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Legal Q&A: Annual Threshold Adjustments for 2022 Effective January 1

By Scott Birrenkott

Q: Has CFPB Released its Truth in Lending (Regulation Z) Annual Threshold Adjustments for 2022?

A: Yes. The Consumer Financial Protection Bureau has revised the threshold dollar amounts for Regulation Z, which implements the Truth in Lending Act (TILA). Specifically, has revised the dollar amounts for provisions implementing amendments to TILA under the Credit Card Accountability Responsibility and Disclosure Act of 2009 (CARD Act), the Home Ownership and Equity Protection Act (HOEPA) and the ability to repay/qualified mortgage (ATR/QM), and the dollar threshold for exempt consumer credit transactions. Effective January 1, 2022, the following thresholds will be adjusted to the new dollar amounts.

For HOEPA loans, the adjusted total loan amount threshold is $22,969, an increase from $22,052 in 2021. The adjusted points and fees dollar trigger for high-cost mortgages is $1,148, an increase from $1,103 from 2021.

For qualified mortgages (QMs) under the General QM loan definition in §1026.43(e)(2), the thresholds for the spread between the annual percentage rate (APR) and the average prime offer rate (APOR) in 2022 will be: 2.25 or more percentage points for a first-lien covered transaction with a loan amount greater than or equal to $114,847; 3.5 or more percentage points for a first-lien covered transaction with a loan amount greater than or equal to $68,908 but less than $114,847; 6.5 or more percentage points for a first-lien covered transaction with a loan amount less than $68,908; 6.5 or more percentage points for a first-lien covered transaction secured by a manufactured home with a loan amount less than $114,847; 3.5 or more percentage points for a subordinate-lien covered transaction with a loan amount greater than or equal to $68,908; or 6.5 or more percentage points for a subordinate-lien covered transaction with a loan amount less than $68,908.

For all categories of QMs, the thresholds for total points and fees in 2022 will be 3 percent of the total loan amount for a loan greater than or equal to $114,847; $3,445 for a loan amount greater than or equal to $68,908 but less than $114,847; 5 percent of the total loan amount for a loan greater than or equal to $22,969 but less than $68,908; $1,148 for a loan amount greater than or equal to $14,356 but less than $22,969; and 8 percent of the total loan amount for a loan amount less than $14,356.

For open-end consumer credit plans under the CARD Act amendments to TILA, the adjusted dollar amount in 2022 for the safe harbor for a first violation penalty fee will increase to $30 and the adjusted dollar amount for the safe harbor for a subsequent violation penalty fee will increase to $41.

Lastly, based on the annual percentage increase in the Consumer Price Index for Urban Wage Earners and Clerical Workers as of June 1, 2021, the dollar threshold for exempt consumer credit transactions under Regulation Z will increase from $58,300 to $61,000 effective January 1, 2022.

If you have any questions on this topic or other matters of compliance, contact WBA’s legal call program at 608-441-1200 or wbalegal@wisbank.com.

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WBA Meets with OCC, Bankers on Post-Pandemic Industry

On Tuesday, WBA hosted a virtual meeting with bankers and OCC to discuss concerns of the industry and to gather insight of OCC’s perspective as Wisconsin’s banking industry continues moving forward through pandemic recovery. Discussion included: CTR filings for bank cash orders handled by Thillens, continued efforts of CECL implementation, monitoring CRE and the impact of vacancies as office space needs change, thinking through liquidity contingencies, LIBOR, cybersecurity and importance of good business resumption plans, importance of strong underwriting practices, awareness of loan downpayments amounts, and careful review of evaluations due to the current hot real estate market. Bankers shared concerns over exams losing the focus of being risk-based.  

Those attending the meeting included National Bank of Commerce President and CEO Steven Burgess, National Exchange Bank & Trust President and CEO James Chatterton, OCC Assistant Deputy Comptroller Mike Larabee, OCC Associate Deputy Comptroller Ben Lemanski, and OCC Central District Deputy Comptroller Brian James. WBA staff present included Rose Oswald Poels, Daryll Lund, Scott Birrenkott, and Heather MacKinnon.

When asked of their current expectations regarding struggling borrowers, OCC stated they are using the same approach as was taken during the pandemic; banks should continue to work with struggling borrowers, document position taken, and to feel free to have further conversations with the exam team and OCC district office regarding the treatment or classification of a particular borrower. OCC also shared that discussions continue at a high level on the topics of fair lending, climate changes, bank collaborations with fintechs, and OCC’s efforts to work collaboratively on CRA.  

WBA continues to engage in small group virtual meetings with each of the banking regulators over the course of the next few months. Normally, we host these meetings in person in Madison in addition to visiting the industry’s regulators in Washington each fall. If you are interested in participating in a small group virtual conversation with your bank’s regulator, please contact WBA’s VP-Legal Heather MacKinnon at hmackinnon@wisbank.com. In addition to sharing which regulator is your bank’s primary federal regulator, please also provide Heather with any specific topic or issue you’d like to make sure is raised during these conversations.   

By, Alex Paniagua

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January 2020 Compliance Journal: Compliance Notes

The below article is the Compliance Notes section of the January 2020 Compliance Journal. The full issue may be viewed by clicking here.

OCC issued an alert that Stephenson National Bank & Trust, Marinette, Wis., has reported that counterfeit cashier’s checks using the bank’s routing number of 075901011 are being presented for payment nationwide in connection with secret shopper employment scams. There are a variety of counterfeit items in circulation, none of which resemble the bank’s authentic item. Further information may be viewed in the full alert: https://www.occ.gov/news-issuances/alerts/2020/alert-2020-2.html

On Dec. 20, 2019, President Donald Trump signed into law the provisions of the Setting Every Community Up for Retirement Enhancement Act of 2019 (SECURE Act) which contains several provisions that will impact qualified retirement plans. A summary of the Act may be viewed at: https://www.wisbank.com/articles/2020/01/secure-act-summary/

The Wisconsin Department of Financial Institutions, Division of Banking, has calculated the interest rate to be paid on escrow accounts subject to s. 138.052 (5) (am) 2., Stats., to be 0.17% for 2020. The interest rate shall remain in effect through December 31, 2020. The notice may be viewed at: https://docs.legis.wisconsin.gov/code/register/2019/768A2/register/public_notices/public_notice_2020_interest_rate_on_escrow_accounts/public_notice_2020_interest_rate_on_escrow_accounts.pdf

FRB has issued the December 2019 Consumer Compliance Supervision Bulletin. This issue discusses FRB supervisory observations regarding fintech, and the use of technological innovation to provide financial products and services. The bulletin may be viewed at: https://www.federalreserve.gov/publications/files/201912-consumer-compliance-supervision-bulletin.pdf

FinCEN released a new tool to visualize aggregated Suspicious Activity Reports filed by financial institutions in the United States. The interactive maps may be viewed at: https://www.fincen.gov/Reports/sar-stats/sar-stats-map

FDIC released its Fall 2019 Supervisory Insights. With the volume of commercial real estate loans held by FDIC-insured banks reaching a record of $2.4 trillion in 2019, FDIC focused on CRE risk management in the report. The report also focuses on leveraged lending. The report may be viewed at: https://www.fdic.gov/regulations/examinations/supervisory/insights/sifall19/si-fall-2019.pdf

OCC announced Brian James as Deputy Comptroller for the Central District. In this role, James will oversee 320 community banks and federal savings associations in Illinois, Indiana, Michigan, North Dakota, Ohio, Wisconsin, and parts of Kentucky, Minnesota and Missouri. James will manage more than 380 examiners and other professional personnel who ensure the financial institutions they supervise operate in a safe, sound, and fair manner. James assumes these duties in January 2020. OCC’s announcement may be viewed at: https://www.occ.gov/news-issuances/news-releases/2020/nr-occ-2020-3.html

FRB issued and updated User’s Guide for the Bank Holding Company Performance Report which provides definitions of the financial ratios and items presented on each page of the report. The guide may be viewed at: https://www.federalreserve.gov/publications/files/_A_Users_Guide_for_the_Bank_Holding_Company_Performance_Report_Final.pdf

Treasury announced it plans to issue a 20-year nominal coupon bond in the first half of calendar year 2020. Consistent with Treasury’s longstanding issuance practice, Treasury plans to issue this product in a regular and predictable manner in benchmark size. Additional information regarding the launch of the 20-year bond will be provided in Treasury’s quarterly refunding statement on Wednesday, February 5, 2020. The announcement may be viewed at: https://home.treasury.gov/news/press-releases/sm878

FDIC and SBA released two updates to the popular Money Smart for Small Business curriculum. The updated modules focus on banking and credit, and are now available for banks and small business development organizations to use to help small business owners succeed. The updated Banking Services module now includes a discussion of traditional banking products, non-bank financing options and sources, and how to avoid fraud and scams. Similarly, the updated Building Strong Credit module explains how a business owner’s personal credit history can impact their business, how business credit reporting works, and how a potential lender evaluates the overall creditworthiness of a small business. A case study brings both modules together and asks participants to put the lessons they have learned into practice. The materials were updated based on input from industry experts and other practitioners, including more than two dozen organizations that have used previous versions of the Money Smart materials. The updated modules may be viewed at: https://www.fdic.gov/consumers/banking/businesslending/index.html

OCC and FDIC issued an interagency statement on heightened cybersecurity risk. The statement focuses on risk management principles that can reduce the risk of a cyber-attack and minimize business disruptions. The statement elaborates on standards articulated in the Interagency Guidelines Establishing Information Security Standards as well as resources provided by FFIEC members, such as the FFIEC Statement on Destructive Malware. The statement may be viewed at: https://www.fdic.gov/news/news/financial/2020/fil20003a.pdf

The latest edition of the Consumer Compliance Outlook is now available. This issue focuses on fintech topics such as internet marketing, and developments in fintech regulation. The publication may be viewed at: https://consumercomplianceoutlook.org/

FRB has issued frequently asked questions (FAQs) in response to questions from institutions regarding the final rules to tailor certain prudential standards for large domestic and foreign banking organizations to more closely match their risk profiles. The FAQs may be viewed at: https://www.federalreserve.gov/supervisionreg/srletters/SR2002a1.pdf

CFPB announced it has filed suit against several companies and individuals involved in offering student loan debt-relief services for allegedly obtaining consumer reports illegally, charging unlawful advance fees, and engaging in deceptive conduct. The announcement may be viewed at: https://www.consumerfinance.gov/about-us/newsroom/cfpb-announces-action-against-monster-loans-lend-tech-loans-and-student-loan-debt-relief-companies/

Treasury’s Bureau of the Fiscal Service (Fiscal Service) today announced the selection of Comerica Bank as the financial agent for the Direct Express® prepaid debit card program. The new agreement is for five years, beginning in January 2020. The Direct Express® program provides 4.5 million Americans – the majority of whom do not have a bank account – with a prepaid debit card to receive their monthly Social Security or Veterans benefit payments. For most cardholders, this payment is their sole source of income and is essential for basic living needs such as housing, food, and medicine. The announcement may be viewed at: https://www.fiscal.treasury.gov/news/comerica-bank-continues-debit-card-for-unbanked.html

NMLS issued a reminder that its Reinstatement Period will start January 2, 2020 and end at midnight ET on February 29, 2020. Further information on reinstatement may be viewed at: https://fedregistry.nationwidelicensingsystem.org/Institutions/Pages/Renew.aspx

FRB, FDIC, and OCC issued an interagency statement to explain that the federal banking agencies will exercise discretion to not take enforcement action against depository institutions or asset managers that become principal shareholders of institutions with respect to certain extensions of credit by institutions that otherwise would violate Federal Reserve Regulation O. The statement may be viewed at: https://www.fdic.gov/news/news/financial/2019/fil19085a.pdf

FRB has published its January 2020 Financial Accounting Manual for Federal Reserve Banks. The manual contains the accounting standards that should be followed by the Federal Reserve Banks. The manual may be viewed at: https://www.federalreserve.gov/aboutthefed/files/BSTfinaccountingmanual.pdf

CFPB issued its Financial Literacy Annual Report for fiscal year 2019. The report may be viewed at: https://files.consumerfinance.gov/f/documents/bcfp_financial-literacy_annual-report_2019.pdf

FRB released Uncertain Terms: What Small Business Borrowers Find When Browsing Online Lender Websites, a report that examines the information that prospective small business borrowers encounter when researching and comparing credit products offered by online lenders. Nonbank online lenders are becoming more mainstream alternative providers of financing to small businesses. In 2018, nearly one-third of small business owners seeking credit reported having applied at a nonbank online lender. The industry’s growing reach has the potential to expand access to credit for small firms, but also raises concerns about how product costs and features are disclosed. The report’s analysis of a sampling of online content finds significant variation in the amount of upfront information provided, especially on costs. The full report may be viewed at: https://www.federalreserve.gov/publications/files/what-small-business-borrowers-find-when-browsing-online-lender-websites.pdf

CFPB has published additional guidance relating to disclosing construction and construction-permanent loans under the TRID Rule. There are two new guides, one on disclosing construction and construction-permanent loans with a separate loan estimate and closing disclosure for each phase of the transaction, and one on using one combined loan estimate and one combined closing disclosure for both phases of a construction-permanent transaction. The guides may be viewed at:
https://files.consumerfinance.gov/f/documents/cfpb_trid-separate-construction-loan-guide.pdf
https://files.consumerfinance.gov/f/documents/cfpb_trid-combined-construction-loan-guide.pdf 

By, Ally Bates

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January 2020 Compliance Journal: Regulatory Spotlight

The below article is the Regulatory Spotlight section of the January 2020 Compliance Journal. The full issue may be viewed by clicking here.

Agencies Finalize Regulatory Capital Treatment for High Volatility Commercial Real Estate (HVCRE) Exposures.

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) are adopting a final rule to revise the definition of “high volatility commercial real estate (HVCRE) exposure” in the regulatory capital rule. This final rule conforms this definition to the statutory definition of “high volatility commercial real estate acquisition, development, or construction (HVCRE ADC) loan,” in accordance with section 214 of the Economic Growth, Regulatory Relief, and Consumer Protection Act (EGRRCPA). The final rule also clarifies the capital treatment for loans that finance the development of land under the revised HVCRE exposure definition. The final rule is effective 04/01/2020. The notice may be viewed at: https://www.govinfo.gov/content/pkg/FR-2019-12-13/pdf/2019-26544.pdf. Federal Register, Vol. 84, No. 240, 12/13/2019, 68019-68034.

Agencies Finalize Amendment to Community Reinvestment Act Regulations.

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) are amending their Community Reinvestment Act (CRA) regulations to adjust the asset-size thresholds used to define “small bank” or “small savings association” and “intermediate small bank” or “intermediate small savings association.” As required by the CRA regulations, the adjustment to the threshold amount is based on the annual percentage change in the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI–W). The rule is effective 01/01/2020. The notice may be viewed at: https://www.govinfo.gov/content/pkg/FR-2019-12-30/pdf/2019-27288.pdf. Federal Register, Vol. 84, No. 249, 12/30/2019, 71738-71740.

Agencies Propose Community Reinvestment Act Regulations.

The Federal Deposit Insurance Corporation (FDIC), and the Office of the Comptroller of the Currency (OCC) propose regulations that could encourage banks to provide billions more each year in Community Reinvestment Act-qualified lending, investment, and services by modernizing the Community Reinvestment Act (CRA) regulations to better achieve the law’s underlying statutory purpose of encouraging banks to serve their communities by making the regulatory framework more objective, transparent, consistent, and easy to understand. To accomplish these goals, this proposed rule would strengthen the CRA regulations by clarifying which activities qualify for CRA credit, updating where activities count for CRA credit, creating a more transparent and objective method for measuring CRA performance, and providing for more transparent, consistent, and timely CRA-related data collection, recordkeeping, and reporting. Comments are due 03/09/2020. The notice may be viewed at: https://www.govinfo.gov/content/pkg/FR-2020-01-09/pdf/2019-27940.pdf. Federal Register, Vol. 85, No. 6, 01/09/2020, 1204-1265.

Agencies Announce Review of Definitions in Credit Risk Retention Regulations.

The Board of Governors of the Federal Reserve System (FRB), the Federal Deposit Insurance Corporation, the Office of the Comptroller of the Currency (OCC), the Department of Housing and Urban Development (HUD), the Federal Housing Finance Agency (FHFA), and the Securities and Exchange Commission (SEC) are providing notice of the commencement of the review of the definition of qualified residential mortgage; the community-focused residential mortgage exemption; and the exemption for qualifying three-to-four unit residential mortgage loans, in each case as currently set forth in the Credit Risk Retention Regulations as adopted by the agencies. Comments on the review are due 02/03/2020. The notice may be viewed at: https://www.govinfo.gov/content/pkg/FR-2019-12-20/pdf/2019-27490.pdf. Federal Register, Vol. 84, No. 245, 12/20/2019, 70073-70076.

Agencies Extend Comment Period for Application of the Uniform Financial Institutions Rating System.

The Board of Governors of the Federal Reserve System (FRB), and the Federal Deposit Insurance Corporation (FDIC) published a request for information (RFI) in the Federal Register on 10/31/2019 seeking information and comments from interested parties regarding the consistency of ratings assigned by the agencies under the Uniform Financial Institutions Rating System (UFIRS). The agencies have determined that an extension of the comment period until 02/28/2020, is appropriate. The notice may be viewed at: https://www.govinfo.gov/content/pkg/FR-2019-12-27/pdf/2019-27848.pdf. Federal Register, Vol. 84, No. 248, 12/27/2019, 71413-71414.

Agencies Extend Comment Period for Margin and Capital Requirements for Covered Swap Entities.

The Board of Governors of the Federal Reserve System (FRB), the Federal Deposit Insurance Corporation (FDIC), the Office of the Comptroller of the Currency (OCC), the Federal Housing Finance Agency (FHFA), and the Farm Credit Administration (FCA) are reopening the comment period for the notice of proposed rulemaking published in the Federal Register on 11/07/2019, to amend the agencies’ regulations that require swap dealers and security-based swap dealers under the agencies’ respective jurisdictions to exchange margin with their counterparties for swaps that are not centrally cleared (Proposed Swap Margin Amendments). Reopening the comment period that closed on 12/09/2019, will allow interested persons additional time to analyze and comment on the Proposed Swap Margin Amendments. The new comment due date is 01/23/2020. The notice may be viewed at: https://www.govinfo.gov/content/pkg/FR-2019-12-30/pdf/2019-28052.pdf. Federal Register, Vol. 84, No. 249, 12/30/2019, 71833-71834.

CFPB Issues Fall 2019 Supervisory Highlights.

The Bureau of Consumer Financial Protection (CFPB) is issuing its twentieth edition of its Supervisory Highlights. In this special issue of Supervisory Highlights, CFPB reports examination findings in the areas of consumer reporting and furnishing of information to consumer reporting companies, pursuant to the Fair Credit Reporting Act and Regulation V. The report does not impose any new or different legal requirements, and all violations described in the report are based only on those specific facts and circumstances noted during those examinations. The notice may be viewed at: https://www.govinfo.gov/content/pkg/FR-2019-12-11/pdf/2019-26669.pdf. Federal Register, Vol. 84, No. 238, 12/11/2019, 67725-67732.

CFPB Amends Official Commentary on Regulation C.

CFPB is amending the official commentary that interprets the requirements of CFPB’s Regulation C (Home Mortgage Disclosure) to reflect the asset-size exemption threshold for banks, savings associations, and credit unions based on the annual percentage change in the average of the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI–W). Based on the 1.6 percent increase in the average of the CPI–W for the 12-month period ending in November 2019, the exemption threshold is adjusted to $47 million from $46 million. Therefore, banks, savings associations, and credit unions with assets of $47 million or less as of 12/31/2019, are exempt from collecting data in 2020. The commentary is effective 01/01/2020. The notice may be viewed at: https://www.govinfo.gov/content/pkg/FR-2019-12-20/pdf/2019-27522.pdf. Federal Register, Vol. 84, No. 245, 12/20/2019, 69993-69995.

CFPB Amends Official Commentary of Regulation Z.

CFPB is amending the official commentary that interprets the requirements of the Bureau’s Regulation Z (Truth in Lending) to reflect a change in the asset-size threshold for certain creditors to qualify for an exemption to the requirement to establish an escrow account for a higher-priced mortgage loan. This amendment is based on the annual percentage change in the average of the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI–W). Based on the 1.6 percent increase in the average of the CPI–W for the 12-month period ending in November 2019, the exemption threshold is adjusted to $2.202 billion from $2.167 billion. Therefore, creditors with assets of less than $2.202 billion (including assets of certain affiliates) as of 12/31/2019, are exempt, if other requirements of Regulation Z also are met, from establishing escrow accounts for higher-priced mortgage loans in 2020. The commentary is effective 01/01/2020. The notice may be viewed at: https://www.govinfo.gov/content/pkg/FR-2019-12-23/pdf/2019-27523.pdf. Federal Register, Vol. 84, No. 246, 12/23/2019, 70410-70413.

CFPB Issues Semiannual Regulatory Agenda. 

CFPB published its agenda as part of the Fall 2019 Unified Agenda of Federal Regulatory and Deregulatory Actions. CFPB reasonably anticipates having the regulatory matters identified below under consideration during the period from 10/01/2019, to 09/30/2020. The next agenda will be published in spring 2020 and will update this agenda through spring 2021. Publication of this agenda is in accordance with the Regulatory Flexibility Act (5 U.S.C. 601 et seq.). The information is current as of 07/25/2019. The notice may be viewed at: https://www.govinfo.gov/content/pkg/FR-2019-12-26/pdf/2019-26636.pdf. Federal Register, Vol. 84, No. 247, 12/26/2019, 71232-71236.

FSOC Finalizes Interpretive Guidance on Authority to Require Supervision and Regulation of Certain Nonbank Financial Companies. 

The Financial Stability Oversight Council (FSOC) issued a final interpretive guidance, which replaces FSOC’s existing interpretive guidance on nonbank financial company determinations, describes the approach FSOC intends to take in prioritizing its work to identify and address potential risks to U.S. financial stability using an activities-based approach, and enhancing the analytical rigor and transparency in the processes FSOC intends to follow if it were to consider making a determination to subject a nonbank financial company to supervision by the Board of Governors of the Federal Reserve System (FRB). The guidance is effective 01/29/2020. The notice may be viewed at: https://www.govinfo.gov/content/pkg/FR-2019-12-30/pdf/2019-27108.pdf. Federal Register, Vol. 84, No. 249, 12/30/2019, 71740-71770.

FRB Issues Risk-Based Capital Surcharges for Global Systemically Important Bank Holding Companies.

The Board of Governors of the Federal Reserve System (FRB) is providing notice of the 2019 aggregate global indicator amounts, as required under FRB’s rule regarding risk-based capital surcharges for global systemically important bank holding companies (GSIB surcharge rule). The aggregate global indicator amounts are in the table in the notice. The notice may be viewed at: https://www.govinfo.gov/content/pkg/FR-2019-12-19/pdf/2019-27414.pdf. Federal Register, Vol. 84, No. 244, 12/19/2019, 69744-69745.

FRB Issues Correction to Capital Simplification for Qualifying Community Banking Organizations.

FRB issued a notice regarding a final rule published in the Federal Register on 11/13/2019 that provides for a simple measure of capital adequacy for certain community banking organization. The final rule had two erroneous amendment instructions. The notice corrects those errors. The correction is effective 01/01/2020. The notice may be viewed at: https://www.govinfo.gov/content/pkg/FR-2019-12-26/pdf/2019-27717.pdf. Federal Register, Vol. 84, No. 247, 12/26/2019, 70887.

FDIC Proposes Amendments to Policy Regarding Requests for Participation in the Affairs of an Insured Depository Institution by Convicted Individuals.

The Federal Deposit Insurance Corporation (FDIC) proposes to revise the existing regulations requiring persons convicted of certain criminal offenses to obtain prior written consent before participating in the conduct of the affairs of any depository institution to incorporate the FDIC’s existing Statement of Policy, and to amend the regulations setting forth the FDIC’s procedures and standards applicable to an application to obtain the FDIC’s prior written consent. Following the issuance of final regulations, the FDIC’s existing Statement of Policy would be rescinded. The proposed incorporation of the Statement of Policy into the FDIC’s regulations would provide for greater transparency as to its application, provide greater certainty as to the FDIC’s application process and help both insured depository institutions and affected individuals to understand its impact and to potentially seek relief from its provisions. Comments are due 02/14/2020. The notice may be viewed at: https://www.govinfo.gov/content/pkg/FR-2019-12-16/pdf/2019-26351.pdf. Federal Register, Vol. 84, No. 241, 12/14/2019, 68353-68363.

FDIC Rescinds Outdated Statements of Policy.

FDIC initiated a comprehensive review of its Statements of Policy to identify those that were outdated. Additionally, FDIC, in the 2017 report required by the Economic Growth and Regulatory Paperwork Reduction Act, committed to reviewing published guidance to identify any guidance that should be revised or rescinded because it is out-of-date or otherwise no longer relevant. In furtherance of these initiatives, the FDIC Board of Directors approved a proposal to rescind four FDIC Statements of Policy, which was published in the Federal Register on 09/30/2019, with a 30-day comment period. FDIC did not receive any comments on the proposed rescission of these Statements of Policy and is rescinding them effective 12/31/2019. The notice may be viewed at: https://www.govinfo.gov/content/pkg/FR-2019-12-23/pdf/2019-27225.pdf. Federal Register, Vol. 84, No. 246, 12/23/2019, 70413-70415.  

FDIC Requests Comment on Information Collections.

  • FDIC announced it seeks comment on the information collection titled Transfer Agent Registration and Amendment Form. FDIC also gave notice that it sent the collection to OMB for review. Comments are due 01/15/2020. The notice may be viewed at: https://www.govinfo.gov/content/pkg/FR-2019-12-16/pdf/2019-26981.pdf. Federal Register, Vol. 84, No. 241, 12/16/2019, 68446-68449.
  • FDIC announced it seeks comment on the information collection titled Notification of Performance of Bank Services. FDIC also gave notice that it sent the collection to OMB for review. Comments are due 02/07/2020. The notice may be viewed at: https://www.govinfo.gov/content/pkg/FR-2020-01-08/pdf/2020-00058.pdf. Federal Register, Vol. 85, No. 5, 01/08/2020, 895-901.

FDIC Issues Notice of Designated Reserve Ratio for 2020.

FDIC designates that the Designated Reserve Ratio (DRR) for the Deposit Insurance Fund shall remain at 2 percent for 2020. The notice may be viewed at: https://www.govinfo.gov/content/pkg/FR-2019-12-18/pdf/2019-27235.pdf. Federal Register, Vol. 84, No. 243, 12/18/2019, 69373.

FDIC Issues Response to Exception Requests Pursuant to Recordkeeping for Timely Deposit Insurance Determination.

FDIC is providing notice to covered institutions that it has granted a time-limited exception concerning the requirement to maintain official custodian information in deposit account records for government deposit accounts, a time-limited exception concerning the requirement to maintain accurate beneficiary information in deposit account records for informal revocable trust accounts, and an indefinite exception concerning the requirement to maintain certain identifying information for beneficial owners of deposits in low balance, short-term prepaid card accounts. The grants of exception relief were effective 11/26/2019. The notice may be viewed at: https://www.govinfo.gov/content/pkg/FR-2019-12-23/pdf/2019-27626.pdf. Federal Register, Vol. 84, No. 246, 12/23/2019, 70527-70528.

FDIC Issues Termination 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.govinfo.gov/content/pkg/FR-2019-12-19/pdf/2019-27397.pdf. Federal Register, Vol. 84, No. 244, 12/19/2019, 69743-69744.

OCC Proposes Amendments to Employment Contract Rule. 

The Office of the Comptroller of the Currency (OCC) issued a proposed rule that would implement changes recommended in the March 2017 Economic Growth and Regulatory Paperwork Reduction Act report, including the repeal of the OCC’s employment contract rule for Federal savings associations, and amend the OCC’s fiduciary rules. The proposed rule also would amend the OCC’s rule for conversions from mutual to stock form of a savings association to reduce burden, increase flexibility, and update cross-references. Additionally, the proposed rule would update cross-references to repealed and integrated rules, remove unnecessary definitions, and make technical changes to other OCC rules. Comments are due 03/09/2020. The notice may be viewed at: https://www.govinfo.gov/content/pkg/FR-2020-01-08/pdf/2019-28074.pdf. Federal Register, Vol. 85, No. 5, 01/08/2020, 1052-1081.

OCC Requests Comment on Information Collections.

  • OCC announced it seeks comment on the information collection titled Extensions of Credit to Insiders and Transactions with Affiliates. OCC also gave notice that it sent the collection to OMB for review. Comments are due 02/10/2020. The notice may be viewed at: https://www.govinfo.gov/content/pkg/FR-2019-12-12/pdf/2019-26809.pdf. Federal Register, Vol. 84, No. 239, 12/12/2019, 68010-68011.
  • OCC announced it seeks comment on the information collection titled Financial Management Policies— Interest Rate Risk. OCC also gave notice that it sent the collection to OMB for review. Comments are due 02/10/2020. The notice may be viewed at: https://www.govinfo.gov/content/pkg/FR-2019-12-12/pdf/2019-26808.pdf. Federal Register, Vol. 84, No. 239, 12/12/2019, 68011-68012.
  • OCC announced it seeks comment on the information collection titled Guidance on Sound Incentive Compensation Policies. OCC also gave notice that it sent the collection to OMB for review. Comments are due 02/10/2020. The notice may be viewed at: https://www.govinfo.gov/content/pkg/FR-2019-12-12/pdf/2019-26807.pdf. Federal Register, Vol. 84, No. 239, 12/12/2019, 68012-68013.
  • OCC announced it seeks comment on the information collection titled Joint Standards for Assessing the Diversity Policies and Practices of Entities Regulated by the Agencies and Diversity Self-Assessment Template for OCC-Regulated Entities. OCC also gave notice that it sent the collection to OMB for review. Comments are due 01/15/2020. The notice may be viewed at: https://www.govinfo.gov/content/pkg/FR-2019-12-16/pdf/2019-27051.pdf. Federal Register, Vol. 84, No. 241, 12/16/2019, 68544-68545.
  • OCC announced it seeks comment on the information collection titled Retail Foreign Exchange Transactions. OCC also gave notice that it sent the collection to OMB for review. Comments are due 03/10/2020. The notice may be viewed at: https://www.govinfo.gov/content/pkg/FR-2020-01-10/pdf/2020-00232.pdf. Federal Register, Vol. 85, No. 7, 01/10/2020, 1373-1374.

OCC Issues Correction to Regulatory Capital Rule.

OCC is making technical corrections to the Capital Simplification for Qualifying Community Banking Organizations final rule that appeared in the Federal Register on 11/13/2019. The technical corrections align the rule text in the final rule with changes made by other final rules. The technical corrections also include a conforming edit. The correction is effective 01/01/2020. The notice may be viewed at: https://www.govinfo.gov/content/pkg/FR-2019-12-18/pdf/2019-27168.pdf. Federal Register, Vol. 84, No. 243, 12/18/2019, 69296-69298.

OCC Issues Inflation Adjustments for Civil Money Penalties.

OCC is providing notice of its maximum civil money penalties as adjusted for inflation. The inflation adjustments are required to implement the Federal Civil Penalties Inflation Adjustment Act of 1990, as amended by the Federal Civil Penalties Inflation Adjustment Act Improvements Act of 2015. The adjusted maximum amount of civil money penalties in this notice are applicable to penalties assessed on or after 01/01/2020, for conduct occurring on or after 11/02/2015. The notice may be viewed at: https://www.govinfo.gov/content/pkg/FR-2019-12-30/pdf/2019-28053.pdf. Federal Register, Vol. 84, No. 249, 12/30/2019, 71735-71737.

OCC Issues Correction to Other Real Estate Owned Rule.

OCC is correcting a final rule originally published in the Federal Register on 10/22/2019 revising the other real estate owned rule and making related technical amendments. The final rule had an effective date of 12/01/2019. On 11/21/2019, the OCC published a correction to that final rule in the Federal Register amending the final rule’s effective date to 01/01/2020. This document corrects and supplements the 11/21/2019, final rule. The notice may be viewed at: https://www.govinfo.gov/content/pkg/FR-2019-12-30/pdf/2019-28054.pdf. Federal Register, Vol. 84, No. 249, 12/30/2019, 71735.

HUD Requests Comment on Information Collections.

  • The Department of Housing and Urban Development (HUD) announced it seeks comment on the information collection titled FHA-Insured Mortgage Loan Servicing Involving the Loss Mitigation Program. HUD also gave notice that it sent the collection to OMB for review. Comments are due 01/13/2020. The notice may be viewed at: https://www.govinfo.gov/content/pkg/FR-2019-12-12/pdf/2019-26697.pdf. Federal Register, Vol. 84, No. 239, 12/12/2019, 67951-67952.
  • HUD announced it seeks comment on the information collection titled National Standards for the Physical Inspection of Real Estate (NSPIRE) Demonstration. HUD also gave notice that it sent the collection to OMB for review. Comments are due 01/13/2020. The notice may be viewed at: https://www.govinfo.gov/content/pkg/FR-2019-12-12/pdf/2019-26695.pdf. Federal Register, Vol. 84, No. 239, 12/12/2019, 67952-67953.
  • HUD announced it seeks comment on the information collection titled Nonprofit Application and Recertification for FHA Mortgage Insurance Programs. HUD also gave notice that it sent the collection to OMB for review. Comments are due 01/13/2020. The notice may be viewed at: https://www.govinfo.gov/content/pkg/FR-2019-12-12/pdf/2019-26696.pdf. Federal Register, Vol. 84, No. 239, 12/12/2019, 67951.
  • HUD announced it seeks comment on the information collection titled Housing Counseling Federal Advisory Committee (HCFAC). HUD also gave notice that it sent the collection to OMB for review. Comments are due 03/06/2020. The notice may be viewed at: https://www.govinfo.gov/content/pkg/FR-2020-01-06/pdf/2019-28522.pdf. Federal Register, Vol. 85, No. 249, 01/06/2020, 522-523.

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 Iowa, and Minnesota, 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.govinfo.gov/content/pkg/FR-2019-12-16/pdf/2019-26956.pdf. Federal Register, Vol. 84, No. 241, 12/16/2019, 68346-68348.

FEMA Issues Final Flood Hazard Determinations.

FEMA has issued a final notice which identifies communities in the states of Missouri, and Nebraska, 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 05/01/2020. The notice may be viewed at: https://www.govinfo.gov/content/pkg/FR-2019-12-13/pdf/2019-26888.pdf. Federal Register, Vol. 84, No. 240, 12/13/2019, 68182-68184.

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, 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.govinfo.gov/content/pkg/FR-2019-12-27/pdf/2019-27962.pdf. Federal Register, Vol 84, No. 248, 12/27/2019, 71446-71448.
  • 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, Michigan, and Ohio. 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.govinfo.gov/content/pkg/FR-2020-01-09/pdf/2020-00183.pdf. Federal Register, Vol. 85, No. 6, 01/09/2020, 1173-1176.

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 state of Iowa. 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 03/26/2020. The notice may be viewed at: https://www.govinfo.gov/content/pkg/FR-2019-12-27/pdf/2019-27960.pdf. Federal Register, Vol. 84, No. 248, 12/27/2019, 71444-71446.
  • 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 state of Michigan. 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 04/08/2020. The notice may be viewed at: https://www.govinfo.gov/content/pkg/FR-2020-01-09/pdf/2020-00184.pdf. Federal Register, Vol. 85, No. 6, 01/09/2020, 1172-1173.

FEMA Withdraws Proposed Flood Hazard Determinations.

FEMA is withdrawing its proposed notice concerning proposed flood hazard determinations, which may include the addition or modification of any Base Flood Elevation, base flood depth, Special Flood Hazard Area boundary or zone designation, or regulatory floodway (herein after referred to as proposed flood hazard determinations) on the Flood Insurance Rate Maps and, where applicable, in the supporting Flood Insurance Study reports for Winneshiek County, Iowa and Incorporated Areas. The withdrawal is effective 12/13/2019. The notice may be viewed at: https://www.govinfo.gov/content/pkg/FR-2019-12-13/pdf/2019-26889.pdf. Federal Register, Vol. 84, No. 240, 12/13/2019, 68186.

FinCEN Requests Comment on Information Collections.

  • The Financial Crimes Enforcement Network (FinCEN) announced it seeks comment on the information collection titled Renewal of Information Collection Requirements in connection with the Imposition of a Special Measure concerning Commercial Bank of Syria, including its subsidiary Syrian Lebanese Commercial Bank, as a financial institution of primary money laundering concern. FinCEN also gave notice that it sent the collection to OMB for review. Comments are due 02/18/2020. The notice may be viewed at: https://www.govinfo.gov/content/pkg/FR-2019-12-19/pdf/2019-27359.pdf. Federal Register, Vol. 84, No. 244, 12/19/2019, 69822-69824.
  • FinCEN announced it seeks comment on the information collection titled Beneficial Ownership Requirements for Legal Entity Customers. FinCEN also gave notice that it sent the collection to OMB for review. Comments are due 02/28/2020. The notice may be viewed at: https://www.govinfo.gov/content/pkg/FR-2019-12-30/pdf/2019-28037.pdf. Federal Register, Vol. 84, No. 249, 12/30/2019, 72137-72138.

FinCEN Solicits Applications for Bank Secrecy Act Advisory Group.

FinCEN is inviting the public to nominate financial institutions, trade groups, and non-federal regulators or law enforcement agencies for membership on the Bank Secrecy Act Advisory Group. New members will be selected for three-year membership terms. Nominations are due 01/21/2020. The notice may be viewed at: https://www.govinfo.gov/content/pkg/FR-2019-12-19/pdf/2019-27358.pdf. Federal Register, Vol. 84, No. 244, 12/19/2019, 69822.

Treasury Finalizes Regulations Relating to Withholding and Reporting Tax on Certain U.S. Source Income Paid to Foreign Persons. 

The Department of the Treasury (Treasury) issued final regulations that provide guidance on certain due diligence and reporting rules applicable to persons making certain U.S. source payments to foreign persons, and guidance on certain aspects of reporting by foreign financial institutions on U.S. accounts. The final regulations affect persons making certain U.S.-related payments to certain foreign persons and foreign financial institutions reporting certain U.S. accounts. The final regulations are effective 01/02/2020. The notice may be viewed at: https://www.govinfo.gov/content/pkg/FR-2020-01-02/pdf/2019-27979.pdf. Federal Register, Vol. 85, No. 1, 01/02/2020, 192-206.

Treasury Proposes Regulations on Misdirected Direct Deposit Refunds.

Treasury issued proposed regulations to provide guidance on section 6402(n) of the Internal Revenue Code (Code), concerning the procedures for identification and recovery of a misdirected direct deposit refund. The regulations reflect changes to the law made by the Taxpayer First Act. The proposed regulations affect taxpayers who have made a claim for refund, requested the refund be issued as a direct deposit, but did not receive a refund in the account designated on the claim for refund. Comments are due 02/21/2020. The notice may be viewed at: https://www.govinfo.gov/content/pkg/FR-2019-12-23/pdf/2019-27653.pdf. Federal Register, Vol. 84, No. 246, 12/23/2019, 70462-70466.

Treasury Proposes Amendments to Source of Income from Certain Sales of Personal Property.

Treasury issued proposed regulations modifying the rules for determining the source of income from sales of inventory produced within the United States and sold without the United States or vice versa. These proposed regulations also contain new rules for determining the source of income from sales of personal property (including inventory) by nonresidents that are attributable to an office or other fixed place of business that the nonresident maintains in the United States. Finally, these proposed regulations modify certain rules for determining whether foreign source income is effectively connected with the conduct of a trade or business within the United States. Comments are due 02/28/2020. The notice may be viewed at: https://www.govinfo.gov/content/pkg/FR-2019-12-30/pdf/2019-27813.pdf. Federal Register, Vol. 84, No. 249, 12/30/2019, 71836-71851.

Treasury Proposes Amendments to Federal Government Participation in the Automated Clearing House. 

Treasury is proposing to amend its regulation governing the use of the Automated Clearing House (ACH) Network by Federal agencies. Our regulation adopts, with some exceptions, the Nacha Operating Rules developed by Nacha, formerly known as NACHA—The Electronic Payments Association (Nacha), as the rules governing the use of the ACH Network by Federal agencies. Treasury is issuing this proposed rule to address changes that Nacha has made to the Nacha Operating Rules since the publication of the 2016 Nacha Operating Rules & Guidelines book. These changes include amendments set forth in the 2017, 2018, and 2019 Nacha Operating Rules & Guidelines books, including supplements thereto, with an effective date on or before 06/30/2021. Comments are due 02/03/2020. The notice may be viewed at: https://www.govinfo.gov/content/pkg/FR-2020-01-03/pdf/2019-27261.pdf. Federal Register, Vol. 85, No. 2, 01/03/2020, 265-271.

Treasury Issues QFC Recordkeeping Requirement Exemption.

Treasury is issuing a determination regarding a request for an exemption from certain requirements of the rule implementing the qualified financial contracts (QFC) recordkeeping requirements of Title II of the Dodd-Frank Wall Street Reform and Consumer Protection Act. The exemption is granted 01/02/2020. The notice may be viewed at: https://www.govinfo.gov/content/pkg/FR-2020-01-02/pdf/2019-27801.pdf. Federal Register, Vol. 85, No. 1, 01/02/2020, 1-3.

Treasury Requests Comment on Information Collections.

  • Treasury announced it seeks comment on the information collection titled U.S. Business Income Tax Return. Treasury also gave notice that it sent the collection to OMB for review. Comments are due 01/21/2020. The notice may be viewed at: https://www.govinfo.gov/content/pkg/FR-2019-12-19/pdf/2019-27297.pdf. Federal Register, Vol. 84, No. 244, 12/19/2019, 69825-69830.
  • Treasury announced it seeks comment on the information collection titled Allocation and Qualified Equity Investment Tracking System. Treasury also gave notice that it sent the collection to OMB for review. Comments are due 02/24/2020. The notice may be viewed at: https://www.govinfo.gov/content/pkg/FR-2019-12-26/pdf/2019-27786.pdf. Federal Register, Vol. 84, No. 247, 12/26/2019, 71078.
  • Treasury announced it seeks comment on the information collection titled New Markets Tax Credit Program Community Development Entity (CDE) Certification Application. Treasury also gave notice that it sent the collection to OMB for review. Comments are due 02/24/2020. The notice may be viewed at: https://www.govinfo.gov/content/pkg/FR-2019-12-26/pdf/2019-27788.pdf. Federal Register, Vol. 84, No. 247, 12/26/2019, 71077.
  • Treasury announced it seeks comment on the information collection titled Relief for Certain Spouses of Military Personnel. Treasury also gave notice that it sent the collection to OMB for review. Comments are due 02/24/2020. The notice may be viewed at: https://www.govinfo.gov/content/pkg/FR-2019-12-26/pdf/2019-27751.pdf. Federal Register, Vol. 84, No. 247, 12/26/2019, 71081-71082.
  • Treasury announced it seeks comment on the information collection titled Form 8233—Exemption From Withholding on Compensation for Independent (and Certain Dependent) Personal Services of a Nonresident Alien Individual. Treasury also gave notice that it sent the collection to OMB for review. Comments are due 01/27/2020. The notice may be viewed at: https://www.govinfo.gov/content/pkg/FR-2019-12-27/pdf/2019-27888.pdf. Federal Register, Vol. 84, No. 248, 12/27/2019, 71531-71534.
  • Treasury announced it seeks comment on the information collection titled Troubled Asset Relief Program—Making Home Affordable Participants. Treasury also gave notice that it sent the collection to OMB for review. Comments are due 01/29/2020. The notice may be viewed at: https://www.govinfo.gov/content/pkg/FR-2019-12-30/pdf/2019-28143.pdf. Federal Register, Vol. 84, No. 249, 12/30/2019, 72140.
  • Treasury announced it seeks comment on the information collection titled Tax Exempt Forms and Schedules. Treasury also gave notice that it sent the collection to OMB for review. Comments are due 01/30/2020. The notice may be viewed at: https://www.govinfo.gov/content/pkg/FR-2019-12-31/pdf/2019-28274.pdf. Federal Register, Vol. 84, No. 250, 12/31/2019, 72435.
  • Treasury announced it seeks comment on the information collection titled Application By Survivors for Payment of Bond or Check Issued Under the Armed Forces Leave Act of 1946, as amended. Treasury also gave notice that it sent the collection to OMB for review. Comments are due 03/03/2020. The notice may be viewed at: https://www.govinfo.gov/content/pkg/FR-2020-01-03/pdf/2019-28422.pdf. Federal Register, Vol. 85, No. 2, 01/03/2020, 416-417.
  • Treasury announced it seeks comment on the information collection titled Request to Reissue U.S. Savings Bonds to a Personal Trust. Treasury also gave notice that it sent the collection to OMB for review. Comments are due 03/03/2020. The notice may be viewed at: https://www.govinfo.gov/content/pkg/FR-2020-01-03/pdf/2019-28423.pdf. Federal Register, Vol. 85, No. 2, 01/03/2020, 417.
  • Treasury announced it seeks comment on the information collection titled Minority Bank Deposit Program (MBDP) Certification Form for Admission. Treasury also gave notice that it sent the collection to OMB for review. Comments are due 03/03/2020. The notice may be viewed at: https://www.govinfo.gov/content/pkg/FR-2020-01-03/pdf/2019-28423.pdf. Federal Register, Vol. 85, No. 2, 01/03/2020, 417.

Treasury Establish Prices for 2019 and 2020 United States Mint Numismatic Products.

Treasury is announcing pricing for United States Mint numismatic products. The pricing for the products may be viewed in the table in the notice. The notice may be viewed at: https://www.govinfo.gov/content/pkg/FR-2020-01-03/pdf/2019-28401.pdf. Federal Register, Vol. 85, No. 2, 01/03/2020, 418.

FHFA Proposes Amendments to Stress Test Rule.

The Federal Housing Finance Agency (FHFA) issued a proposed rule that would amend its stress testing rule, consistent with section 401 of the Economic Growth, Regulatory Relief, and Consumer Protection Act (EGRRCPA). Specifically, the proposed rule would revise the minimum threshold for the regulated entities to conduct stress tests from $10 billion to $250 billion, remove the requirements for Federal Home Loan Banks (Banks) subject to stress testing, and remove the adverse scenario from the list of required scenarios. These amendments align FHFA’s rule with rules adopted by other financial institution regulators that implement the Dodd-Frank Wall Street Reform and Consumer Protection Act (Dodd-Frank Act) stress testing requirements, as amended by EGRRCPA. The proposed rule also makes certain conforming and technical changes. Comments are due 01/15/2020. The notice may be viewed at: https://www.govinfo.gov/content/pkg/FR-2019-12-16/pdf/2019-26950.pdf. Federal Register, Vol. 84, No. 241, 12/16/2019, 68350-68353.

SBA Issues Peg Rate.

The Small Business Administration (SBA) publishes an interest rate called the optional “peg” rate (13 CFR 120.214) on a quarterly basis. This rate is a weighted average cost of money to the government for maturities similar to the average SBA direct loan. This rate may be used as a base rate for guaranteed fluctuating interest rate SBA loans. This rate will be 1.88 percent for the January–March quarter of FY 2020. 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 (see 13 CFR 120.801) shall be 6% 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.govinfo.gov/content/pkg/FR-2019-12-30/pdf/2019-28188.pdf. Federal Register, Vol. 84, No. 249, 12/30/2019, 72101.

SBA Requests Comment on Information Collections.

  • SBA announced it seeks comment on the information collection titled Statement of Personal History. SBA also gave notice that it sent the collection to OMB for review. Comments are due 03/03/2020. The notice may be viewed at: https://www.govinfo.gov/content/pkg/FR-2020-01-09/pdf/2020-00175.pdf. Federal Register, Vol. 85, No. 6, 01/09/2020, 1189.
  • SBA announced it seeks comment on the information collection titled Generic Clearance for SBA Customer Experience Data Collections. SBA also gave notice that it sent the collection to OMB for review. Comments are due 02/10/2020. The notice may be viewed at: https://www.govinfo.gov/content/pkg/FR-2020-01-10/pdf/2020-00209.pdf. Federal Register, Vol. 85, No. 7, 01/10/2020, 1368-1369.

FCA Proposes District Financial Reporting.

The Farm Credit Agency (FCA) proposes amending the regulation governing how a Farm Credit bank presents information on its related associations when preparing annual bank financial statements on a standalone basis. FCA proposes to provide an additional presentation option that would allow the related association financial information to be in a supplement. Comments are due 03/09/2020. The notice may be viewed at: https://www.govinfo.gov/content/pkg/FR-2020-01-07/pdf/2019-27573.pdf. Federal Register, Vol. 85, No. 4, 01/07/2020, 647-649.

RHS Finalizes Amendments to Single Family Housing Guaranteed Loan Program.

The Rural Housing Service (RHS) has finalized changes to the single family housing guaranteed loan program (SFHGLP) regulation to streamline the loss claim process for lenders who have acquired title to property through voluntary liquidation or foreclosure; clarify that lenders must comply with applicable laws, including those within the purview of the Bureau of Consumer Financial Protection (CFPB); and better align loss mitigation policies with the mortgage industry. The final rule is effective 04/24/2020. The notice may be viewed at: https://www.govinfo.gov/content/pkg/FR-2019-12-26/pdf/2019-27504.pdf. Federal Register, Vol. 84, No. 247, 12/26/2019, 70881-70887.

RBC Finalizes Advanced Biofuel Payment Program.

The Rural Business-Cooperative Service (RBC) published an interim rule in the Federal Register on 02/11/2011. Through this action, RBS finalizes the rule based on public comments and new program requirements established in the Agricultural Improvement Act of 2018 (2018 Farm Bill). The final rule is effective 12/27/2019. The notice may be viewed at: https://www.govinfo.gov/content/pkg/FR-2019-12-27/pdf/2019-27396.pdf. Federal Register, Vol. 84, No. 248, 12/27/2019, 71297-71303.

CCC Finalizes Amendments to Technical Assistance for Specialty Crops Program.

The Commodity Credit Corporation (CCC) issued a rule revising the Technical Assistance for Specialty Crops (TASC) program regulations to incorporate legislative changes introduced in the Agriculture Improvement Act of 2018 and to incorporate changes that conform the operation of the program to the requirements in the “Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards” (Uniform Guidance) and Federal grant-making best practices. The rule is effective 12/23/2019. The notice may be viewed at: https://www.govinfo.gov/content/pkg/FR-2019-12-23/pdf/2019-27248.pdf. Federal Register, Vol. 84, No. 246, 12/23/2019, 70393-70399.

CCC Finalizes Amendments to Foreign Market Development Program. 

CCC issued a rule revising the Foreign Market Development (FMD) program regulations to incorporate changes that conform the operation of the program to the requirements in the “Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards” (Uniform Guidance) and Federal grant-making best practices. The rule is effective 01/09/2020. The notice may be viewed at: https://www.govinfo.gov/content/pkg/FR-2020-01-09/pdf/2019-27964.pdf. Federal Register, Vol. 85, No. 6, 01/09/2020, 1083-1096.

CCC Issues Interim Final Rule on Environmental Quality Incentives Program.

CCC issued an interim final rule making changes to the Environmental Quality Incentives Program (EQIP) to conform to the Agriculture Improvement Act of 2018 (the 2018 Farm Bill). EQIP helps agricultural producers conserve and enhance soil, water, air, plants, animals (including wildlife), energy, and related natural resources on their land. Eligible lands include cropland, grassland, rangeland, pasture, wetlands, nonindustrial private forest land, and other agricultural land on which agricultural or forest-related products or livestock are produced and natural resource concerns may be addressed. Participation in the program is voluntary. The interim rule is effective 12/17/2019, comments are due 01/17/2020. The notice may be viewed at: https://www.govinfo.gov/content/pkg/FR-2019-12-17/pdf/2019-26872.pdf. Federal Register, Vol. 84, No. 242, 12/17/2019, 69272-69293.

CCC Issues Interim Rule on Agricultural Conservation Easement Program.

CCC issued an interim rule that makes changes to the Agricultural Conservation Easement Program policies and procedures in the regulations to conform with the Agriculture Improvement Act of 2018 (the 2018 Farm Bill). The interim rule is effective 12/30/2019. The notice may be viewed at: https://www.govinfo.gov/content/pkg/FR-2020-01-06/pdf/2019-27883.pdf. Federal Register, Vol. 85, No. 3, 01/06/2020, 558-590.

CFTC Finalizes Amendments to Public Rulemaking Procedures.

The Commodity Futures Trading Commission (CFTC) is issuing a final rule that amends CFTC’s regulations to eliminate the provisions that set forth the procedures for the formulation, amendment, or repeal of rules or regulations. Because the Administrative Procedure Act (APA) governs CFTC’s rulemaking process, CFTC believes that it is unnecessary to codify the rulemaking process in a Commission regulation. The amended regulation is comprised solely of the procedure for filing petitions for rulemakings, as the APA does not address this process. The rule is effective 01/16/2020. The notice may be viewed at: https://www.govinfo.gov/content/pkg/FR-2019-12-17/pdf/2019-27103.pdf. Federal Register, Vol. 84, No. 242, 12/17/2019, 68787-68790.

FASB Proposes Statement of Federal Financial Accounting Standards.

The Federal Accounting Standards Advisory Board (FASB) has issued an exposure draft of a proposed Statement of Federal Financial Accounting Standards titled Deferral of the Effective Date of SFFAS 54, Leases. The exposure draft is available on the FASB website at https://www.fasab.gov/documents-forcomment/. Copies can be obtained by contacting FASB at (202)512–7350. Respondents are encouraged to comment on any part of the exposure draft. Comments are due 01/31/2020. The notice may be viewed at: https://www.govinfo.gov/content/pkg/FR-2019-12-26/pdf/2019-27679.pdf. Federal Register, Vol. 84, No. 247, 12/26/2019, 70968-70969.

FTC Requests Comment on Information Collection.

The Federal Trade Commission (FTC) announced it seeks comment on the information collection titled Rule Governing Pre-sale Availability of Written Warranty Terms. FTC also gave notice that it sent the collection to OMB for review. Comments are due 03/02/2020. The notice may be viewed at: https://www.govinfo.gov/content/pkg/FR-2019-12-31/pdf/2019-28194.pdf. Federal Register, Vol. 84, No. 250, 12/31/2019, 72362-72364.

FCC Requests Comment on Advanced Methods to Target and Eliminate Unlawful Robocalls.

The Federal Communications Commission (FCC) solicits input for the first staff report on call blocking. FCC seeks data and other information on the availability and effectiveness of call-blocking tools offered to consumers, the impact of FCC actions on illegal calls, the impact of call blocking on 911 services and public safety, and any other information that may inform FCC’s analysis of the state of deployment of advanced methods and tools to eliminate illegal and unwanted calls. Comments are due 01/29/2020. The notice may be viewed at: https://www.govinfo.gov/content/pkg/FR-2019-12-30/pdf/2019-28136.pdf. Federal Register, Vol. 84, No. 249, 12/30/2019, 71888-71889.

NCUA Requests Comment on Information Collections.

  • The National Credit Union Administration (NCUA) announced it seeks comment on the information collection titled Monitoring Bank Secrecy, 12 CFR part 748.2. NCUA also gave notice that it sent the collection to OMB for review. Comments are due 01/13/2020. The notice may be viewed at: https://www.govinfo.gov/content/pkg/FR-2019-12-12/pdf/2019-26767.pdf. Federal Register, Vol. 84, No. 239, 12/12/2019, 67963.
  • NCUA announced it seeks comment on the information collection titled Written Reimbursement Policy, 12 CFR 701.33. NCUA also gave notice that it sent the collection to OMB for review. Comments are due 01/21/2020. The notice may be viewed at: https://www.govinfo.gov/content/pkg/FR-2019-12-20/pdf/2019-27530.pdf. Federal Register, Vol. 84, No. 245, 12/20/2019, 70213-70214.
  • NCUA announced it seeks comment on the information collection titled Advertising of Excess Insurance. NCUA also gave notice that it sent the collection to OMB for review. Comments are due 01/30/2020. The notice may be viewed at: https://www.govinfo.gov/content/pkg/FR-2019-12-31/pdf/2019-28240.pdf. Federal Register, Vol. 84, No. 250, 12/31/2019, 72383.

NCUA Delays Effective Date of Prompt Corrective Action Regulations.

NCUA issued a final rule to delay the effective date of both NCUA’s 10/29/2015 final rule regarding risk-based capital (2015 Final Rule) and NCUA’s 11/06/2018 supplemental final rule regarding risk-based capital (2018 Supplemental Rule), moving the effective date from 01/01/2020 to 01/01/2022. During the extended delay period, NCUA’s current PCA requirements will remain in effect. The notice may be viewed at: https://www.govinfo.gov/content/pkg/FR-2019-12-17/pdf/2019-27141.pdf. Federal Register, Vol. 84, No. 242, 12/17/2019, 68781-68787.

NCUA Issues CFR Correction.

NCUA issued a correction to the Code of Federal Regulations (CFR). In Title 12 of CFR, Parts 600 to 899, revised as of 01/01/2019, on page 700, in § 703.114, remove paragraph (3) that appears below paragraph (d). The notice may be viewed at: https://www.govinfo.gov/content/pkg/FR-2019-12-18/pdf/2019-27403.pdf. Federal Register, Vol. 84, No. 243, 12/18/2019, 69298.

SSA Issues Rate for Assessment on Direct Payment of Fees to Representatives.

The Social Security Administration (SSA) announced that the assessment percentage rate under the Social Security Act (Act) is 6.3 percent for 2020. A claimant may appoint a qualified individual as a representative to act on his or her behalf in matters before SSA. If the claimant is entitled to past-due benefits and was represented either by an attorney or by a non-attorney representative who has met certain prerequisites, SSA withholds up to 25 percent of the past-due benefits and use that money to pay the representative’s approved fee directly to the representative. The notice may be viewed at: https://www.govinfo.gov/content/pkg/FR-2019-12-12/pdf/2019-26752.pdf. Federal Register, Vol. 84, No. 239, 12/12/2019, 67987-67988.

DOL Finalizes Regular Rate Under the Fair Labor Standards Act.

The Department of Labor (DOL) issued the regular rate under the Fair Labor Standards Act (FLSA). FLSA generally requires that covered, nonexempt employees receive overtime pay of at least one and one-half times their regular rate of pay for time worked in excess of 40 hours per workweek. The regular rate includes all remuneration for employment, subject to the exclusions outlined in section 7(e) of the FLSA. In this final rule, DOL updates a number of regulations on the calculation of overtime compensation both to provide clarity and to better reflect the 21st-century workplace. These changes will promote compliance with the FLSA, provide appropriate and updated guidance in an area of evolving law and practice, and encourage employers to provide additional and innovative benefits to workers without fear of costly litigation. The final rule is effective 01/15/2020. The notice may be viewed at: https://www.govinfo.gov/content/pkg/FR-2019-12-16/pdf/2019-26447.pdf. Federal Register, Vol. 84, No. 241, 12/16/2019, 68736-68776.

VA Proposes Specialty Education Loan Repayment Program. 

The Department of Veterans Affairs (VA) proposes to amend its regulations that govern scholarship programs to certain health care professionals. This rulemaking would implement the mandates of the VA MISSION Act of 2018 by establishing a Specialty Education Loan Repayment Program, which would assist VA in meeting the staffing needs of VA physicians in medical specialties for which VA has determined that recruitment or retention of qualified personnel is difficult. Comments are due 02/24/2020. The notice may be viewed at: https://www.govinfo.gov/content/pkg/FR-2019-12-26/pdf/2019-27511.pdf. Federal Register, Vol. 84, No. 247, 12/26/2019, 70908-70913.

HHS Finalizes Amendments to Exchange Program Integrity.

The Department of Health and Human Services (HHS) issued a final rule revising standards relating to oversight of Exchanges established by states and periodic data matching frequency. This final rule also includes new requirements for certain issuers related to the collection of a separate payment for the portion of a plan’s premium attributable to coverage for certain abortion services. The final rule is effective 02/25/2020. The notice may be viewed at: https://www.govinfo.gov/content/pkg/FR-2019-12-27/pdf/2019-27713.pdf. Federal Register, Vol. 84, No. 248, 12/27/2019, 71674–71711.

By, Ally Bates

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Summary of Recently Enacted State Legislation

The below article is the Special Focus section of the January 2020 Compliance Journal. The full issue may be viewed by clicking here.

There are several recently enacted state legislative items which impact financial institutions. The following article discusses select aspects of three laws that have been passed this session. For more comprehensive information on each law, please review the applicable Act, each of which is included at the end of this article. This article is focused on law that has been passed. At time of this article’s publication, the legislature is still in session. Bills that are later signed into law will be discussed in future publications.  

Financial Institutions Modernization Act 

The Financial Institutions Modernization Act, or Omnibus Bill, implemented by 2019 Wisconsin Act 65, is a piece of legislation that makes several changes to statutes relating to banking practices. Each change is presented with both a summary and detailed explanation below. 

Banking Review Board 

Summary: Combines the Banking Review Board with the Savings Institutions Review Board into a single Banking Institutions Review Board. 

Detailed Explanation: The Wisconsin Department of Financial Institutions has two five-member boards which advise DFI’s division of banking. The Banking Review Board advises and reviews administrative actions on matters related to banks and banking. The Savings Institution Review Board advises and reviews administrative actions on matters related to savings banks and savings and loan associations. This provision combines both authorities and purposes into a single review board. 

Lost, Destroyed, or Stolen Cashier’s Check  

Summary: Reduces the period, from 90 days to 30 days, after certain checks or issued, during which the issuing bank must pay the item after it has been claimed as lost, stolen, or destroyed.  

Detailed Explanation: The Wisconsin Uniform Commercial Code Section 403.312 describes the procedure by which a financial institution may place a stop payment on a lost, destroyed, or stolen cashier’s check, teller’s check, or certified check. Under that procedure, a claim to such an item becomes enforceable, generally, on the 90th day following the date of the check. Meaning, that a financial institution must, generally, pay an item claimed as lost, destroyed, or stolen if it is presented during the 90 day period following the date of the check or risk liability for an improper stop payment. This provision reduces that period from 90 days to 30 days.  

Mortgage Loan Originators  

Summary: Provides temporary authority to act as a mortgage loan originator (MLO) while a license application is pending.  

Detailed Explanation: This provision gives temporary authority to act as an MLO to an individual who applies to DFI for a license so long as that individual is employed by a licensed mortgage banker or mortgage broker and was a registered MLO in another state under certain conditions and time requirements. In addition, the individual must not have been previously denied a license, subject to a cease and desist by the Bureau of Consumer Financial Protection (CFPB), and not been convicted of a disqualifying crime. If eligible, the temporary authority beings when the individual furnishes application information to the NMLSR and ends upon the earlier of DFI granting or denying the license, withdrawal of the application for an MLO license, the application is determined to be incomplete, or the license is granted. During the temporary period, the individual is considered to be associated with the mortgage banker or mortgage broker employing them and is considered to have MLO authority subject to all applicable requirements and duties.  

Possession of Property Subject to Garnishment  

Summary: Grants financial institutions two business days to respond to certain legal process.

Detailed Explanation: A garnishee financial institution in possession of property subject to garnishment is liable for the surrender of that property only upon expiration of two business days to comply with or respond to the garnishee summons and complaints.  

Data Processing Services Provided to Financial Institutions  

Summary: A financial institution retains property rights of any data transferred to an independent data processing servicer.  

Detailed Explanation: Under this provision an independent data processing servicer is an entity that provides to a financial institution electronic data processing services. It excludes the exchange of data and settlement of funds between unaffiliated financial institutions through terminals, remote service units, and customer bank communications terminals. If a financial institution transfers data to an independent data processing servicer, the financial institution retains all right, title, interest, and legal claim to the data. The transfer only permits temporary control of the data for purposes of the contracted services. This provision also places required contract disclosures upon data processing servicers.  

Federal Home Loan Bank Loans  

Summary: Eliminates certain limitations on loans to state banks made by a Federal Home Loan Bank.  

Detailed Explanation: This provision eliminates the current 20-year term limitation and the limitation on the value of bank assets that may be pledged as collateral by a Federal Home Loan Bank. 

Effective Date 

The Omnibus Bill became effective November 27, 2019, except for three provisions. The provisions creating the banking institutions review board takes effect on May 2, 2021. The provisions affecting licensing and employment transition for MLOs took effect on November 28, 2019. The provisions for independent data processing servicers takes effect on March 1, 2020. 

Industrial Hemp 

2019 Wisconsin Act 68 was enacted to make several changes to the law governing industrial hemp. Act 68 aligns Wisconsin law to be consistent with the 2018 Federal Farm Bill. An important consideration for banks to keep in mind is that Act 68 directs the Wisconsin Department of Agriculture, Trade and Consumer Protection (DATCP) to write new rules. It is WBA’s understanding that DATCP will continue under the 2014 Farm Bill provisions, and existing Wisconsin regulation at the time of this article’s publication, in 2020. DATCP is preparing to write rules pursuant to Act 68 and expects to begin the new program in 2021. Select provisions from Act 68 are included below. 

  • The term “hemp” instead of “industrial hemp” is used, which is defined as “Cannabis sativa L." and any part of that plant, including the seeds thereof and all derivatives, extracts, cannabinoids, isomers, acids, salts, and salts of isomers, whether growing or not, with a delta-9-tetrahydrocannabinol (THC) concentration of not more than 0.3 percent on a dry weight basis or the maximum concentration allowed under federal law up to 1 percent, whichever is greater.”  
  • No person may produce hemp in Wisconsin without a license from DATCP if required under federal law.  
  • DATCP is provided authority to establish procedures for the following:  
    • Maintaining information relating to hemp production, 
    • Testing for THC concentrations in hemp, 
    • Disposing of hemp plants grown illegally, 
    • Complying with enforcement provisions, and 
    • Conducting annual inspections of hemp producers.  
  • Redefines “marijuana,” for the purposes of the controlled substances act, to exclude hemp.  
  • Excludes THC contained in hemp from the list of Schedule I controlled substances.  
  • Changes the current hemp pilot program under DATCP to a permanent program and sunsets the pilot program.  
  • Allows DATCP to set criteria for approving persons to undertake any sampling and testing of hemp that DATCP requires by rule and to approve persons that meet the criteria.  
  • Requires DATCP to issue a fit for commerce certificate after hemp is tested, or if DATCP determines that hemp is not required to be tested.  
  • Allows a person, whose personally identifying information relating to the hemp program is in DATCP’s possession, to authorize the disclosure of that information. 

Agricultural Development Loan Guarantee Program 

2019 Wisconsin Act 62 (Act 62) creates a pilot loan guarantee program under the Agricultural Development Loan Guarantee Program administered by the Wisconsin Housing and Economic Development Authority (WHEDA) along with other changes. 

Specifically, Act 62 makes the following changes to WHEDA’s existing Agricultural Development Loan Guarantee Program:  

  • The term of a loan guarantee may not exceed ten years for land and buildings, five years for inventory, equipment, and machinery, and two years for permanent working capital and marketing expenses.  
  • The closing fee for a loan guarantee under the program may not exceed 1.5 percent. 

Act 62 requires WHEDA to allocate $3,000,000 to the pilot program. WHEDA may guarantee collection of 25 percent of the principal of an eligible loan or $750,000, whichever is less. The fixed amount guaranteed is payable to the lender for the entire term of the guarantee. Otherwise, a loan guarantee under the pilot program is subject to all prior requirements. The pilot program sunsets as of July 1, 2024.

Conclusion 

In general, recent legislative activity has been favorable for the banking industry. WBA will continue to monitor existing bills and update the membership on any significant changes. If you have any additional questions on any of the above laws, do not hesitate to contact us at wbalegal@wisbank.com. 

Click here for Act 65.

Click here for Act 68.

Click here for Act 62.

By, Ally Bates

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Changes to Community Reinvestment Act Proposed by Regulators

The below article is the Special Focus section of the January 2020 Compliance Journal. The full issue may be viewed by clicking here.

On January 9, 2020 the OCC, Treasury, and FDIC (agencies) issued a joint notice of proposed rulemaking (proposed rule) to modernize Community Reinvestment Act (CRA) regulations. The proposed rule contains four main elements designed to encourage banks to serve their communities by making the regulatory framework more objective, transparent, consistent, and easy to understand. Specifically, the agencies have proposed to (1) clarify which activities qualify for CRA credit, (2) update where activities count for CRA credit, (3) create a more transparent and objective method for measuring CRA performance, and (4) provide for more transparent, consistent, and timely CRA-related data collection, recordkeeping, and reporting. Comments on the proposed rule are due March 9, 2020. 

Background 

Congress enacted the CRA in 1977 with the purpose of encouraging sound lending to all areas of a bank’s community. The OCC, FDIC, and Board of Governors of the Federal Reserve have since issued regulations to implement the statute. The proposed rule presents the first major revisions to CRA regulation since 1995.  

The agencies have acknowledged that over the past 25 years, technology and the expansion of interstate banking have transformed the financial services industry, how banks deliver their services, and how customers choose to bank. Recognizing the need for modernization, the agencies issued an Advance Notice of Proposed Rulemaking (ANPR) in 2018. WBA, along with bankers, trade groups, and other industries, offered feedback on the CRA framework through comments on the ANPR. Comments discussed how current CRA framework has not kept pace with changes in banking or technology and that the CRA regulations and guidance has become cumbersome, outdated, and complex. WBA’s comment letter highlighted points received by member banks, specifically challenges presented when:  

  • An activity qualifies for CRA credit during one exam, but not the next, 
  • A bank believes that an activity will receive CRA credit, but does not, and 
  • A bank is unable to obtain confirmation in advance that an activity will receive credit.   

The proposed rule would address these comments by clarifying and expanding what qualifies for CRA credit. That aspect of the rule is discussed below, along with select provisions. Note that this article is intended to summarize key provisions of the proposed rule rather than provide a comprehensive overview. For the complete rule please see the link at the end of the article. This article covers the four main elements of the rule: what counts for CRA credit, where activities count for CRA credit, measuring CRA performance, and CRA-related data collection. 

Clarifying and Expanding What Qualifies for CRA Credit 

Under the current CRA framework, qualifying activities generally fall into the category of retail banking or community development (CD) activities, depending on various considerations. Most banks face uncertainty as to what types of activities meet those considerations and thus, qualify for CRA credit. The proposed rule aims to remedy this in a few ways. Two are presented below: an expansion upon the definition of “qualifying activities” and the creation of a qualifying activities confirmation process alongside an illustrative list of qualifying activities. 

Qualifying Activities Criteria 

The proposed rule would define a “qualifying activity” as an activity that helps meet the credit needs of a bank’s community, particularly those individuals, areas, and populations with needs. Those criteria generally include activities that currently qualify for CRA credit while establishing the following new categories: 

  • A retail loan provided to: 
    • A low or moderate-income (LMI) individual or family,
    • A small business, or 
    • A small farm. 
  • A retail loan provided in Indian country. 
  • A retail loan that is a small loan to a business or a small loan to a farm located in a low- or moderate-income census tract. 
  • A CD activity that provides financing for or supports certain criteria. Examples include: 
    • Essential community facilities that partially or primarily benefit or serve LMI individuals or areas of identified need, 
    • Family farms, 
    • Financial literacy programs or education or homebuyer counseling, 
    • See the proposed rule at the end of this article for the complete list. 

Qualifying Activities Confirmation and Illustrative List 

Under the proposed rule, the agencies would establish an online process for a bank to seek confirmation as to whether an activity qualifies for credit.1 The agencies would inform the bank whether the activity qualifies, or the activity does not qualify, and then place the activity on a publicly available list. Through this process, the list would contain examples of activities, submitted by banks, that the agencies have determined qualify or do not qualify for credit. 

The list would also be revised at least every three years, through a public notice and comment process, to add activities that meet the criteria and to remove activities that no longer meet the criteria (e.g., if broadband were universally available and no longer considered to be essential infrastructure). An initial proposed list is available on the agencies’ websites and in section IV of the proposed rule. 
 
Expanding Where CRA Activity Counts 

Assessment areas under current CRA rules depend on brick-and-mortar bank locations, creating difficulties for reaching outside that area. The agencies have proposed to address this by creating two categories of assessment areas: “facility-based” and “deposit-based.”  

Facility-Based Assessment Area 
 
The proposed rule requires banks to delineate an assessment area encompassing each location where the bank maintains a main office, a branch, or a non-branch deposit-taking facility as well as the surrounding locations in which the bank has originated or purchased a substantial portion of its qualifying retail loans. The area must consist of:  

  • One whole metropolitan statistical area (using the metropolitan statistical area boundaries that were in effect as of January 1 of the calendar year in which the delineation is made),  
  • The whole nonmetropolitan area of a state, 
  • One or more whole, contiguous metropolitan divisions in a single metropolitan statistical area (using the metropolitan division boundaries that were in effect as of January 1 of the calendar year in which the delineation is made), or  
  • One or more whole, contiguous counties or county equivalents in a single metropolitan statistical area or nonmetropolitan area.  

Deposit-Based Assessment Area 
 
The proposed rule would require banks that receive more than 50 percent of their retail domestic deposits from outside of their facility-based assessment areas to delineate separate, non-overlapping “deposit-based” assessment areas in the smallest geography where they receive five percent or more of their retail domestic deposits. These deposit-based assessment areas must be delineated to consist of: 

  • One whole state,  
  • One whole metropolitan statistical area (using the metropolitan statistical area boundaries that were in effect as of January 1 of the calendar year in which the delineation is made),  
  • The whole nonmetropolitan area of a state, 
  • One or more whole, contiguous metropolitan divisions in a single metropolitan statistical area (using the metropolitan division boundaries that were in effect as of January 1 of the calendar year in which the delineation is made),  
  • The remaining geographic area of a state, metropolitan statistical area, nonmetropolitan area, or metropolitan division other than where it has a facility-based assessment area, or  
  • One or more whole, contiguous counties or county equivalents in a single metropolitan statistical area or nonmetropolitan area. 

Activity Outside of Assessment Area 

The proposed rule would permit banks to receive CRA credit for qualifying activities conducted outside of their assessment areas at the bank level. Under this approach, banks would still be encouraged to meet local community needs where they have branches and depositors but would be given flexibility to serve other communities with distinct needs as these activities would be considered when calculating the overall dollar value of their qualifying activities under the proposed rule. The goal of this framework would be to reduce the number of areas where there are more banks that want to engage in CD activities than there is need for those activities (known as CD hot spots) and areas where there is a great need for CD activities but few banks that engage in those activities (known as CD deserts). 

Providing an Objective Method to Measure CRA Activity

Current CRA regulations evaluate a bank’s CRA performance on generally undefined terms through a relatively unspecified process. The proposed rule would attempt to provide a more objective, clear, and consistent assessment by establishing new, general performance standards for institutions that are not small banks. Small banks could opt into the general performance standards, while those that do not would be evaluated under the small bank performance standards consistent with current regulation. 

Under the general performance standards, banks would receive a presumptive rating based on what performance standards are met within a given category. Banks would be evaluated on CRA performance at a bank-level and in each assessment area. The bank-level performance standards are based upon: 

  • CRA evaluation measures, 
  • Assessment area ratings (see below), and 
  • Community development minimums.

The assessment area performance standards are based upon:  

  • Retail lending distribution tests, 
  • CRA evaluation measures, and 
  • Community development minimums. 

CRA Evaluation Measure 
 
A bank’s bank-level CRA evaluation measure is the sum of:  

  • The bank’s annual bank-level qualifying activities values2 divided by the average quarterly value of the bank’s retail domestic deposits as of the close of business on the last day of each quarter for the same period used to calculate the annual qualifying activities value, and  
  • The number of the bank’s branches located in low- or moderate-income census tracts, distressed areas, underserved areas, and Indian country divided by its total number of branches as of the close of business on the last day of the same period used to calculate the annual qualifying activities value multiplied by .01. 

A bank’s assessment area CRA evaluation measure is determined in each assessment area and is the sum of:  

  • The bank’s annual assessment area qualifying activities value divided by the average quarterly value of the bank’s assessment area retail domestic deposits as of the close of business on the last day of each quarter for the same period used to calculate the annual assessment area qualifying activities value,  
  • The number of the bank’s branches located in low- or moderate-income census tracts in the assessment area divided by its total number of branches in the assessment area as of the close of business on the last day of the same period used to calculate the annual assessment area qualifying activities value multiplied by .01, and 
  • Annual assessment area CRA evaluation measures for each year in the evaluation period, separately for each assessment area. 

Retail Lending Distribution Tests 

The retail lending distribution tests would evaluate a bank’s originations in each assessment area using both a geographic distribution test and a borrower distribution test. Both the geographic distribution test and the borrower distribution test would apply for small loans to businesses and farms. The borrower distribution test would apply, in addition, for home mortgage and consumer lending. 

To pass the geographic distribution test for both the small loan to a business product line and the small loan to a farm product line, a bank’s percentage of such loans in low- or moderate income census tracts originated during the evaluation period in the assessment area must meet or exceed the threshold established for either the associated geographic demographic comparator or the associated geographic peer comparator.  

  • The geographic demographic comparator threshold is 55 percent of the percentage of businesses or farms in low- and moderate-income census tracts in the assessment area.  
  • The geographic peer comparator threshold is 65 percent of the percentage of small loans to businesses or farms in low- and moderate income census tracts originated by all banks evaluated under the general performance standards. 

To pass the borrower distribution test for the home mortgage lending product line, a bank’s percentage of home mortgage loans to low- and moderate income individuals and families originated during the evaluation period in the assessment area must meet or exceed the threshold established for either the associated borrower demographic comparator or the associated borrower peer comparator.  

  • The borrower demographic comparator threshold is 55 percent of the percentage of low- and moderate income families in the assessment area.  
  • The demographic peer comparator threshold is 65 percent of the percentage of home mortgage loans to low- or moderate-income individuals and families originated by all banks evaluated under the general performance standards. 

Community Development Minimum 

The community development minimum would be determined by taking the quantified value of community development loans and community development investments in the assessment area during the evaluation period, divided by the average quarterly value of the bank’s assessment area retail domestic deposits as of the close of business on the last day of each quarter of the evaluation period. To achieve a rating of outstanding or satisfactory, this value must meet or exceed 2 percent. 

Data Collection, Recordkeeping, and Reporting 

Reporting The current CRA framework requires banks to collect and report a variety of data on loans. However, small banks, as defined under the current rule, generally are exempt from these requirements. The current framework also does not collect data on all CRA activity. Under the proposed rule, there would be separate data collection and reporting requirements for banks subject to the general performance standards and for banks subject to the small bank performance standards. Banks evaluated under the general performance standards would be required to collect and maintain extensive information such as retail lending distribution tests results, CRA evaluation measures calculations, and presumptive ratings determinations. Banks would also be required to collect and maintain records of all qualifying and non-qualifying retail loans, assessment area lists, qualifying activities data, and the location of retail loans, and retail domestic deposit data.  

Conclusion 

The proposed rule is the industry’s opportunity to comment on its experiences under current CRA, and what it would like to see in a new rule. The Federal Reserve did not join on the proposed rule, but has indicated its own plans to update its CRA regulations. As the process continues, with House Financial Services hearings being conducted in January of 2020, WBA will continue to monitor all activity on CRA reform to keep its membership informed. WBA plans to submit comments on the proposed rule. To craft a meaningful comment letter, WBA encourages banks to provide us with their thoughts and concerns. In addition, WBA encourages all members to consider writing comments on the proposed rule their own.  

The proposed rule can be found by clicking here.
 
To assist WBA in crafting a meaningful comment letter, reach out to WBA’s Scott Birrenkott at: sbirrenkott@wisbank.com

  1. This process would be optional, and banks would not be required to use this process.
  2. To better understand “bank-level qualifying activities” the proposed rule provides an example: [qualifying loans on balance sheet for at least 90 days and CD investments] + [twenty five percent of the origination value of qualifying loans sold within 90 days of origination] = [CD services and monetary and in-kind donations].

By, Ally Bates

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December 2019 Compliance Journal: Compliance Notes

The below article is the Compliance Notes section of the December 2019 Compliance Journal. The full issue may be viewed by clicking here.

FRB, FDIC, OCC, FinCEN, and the Conference of State Bank Supervisors issued a statement clarifying the legal status of hemp growth and production and the relevant requirements under the Bank Secrecy Act (BSA) for banks providing services to hemp-related businesses. The statement emphasizes that banks are no longer required to file suspicious activity reports (SAR) for customers solely because they are engaged in the growth or cultivation of hemp in accordance with applicable laws and regulations. For hemp-related customers, banks are expected to follow standard SAR procedures, and file a SAR if indicia of suspicious activity warrants. The joint guidance may be viewed at: https://www.federalreserve.gov/newsevents/pressreleases/files/bcreg20191203a1.pdf

FDIC approved a 2020 Operating Budget of $2.017 billion, down nearly $43 million or 1.3 percent from 2019. FDIC’s 2020 Operating Budget includes nearly $1.9 billion for ongoing operations, $75 million for receivership funding, and nearly $43 million for the Office of the Inspector General (OIG). In addition, the Board also approved an authorized 2020 staffing level of 5,755 positions, a net reduction of 160 positions from 2019. The budget may be viewed at: https://www.fdic.gov/news/board/2019/2019-12-12-notice-dis-c-mem.pdf 

The U.S. District Court for the Western District of Texas has again continued its stays of the litigation of pending case Community Financial Services Association of America, Ltd. et al v. Consumer Financial Protection Bureau et al and of the August 19, 2019, compliance date of CFPB’s Payday Lending Rule, and ordered that the parties file a Joint Status Report about proceedings related to the Rule and litigation no later than April 24, 2020. 

FDIC has updated its Consumer Compliance Examination Manual to add new section X-6.1 on Disclosure Requirements for Sweep Accounts, to include examination procedures for FDIC Part 360.8(e), which requires consumer disclosures for sweep account transactions to inform whether the swept funds are deposits. The manual may be viewed at: https://www.fdic.gov/regulations/compliance/manual/index.html

OCC has issued its Semiannual Risk Perspective for Fall 2019. The report indicates that operational, credit, and interest rate risks are among the key themes for the federal banking system. The report also highlights cybersecurity and technology management as a special topic in emerging risks. The full report may be viewed at: https://www.occ.gov/publications-and-resources/publications/semiannual-risk-perspective/files/pub-semiannual-risk-perspective-fall-2019.pdf

OFAC took action against Evil Corp, the Russia-based cybercriminal organization responsible for the development and distribution of the Dridex malware. Evil Corp has used the Dridex malware to infect computers and harvest login credentials from hundreds of banks and financial institutions in over 40 countries, causing more than $100 million in theft. This malicious software has caused millions of dollars of damage to U.S. and international financial institutions and their customers. Concurrent with OFAC’s action, the Department of Justice charged two of Evil Corp’s members with criminal violations, and the Department of State announced a reward for information up to $5 million leading to the capture or conviction of Evil Corp’s leader. The announcement may be viewed at: https://home.treasury.gov/news/press-releases/sm845

The U.S. Department of Justice joined with the U.S. Department of State and the United Kingdom’s National Crime Agency in charging two Russian nationals with a vast and long-running cybercrime spree that stole from thousands of individuals and organizations in the United States and abroad. Along with several co-conspirators, Maksim V. Yakubets and Igor Turashev are charged with an effort that infected tens of thousands of computers with a malicious code called Bugat. Once installed, the computer code, also known as Dridex or Cridex, allowed the criminals to steal banking credentials and funnel money directly out of victims’ accounts. The long-running scheme involved a number of different code variants, and later version also installed ransomware on victim computers. The criminals then demanded payment in cryptocurrency for returning vital data or restoring access to critical systems. The announcement may be viewed at: https://www.fbi.gov/news/stories/charges-announced-in-malware-conspiracy-120519

FinCEN released a new strategic analysis of Bank Secrecy Act (BSA) reporting, indicating that elders face an increased threat to their financial security by both domestic and foreign actors. Elder financial exploitation Suspicious Activity Report (SAR) filings increased dramatically over the six-year study period, from about 2,000 filings per month in 2013 to reaching a peak of nearly 7,500 filings per month in August 2019. The yearly dollar amount of suspicious activity reported for elder financial exploitation also rose. The report may be viewed at: https://www.fincen.gov/sites/default/files/shared/FinCEN%20Financial%20Trend%20Analysis%20Elders_FINAL%20508.pdf 

CFPB, FRB, FDIC, OCC, and NCUA issued a joint statement on the use of alternative data in underwriting by banks, credit unions, and non-bank financial firms. The statement explains that a well-designed compliance management program provides for a thorough analysis of relevant consumer protection laws and regulations to ensure firms understand the opportunities, risks, and compliance requirements before using alternative data. Alternative data includes information not typically found in consumers’ credit reports or customarily provided by consumers when applying for credit. Alternative data include cash flow data derived from consumers’ bank account records. The agencies recognize that use of alternative data in a manner consistent with applicable consumer protection laws may improve the speed and accuracy of credit decisions and may help firms evaluate the creditworthiness of consumers who currently may not obtain credit in the mainstream credit system. The statement may be viewed at: https://files.consumerfinance.gov/f/documents/cfpb_interagency-statement_alternative-data.pdf

FDIC posted its Formal and Informal Enforcement Actions Manual to its website to provide greater transparency regarding the FDIC’s enforcement program. The manual provides direction for professional staff related to the work necessary to pursue formal and informal enforcement actions. Developed by the Division of Risk Management Supervision and the Division of Depositor and Consumer Protection, the manual is intended to support the work of field office, regional office, and Washington office staff involved in processing and monitoring enforcement actions. The manual may be viewed at: https://www.fdic.gov/regulations/examinations/enforcement-actions/index.html

FRB announced it has joined the U.S. Faster Payments Council (FPC) as a founding sponsor. The FPC and its members seek to facilitate faster payments in the United States, enabling Americans to securely pay anyone, anywhere, at any time with near-immediate funds availability. Its priorities include faster payments education and fraud mitigation. The announcement may be viewed at: https://www.frbservices.org/news/press-releases/120519-us-faster-payments-council.html

FFIEC revised the “Business Continuity Management” booklet, one of a series of booklets that make up the FFIEC Information Technology Examination Handbook (IT Handbook). The revised “Business Continuity Management” booklet provides information for examiners to assess the adequacy of a bank’s risk management related to the availability of critical financial products and services. The revised booklet replaces the “Business Continuity Planning” booklet issued in February 2015 and rescinds “FFIEC Information Technology Examination Handbook: Strengthening the Resilience of Outsourced Technology Services, New Appendix for Business Continuity Planning Booklet.” The booklet may be viewed at: https://ithandbook.ffiec.gov/it-booklets/business-continuity-management.aspx

FRB released its Supervision and Regulation Report, which summarizes banking conditions and the Federal Reserve’s supervisory and regulatory activities, in conjunction with semiannual testimony before Congress by the Vice Chairman for Supervision. The report may be viewed at: https://www.federalreserve.gov/publications/files/201911-supervision-and-regulation-report.pdf

OCC released its schedule of Community Reinvestment Act (CRA) evaluations to be conducted in the first quarter and second quarter 2020. The schedule may be viewed at: https://www.occ.gov/static/cra/exam-schedule/craq120.pdf 

By, Ally Bates

/by

December 2019 Compliance Journal: Regulatory Spotlight

The below article is the Regulatory Spotlight section of the December 2019 Compliance Journal. The full issue may be viewed by clicking here.

Agencies Propose Community Reinvestment Act Regulations.

The Federal Deposit Insurance Corporation (FDIC), the Office of the Comptroller of the Currency (OCC), and the Department of the Treasury (Treasury) issued a joint notice of proposed rulemaking (rule) to modernize Community Reinvestment Act (CRA) regulations. The rule contains four main elements designed to encourage banks to serve their communities by making the regulatory framework more objective, transparent, consistent, and easy to understand. Specifically, the agencies have proposed to clarify which activities qualify for CRA credit, update where activities count for CRA credit, create a more transparent and objective method for measuring CRA performance, and provide for more transparent, consistent, and timely CRA-related data collection, recordkeeping, and reporting. At the time of publication, this proposal has not yet been published in the Federal Register. Comments on the proposal will be due 60 days after publication in the Federal Register. The notice may be viewed at: https://www.occ.treas.gov/news-issuances/federal-register/2019/nr-ia-2019-147-federal-register.pdf.

Agencies Finalize Prohibitions and Restrictions on Proprietary Trading and Certain Interests in, and Relationships With, Hedge Funds and Private Equity Funds.

The Board of Governors of the Federal Reserve System (FRB), the Federal Deposit Insurance Corporation (FDIC), the Office of the Comptroller of the Currency (OCC), the Commodity Futures Trading Commission (CFTC), and the Securities and Exchange Commission (SEC) are adopting amendments to the regulations implementing section 13 of the Bank Holding Company Act. Section 13 contains certain restrictions on the ability of a banking entity and nonbank financial company supervised by FRB to engage in proprietary trading and have certain interests in, or relationships with, a hedge fund or private equity fund. These final amendments are intended to provide banking entities with clarity about what activities are prohibited and to improve supervision and implementation of section 13. The effective date for amendatory instructions 1 through 14 (OCC), 16 through 29 (FRB), 31 through 44 (FDIC), and 46 through 58 (CFTC) is 01/01/2020; the effective date for amendatory instructions 60 through 73 (SEC) is 01/13/2020; and the effective date for the addition of appendices Z at amendatory instructions 15 (OCC), 30 (FRB), and 45 (FDIC) is 01/01/2020, through 12/31/2020, except for amendatory instruction 74 (SEC), which is effective 01/13/2020, through 12/31/2020. Banking entities must comply with the final amendments by 01/01/2021. The notice may be viewed at: https://www.govinfo.gov/content/pkg/FR-2019-11-14/pdf/2019-22695.pdf. Federal Register, Vol. 84, No. 220, 11/14/2019, 61974-62277.

Agencies Finalizes Capital Simplification for Qualifying Community Banking Organizations.

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) are adopting a final rule that provides for a simple measure of capital adequacy for certain community banking organizations, consistent with section 201 of the Economic Growth, Regulatory Relief, and Consumer Protection Act (final rule). Under the final rule, depository institutions and depository institution holding companies that have less than $10 billion in total consolidated assets and meet other qualifying criteria, including a leverage ratio (equal to tier 1 capital divided by average total consolidated assets) of greater than 9 percent, will be eligible to opt into the community bank leverage ratio framework (qualifying community banking organizations). Qualifying community banking organizations that elect to use the community bank leverage ratio framework and that maintain a leverage ratio of greater than 9 percent will be considered to have satisfied the generally applicable risk-based and leverage capital requirements in the agencies’ capital rules (generally applicable rule) and, if applicable, will be considered to have met the well-capitalized ratio requirements for purposes of section 38 of the Federal Deposit Insurance Act. The final rule includes a two-quarter grace period during which a qualifying community banking organization that temporarily fails to meet any of the qualifying criteria, including the greater than 9 percent leverage ratio requirement, generally would still be deemed well-capitalized so long as the banking organization maintains a leverage ratio greater than 8 percent. At the end of the grace period, the banking organization must meet all qualifying criteria to remain in the community bank leverage ratio framework or otherwise must comply with and report under the generally applicable rule. Similarly, a banking organization that fails to maintain a leverage ratio greater than 8 percent would not be permitted to use the grace period and must comply with the capital rule’s generally applicable requirements and file the appropriate regulatory reports. The final rule is effective 01/01/2020. The notice may be viewed at: https://www.govinfo.gov/content/pkg/FR-2019-11-13/pdf/2019-23472.pdf. Federal Register, Vol. 84, No. 219, 11/13/2019, 61776-61804.

Agencies Finalize Simplifications to the Capital Rule. 

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) are adopting a final rule that permits insured depository institutions and depository institution holding companies not subject to the advanced approaches capital rule to implement certain provisions of the final rule titled Regulatory Capital: Simplifications to the Capital Rule Pursuant to the Economic Growth and Regulatory Paperwork Reduction Act of 1996, which was issued by the agencies in 07/22/2019, (Capital Simplifications Final Rule) on 01/01/2020, rather than 04/01/2020, as initially provided. Consistent with this approach, the transition provisions of the regulatory capital rule are being amended to provide that banking organizations not subject to the advanced approaches capital rule will be permitted to implement the Capital Simplifications Final Rule as of its revised effective date in the quarter beginning 01/01/2020, or to wait until the quarter beginning 04/01/2020. The notice may be viewed at: https://www.govinfo.gov/content/pkg/FR-2019-11-13/pdf/2019-23467.pdf. Federal Register, Vol. 84, No. 219, 11/13/2019, 61804-61808.

CFPB Issues Interpretive Rule on Regulation Z.

The Bureau of Consumer Financial Protection (CFPB) issued an interpretive rule which construes CFPB’s Regulation Z, which implements the Truth in Lending Act (TILA). Generally, if a mortgage loan originator organization employs an individual loan originator who is not licensed and is not required to be licensed, Regulation Z requires the loan originator organization to perform specific screening of that individual before permitting the individual to act as a loan originator and to provide certain ongoing training. Regulation Z is ambiguous as to whether these requirements apply to loan originator organizations employing individual loan originators who have temporary authority to originate loans pursuant to the Economic Growth, Regulatory Relief, and Consumer Protection Act of 2018 (EGRRCPA) amendments to the Secure and Fair Enforcement for Mortgage Licensing Act of 2008 (SAFE Act). These amendments take effect on 11/24/2019. This interpretive rule concludes that a loan originator organization is not required to comply with certain screening and training requirements under Regulation Z if the individual loan originator employee is authorized to act as a loan originator pursuant to the temporary authority described in the SAFE Act. The interpretive rule is effective 11/24/2019. The notice may be viewed at: https://www.govinfo.gov/content/pkg/FR-2019-11-19/pdf/2019-24944.pdf. Federal Register, Vol. 84, No. 223, 11/19/2019, 63791-63794.

CFPB Issues Final Rule on Fair Credit Reporting Act Disclosures.

CFPB issued a final rule amending an appendix for Regulation V, which implements the Fair Credit Reporting Act (FCRA). CFPB is required to calculate annually the dollar amount of the maximum allowable charge for disclosures by a consumer reporting agency to a consumer pursuant to FCRA Section 609; this final rule establishes the maximum allowable charge for the 2020 calendar year. The final rule is effective 01/01/2020. The notice may be viewed at: https://www.govinfo.gov/content/pkg/FR-2019-11-27/pdf/2019-25695.pdf. Federal Register, Vol. 84, No, 229, 11/27/2019, 65280-65281.

CFPB Issues Correction to Truth in Lending Annual Threshold Adjustments.

CFPB published a final rule in the Federal Register on 08/01/2019 amending the regulation text and official interpretations for Regulation Z, which implements the Truth in Lending Act (TILA), to include annual calculations for dollar amounts for several provisions in Regulation Z. This document corrects an error in one of the amendments to the official interpretation for Regulation Z. The correction is effective 01/01/2020. The notice may be viewed at: https://www.govinfo.gov/content/pkg/FR-2019-11-29/pdf/2019-25812.pdf. Federal Register, Vol. 84, No. 230, 11/29/2019, 65646-65647.

CFPB Proposes Amendments to Remittance Transfers.

CFPB is proposing changes to the remittance rule in Regulation E to mitigate the effects of the expiration of a statutory exception that allows insured institutions to disclose estimates instead of exact amounts to consumers. That exception expires on 07/21/2020. In addition, CFPB is proposing to increase a safe harbor threshold in the Rule related to whether a person makes remittance transfers in the normal course of its business, which would have the effect of reducing compliance costs for entities that make a limited number of remittance transfers annually. Comments are due 01/21/2020. The notice may be viewed at: https://www.govinfo.gov/content/pkg/FR-2019-12-06/pdf/2019-25944.pdf. Federal Register, Vol. 84, No. 235, 12/06/2019, 67132-67167.

CFPB Requests Comment on Information Collection.

  • CFPB announced it seeks comment on the information collection titled Application Forms for Financial Empowerment Training Programs. CFPB also gave notice that it sent the collection to OMB for review. Comments are due 01/14/2020. The notice may be viewed at: https://www.govinfo.gov/content/pkg/FR-2019-11-15/pdf/2019-24799.pdf. Federal Register, Vol. 84, No. 221, 11/15/2019, 62514-62515.
  • CFPB announced it seeks comment on the information collection titled Application for the Bureau’s Advisory Committees. CFPB also gave notice that it sent the collection to OMB for review. Comments are due 01/02/2020. The notice may be viewed at: https://www.govinfo.gov/content/pkg/FR-2019-12-02/pdf/2019-25994.pdf. Federal Register, Vol. 84, No. 231, 12/02/2019, 65972-65973.
  • CFPB announced it seeks comment on the information collection titled Generic Information Collection Plan for Surveys Using the Consumer Credit Panel. CFPB also gave notice that it sent the collection to OMB for review. Comments are due 01/02/2020. The notice may be viewed at: https://www.govinfo.gov/content/pkg/FR-2019-12-02/pdf/2019-26021.pdf. Federal Register, Vol. 84, No. 231, 12/02/2019, 65973.

CFPB Requests Comment on Regulation X and Regulation Z. 

CFPB is conducting an assessment of the Integrated Mortgage Disclosures Under the Real Estate Settlement Procedures Act (Regulation X) and the Truth In Lending Act (Regulation Z) Rule and certain amendments in accordance with section 1022(d) of the Dodd-Frank Wall Street Reform and Consumer Protection Act (Dodd-Frank Act). CFPB is requesting public comment on its plans for assessing this rule as well as certain recommendations and information that may be useful in conducting the planned assessment. Comments are due 01/21/2020. The notice may be viewed at: https://www.govinfo.gov/content/pkg/FR-2019-11-22/pdf/2019-25260.pdf. Federal Register, Vol. 84, No. 226, 11/22/2019, 64436-64441.

FRB Proposes Supervision and Regulation Assessments of Fees for Bank Holding Companies and Savings and Loan Holding Companies. 

The Board of Governors of the Federal Reserve System (FRB) issued a proposal to amend FRB’s assessment rule (Regulation TT), pursuant to Dodd-Frank Wall Street Reform and Consumer Protection Act (the Dodd-Frank Act), to address amendments made by the Economic Growth, Regulatory Relief, and Consumer Protection Act (EGRRCPA). The proposed amendments to Regulation TT raise the minimum threshold for being considered an assessed company from $50 billion to $100 billion in total consolidated assets for bank holding companies and savings and loan holding companies and adjust the amount charged to assessed companies with total consolidated assets between $100 billion and $250 billion to reflect changes in supervisory and regulatory responsibilities resulting from EGRRCPA. Comments are due 01/09/2019. The notice may be viewed at: https://www.govinfo.gov/content/pkg/FR-2019-11-12/pdf/2019-24491.pdf. Federal Register, Vol. 84, No. 218, 11/12/2019, 60944-60949.

FRB Issues Correction to Proposed Supervision and Regulation Assessments of Fees for Bank Holding Companies and Savings and Loan Holding Companies. 

FRB issued a notice in the Federal Register on 11/12/2019 regarding proposed changes to Regulation TT. The original notice included an expired comment period end date, this notice corrects that error. The correct comment due date for the proposal is 01/09/2020. The notice may be viewed at: https://www.govinfo.gov/content/pkg/FR-2019-11-19/pdf/2019-24959.pdf. Federal Register, Vol. 84, No. 223, 11/19/2019, 63820. 

FDIC Finalizes Amendments to Assessments.

  • The Federal Deposit Insurance Corporation (FDIC) is amending the deposit insurance assessment regulations that govern the use of small bank assessment credits (small bank credits) and one-time assessment credits (OTACs) by certain insured depository institutions (IDIs). Under this final rule, now that the FDIC is applying small bank credits to quarterly deposit insurance assessments, such credits will continue to be applied as long as the Deposit Insurance Fund (DIF) reserve ratio is at least 1.35 percent (instead of, as originally provided, 1.38 percent). In addition, after small bank credits have been applied for four quarterly assessment periods, and as long as the reserve ratio is at least 1.35 percent, the FDIC will remit the full nominal value of any remaining small bank credits in lump-sum payments to each IDI holding such credits in the next assessment period in which the reserve ratio is at least 1.35 percent, and will simultaneously remit the full nominal value of any remaining OTACs in lumpsum payments to each IDI holding such credits. The final rule is effective 11/27/2019 and applicable 07/01/2019. The notice may be viewed at: https://www.govinfo.gov/content/pkg/FR-2019-11-27/pdf/2019-25566.pdf. Federal Register, Vol. 84, No. 229, 11/27/2019, 65269-65276.
  • FDIC is amending its deposit insurance assessment regulations to apply the community bank leverage ratio (CBLR) framework to the deposit insurance assessment system (CBLR Assessments final rule). The FDIC, the Board of Governors of the Federal Reserve System (FRB) and the Office of the Comptroller of the Currency (OCC) (collectively, the Federal banking agencies) are considering, and are expected to adopt, a final rule that provides for a simple measure of capital adequacy for certain community banking organizations (CBLR final rule). The CBLR Assessments final rule: prices all insured depository institutions (IDIs) that elect to use the CBLR framework as small institutions; makes technical amendments to the FDIC’s assessment regulations to ensure that the assessment regulations continue to reference the prompt corrective action (PCA) regulations for the definitions of capital categories used in the deposit insurance assessment system; and clarifies that an IDI that elects to use the CBLR framework and also meets the definition of a custodial bank will have no change to its custodial bank deduction or reporting items required to calculate the deduction. The final rule does not make any changes to the FDIC’s assessment methodology for small or large institutions. The final rule is effective 01/01/2020. The notice may be viewed at: https://www.govinfo.gov/content/pkg/FR-2019-12-06/pdf/2019-25897.pdf. Federal Register, Vol. 84, No. 235, 12/06/2019, 66833-66838.

FDIC Finalizes Removal of Transferred OTS Regulation Regarding Deposits.

FDIC is adopting a final rule to rescind and remove a subpart from the Code of Federal Regulations entitled “Deposits,” applicable to State savings associations, because the subpart is duplicative of other rules and statutes and is unnecessary to the regulation of State savings associations. FDIC did not receive any comments on the Notice of Proposed Rulemaking (NPR) and is finalizing the rule as proposed. The final rule is effective 12/27/2019. The notice may be viewed at: https://www.govinfo.gov/content/pkg/FR-2019-11-27/pdf/2019-25697.pdf. Federal Register, Vol. 84, No. 229, 11/27/2019, 65276-25280.

FDIC Issues Correction to Rule on Company-Run Stress Testing Requirements.

FDIC is correcting a final rule that appeared in the Federal Register on 10/24/2019, regarding Company-Run Stress Testing Requirements for FDIC-Supervised State Nonmember Banks and State Savings Associations. This correction replaces three additional references to “subpart” with “part,” in order to standardize the language in FDIC regulations. The correction is effective 11/25/2019. The notice may be viewed at: https://www.govinfo.gov/content/pkg/FR-2019-11-26/pdf/2019-25691.pdf. Federal Register, Vol. 84, No. 228, 11/26/2019, 64984-64985.

FDIC Issues Correction to Prohibitions and Restrictions on Proprietary Trading and Certain Interests in, and Relationships With, Hedge Funds and Private Equity Funds.

FDIC is correcting a final rule that appeared in the Federal Register on Thursday, 11/14/2019, regarding Prohibitions and Restrictions on Proprietary Trading and Certain Interests in, and Relationships With, Hedge Funds and Private Equity Funds. These corrections are necessary to standardize the language in the FDIC regulations with the other agencies’ regulations. The correction is effective 01/01/2020. The notice may be viewed at: https://www.govinfo.gov/content/pkg/FR-2019-12-03/pdf/2019-26066.pdf. Federal Register, Vol. 84, No. 232, 12/03/2019, 66063.

FDIC Proposes Brokered Deposit Regulations.

FDIC issued a notice of proposed rulemaking to brokered deposit restrictions that apply to less than well capitalized institutions. The proposed rule would address concerns raised by WBA, other industry and trade groups, and banking organizations desiring clarification of the definition of “deposit broker.” The proposed rule would create a new framework for analyzing that definition, as well as other related provisions. Comments on the proposal will be due 60 days after publication in the Federal Register. The proposal may be viewed at: https://www.fdic.gov/news/board/2019/2019-12-12-notice-dis-b-fr.pdf.

FDIC Proposes Regulations on Federal Interest Rate Authority.

FDIC is seeking comment on proposed regulations clarifying the law that governs the interest rates State-chartered banks and insured branches of foreign banks (collectively, State banks) may charge. The proposed regulations would provide that State banks are authorized to charge interest at the rate permitted by the State in which the State bank is located, or one percent in excess of the ninety-day commercial paper rate, whichever is greater. The proposed regulations also would provide that whether interest on a loan is permissible under section 27 of the Federal Deposit Insurance Act would be determined at the time the loan is made, and interest on a loan permissible under section 27 would not be affected by subsequent events, such as a change in State law, a change in the relevant commercial paper rate, or the sale, assignment, or other transfer of the loan. Comments are due 02/04/2020. The notice may be viewed at: https://www.govinfo.gov/content/pkg/FR-2019-12-06/pdf/2019-25689.pdf. Federal Register, Vol. 84, No. 235, 12/06/2019, 66845-66853.

FDIC Requests Comment on Framework for Analyzing the Effects of FDIC Regulatory Actions.

FDIC is seeking comment on approaches it is considering to analyze the effects of its regulatory actions. FDIC views analysis of the effects of regulatory actions and alternatives as an important part of a credible and transparent rulemaking process. The comments received will help FDIC to strengthen its analysis of regulatory actions. Comments are due 01/28/2020. The notice may be viewed at: https://www.govinfo.gov/content/pkg/FR-2019-11-29/pdf/2019-25928.pdf. Federal Register, Vol. 84, No. 230, 11/30/2019, 65808-65814.

FDIC Requests Comment on Information Collection.

FDIC announced it seeks comment on the information collection titled Joint Standards for Assessing Diversity Policies and Practices. FDIC also gave notice that it sent the collection to OMB for review. Comments are due 01/03/2020. The notice may be viewed at: https://www.govinfo.gov/content/pkg/FR-2019-12-04/pdf/2019-26170.pdf. Federal Register, Vol. 84, No. 233, 12/04/2019, 66404-66405.

FDIC Establishes Advisory Committee of State Regulators.

FDIC is establishing the FDIC Advisory Committee of State Regulators (ACSR). The ASCR will provide advice and recommendations to the FDIC on a broad range of policy issues regarding the regulation of state-chartered financial institutions throughout the United States, including its territories. The ACSR will provide a forum where state regulators and the FDIC can discuss a variety of current and emerging issues that have potential implications regarding the regulation and supervision of state-chartered financial institutions. The notice may be viewed at: https://www.govinfo.gov/content/pkg/FR-2019-12-02/pdf/2019-26013.pdf. Federal Register, Vol. 84, No. 231, 12/02/2019, 65979-65980.

FDIC Issues Terminations of Receivership.

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.govinfo.gov/content/pkg/FR-2019-12-09/pdf/2019-26417.pdf. Federal Register, Vol. 84, No. 236, 12/09/2019, 67270.

HUD Requests Comment on Information Collection.

The Department of Housing and Urban Development (HUD) announced it seeks comment on the information collection titled FHA TOTAL Mortgage Scorecard. HUD also gave notice that it sent the collection to OMB for review. Comments are due 01/27/2020. The notice may be viewed at: https://www.govinfo.gov/content/pkg/FR-2019-11-27/pdf/2019-25694.pdf. Federal Register, Vol. 84, No. 229, 11/27/2019, 65403-65404.

FEMA Issues Final Flood Hazard Determinations.

The Federal Emergency Management Agency (FEMA) has issued a final notice which identifies communities in the states of Iowa, Nebraska, and 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 04/17/2020. The notice may be viewed at: https://www.govinfo.gov/content/pkg/FR-2019-12-05/pdf/2019-26247.pdf. Federal Register, Vol. 84, No. 234, 12/05/2019, 66686-66687.

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, Michigan, Minnesota, Nebraska, Ohio, 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.govinfo.gov/content/pkg/FR-2019-12-05/pdf/2019-26248.pdf. Federal Register, Vol. 84, No. 234, 12/05/2019, 66688-66691.
  • 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, Michigan, 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.govinfo.gov/content/pkg/FR-2019-12-09/pdf/2019-26421.pdf. Federal Register, Vol. 84, No. 236, 12/09/2019, 67289-67292.

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 Michigan. 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 03/09/2020. The notice may be viewed at: https://www.govinfo.gov/content/pkg/FR-2019-12-09/pdf/2019-26422.pdf. Federal Register, Vol. 84, No. 236, 12/09/2019, 67284-67286.

Treasury Finalizes IMARA Calculation Under the Terrorism Risk Insurance Program.

The Department of the Treasury (Treasury) issued a final rule to implement technical changes to program regulations that address the calculation and notification to the public of the Terrorism Risk Insurance Program’s insurance marketplace aggregate retention amount (IMARA) under the Terrorism Risk Insurance Act, as amended. The rule is effective 12/16/2019. The notice may be viewed at: https://www.govinfo.gov/content/pkg/FR-2019-11-15/pdf/2019-24801.pdf. Federal Register, Vol. 84, No. 221, 11/15/2019, 62450-62452. 

Treasury Finalizes Estate and Gift Taxes Regulations.

Treasury finalized regulations addressing the effect of recent legislative changes to the basic exclusion amount allowable in computing Federal gift and estate taxes. The final regulations will affect donors of gifts made after 2017 and the estates of decedents dying after 2025. The final regulations are effective 11/26/2019. The notice may be viewed at: https://www.govinfo.gov/content/pkg/FR-2019-11-26/pdf/2019-25601.pdf. Federal Register, Vol. 84, No. 228, 11/26/2019, 64995-65000.

Treasury Requests Comment on Information Collections.

  • Treasury announced it seeks comment on the information collection titled Agreement and Request for Disposition of a Decedent’s Treasury Securities. Treasury also gave notice that it sent the collection to OMB for review. Comments are due 01/28/2020. The notice may be viewed at: https://www.govinfo.gov/content/pkg/FR-2019-11-29/pdf/2019-25895.pdf. Federal Register, Vol. 84, No. 230, 11/29/2019, 65897.
  • Treasury announced it seeks comment on the information collection titled Special Bond of Indemnity By Purchaser of United States Savings Bonds/Notes Involved in a Chain Letter Scheme. Treasury also gave notice that it sent the collection to OMB for review. Comments are due 01/28/2020. The notice may be viewed at: https://www.govinfo.gov/content/pkg/FR-2019-11-29/pdf/2019-25894.pdf. Federal Register, Vol. 84, No. 230, 11/29/2019, 65896-65897.
  • Treasury announced it seeks comment on the information collection titled Returns Regarding Payments of Interest. Treasury also gave notice that it sent the collection to OMB for review. Comments are due 01/28/2020. The notice may be viewed at: https://www.govinfo.gov/content/pkg/FR-2019-11-29/pdf/2019-25881.pdf. Federal Register, Vol. 84, No. 230, 11/29/2019, 65898-65899.
  • Treasury announced it seeks comment on the information collection titled Offering of U.S. Mortgage Guaranty Insurance Company Tax and Loss Bonds. Treasury also gave notice that it sent the collection to OMB for review. Comments are due 01/31/2020. The notice may be viewed at: https://www.govinfo.gov/content/pkg/FR-2019-12-02/pdf/2019-25998.pdf. Federal Register, Vol. 84, No. 231, 12/02/2019, 66053.

SBA Finalizes Regulations on Women’s Business Center Program.

The Small Business Administration (SBA) is codifying regulations for the Women’s Business Center (WBC) Program as directed in section 29 of the Small Business Act (the Act). The final rule also codifies policy and procedural changes included in the WBC Program Announcement and Notice of Award (NOA). These changes include, but are not limited to, the following: Language on risk assessment, as required by the Uniform Grant Guidance; limitations on carryovers; a reduction in reporting requirements; and eligibility criteria for selection as a WBC. Implementing these regulations will result in greater standardization and transparency in the delivery of the WBC Program. The final rule is effective 01/24/2020. The notice may be viewed at: https://www.govinfo.gov/content/pkg/FR-2019-11-25/pdf/2019-24239.pdf. Federal Register, Vol. 84, No. 227, 11/25/2019, 64707-64723.

SBA Finalizes Streamlining and Modernizing Certified Development Company Program.

SBA finalized a rule streamlining the operational and organizational requirements for Certified Development Companies (CDCs) in order to improve efficiencies and reduce costs without unduly increasing risk in the 504 Loan Program. The changes include streamlining the requirements that apply to the corporate governance of CDCs, and updating the requirements that apply to professional services contracts entered into by CDCs, the requirements related to the audit and review of a CDC’s financial statements, and the requirements related to the balance that a Premier Certified Lender Program (PCLP) CDC must maintain in its Loan Loss Reserve Fund. The final rule is effective 01/03/2020. The notice may be viewed at: https://www.govinfo.gov/content/pkg/FR-2019-12-04/pdf/2019-26042.pdf. Federal Register, Vol. 84, No. 233, 12/04/2019, 66287-66296.

SBA Issues Small Business Size Standards.

SBA is modifying its method for calculating average annual receipts used to prescribe size standards for small businesses. Specifically, in accordance with the Small Business Runway Extension Act of 2018, SBA is changing its regulations on the calculation of average annual receipts for all of SBA’s receipts-based size standards, and for other agencies’ proposed receipts-based size standards, from a 3-year averaging period to a 5-year averaging period, outside of the SBA Business Loan and Disaster Loan Programs. SBA intends to seek comment on the Business Loan and Disaster Loan Programs in a proposed rule through a separate rulemaking. For all other programs, SBA adopts a transition period through 01/06/2022, during which firms may choose between using a 3-year averaging period and a 5-year averaging period. The rule is effective 01/06/2020. The notice may be viewed at: https://www.govinfo.gov/content/pkg/FR-2019-12-05/pdf/2019-26041.pdf. Federal Register, Vol. 84, No. 234, 12/05/2019, 66561-66579.

FCIC Issues Rice Crop Insurance Provisions.

The Federal Crop Insurance Corporation (FCIC) finalized amendments to the Common Crop Insurance Regulations, Rice Crop Insurance Provisions (Crop Provisions). The intended effect of this action is to allow for new irrigation methods and change the cancellation and termination dates in certain states to align with other row crops to implement the changes contained in the Agriculture Improvement Act of 2018 (commonly referred to as the 2018 Farm Bill). The changes will be effective for the 2020 and succeeding crop years. The final rule is effective 11/30/2019. Comments are due 01/21/2020. The notice may be viewed at: https://www.govinfo.gov/content/pkg/FR-2019-11-22/pdf/2019-25386.pdf. Federal Register, Vol. 84, No. 226, 11/22/2019, 64411-64413.

FCIC Issues Coarse Grains Crop Insurance Provisions.

FCIC amends the Common Crop Insurance Regulations, Coarse Grains Crop Insurance Provisions (Crop Provisions). The intended effect of this action is to allow separate enterprise and optional units by the cropping practices Following Another Crop (FAC) and Not Following Another Crop (NFAC). The changes will be effective for the 2020 and succeeding crop years. The final rule is effective 11/30/2019. Comments are due 01/27/2020. The notice may be viewed at: https://www.govinfo.gov/content/pkg/FR-2019-11-27/pdf/2019-25862.pdf. Federal Register, Vol. 84, No. 229, 11/27/2019, 65259-65262.

FCIC Issues Sugar Beet Crop Insurance Regulations.

FCIC finalizes the Common Crop Insurance Regulations, Sugar Beet Crop Insurance Provisions (Crop Provisions) and makes amendments to the final rule, with request for comment, published in the Federal Register on 09/10/2018, that updated existing policy provisions and definitions to better reflect current agricultural practices. This final rule is amended based on comments received and other issues identified since implementation of the previous final rule. The changes will be effective for the 2020 and succeeding crop years in states with a November 30 contract change date and for the 2021 and succeeding crop years in all other states. The final rule is effective 11/30/2019. Comments are due 01/28/2020. The notice may be viewed at: https://www.govinfo.gov/content/pkg/FR-2019-11-29/pdf/2019-25844.pdf. Federal Register, Vol. 84, No. 230, 11/29/2019, 65627-65639.

FCIC Issues Correction to Common Crop Insurance Policy Basic Provisions.

FCIC is correcting a final rule that was published in the Federal Register on 07/28/2019, which revised the Catastrophic Risk Protection Endorsement, the Area Risk Protection Insurance Basic Provisions, and the Common Crop Insurance Policy (CCIP) Basic Provisions. The correction is being published to correct an incorrect reference in section 3(g)(3) of the Common Crop Insurance Policy Basic Provisions. The correction is effective 11/22/2019. The notice may be viewed at: https://www.govinfo.gov/content/pkg/FR-2019-11-22/pdf/2019-25387.pdf. Federal Register, Vol. 84, No. 226, 11/22/2019, 64413-64414.

RBC Issues Notice of Solicitation of Applications for Inviting Applications for the Rural Economic Development Loan and Grant Programs.

The Rural Business-Cooperative Service (RBC) announced that the maximum loan amount awarded for applications competing in the Second, Third, and Fourth Quarter funding cycles of fiscal year (FY) 2020 will be $1 million. The notice contains key dates for FY 2020 complete loan applications to be received. The notice may be viewed at: https://www.govinfo.gov/content/pkg/FR-2019-11-13/pdf/2019-24597.pdf. Federal Register, Vol. 84, No. 219, 11/13/2019, 61594-61595.

RHS Proposes Amendments to Single Family Housing Direct Loan and Grant Programs.

The Rural Housing Service (RHS) is proposing to amend its regulations to update and improve the direct Single-Family Housing (SFH) loans and grants programs. The proposed changes would increase program flexibility, allow more borrowers to access affordable loans, better align the programs with best practices, and enable the programs to be more responsive to economic conditions and trends. Comments are due 01/24/2020. The notice may be viewed at: https://www.govinfo.gov/content/pkg/FR-2019-11-25/pdf/2019-25128.pdf. Federal Register, Vol. 84, No. 227, 11/25/2019, 64788-64795.

CCC Issues Interim Rule on Conservation Reserve Program.

The Commodity Credit Corporation (CCC) is revising its Conservation Reserve Program (CRP) regulations to specify the terms and conditions of CRP and to implement amendments made by the Agriculture Improvement Act of 2018 (2018 Farm Bill). The 2018 Farm Bill authorizes CRP through fiscal year 2023. The rule makes required changes to the eligibility criteria for enrollment in CRP, the benefits available to participants, and the land use and compliance provisions of CRP. In addition, the rule will implement two new pilot programs, the Clean Lakes, Estuaries, and Rivers 30 (CLEAR 30) Pilot Program and the Soil Heath and Income Protection Pilot (SHIPP) Program, as required by the 2018 Farm Bill. The rule is effective 12/06/2019. Comments are due 02/04/2020. The notice may be viewed at: https://www.govinfo.gov/content/pkg/FR-2019-12-06/pdf/2019-26268.pdf. Federal Register, Vol. 84, No. 235, 12/06/2019, 66813-66833.

FASB Requests Comment on Annual Report for FY 2019 and Three-Year Plan.

The Federal Accounting Standards Advisory Board (FASB) has issued its Annual Report for Fiscal Year 2019 and Three-Year Plan. The Annual Report for Fiscal Year 2019 and Three-Year Plan is available on the FASB website at https://www.fasab.gov/our-annual-reports/. Copies can be obtained by contacting FASB at (202)512–7350. Comments are due 01/17/2020. The notice may be viewed at: https://www.govinfo.gov/content/pkg/FR-2019-11-26/pdf/2019-25662.pdf. Federal Register, Vol. 84, No. 228, 11/26/2019, 65154. 

NCUA Finalized Exceptions to Employment Restrictions.

The National Credit Union Administration (NCUA) is updating and revising its Interpretive Ruling and Policy Statement (IRPS) regarding statutory prohibitions imposed by Section 205(d) of the Federal Credit Union Act (FCU Act). Section 205(d) prohibits, except with the prior written consent of NCUA, any person who has been convicted of any criminal offense involving dishonesty or breach of trust, or who has entered into a pretrial diversion or similar program in connection with a prosecution for such offense, from participating in the affairs of an insured credit union. NCUA is rescinding current IRPS 08–1 and issuing a revised and updated IRPS to reduce regulatory burden. NCUA is amending and expanding the current de minimis exception to reduce the scope and number of offenses that will require an application to NCUA. Specifically, the final IRPS will not require an application for convictions involving insufficient funds checks of aggregate moderate value, small dollar simple theft, false identification, simple drug possession, and isolated minor offenses committed by covered persons as young adults. The final rule is effective 01/02/2020. The notice may be viewed at: https://www.govinfo.gov/content/pkg/FR-2019-12-02/pdf/2019-25699.pdf. Federal Register, Vol. 84, No. 231, 12/02/2019, 65907-65923.

NCUA Proposes Amendments to Real Estate Appraisals.

NCUA proposes to amend the agency’s regulation requiring appraisals for certain real estate-related transactions. The proposed rule would increase the threshold level below which appraisals would not be required for residential real estate-related transactions from $250,000 to $400,000. Consistent with the requirement for other transactions that fall below applicable appraisal thresholds, federally insured credit unions (FICUs) would be required to obtain written estimates of market value of the real estate collateral that is consistent with safe and sound banking practices in lieu of an appraisal. For easier reference, the proposed rule would explicitly incorporate the existing statutory requirement that appraisals be subject to appropriate review for compliance with the Uniform Standards of Professional Appraisal Practice (USPAP). This proposal is consistent with the final rule, effective on 10/09/2019, issued 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) that increases the threshold level at or below which appraisals are not required for residential real estate transactions from $250,000 to $400,000. Comments are due 01/28/2020. The notice may be viewed at: https://www.govinfo.gov/content/pkg/FR-2019-11-29/pdf/2019-25768.pdf. Federal Register, Vol. 84, No. 230, 11/29/2019, 65707-65714.

NCUA Requests Comment on Information Collections.

  • NCUA announced it seeks comment on the information collection titled Recordkeeping and Disclosure Requirements Associated with Regulations B, E, M, and CC. NCUA also gave notice that it sent the collection to OMB for review. Comments are due 01/13/2020. The notice may be viewed at: https://www.govinfo.gov/content/pkg/FR-2019-11-14/pdf/2019-24723.pdf. Federal Register, Vol. 84, No. 220, 11/14/2019, 61941-61942.
  • NCUA announced it seeks comment on the information collection titled NCUA Profile. NCUA also gave notice that it sent the collection to OMB for review. Comments are due 01/14/2020. The notice may be viewed at: https://www.govinfo.gov/content/pkg/FR-2019-11-15/pdf/2019-24760.pdf. Federal Register, Vol. 84, No. 221, 11/15/2019, 62558.
  • NCUA announced it seeks comment on the information collection titled Corporate Credit Union Monthly Call Report and Report of Officers. NCUA also gave notice that it sent the collection to OMB for review. Comments are due 01/02/2020. The notice may be viewed at: https://www.govinfo.gov/content/pkg/FR-2019-12-03/pdf/2019-26114.pdf. Federal Register, Vol. 84, No. 232, 12/03/2019, 66223.
  • NCUA announced it seeks comment on the information collection titled Maximum Borrowing Authority, 12 CFR 741.2. NCUA also gave notice that it sent the collection to OMB for review. Comments are due 02/03/2020. The notice may be viewed at: https://www.govinfo.gov/content/pkg/FR-2019-12-05/pdf/2019-26238.pdf. Federal Register, Vol. 84, No. 234, 12/05/2019, 66699.

SSA Proposes Regulations on Designation of Representative Payees.

The Social Security Administration (SSA) issued a notice of proposed rulemaking to promulgate regulations specifying the information Social Security beneficiaries and applicants must provide to designate a representative payee in advance of the determination that the beneficiary needs a representative payee. Comments are due 12/26/2019. The notice may be viewed at: https://www.govinfo.gov/content/pkg/FR-2019-11-26/pdf/2019-25569.pdf. Federal Register, Vol. 84, No. 228, 11/26/2019, 65040-65044.

By, Ally Bates

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November 2019 Compliance Journal: Compliance Notes

The below article is the Compliance Notes section of the November 2019 Compliance Journal. The full issue may be viewed by clicking here.

The Wisconsin Court System’s Records Management Committee no longer maintains the transfer by affidavit form used to transfer property of decedents with estates of $50,000 or less. Currently, the State Bar of Wisconsin’s Real Property, Probate, and Trust Law Section maintains the transfer by affidavit form which has been updated and is available on the State Bar’s website along with form instructions. While the format of the form has changed, its purpose, function, and governing law under Wis. Stat. 867.03 has not changed.

One format change that WBA was made aware of was how the affiant completes the Wisconsin Department of Health Services (DHS) section. On the prior form, the affiant indicated that if they “did not know” whether the decedent received aid, that they had to submit notice to DHS. It is unclear on the new form whether such notice is required. However, WBA has heard from the Bar that it was not their intent to change the form in this way or any other. As such, notice should be submitted to DHS when “did not know” is selected on the form.

FFIEC revised the “Business Continuity Management” booklet, one of a series of booklets that make up the FFIEC Information Technology Examination Handbook (IT Handbook). The revised “Business Continuity Management” booklet provides information for examiners to assess the adequacy of a bank’s risk management related to the availability of critical financial products and services. The revised booklet replaces the “Business Continuity Planning” booklet issued in February 2015 and rescinds OCC Bulletin 2015-9, “FFIEC Information Technology Examination Handbook: Strengthening the Resilience of Outsourced Technology Services, New Appendix for Business Continuity Planning Booklet.” The booklet may be viewed at: https://ithandbook.ffiec.gov/it-booklets/business-continuity-management.aspx

FinCEN issued an advisory to inform financial institutions of updates to the FATF list of jurisdictions with strategic AML/CFT deficiencies. Financial institutions should be aware of these changes, which may affect their obligations and risk-based approaches with respect to these jurisdictions. The advisory also reminds financial institutions of the status of, and obligations involving, these jurisdictions, in particular the Democratic People’s Republic of Korea (DPRK) and Iran. The advisory may be viewed at: https://www.fincen.gov/sites/default/files/advisory/2019-11-12/FATF%20Advisory%20October%202019%20FINAL_508.pdf

FRB Chair Jerome Powell testified before the Joint Economic Committee of Congress, commenting on the outlook for the economy and monetary policy. Powell’s testimony may be viewed at: https://www.federalreserve.gov/newsevents/testimony/powell20191113a.htm

CFPB issued a report with state-by-state comparisons of financial well-being scores. The scores are based on Bureau analysis of the Financial Industry Regulatory Authority Foundation’s 2018 National Financial Capability Study. The report shows that the average financial well-being scores for all adults (ages 18 and older) in the United States ranged from a low of 50 in Mississippi to a high of 54 in California, the District of Columbia and Hawaii. For the United States, the average financial well-being score was 52. The repost may be viewed at: https://files.consumerfinance.gov/f/documents/201911_cfpb_fwb-state-report.pdf

FHFA issued its semi-annual Credit Risk Transfer Progress Report describing the status and volume of credit risk transfer (CRT) transactions through the second quarter of 2019.  Through the first half of 2019, Fannie Mae and Freddie Mac transferred 84 percent and 89 percent, respectively, of the allocated credit risk capital on 2018 acquisitions covered by credit risk transfer. Of the total single-family loan acquisitions of the Enterprises in 2018, 73 percent were targeted for credit risk transfer.  The full report may be viewed at: https://www.fhfa.gov/AboutUs/Reports/ReportDocuments/CRT-Progress-Report-2Q19.pdf

FATF published the November 2019 edition of its Business Bulletin which lists the organizations strategic initiative. The bulletin may be viewed at: http://www.fatf-gafi.org/media/fatf/documents/bulletin/FATF-Business-Bulletin-November-2019.pdf

FRB issued its November 2019 Consumer & Community Context which covers the topic of small businesses’ access to capital, and includes articles on experiences of small business owners when searching for financing online, disparities in small business credit approval by race and ethnicity, and small businesses’ access to financial services in low- and moderate-income communities. The full publication may be viewed at: https://www.federalreserve.gov/publications/files/consumer-community-context-201911.pdf

FATF is developing guidance to clarify how digital identity (digital ID) systems can be used for customer due diligence (CDD). The draft guidance intends to help governments, financial institutions and other relevant entities apply a risk-based approach to the use of digital ID for CDD. The draft may be viewed at: http://www.fatf-gafi.org/publications/fatfrecommendations/documents/consultation-digital-id-guidance.html

FTC issued a new report which shows that adults aged 60 and older are less likely to report losing money to fraud than younger adults, but the amount of money they report losing is on the rise. Older consumers reported losing money most often to phone scams, with online scams coming in second place. Payment by gift cards became the most frequently reported method of payment by older adults in the second half of the year, but wire transfers persisted in the top spot for total dollars paid by older consumers. The report may be viewed at: https://www.ftc.gov/system/files/documents/reports/protecting-older-consumers-2018-2019-report-federal-trade-commission/p144401_protecting_older_consumers_2019_1.pdf

OCC issued revised “Branches and Relocations,” “Charters,” “Federal Branches and Agencies,” and “General Policies and Procedures” booklets of the Comptroller’s Licensing Manual. The revised booklets streamline licensing processes to reflect that the National Historic Preservation Act, and the National Environmental Policy Act. The notice may be viewed at: https://www.occ.gov/news-issuances/bulletins/2019/bulletin-2019-50.html

By, Ally Bates

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November 2019 Compliance Journal: Regulatory Spotlight

The below article is the Regulatory Spotlight section of the November 2019 Compliance Journal. The full issue may be viewed by clicking here.

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

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. The Agencies issued joint final rules implementing these requirements, effective 01/18/2014. The 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, OCC, FRB, and CFPB 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 06/01/2019, the exemption threshold will increase from $26,700 to $27,200, effective 01/01/2020. The notice may be viewed at: https://www.govinfo.gov/content/pkg/FR-2019-10-30/pdf/2019-21559.pdf. Federal Register, Vol. 84, No. 210, 10/30/2019, 58013-58017.

Agencies Finalize Amendments to Consumer Leasing.

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 Wall Street Reform and Consumer Protection Act (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, FRB and CFPB 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 06/01/2019, the exemption threshold will increase from $57,200 to $58,300 effective 01/01/2020. The notice may be viewed at: https://www.govinfo.gov/content/pkg/FR-2019-10-30/pdf/2019-21554.pdf. Federal Register, Vol. 84, No. 210, 10/30/2019, 58017-58020. 

Agencies Finalize Amendments to Truth in Lending.

The Bureau of Consumer Financial Protection (CFPB), and the Board of Governors of the Federal Reserve System (FRB) are publishing final rules amending the official interpretations and commentary for the agencies’ regulations that implement the Truth in Lending Act (TILA). The Dodd-Frank Wall Street Reform and Consumer Protection Act (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, FRB and CFPB 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 06/01/2019, the exemption threshold will increase from $57,200 to $58,300 effective 01/01/2020. The notice may be viewed at: https://www.govinfo.gov/content/pkg/FR-2019-10-30/pdf/2019-21557.pdf. Federal Register, Vol. 84, No. 210, 10/30/2019, 58020-58026.

Agencies Finalize Changes to Applicability Thresholds for Regulatory Capital and Liquidity Requirements.

The Board of Governors of the Federal Reserve System (FRB), Federal Deposit Insurance Corporation (FDIC), and the Office of the Comptroller of the Currency (OCC) are adopting a final rule to revise the criteria for determining the applicability of regulatory capital and liquidity requirements for large U.S. banking organizations and the U.S. intermediate holding companies of certain foreign banking organizations. The final rule establishes four risk-based categories for determining the applicability of requirements under the agencies’ regulatory capital rule and liquidity coverage ratio (LCR) rule. Under the final rule, such requirements increase in stringency based on measures of size, cross-jurisdictional activity, weighted short-term wholesale funding, nonbank assets, and off-balance sheet exposure. The final rule applies tailored regulatory capital and liquidity requirements to depository institution holding companies and U.S. intermediate holding companies with $100 billion or more in total consolidated assets as well as to certain depository institutions. The final rule is effective 12/31/2019. The notice may be viewed at: https://www.govinfo.gov/content/pkg/FR-2019-11-01/pdf/2019-23800.pdf. Federal Register, Vol. 84, No. 212, 11/01/2019, 59230-59283.

Agencies Finalize Rule on Resolution Planning.

The Board of Governors of the Federal Reserve System (FRB), and Federal Deposit Insurance Corporation (FDIC) are jointly adopting this final rule implementing the resolution planning requirements of section 165(d) of the Dodd-Frank Wall Street Reform and Consumer Protection Act (the Dodd-Frank Act). This final rule is intended to reflect improvements identified since the agencies finalized their joint resolution plan rule in November 2011 (2011 rule) and to address amendments to the Dodd-Frank Act made by the Economic Growth, Regulatory Relief, and Consumer Protection Act (EGRRCPA). The final rule also extends the default resolution plan filing cycle, allows for more focused resolution plan submissions, and improves certain aspects of the resolution planning rule. The rule is effective 12/31/2019. The notice may be viewed at: https://www.govinfo.gov/content/pkg/FR-2019-11-01/pdf/2019-23967.pdf. Federal Register, Vol. 84, No. 212, 11/01/2019, 59194-59228.

Agencies Propose Interagency Guidance on Credit Risk Review Systems.

The Board of Governors of the Federal Reserve System (FRB), Federal Deposit Insurance Corporation (FDIC), the Office of the Comptroller of the Currency (OCC), and the National Credit Union Administration (NCUA) proposed guidance for credit risk review systems. The proposed guidance is relevant to all institutions supervised by the agencies. The proposed guidance discusses sound management of credit risk, a system of independent, ongoing credit review, and appropriate communication regarding the performance of the institution’s loan portfolio to its management and board of directors. Comments are due 12/16/2019. The notice may be viewed at: https://www.govinfo.gov/content/pkg/FR-2019-10-17/pdf/2019-22656.pdf. Federal Register, Vol. 84, No. 201, 10/17/2019, 55679-55684.

Agencies Propose Interagency Policy Statement on Allowances for Credit Losses.

The Board of Governors of the Federal Reserve System (FRB), Federal Deposit Insurance Corporation (FDIC), the Office of the Comptroller of the Currency (OCC), and the National Credit Union Administration (NCUA) proposed interagency policy statement on allowances for credit losses (ACLs). The agencies are issuing this proposed interagency policy statement in response to changes to U.S. generally accepted accounting principles (GAAP) as promulgated by the Financial Accounting Standards Board (FASB) in Accounting Standards Update (ASU) 2016–13, Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments and subsequent amendments issued since June 2016. These updates are codified in Accounting Standards Codification (ASC) Topic 326, Financial Instruments—Credit Losses (FASB ASC Topic 326). Comments are due 12/16/2019. The notice may be viewed at: https://www.govinfo.gov/content/pkg/FR-2019-10-17/pdf/2019-22655.pdf. Federal Register, Vol. 84, No. 201, 10/17/2019, 55510-55522.

Agencies Propose Margin and Capital Requirements for Covered Swap Entities.

The Board of Governors of the Federal Reserve System (FRB), the Federal Deposit Insurance Corporation (FDIC), the Office of the Comptroller of the Currency (OCC), the Federal Housing Finance Agency (FHFA), and the Farm Credit Administration (FCA) issued a proposed rule that would amend the agencies’ regulations that require swap dealers and security-based swap dealers under the agencies’ respective jurisdictions to exchange margin with their counterparties for swaps that are not centrally cleared (Swap Margin Rule). The Swap Margin Rule as adopted in 2015 takes effect under a phased compliance schedule spanning from 2016 through 2020, and the dealers covered by the rule continue to hold swaps in their portfolios that were entered into before the effective dates of the rule. Such swaps are grandfathered from the Swap Margin Rule’s requirements until they expire according to their terms. The proposed rule would permit swaps entered into prior to an applicable compliance date (legacy swaps) to retain their legacy status in the event that they are amended to replace an interbank offered rate (IBOR) or other discontinued rate, repeal the inter-affiliate initial margin provisions, introduce an additional compliance date for initial margin requirements, clarify the point in time at which trading documentation must be in place, permit legacy swaps to retain their legacy status in the event that they are amended due to technical amendments, notional reductions, or portfolio compression exercises, and make technical changes to relocate the provision addressing amendments to legacy swaps that are made to comply with the Qualified Financial Contract Rules, as defined in the Supplementary Information section. Comments are due 12/09/2019. The notice may be viewed at: https://www.govinfo.gov/content/pkg/FR-2019-11-07/pdf/2019-23541.pdf. Federal Register, Vol. 84, No. 216, 11/07/2019, 59970-59989.

Agencies Request Comment on Reporting of Data on Loans to Small Businesses and Small Farms.

The Board of Governors of the Federal Reserve System (FRB), Federal Deposit Insurance Corporation (FDIC), and the Office of the Comptroller of the Currency (OCC) are requesting comment on ways to modify the current requirements for reporting data on loans to small businesses and small farms in the Consolidated Reports of Condition and Income (Call Report) so that the reported data better reflect lending to these sectors of the U.S. economy. Comments are due 12/16/2019. The notice may be viewed at: https://www.govinfo.gov/content/pkg/FR-2019-10-17/pdf/2019-22568.pdf. Federal Register, Vol. 84, No. 201, 10/17/2019, 55687-55690.

Agencies Request Comment on Information Collection.

The Board of Governors of the Federal Reserve System (FRB), Federal Deposit Insurance Corporation (FDIC), and the Office of the Comptroller of the Currency (OCC) announced they seek comment on the information collection titled Market Risk Regulatory Report for Institutions Subject to the Market Risk Capital Rule. The agencies also gave notice that they sent the collection to OMB for review. Comments are due 11/18/2019. The notice may be viewed at: https://www.govinfo.gov/content/pkg/FR-2019-10-17/pdf/2019-22654.pdf. Federal Register, Vol. 84, No. 201, 10/17/2019, 55685-55686.

Agencies Request Comment on Application of the Uniform Financial Institutions Rating System.

The Board of Governors of the Federal Reserve System (FRB), and Federal Deposit Insurance Corporation (FDIC) are seeking information and comments from interested parties regarding the consistency of ratings assigned by the agencies under the Uniform Financial Institutions Rating System (UFIRS). The assigned ratings are commonly known as CAMELS ratings. The agencies also are interested in receiving feedback concerning the current use of CAMELS ratings by the agencies in their bank application and enforcement action processes. Comments are due 12/30/2019. The notice may be viewed at: https://www.govinfo.gov/content/pkg/FR-2019-10-31/pdf/2019-23739.pdf. Federal Register, Vol. 84, No. 211, 10/31/2019, 58383-58386.

CFPB Finalizes Amendments to Regulation C.

The Bureau of Consumer Financial Protection (CFPB) is amending Regulation C to adjust the threshold for reporting data about open-end lines of credit by extending to 01/01/2022, the current temporary threshold of 500 open-end lines of credit. CFPB is also incorporating into Regulation C the interpretations and procedures from the interpretive and procedural rule that CFPB issued on 08/31/2018, and implementing further the Economic Growth, Regulatory Relief, and Consumer Protection Act. The final rule is effective on 01/01/2020, except for the amendments to § 1003.2 in amendatory instruction 6, the amendments to § 1003.3 in amendatory instruction 7, and the amendments to supplement I to part 1003 in amendatory instruction 8, which are effective on 01/01/2022. The notice may be viewed at: https://www.govinfo.gov/content/pkg/FR-2019-10-29/pdf/2019-22561.pdf. Federal Register, Vol. 84, No. 209, 10/29/2019, 57946-58004.

CFPB Requests Comment on Information Collections.

  • CFPB announced it seeks comment on the information collection titled Evaluation of Financial Empowerment Training Program. CFPB also gave notice that it sent the collection to OMB for review. Comments are due 11/18/2019. The notice may be viewed at: https://www.govinfo.gov/content/pkg/FR-2019-10-18/pdf/2019-22770.pdf. Federal Register, Vol. 84, No. 202, 10/18/2019, 55945-55946.
  • CFPB announced it seeks comment on the information collection titled Generic Information Collection Plan for Information on Compliance Costs and Other Effects of Regulations. CFPB also gave notice that it sent the collection to OMB for review. Comments are due 11/18/2019. The notice may be viewed at: https://www.govinfo.gov/content/pkg/FR-2019-10-18/pdf/2019-22771.pdf. Federal Register, Vol. 84, No. 202, 10/18/2019, 55944-55945.

FRB Finalizes Amendments to Extensions of Credit by Federal Reserve Banks.

The Board of Governors of the Federal Reserve System (FRB) has adopted final amendments to its Regulation A to reflect FRB’s approval of a decrease in the rate for primary credit at each Federal Reserve Bank. The secondary credit rate at each Reserve Bank automatically decreased by formula as a result of FRB’s primary credit rate action. The rule is effective 11/07/2019. The notice may be viewed at: https://www.govinfo.gov/content/pkg/FR-2019-11-07/pdf/2019-24273.pdf. Federal Register, Vol. 84, No. 216, 11/07/2019, 59923-59924.

FRB Finalizes Amendments to Reserve Requirements of Depository Institutions.

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 1.55 percent and IOER is 1.55 percent, a 0.25 percentage point decrease 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 11/07/2019, and the rates are applicable 10/31/2019. The notice may be viewed at: https://www.govinfo.gov/content/pkg/FR-2019-11-07/pdf/2019-24272.pdf. Federal Register, Vol. 84, No. 216, 11/07/2019, 59924-59926. 

FRB Proposes Risk-Based Capital Requirements for Depository Institution Holding Companies Significantly Engaged in Insurance Activities. 

FRB is inviting comment on a proposal to establish risk-based capital requirements for depository institution holding companies that are significantly engaged in insurance activities. FRB is proposing a risk-based capital framework, termed the Building Block Approach, that adjusts and aggregates existing legal entity capital requirements to determine an enterprise-wide capital requirement, together with a risk-based capital requirement excluding insurance activities, in compliance with section 171 of the Dodd-Frank Act. FRB is additionally proposing to apply a buffer to limit an insurance depository institution holding company’s capital distributions and discretionary bonus payments if it does not hold sufficient capital relative to enterprise-wide risk, including risk from insurance activities. The proposal would also revise reporting requirements for depository institution holding companies significantly engaged in insurance activities. Comments are due 10/23/2019. The notice may be viewed at: https://www.govinfo.gov/content/pkg/FR-2019-10-24/pdf/2019-21978.pdf. Federal Register, Vol. 84, No. 206, 10/24/2019, 57240-57301.

FDIC Finalizes Company-Run Stress Testing Requirements.

The Federal Deposit Insurance Corporation (FDIC) is adopting a final rule to amend the FDIC’s company-run stress testing regulations applicable to state nonmember banks and state savings associations, consistent with section 401 of the Economic Growth, Regulatory Relief, and Consumer Protection Act (EGRRCPA). Specifically, the final rule revises the minimum threshold for applicability from $10 billion to $250 billion, revises the frequency of required stress tests by FDIC-supervised institutions, and reduces the number of required stress testing scenarios from three to two. The final rule also makes certain conforming and technical changes. The rule is effective 11/25/2019. The notice may be viewed at: https://www.govinfo.gov/content/pkg/FR-2019-10-24/pdf/2019-23036.pdf. Federal Register, Vol. 84, No. 206, 10/24/2019, 56929-56935.

FDIC Proposes Removal of Transferred OTS Regulations.

FDIC proposes to rescind and remove certain regulations transferred in 2011 to the FDIC from the former Office of Thrift Supervision pursuant to the Dodd-Frank Wall Street Reform and Consumer Protection Act (the Dodd-Frank Act). In addition to the removal of part 390, subpart S, FDIC proposes to make technical changes to other parts of FDIC’s regulations so that they may be applicable on their terms to State savings associations. Following the removal of the identified regulations, the regulations governing the operations of State savings associations will be substantially the same as those for all other FDIC-supervised institutions. FDIC invites comments on all aspects of this proposed rulemaking. Comments are due 12/02/2019. The notice may be viewed at: https://www.govinfo.gov/content/pkg/FR-2019-10-31/pdf/2019-23115.pdf. Federal Register, Vol. 84, No. 211, 10/31/2019, 58492-58520.

FDIC Requests Comment on Information Collections.

  • FDIC announced it seeks comment on the information collection titled Notification of Performance of Bank Services. FDIC also gave notice that it sent the collection to OMB for review. Comments are due 12/30/2019. The notice may be viewed at: https://www.govinfo.gov/content/pkg/FR-2019-10-29/pdf/2019-23527.pdf. Federal Register, Vol. 84, No. 209, 10/29/2019, 27869-27874.
  • FDIC announced it seeks comment on the information collection titled Information Collection for Innovation Pilot Programs. FDIC also gave notice that it sent the collection to OMB for review. Comments are due 01/06/2020. The notice may be viewed at: https://www.govinfo.gov/content/pkg/FR-2019-11-06/pdf/2019-24209.pdf. Federal Register, Vol. 84, No. 215, 11/06/2019, 59808-59809.

FDIC Appointed Receiver, Liquidator, or Manager.

FDIC has been appointed the sole receiver for the financial institutions listed in the table in the notice effective as of the Date Closed as indicated in the listing. The notice may be viewed at: https://www.govinfo.gov/content/pkg/FR-2019-11-01/pdf/2019-23820.pdf. Federal Register, Vol. 84, No. 212, 11/01/2019, 58718.

OCC Requests Comment on Information Collections.

  • The Office of the Comptroller of the Currency (OCC) announced it seeks comment on the information collection titled OCC Supplier Registration Form. OCC also gave notice that it sent the collection to OMB for review. Comments are due 11/14/2019. The notice may be viewed at: https://www.govinfo.gov/content/pkg/FR-2019-10-15/pdf/2019-22407.pdf. Federal Register, Vol. 84, No. 199, 10/15/2019, 55228-55229.
  • OCC announced it seeks comment on the information collection titled Regulation C—Home Mortgage Disclosure. OCC also gave notice that it sent the collection to OMB for review. Comments are due 12/16/2019. The notice may be viewed at: https://www.govinfo.gov/content/pkg/FR-2019-10-16/pdf/2019-22473.pdf. Federal Register, Vol. 84, No. 200, 10/16/2019, 55378-55379.
  • OCC announced it seeks comment on the information collection titled Regulation Z—Truth in Lending Act. OCC also gave notice that it sent the collection to OMB for review. Comments are due 12/04/2019. The notice may be viewed at: https://www.govinfo.gov/content/pkg/FR-2019-11-04/pdf/2019-23960.pdf. Federal Register, Vol. 84, No. 213, 11/04/2019, 59446-59449.

HUD Requests Comment on Information Collections.

  • The Department of Housing and Urban Development (HUD) announced it seeks comment on the information collection titled HUD Certified Housing Counselor Registration. HUD also gave notice that it sent the collection to OMB for review. Comments are due 12/10/2019. The notice may be viewed at: https://www.govinfo.gov/content/pkg/FR-2019-10-11/pdf/2019-22334.pdf. Federal Register, Vol. 84, No. 198, 10/11/2019, 54915-54916.
  • HUD announced it seeks comment on the information collection titled Continuum of Care Homeless Assistance—Technical Submission. HUD also gave notice that it sent the collection to OMB for review. Comments are due 12/10/2019. The notice may be viewed at: https://www.govinfo.gov/content/pkg/FR-2019-10-11/pdf/2019-22332.pdf. Federal Register, Vol. 84, No. 198, 10/11/2019, 54916-54917.
  • HUD announced it seeks comment on the information collection titled Emergency Solutions Grants Program Recordkeeping Requirements. HUD also gave notice that it sent the collection to OMB for review. Comments are due 12/10/2019. The notice may be viewed at: https://www.govinfo.gov/content/pkg/FR-2019-10-11/pdf/2019-22333.pdf. Federal Register, Vol. 84, No. 198, 10/11/2019, 54917-54919.
  • HUD announced it seeks comment on the information collection titled Ginnie Mae Mortgage-Backed Securities Guide 5500.3, Revision 1. HUD also gave notice that it sent the collection to OMB for review. Comments are due 11/20/2019. The notice may be viewed at: https://www.govinfo.gov/content/pkg/FR-2019-10-21/pdf/2019-22918.pdf. Federal Register, Vol. 84, No. 203, 10/21/2019, 56199-56201.
  • HUD announced it seeks comment on the information collection titled Application for FHA Insured Mortgages. HUD also gave notice that it sent the collection to OMB for review. Comments are due 12/24/2019. The notice may be viewed at: https://www.govinfo.gov/content/pkg/FR-2019-10-25/pdf/2019-23240.pdf. Federal Register, Vol. 84, No. 207, 10/25/2019, 57464-57468.
  • HUD announced it seeks comment on the information collection titled HUD-Owned Real Estate Sales Contract and Addendums. HUD also gave notice that it sent the collection to OMB for review. Comments are due 12/30/2019. The notice may be viewed at: https://www.govinfo.gov/content/pkg/FR-2019-10-31/pdf/2019-23790.pdf. Federal Register, Vol. 84, No. 211, 10/31/2019, 58406-58407.
  • HUD announced it seeks comment on the information collection titled Mortgage Insurance Termination Application for Premium Refund or Distributive Share Payment. HUD also gave notice that it sent the collection to OMB for review. Comments are due 12/30/2019. The notice may be viewed at: https://www.govinfo.gov/content/pkg/FR-2019-10-31/pdf/2019-23791.pdf. Federal Register, Vol. 84, No. 211, 10/31/2019, 58408.
  • HUD announced it seeks comment on the information collection titled Ginnie Mae Multiclass Securities Program Documents. HUD also gave notice that it sent the collection to OMB for review. Comments are due 01/03/2020. The notice may be viewed at: https://www.govinfo.gov/content/pkg/FR-2019-11-04/pdf/2019-23961.pdf. Federal Register, Vol. 84, No. 213, 11/04/2019, 59412-59414.

HUD Issues Debenture Interest Rate for Mortgage and Loan Insurance Programs.

HUD announced changes in the interest rates to be paid on debentures issued with respect to a loan or mortgage insured by the Federal Housing Administration under the provisions of the National Housing Act (the Act). The interest rate for debentures issued under Section 221(g)(4) of the Act during the 6-month period beginning 07/01/2019, is 2 3/8 percent. The interest rate for debentures issued under any other provision of the Act is the rate in effect on the date that the commitment to insure the loan or mortgage was issued, or the date that the loan or mortgage was endorsed (or initially endorsed if there are two or more endorsements) for insurance, whichever rate is higher. The interest rate for debentures issued under these other provisions with respect to a loan or mortgage committed or endorsed during the 6-month period beginning 07/01/2019, is 2 3⁄4 percent. The notice may be viewed at: https://www.govinfo.gov/content/pkg/FR-2019-10-31/pdf/2019-23789.pdf. Federal Register, Vol. 84, No. 211, 10/31/2019, 58405-58406.

FEMA Issues Final Rules 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.govinfo.gov/content/pkg/FR-2019-10-23/pdf/2019-23123.pdf. Federal Register, Vol. 84, No. 205, 10/23/2019, 56704-56705.

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, Iowa, Minnesota, Nebraska, and Ohio. 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.govinfo.gov/content/pkg/FR-2019-11-01/pdf/2019-23883.pdf. Federal Register, Vol. 84, No. 212, 11/01/2019, 58729-58732.

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 Minnesota, and Iowa. 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 01/14/2020. The notice may be viewed at: https://www.govinfo.gov/content/pkg/FR-2019-10-16/pdf/2019-22455.pdf. Federal Register, Vol. 84, No. 200, 10/16/2019, 55324-55325.

FinCEN Finalizes Special Measure Against the Islamic Republic of Iran as a Jurisdiction of Primary Money Laundering Concern. 

The Financial Crimes Enforcement Network (FinCEN) issued a final rule, pursuant to Section 311 of the USA PATRIOT Act, to prohibit the opening or maintaining of correspondent accounts in the United States for, or on behalf of, Iranian financial institutions, and the use of foreign financial institutions’ correspondent accounts at covered U.S. financial institutions to process transactions involving Iranian financial institutions. The final rule is effective 11/14/2019. The notice may be viewed at: https://www.govinfo.gov/content/pkg/FR-2019-11-04/pdf/2019-23697.pdf. Federal Register, Vol. 84, No. 213, 11/04/2019, 59302-59313.

Treasury Proposes Assessment of Fees to Cover the Expenses of the Financial Research Funds.

The Department of the Treasury (Treasury) issued a proposed rule to implement section 401 of the Economic Growth, Regulatory Relief, and Consumer Protection Act (the Economic Growth Act), which amends section 155 of the Dodd-Frank Wall Street Reform and Consumer Protection Act (Dodd-Frank Act). As amended, section 155 requires the Secretary of the Treasury to establish, by regulation, an assessment schedule applicable to bank holding companies with total consolidated assets of $250 billion or greater and nonbank financial companies supervised by the Board of Governors of the Federal Reserve System (FRB), to collect assessments equal to the total expenses of the Office of Financial Research (OFR). Treasury is also proposing other amendments to simplify the method for determining the amount of total assessable assets for foreign banking organizations, which have been made possible by the introduction of a new regulatory data source. Comments are due 12/04/2019. The notice may be viewed at: https://www.govinfo.gov/content/pkg/FR-2019-11-04/pdf/2019-23906.pdf. Federal Register, Vol. 84, No. 213, 11/04/2019, 59320-59325.  

Treasury Proposes Rules Regarding Eligible Terminated S Corporations.

Treasury issued a proposed rulemaking regarding the definition of an eligible terminated S corporation (ETSC). In addition, these proposed regulations provide rules relating to distributions of money by an ETSC after the post-termination transition period (PTTP). Finally, these proposed regulations revise current regulations to extend the treatment of distributions of money during the PTTP to all shareholders of the corporation and to update and clarify the allocation of current earnings and profits to distributions of money and other property. These proposed regulations would affect certain C corporations and the shareholders of such corporations. Comments are due 12/23/2019. The notice may be viewed at: https://www.govinfo.gov/content/pkg/FR-2019-11-07/pdf/2019-24098.pdf. Federal Register, Vol. 84, No. 216, 11/07/2019, 60011-60025.

Treasury Proposes Updated Life Expectancy and Distribution Period Tables. 

Treasury proposes regulations providing guidance relating to the life expectancy and distribution period tables that are used to calculate required minimum distributions from qualified retirement plans, individual retirement accounts and annuities, and certain other tax favored employer-provided retirement arrangements. The regulations affect participants, beneficiaries, and plan administrators of these qualified retirement plans and other tax-favored employer-provided retirement arrangements, as well as owners, beneficiaries, trustees and custodians of individual retirement accounts and annuities. Comments are due 01/07/2020. The notice may be viewed at: https://www.govinfo.gov/content/pkg/FR-2019-11-08/pdf/2019-24065.pdf. Federal Register, Vol. 84, No. 217, 11/08/2019, 60812-60844.

Treasury Requests Comment on Information Collections.

  • Treasury announced it seeks comment on the information collection titled BEA Program Application. Treasury also gave notice that it sent the collection to OMB for review. Comments are due 12/16/2019. The notice may be viewed at: https://www.govinfo.gov/content/pkg/FR-2019-10-15/pdf/2019-22377.pdf. Federal Register, Vol. 84, No. 199, 10/15/2019, 55223-55228.
  • Treasury announced it seeks comment on the information collection titled Uses of Award Report Form. Treasury also gave notice that it sent the collection to OMB for review. Comments are due 12/16/2019. The notice may be viewed at: https://www.govinfo.gov/content/pkg/FR-2019-10-17/pdf/2019-22574.pdf. Federal Register, Vol. 84, No. 201, 10/17/2019, 55678-55679.
  • Treasury announced it seeks comment on the information collection titled Troubled Asset Relief Program—Making Home Affordable Participants. Treasury also gave notice that it sent the collection to OMB for review. Comments are due 12/27/2019. The notice may be viewed at: https://www.govinfo.gov/content/pkg/FR-2019-10-28/pdf/2019-23440.pdf. Federal Register, Vol. 84, No. 208, 10/28/2019, 57810.
  • Treasury announced it seeks comment on the information collection titled Requirements for Qualified Domestic Trust. Treasury also gave notice that it sent the collection to OMB for review. Comments are due 12/24/2019. The notice may be viewed at: https://www.govinfo.gov/content/pkg/FR-2019-10-25/pdf/2019-23397.pdf. Federal Register, Vol. 84, No. 207, 10/25/2019, 57551.

Treasury Issues Fee Schedule for the Transfer of U.S. Treasury Book-Entry Securities Held on the Fedwire Securities Service.

Treasury issued a new fee schedule applicable to transfers of U.S. Treasury book-entry securities maintained on the Fedwire Securities Service (Fedwire) that occur on or after 01/02/2020. The notice may be viewed at: https://www.govinfo.gov/content/pkg/FR-2019-10-28/pdf/2019-23482.pdf. Federal Register, Vol. 84, No. 208, 10/28/2019, 57808.

SBA Requests Comment on Information Collection. 

The Small Business Administration (SBA) announced it seeks comment on the information collection titled Stockholders Confirmation (Corporation): Ownership Confirmation. SBA also gave notice that it sent the collection to OMB for review. Comments are due 12/09/2019. The notice may be viewed at: https://www.govinfo.gov/content/pkg/FR-2019-11-07/pdf/2019-24313.pdf. Federal Register, Vol. 84, No. 216, 11/07/2019, 60134-60135.

RUS Repeals Rural Telephone Bank, Public Television Station Digital Transition Grant Program and the Local Television Loan Guarantee Program. 

The Rural Utilities Service (RUS) is repealing the Rural Telephone Bank, Public Television Station Digital Transition Grant Program and the Local Television Loan Guarantee Program from the Code of Federal Regulations (CFR). This action removes expired and terminated programs from the CFR as repealed by the 2018 Agricultural Improvement Act (2018 Farm Bill). The statutory changes result from the 2018 Farm Bill. Additionally, conforming changes are being made to other regulations as a result of the statutory changes. The final rule is effective 01/06/2020. The notice may be viewed at: https://www.govinfo.gov/content/pkg/FR-2019-11-07/pdf/2019-24310.pdf. Federal Register, Vol. 84, No. 216, 11/07/2019, 59919-59923.

NCUA Amends Public Unit and Nonmember Shares Rule.

The National Credit Union Administration (NCUA) is amending NCUA’s public unit and nonmember share rule to allow federal credit unions (FCU) to receive public unit and nonmember shares up to 50 percent of the credit union’s net amount of paid-in and unimpaired capital and surplus less any public unit and nonmember shares. This final rule also makes a conforming change to NCUA’s regulations that apply the public unit and nonmember share limit to all federally insured credit unions (FICUs). The final rule is effective 01/29/2020. The notice may be viewed at: https://www.govinfo.gov/content/pkg/FR-2019-10-31/pdf/2019-23679.pdf. Federal Register, Vol. 84, No. 211, 10/31/2019, 58305-58309.

NCUA Proposes Amendments to Chartering and Field of Membership Rules.

NCUA is proposing to amend its chartering and field of membership (FOM) rules with respect to applicants for a community charter approval, expansion, or conversion. Specifically, NCUA is proposing to re-adopt a provision to allow an applicant to designate a Combined Statistical Area (CSA), or an individual, contiguous portion thereof, as a well-defined local community (WDLC), provided that the chosen area has a population of 2.5 million or less. Separately, in accordance with an August 2019 opinion and order issued by the D.C. Circuit Court of Appeals (court) with respect to communities based on a Core-Based Statistical Area (CBSA) or a portion thereof, NCUA is providing further explanation and support for its elimination of the requirement to serve the CBSA’s core area as provided for in a 2016 rulemaking. In addition, NCUA is proposing to clarify existing requirements and add an explicit provision to its rules to address concerns about potential discrimination in the FOM selection for CSAs and CBSAs. Comments are due 12/09/2019. The notice may be viewed at: https://www.govinfo.gov/content/pkg/FR-2019-11-07/pdf/2019-23680.pdf. Federal Register, Vol. 84, No. 216, 11/07/2019, 59989-60115.

NCUA Issues 2020-2021 Budget Justification Draft.

NCUA is making available it’s “Detailed Business-Type Budget” available for public review. The proposed resources w   ill finance the agency’s annual operations and capital projects, both of which are necessary for the agency to accomplish its mission. The briefing schedule and comment instructions are included in the supplementary information section. Comments are due 12/02/2019. The notice may be viewed at: https://www.govinfo.gov/content/pkg/FR-2019-11-01/pdf/2019-23856.pdf. Federal Register, Vol. 84, No. 212, 11/01/2019, 59126-59192.

NCUA Requests Comment on Information Collections.

  • NCUA announced it seeks comment on the information collection titled Written Reimbursement Policy. NCUA also gave notice that it sent the collection to OMB for review. Comments are due 12/16/2019. The notice may be viewed at: https://www.govinfo.gov/content/pkg/FR-2019-10-16/pdf/2019-22493.pdf. Federal Register, Vol. 84, No. 200, 10/16/2019, 55338.
  • NCUA announced it seeks comment on the information collection titled Supervisory Committee Audits and Verifications. NCUA also gave notice that it sent the collection to OMB for review. Comments are due 11/18/2019. The notice may be viewed at: https://www.govinfo.gov/content/pkg/FR-2019-10-17/pdf/2019-22686.pdf. Federal Register, Vol. 84, No. 201, 10/17/2019, 55591-55592.
  • NCUA announced it seeks comment on the information collection titled Advertising of Excess Insurance. NCUA also gave notice that it sent the collection to OMB for review. Comments are due 12/23/2019. The notice may be viewed at: https://www.govinfo.gov/content/pkg/FR-2019-10-24/pdf/2019-23212.pdf. Federal Register, Vol. 84, No. 206, 10/24/2019, 57056-57057.

VA Requests Comment on Information Collection.

The Department of Veterans Affairs (VA) announced it seeks comment on the information collection titled Statement of Purchaser or Owner Assuming Seller’s Loan. VA also gave notice that it sent the collection to OMB for review. Comments are due 12/17/2019. The notice may be viewed at: https://www.govinfo.gov/content/pkg/FR-2019-10-18/pdf/2019-22750.pdf. Federal Register, Vol. 84, No. 202, 10/18/2019, 56020.

DOL Finalizes Regulations on Authorizing Electronic Payments of Civil Monetary Penalties.

The Department of Labor (DOL) revises its regulations issued pursuant to the Migrant and Seasonal Agricultural Worker Protection Act (MSPA), the H–2A provisions of the Immigration and Nationality Act (H– 2A), the Fair Labor Standards Act (FLSA), and the Employee Polygraph Protection Act (EPPA) governing the payment of civil money penalties (CMPs) assessed by the Wage and Hour Division (WHD). The regulatory revisions expand the CMP payment methods beyond the options specified in the current text by allowing for the payment of CMPs through an electronic payment alternative, and otherwise amend the regulations to ensure uniform payment instructions. The existing MSPA, H–2A, FLSA, and EPPA regulations require persons assessed a CMP under those statutory schemes to remit payment in person or by mail using a certified check or money order. In recognition of modern payment methods, DOL is amending these regulations to allow for payment of the CMPs via an electronic payment alternative, any successor system, or by any additional payment method that DOL may deem acceptable in the future. The rule is effective 11/07/2019. The notice may be viewed at: https://www.govinfo.gov/content/pkg/FR-2019-11-07/pdf/2019-23849.pdf. Federal Register, Vol. 84, No. 216, 11/07/2019, 59928-59931.

DOL Proposes Default Electronic Disclosure by Employee Pension Benefit Plans Under ERISA.

DOL proposed a new, additional safe harbor for the use of electronic media by employee benefit plans to furnish information to participants and beneficiaries of plans subject to the Employee Retirement Income Security Act of 1974 (ERISA). The proposal, if adopted, would allow plan administrators who satisfy specified conditions to provide participants and beneficiaries with a notice that certain disclosures will be made available on a website. Individuals who prefer to receive these disclosures on paper will be able to request paper copies and to opt out of electronic delivery entirely. DOL expects that the proposal, if adopted, would improve the effectiveness of the disclosures and significantly reduce the costs and burden associated with furnishing many of the recurring and most costly ERISA disclosures. This document also contains, in section D of the preamble, a Request for Information that explores whether and how any additional changes to ERISA’s general disclosure framework, focusing on design, delivery, and content, may be made to further improve the effectiveness of ERISA disclosures. Comments are due 11/22/2019. The notice may be viewed at: https://www.govinfo.gov/content/pkg/FR-2019-10-23/pdf/2019-22901.pdf. Federal Register, Vol. 84, No. 205, 10/23/2019, 56894-56923.

SSA Issues Correction to Prohibiting Persons With Certain Criminal Convictions From Serving as Representative Payees.

The Social Security Administration (SSA) published final rules in the Federal Register on 02/15/2019 to prohibit persons convicted of certain crimes from serving as representative payees under the Social Security Act (Act), as required by the Strengthening Protections for Social Security Beneficiaries Act of 2018. Those final rules inadvertently included two words in three places that should not have been there, and omitted one word in two sections of the rules. The document corrects the inadvertent inclusions and omissions in the final rules. The correction is effective 10/25/2019, and applicable 03/18/2019. The notice may be viewed at: https://www.govinfo.gov/content/pkg/FR-2019-10-25/pdf/2019-23235.pdf. Federal Register, Vol. 84, No. 207, 10/25/2019, 57319-57320. 

DoD Finalizes Rule on Obtaining Information From Financial Institutions.

The Department of Defense (DoD) issued a final rule removing the regulation which describes the procedures for complying with the Right to Financial Privacy Act (RFPA). On 05/29/2019, the DoD revised its overarching regulation for compliance with the RFPA which supersedes this part. This part is now unnecessary and should be removed from the CFR. The final rule is effective 11/06/2019. The notice may be viewed at: https://www.govinfo.gov/content/pkg/FR-2019-11-06/pdf/2019-24030.pdf. Federal Register, Vol. 84, No. 215, 11/06/2019, 59723.

By, Ally Bates

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Events

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GSB – The Evolution of Ransomware

When you arrive at work today, your computer screen shows a message asking for $52,000 to access your files, and you have 48 hours to pay or you lose your data. Does this scenario keep you up at night? It sure has kept the employees of the City of Atlanta up most nights in the second quarter of 2018 as they recovered from a SamSam ransomware infection that shut down a significant portion of their network for months. In the case of shipping company Mearsk, they lost over $200 million from the NotPetya ransomware attack. They were required to conduct a complete infrastructure overhaul, which included the reinstallation of 4,000 servers and 45,000 PCs according to a ZDNet article. If you recall, the 2017 NotPetya ransomware attack never had a successful payment mechanism to get your data back. It resulted in the complete destruction of systems for thousands of businesses in eastern Europe.

Ransomware is evolving from a wallet stealing threat to a weapon of mass destruction that has the power to cripple businesses or even countries. There are many different directions that ransomware has taken over the past few years; as it finds its place as a major threat to our businesses. Join us in this discussion to learn about trending issues with ransomware and best practices to prepare for an attack.

Topics for Discussion:

  • Regulatory guidance and expectations
  • Trend attack types
  • Infection process
  • Lessons learned
  • Best practices
  • Ransom payment methods
  • Free Ransomware Toolkit

Target Audience:  Information security officer, IT manager, risk officer, internal auditor, board members, or other management team members looking to understand risks from Ransomware.

Presenter
SBS CyberSecurity, LLC

Registration Option
Live presentation $330

Recording available through May 18, 2022

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