Federal Reserve adjusts civil monetary penalty limits

The Federal Reserve Board published an interim final rule amending its rules of practice and procedure to adjust the amount of each civil monetary penalty provided by law within its jurisdiction to account for inflation, as required by the Federal Civil Penalties Inflation Adjustment Act Improvements Act of 2015. The increased limits include “catch-up” adjustments required by the act.

The rule was published July 20 in the Federal Register. Comments on the rule will be accepted through Aug. 30. The rule is effective on Aug. 1.

Source: https://www.federalregister.gov/articles/2016/07/20/2016-16969/rules-of-practice-for-hearings

On the Radar

Agencies propose inflation adjustments for exempting small loans

The Consumer Financial Protection Bureau, the Federal Reserve Board, and Office of Comptroller of the Currency on July 22 announced a proposed rule detailing the method that will be used to make annual inflation adjustments to the threshold for exempting small loans from higher-priced mortgage loan appraisal requirements. The Dodd-Frank Act amended the Truth in Lending Act to add special appraisal requirements for higher-priced mortgage loans, including a requirement that creditors obtain a written appraisal based on a physical visit to the home’s interior before making a loan. The rules implementing these requirements contain an exemption for loans of $25,000 or less and also provide the exemption threshold will be adjusted annually to reflect increases in the Consumer Price Index for Urban Wage Earners and Clerical Workers.

Comments will be due 30 days after the rule is published in the Federal Register.

Source: http://www.federalreserve.gov/newsevents/press/bcreg/20160722b.htm

Agencies propose adjustments to consumer credit and lease exemption thresholds

The Federal Reserve Board and the Consumer Financial Protection Bureau have announced proposals detailing the method that will be used to adjust the thresholds for exempting certain consumer credit and lease transactions from the Truth in Lending Act and Consumer Leasing Act. The Dodd-Frank Act requires the exemption thresholds in the TILA and the Consumer Leasing Act be adjusted annually based on the percentage increase in the Consumer Price Index for Urban Wage Earners and Clerical Workers.

Comments will be due 30 days after the rule is published in the Federal Register.

Source: http://www.federalreserve.gov/newsevents/press/bcreg/20160722a.htm

Other Industry Issues of Interest

FRB issues letter on repeal of Regulation AA

The Federal Reserve Board published on July 13 a consumer affairs letter on the repeal of Regulation AA and the publication of revised exam procedures for Section 5 of the Federal Trade Commission Act. The Dodd-Frank Act repealed the board’s authority to write rules that address unfair or deceptive acts or practices, which were contained in Regulation AA, including the “credit practices rule,” which prohibited banks from using certain practices to enforce consumer credit obligations. The Dodd-Frank Act provides the Consumer Financial Protection Bureau with separate authority to promulgate rules to identify and prohibit unfair, deceptive, or abusive acts or practices, and consequently, the board repealed Regulation AA.

Source: http://www.federalreserve.gov/bankinforeg/caletters/caltr1604.htm

NCUA releases remittance transfers materials

The National Credit Union Administration on July 15 released a new video and brochure for consumers about their rights and protections when sending money internationally. Consumers also can find information on sending money domestically and internationally on NCUA’s Wire and Remittance Transfers page. All resources are available in Spanish.

Source: https://www.ncua.gov/newsroom/Pages/news-2016-july-remittances.aspx

Agencies release revisions to community reinvestment

On July 15, the Federal Reserve, Office of the Comptroller of the Currency and Federal Deposit Insurance Corporation released the final revisions to “Interagency Questions and Answers Regarding Community Reinvestment.”

The guidance addresses questions raised by bankers and others in the following areas:

• Availability and effectiveness of retail banking services;

• Innovative or flexible lending practices;

• Community development-related issues; and

• Responsiveness and innovativeness of an institution’s loans, qualified investments, and community development services.

Source: http://www.federalreserve.gov/newsevents/press/bcreg/20160715a.htm

FDIC releases video on corporate governance

The Federal Deposit Insurance Corporation on July 19 announced the release of an updated video on community bank corporate governance. The video is designed to assist community bank directors and officers in developing a sound corporate governance framework.

Source: https://www.fdic.gov/news/news/financial/2016/fil16046.html

FinCEN issues FAQs on Customer Due Diligence rule

The Financial Crimes Enforcement Network on July 19 issued a guidance document with frequently asked questions to assist covered financial institutions in understanding Customer Due Diligence Requirements for Financial Institutions. The Customer Due Diligence rule was published in the Federal Register on May 11. FinCEN plans to issue additional FAQs or other guidance on the rule as appropriate.

Source: https://www.fincen.gov/statutes_regs/guidance/pdf/FAQs_for_CDD_Final_Rule_(7_15_16).pdf

HMDA filing information for 2017 and 2018

The Federal Financial Institutions Examination Council and Department of Housing and Urban Development have published resources for financial institutions that are required to file Home Mortgage Disclosure Act data. The Consumer Financial Protection Bureau posted a notice about the resources on its website July 20.

The resources include:
• Filing Instructions Guide for data collected in 2017;
• Filing Instructions Guide for data collected in or after 2018;
• A Technology Preview with resources for institutions preparing their systems to file HMDA data with the CFPB; and
• Frequently Asked Questions about the changes in filing procedures.

Source: http://www.consumerfinance.gov/data-research/hmda/for-filers

CFPB adds HMDA resources

The Consumer Financial Protection Bureau has added additional resources to its Home Mortgage Disclosure Act rule implementation page.

New links on the page include:
• 2018 HMDA transactional coverage chart – A reference tool illustrating one approach to help determine whether a transaction is HMDA-reportable under the new rule.
• Overview of the HMDA final rule – A YouTube recording of the CFPB’s July 14 webinar.

Source: http://www.consumerfinance.gov/policy-compliance/guidance/implementation-guidance/hmda-implementation/

FRB Consumer Compliance Handbook updated

The Federal Reserve Board released the July 2016 edition of the board’s Consumer Compliance Handbook.

Source: http://www.federalreserve.gov/boarddocs/supmanual/supervision_cch.htm

New and updated Cuban travel FAQs issued

The Office of Foreign Assets Control announced July 25 the update of its frequently asked questions regarding Cuba. The update includes the issuance of one new FAQ and the revision of an existing FAQ relating to certain information collection and recordkeeping requirements for persons subject to U.S. jurisdiction who provide authorized carrier or travel services to or from Cuba for specifically licensed travelers.

Source: https://www.treasury.gov/resource-center/sanctions/OFAC-Enforcement/Pages/20160725.aspx

By |2019-11-25T08:15:07-06:00July 28th, 2016|Financial Services|0 Comments

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