The Office of the Comptroller of the Currency on April 12 issued a new Retail Lending booklet of the Comptroller’s Handbook. The new booklet, part of the Safety and Soundness category of the handbook, discusses the risks associated with retail lending and provides a framework for evaluating retail credit risk management activities. The booklet supplements the core assessment sections of the Large Bank Supervision, Community Bank Supervision, and Federal Branches and Agency Supervision booklets of the Comptroller’s Handbook. Examiners should refer to the Retail Lending booklet when specific retail lending products, services, activities or risks warrant review beyond the core assessment, because those areas have a material impact on the risk profile and financial condition of national banks and federal savings associations.
To learn more, click here.
FDIC announces new guide on Federal Home Loan Banks
On April 6, the Federal Deposit Insurance Corporation announced the publication of a new guide to help community bankers learn more about the programs and products offered by Federal Home Loan Banks to facilitate mortgage lending. The Affordable Mortgage Lending Guide, Part III: Federal Home Loan Banks, describes many of the products and services offered by these banks, including the Affordable Housing Program and the Community Investment Program, advances, the Mortgage Purchase Program, and the Mortgage Partnership Finance program. The guide also describes FHLB products that support single-family home purchases, such as down payment and closing cost assistance, many of which can be used in conjunction with programs offered by other federal and state housing finance agencies and government-sponsored enterprises. The guide also describes alternatives to selling mortgages on the secondary market.
More information about the guide is available by clicking here.
FinCEN issues advisory on FATF-identified jurisdictions
The Financial Crimes Enforcement Network on April 5 issued an advisory to financial institutions regarding the Financial Action Task Force’s updated list of jurisdictions with strategic anti-money laundering/counter-terrorist financing deficiencies. Ethiopia has been added to the FATF listing and monitoring process due to a lack of effective implementation of its AML/CFT framework. The changes reported by FATF could affect U.S. financial institutions’ obligations and risk-based approaches regarding relevant jurisdictions.
To read the full advisory, click here.
Credit unions
NCUA seeks comments on alternative capital proposal
The National Credit Union Administration Board has issued an advanced notice of proposed rulemaking to solicit comments on alternative forms of capital federally insured credit unions could use to meet capital standards required by statute and regulation. The board is considering changes to the secondary capital regulation for low-income designated credit unions. It is also considering whether to authorize credit unions to issue supplemental capital instruments that would only count toward the risk-based net worth requirement.
Comments on the proposal are due by May 9.
Click here to read the Federal Register notice of the proposed rule.
Call Reports for credit unions are due April 30
The National Credit Union Administration announced the Call Report, with credit union profile updates, must be submitted by April 30. Credit unions failing to submit the Call Reports by the deadline could face civil penalties.
To learn more about the Call Reports, click here.
More compliance news
CFPB publishes report on consumer complaints in 2016
The Consumer Financial Protection Bureau on April 3 announced the publication of its 2016 Consumer Response Annual Report, which provides an overview of the complaints it received in 2016.
A few key takeaways of the report include:
• The bureau handled 291,400 consumer complaints in 2016, a 7% increase over complaints handled in 2015.
• Debt collection, credit reporting and mortgages were the top three most-complained-about consumer financial products and services, collectively representing about 67% of complaints submitted in 2016.
• Financial companies provide timely responses to consumer complaints. About 97% of complaints sent to companies get timely responses.
Read more about the report by clicking here.
Treasury to participate in Same Day ACH
Federal Reserve Financial Services announced April 7 that the Treasury Department is operationally committed to participating in Same Day ACH as of Sept. 15, beginning with the capability to receive tax and non-tax Same Day ACH credits. The Treasury also expects to have the capability in its origination of Same Day ACH debits in October, starting with Electronic Federal Tax Payment System debits. The Treasury also intends to publish a final rule amending its regulation on Federal Government Participation in the Automated Clearinghouse to provide for Same Day ACH participation.
To learn more, click here.
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