De Minimis Error Safe Harbor Exceptions.

Treasury proposed regulations relating to penalties for failure to file correct information returns or furnish correct payee statements. The proposed regulations contain safe harbor rules that, for penalty purposes, generally treat as correct payee statements or corresponding information returns that contain errors relating to de minimis incorrect dollar amounts. They prescribe the time and manner in which a payee may elect not to have the safe harbor rules apply. They also update penalty amounts and update references to information reporting obligations. Finally, they provide rules relating to the reporting of basis of securities by brokers as this reporting relates to the de minimis error safe harbor rules. The proposed regulations affect persons required to either file information returns or to furnish payee statements, and recipients of payee statements. Comments are due 12/17/2018. The notice may be viewed at: https://www.gpo.gov/fdsys/pkg/FR-2018-10-17/pdf/2018-22393.pdf. Federal Register, Vol. 83, No. 201, 10/17/2018, 52726-52749.

Treasury Proposes Changes to Health Reimbursement Arrangements and Other Account-Based Group Health Plans.

Treasury proposed rules to expand opportunities for working people and their families to access affordable, quality healthcare through proposed changes to regulations under various provisions of the Public Health Service Act (PHS Act), the Employee Retirement Income Security Act (ERISA), and the Internal Revenue Code regarding health reimbursement arrangements (HRAs) and other account-based group health plans. Specifically, the proposed rules allow integrating HRAs with individual health insurance coverage, if certain conditions are met. The proposed rules also set forth conditions under which certain HRAs would be recognized as limited excepted benefits. Treasury also proposes rules regarding premium tax credit eligibility for individuals offered coverage under an HRA integrated with individual health insurance coverage. Comments are due 12/28/2018. The notice may be viewed at: https://www.gpo.gov/fdsys/pkg/FR-2018-10-29/pdf/2018-23183.pdf. Federal Register, Vol. 83, No. 209, 10/29/2018, 54420-54477.

Treasury Announces Guarantee Availability for Bond Guarantee Program.

Treasury is inviting Qualified Issuer Applications and Guarantee Applications for the Community Development Financial Institutions (CDFI) Bond Guarantee Program. CDFI Fund announces the availability of up to $1 billion of Guarantee Authority in FY 2019, contingent upon Congressional authorization. Significant dates for applicants may be found in the notice. The notice may be viewed at: https://www.gpo.gov/fdsys/pkg/FR-2018-11-06/pdf/2018-24273.pdf. Federal Register, Vol. 83, No. 215, 11/06/2018, 55582-55598.

Treasury Requests Comment on Information Collections.

  • Treasury announced it seeks comment on the information collection titled Entity Classification Election. Treasury also gave notice that it sent the collection to OMB for review. Comments are due 12/18/2018. The notice may be viewed at: https://www.gpo.gov/fdsys/pkg/FR-2018-10-19/pdf/2018-22807.pdf. Federal Register, Vol. 83, No. 203, 10/19/2018, 53152.
  • Treasury announced it seeks comment on the information collection titled Debt Instruments with Original Discount; Imputed Interest on Deferred Payment Sales or Exchanges of Property; Property Traded on an Established Market. Treasury also gave notice that it sent the collection to OMB for review. Comments are due 12/26/2018. The notice may be viewed at: https://www.gpo.gov/fdsys/pkg/FR-2018-10-26/pdf/2018-23482.pdf. Federal Register, Vol. 83, No. 208, 10/26/2018, 54176-54177.
  • Treasury announced it seeks comment on the information collection titled Validating Your TIN and Reasonable Cause. Treasury also gave notice that it sent the collection to OMB for review. Comments are due 01/02/2019. The notice may be viewed at: https://www.gpo.gov/fdsys/pkg/FR-2018-11-02/pdf/2018-23949.pdf. Federal Register, Vol. 83, No. 213, 11/02/2018, 55235-55236.

FHFA Finalizes Amendments to Community Support Program.

The Federal Housing Finance Agency (FHFA) is issuing a final rule amending its community support regulation to require that FHFA establish relevant dates for FHFA’s biennial community support review by written notice to the Federal Home Loan Banks (Banks). The amendments do not affect the substantive requirements of the regulation and do not change the criteria for determining member compliance with the community support standards and eligibility for access to long-term Bank advances. The final rule is effective 11/15/2018. The notice may be viewed at: https://www.gpo.gov/fdsys/pkg/FR-2018-10-16/pdf/2018-22451.pdfFederal Register¸ Vol. 83, No. 200, 10/16/2018, 52115-52118.

FHFA Finalizes Amendments to Responsibilities of Boards of Directors, Corporate Practices, and Corporate Governance.

FHFA is amending its regulation on the Responsibilities of Boards of Directors, Corporate Practices, and Corporate Governance for its regulated entities. The final rule amends the existing regulation pertaining to Federal Home Loan Bank strategic business plans so that it applies as well to the Enterprises, and makes a number of adjustments and conforming changes to the existing regulation. As amended, the regulation requires that the board of directors of each regulated entity have in effect at all times a strategic business plan that describes its strategy for achieving its mission and public purposes. It extends to the Enterprise boards the existing provision requiring the board of each Federal Home Loan Bank to review the strategic business plan at least annually, re-adopt it at least once every three years, and establish reporting requirements for and monitor implementation of the strategic business plan. The final rule adds a new provision regarding current and emerging risks, repeals two outdated provisions of the existing regulation, and makes a conforming change to the Office of Finance Board of Directors regulation. The final rule is effective 12/18/2018. The notice may be viewed at: https://www.gpo.gov/fdsys/pkg/FR-2018-10-19/pdf/2018-22859.pdf. Federal Register, Vol. 83, No. 203, 10/19/2018, 52950-52954.

FHFA Proposes Amendments to Housing Goals.

FHFA is proposing to amend the existing Federal Home Loan Bank Housing Goals regulation. FHFA proposes to replace the existing four separate retrospective housing goals with a single prospective mortgage purchase housing goal as well as establish a separate small member participation housing goal. The proposed rule would also allow the Banks to request FHFA approval of alternative target levels for the proposed goals. Finally, FHFA is proposing to eliminate the existing $2.5 billion volume threshold that triggers the application of housing goals for each Bank. Comments are due 01/31/2019. The notice may be viewed at: https://www.gpo.gov/fdsys/pkg/FR-2018-11-02/pdf/2018-23890.pdf. Federal Register, Vol. 83, No. 213, 11/02/2018, 55114-55133.

FHFA Requests Comment on Information Collection.

FHFA announced it seeks comment on the information collection titled Advances to Housing Associates. FHFA also gave notice that it sent the collection to OMB for review. Comments are due 12/17/2018. The notice may be viewed at: https://www.gpo.gov/fdsys/pkg/FR-2018-10-17/pdf/2018-22667.pdf. Federal Register, Vol. 83, No. 201, 10/17/2018, 52451-52452.

SBA Amends Development Company Loan Program.

The Small Business Administration (SBA) is changing the job creation or retention requirements under its Development Company Loan Program (504 Loan Program) by increasing the dollar amounts used in calculating the number of jobs that must be created or retained for each 504 Project and for the portfolio average of each Certified Development Company. In addition, SBA is designating additional areas for application of the higher portfolio average. The changes will apply to all 504 loans that are approved under the 504 Loan Program on or after 11/02/2018. Comments are due 12/03/2018. The notice may be viewed at: https://www.gpo.gov/fdsys/pkg/FR-2018-11-02/pdf/2018-24033.pdf. Federal Register, Vol. 83, No. 213, 11/02/2018, 55224-55226.

SBA Issues Maximum Allowable 7(a) Fixed Interest Rates.

SBA announced the maximum allowable fixed interest rates for 7(a) guaranteed loans. SBA is increasing the maximum allowable spread as follows: For 7(a) fixed rate loans of $250,000 or less, SBA is setting the maximum allowable spread over Prime at 6% (plus the additional spread permitted under 13 CFR 120.215 for very small loans). For 7(a) fixed rate loans over $250,000, SBA is setting the maximum allowable spread over Prime at 5%. The maximum allowable spread will no longer depend on the term of the loan. The notice is effective 11/06/2018. The notice may be viewed at: https://www.gpo.gov/fdsys/pkg/FR-2018-11-06/pdf/2018-24258.pdf. Federal Register, Vol. 83, No. 215, 11/06/2018, 55478-55479.

SBA Issues Major Disaster Declarations.

  • SBA issued notice that as a result of the President’s major disaster declaration on 10/18/2018 for the state of Wisconsin, applications for disaster loans may be filed at the address listed in the notice or other locally announced locations. Applications are due 01/18/2019. The notice may be viewed at: https://www.gpo.gov/fdsys/pkg/FR-2018-10-25/pdf/2018-23325.pdf. Federal Register, Vol. 83, No. 207, 10/25/2018, 53935-53936.
  • SBA issued notice that as a result of the President’s major disaster declaration on 10/18/2018 for the state of Wisconsin, Private Non-Profit organizations that provide essential services of a governmental nature may file disaster loan applications at the address listed in the notice or other locally announced locations. Applications for Physical Damage Loans are due 12/17/2018, applications for Economic Injury Loans are due 07/18/2019. The notice may be viewed at: https://www.gpo.gov/fdsys/pkg/FR-2018-10-25/pdf/2018-23359.pdf. Federal Register, Vol. 83, No. 207, 10/25/2018, 53934-53935.

FSA Requests Comment on Information Collection.

The Farm Service Agency (FSA) announced it seeks comment on the information collection titled The Biofuel Infrastructure Partnership Grants to States. FSA also gave notice that it sent the collection to OMB for review. Comments are due 12/11/2018. The notice may be viewed at: https://www.gpo.gov/fdsys/pkg/FR-2018-10-12/pdf/2018-22216.pdf. Federal Register, Vol. 83, No. 198, 10/12/2018, 51660-51661.

FCA Finalizes Amendments to Regulations Governing the Eligibility of Non-Program Investments. 

The Farm Credit Administration (FCA) finalizes amendments to regulations governing the eligibility of non-program investments held by the Federal Agricultural Mortgage Corporation (Farmer Mac). FCA is revising these regulations in compliance with section 939A of the Dodd-Frank Act by removing references to, and requirements relating to, credit ratings. This regulation shall become effective no earlier than 30 days after publication in the Federal Register during which either or both Houses of Congress are in session. FCA will publish a notice of the effective date in the Federal Register. The notice may be viewed at: https://www.gpo.gov/fdsys/pkg/FR-2018-11-02/pdf/2018-24045.pdf. Federal Register, Vol. 83, No. 213, 11/02/2018, 550193-55099. 

FCIC Finalizes Standards of Approval.

The Federal Crop Insurance Corporation (FCIC) finalized the General Administrative Regulations; Subpart L— Reinsurance Agreement—Standards for Approval; Regulations for the 2019 and Subsequent Reinsurance Years. The intended effect of this action is to clarify and improve Subpart L to better align with the existing Standard Reinsurance Agreement (SRA) and Livestock Price Reinsurance Agreement (LPRA) and to eliminate language that is no longer relevant. The rule is effective 11/13/2018. The notice may be viewed at: https://www.gpo.gov/fdsys/pkg/FR-2018-10-11/pdf/2018-21699.pdf. Federal Register, Vol. 83, No. 197, 10/11/2018, 51301-51303. 

FASB Requests Comment on Exposure Drafts.

  • The Federal Accounting Standards Advisory Board (FASB) has released for public comment an exposure draft of a proposed Interpretation, Guidance on Recognizing Liabilities Involving Multiple Component Reporting Entities: An Interpretation of SFFAS 5. The proposed Interpretation is available on the FASB website at: http://www.fasab.gov/documents-forcomment/. Copies can be obtained by contacting FASB at (202) 512–7350. Comments are due 01/17/2019. The notice may be viewed at: https://www.gpo.gov/fdsys/pkg/FR-2018-10-23/pdf/2018-23110.pdf. Federal Register, Vol.83, No. 205, 10/23/2018, 53473-53474.
  • FASB has released an exposure draft of a proposed Statement of Federal Financial Accounting Concepts (SFFAC), Materiality, for public comment. The proposed SFFAC is available on the FASB website at: http://www.fasab.gov/documents-forcomment/. Copies can be obtained by contacting FASB at (202) 512–7350. Comments are dues 01/23/2018. The notice may be viewed at: https://www.gpo.gov/fdsys/pkg/FR-2018-10-23/pdf/2018-23109.pdf. Federal Register, Vol. 83, No. 205, 10/23/2018, 53473.

NCUA Amends Risk-Based Capital Rule. 

The National Credit Union Administration (NCUA) is amending previously revised regulations regarding prompt corrective action (PCA). The final rule delays the effective date of NCUA’s 10/29/2015 final rule regarding risk-based capital (2015 Final Rule) for one year, moving the effective date from 01/01/2019 to 01/01/2020. During the extended delay period, the NCUA’s current PCA requirements will remain in effect. The final rule also amends the definition of a “complex” credit union adopted in the 2015 Final Rule for risk-based capital purposes by increasing the threshold level for coverage from $100 million to $500 million. These changes provide covered credit unions and NCUA with additional time to prepare for the rule’s implementation, and exempt an additional 1,026 credit unions from the risk-based capital requirements of the 2015 Final Rule without subjecting the National Credit Union Share Insurance Fund (NCUSIF) to undue risk. The final rule is effective 01/01/2020. The notice may be viewed at: https://www.gpo.gov/fdsys/pkg/FR-2018-11-06/pdf/2018-24171.pdf. Federal Register, Vol. 83, No. 215, 11/06/2018, 55467-55478.

SSA Proposes Prohibition of Persons with Certain Criminal Convictions from Serving as Representative Payees.

The Social Security Administration (SSA) proposes to amend regulations to prohibit persons convicted of certain crimes from serving as representative payees under the Social Security Act (Act). We are proposing these revisions because of changes to the Act made by the Strengthening Protections for Social Security Beneficiaries Act of 2018. Comments are due 11/13/2018. The notice may be viewed at: https://www.gpo.gov/fdsys/pkg/FR-2018-10-11/pdf/2018-22168.pdf. Federal Register, Vol. 83, No. 197, 10/11/2018, 51400-51403. 

By, Ally Bates