The New York State Department of Financial Services on Dec. 28 announced it has updated its proposed first-in-the-nation cybersecurity regulation to protect the state from the ever-growing threat of cyberattacks.
The proposed regulation, which take effect March 1, will require banks, insurance companies and other financial services institutions regulated by the DFS to establish and maintain a cybersecurity program designed to protect consumers and ensure the safety and soundness of New York’s financial services industry. The updated proposed regulation was submitted to the New York State Register on Dec. 15 and published on Dec. 28. It will be finalized following a 30-day notice and public comment period.
To learn more about the proposed regulation, click here.
CFPB publishes annual civil penalty inflation adjustments
The Consumer Financial Protection Bureau published in the Jan. 12 Federal Register a final rule adjusting for inflation the maximum amount of each civil penalty within the bureau’s jurisdiction. These adjustments are required by the Federal Civil Penalties Inflation Adjustment Act of 1990, as amended by the Debt Collection Improvement Act of 1996 and further amended by the Federal Civil Penalties Inflation Adjustment Act Improvements Act of 2015. The inflation adjustments are mandated to maintain the deterrent effect of civil penalties and to promote compliance with the law. The amendments will be made to the CFPB’s administrative regulation, Civil Penalty Adjustments.
The final rule became effective Jan. 15.
The Federal Register notice of the final rule is available by clicking here.
FFIEC issues streamlined Call Report for small institutions
The Federal Financial Institutions Examination Council recently published a Federal Register notice finalizing the reporting requirements for a new and streamlined Call Report for small financial institutions.
The streamlined Call Report would reduce the number of pages from 85 to 61, resulting from the removal of approximately 40% of the nearly 2,400 data items. In response to comments received following the initial Federal Register notice published in August 2016, the agencies have reduced the frequency of certain reporting requirements from the original proposal. The final revised Call Report data collection has been submitted to the Office of Management and Budget for approval, and comments to the OMB will be accepted for 30 days after publication in the Federal Register.
The proposed changes would apply to financial institutions with domestic offices only and less than $1 billion in total assets. This represents approximately 90% of all institutions required to file Call Reports. The FFIEC anticipates the streamlined Call Report will be available for use as early as March 31.
To read the FFIEC news release about the updated Call Report, click here.
OCC report addresses top risks facing banks
The Office of the Comptroller of the Currency on Jan. 5 released its Semiannual Risk Perspective for Fall 2016, which reports on the strategic, credit, operational and compliance risks facing national banks and federal savings associations. The report includes an added focus on sales oversight.
To read the OCC news release about the report, click here.
The Federal Financial Institutions Examination Council and U.S. Department of Housing and Urban Development have published a list of updated resources for the collection of 2017 Home Mortgage Disclosure Act data. The linked resources include a technology preview, filing instructions for data collected in 2017 and 2018, a loan/application register formatting tool, and a list of frequently asked questions.
To learn more about resources for HMDA filers, click here.
NCUA December board meeting video now available
The National Credit Union Administration has posted a video on its website of the Dec. 15 open meeting of the NCUA Board. To view the NCUA board video, click here.
In the January issue of The NCUA Report, an article by the National Credit Union Administration’s Office of Small Credit Union Initiatives discusses the new, streamlined application process that has been created for CDFI certification for qualifying low-income credit unions, and how this process can help more credit unions become CDFI certified.
Click here to read the January issue of the NCUA Report.
More compliance news
TransUnion and Equifax ordered to refund $17.6 million to consumers
The Consumer Financial Protection Bureau issued a news release Jan. 3 announcing that TransUnion, Equifax and their subsidiaries have agreed to change practices that the bureau found misled consumers about the value of the credit scores they marketed and sold. In their advertising, the two credit reporting agencies misrepresented that the credit scores they provided to consumers were the same scores lenders typically use to make credit decisions, according to the release. The companies also have been ordered to return more than $17.6 million to consumers and pay penalties totaling $5.5 million.
To learn more about the CFPB action, click here.
Fintech focus of Consumer Compliance Outlook
The Philadelphia Federal Reserve Bank posted a fintech edition of Consumer Compliance Outlook on Jan. 10. The edition includes the following articles:
• Perspectives on Fintech: A Conversation with Governor Lael Brainard;
• Fintech: Balancing the Promise and Risks of Innovation;
• Fintech for the Consumer Market: An Overview; and
• Fintech Resources: Laws, Regulations, and Supervisory Guidance.
The full edition of the Consumer Compliance Outlook can be read by clicking here.