May Bank Industry News

There were four noteworthy regulatory and compliance updates for banks and credit unions in May of 2024. Below are the details on these changes and how they affect you and your institution.

July Regulatory Compliance Updates for Banks and Credit Unions

OCC’s Community Bank Director and Senior Management Workshops

The OCC’s workshops deliver important content led by some of the OCC’s most experienced and qualified professionals. These sessions are designed to meet the needs of new directors, experienced directors, and senior management looking to review the fundamentals or get critical updates.

Why Is This Important to Me?

  • Share this information with your Board of Directors.

CFPB Extends Compliance Deadlines for 1071

The CFPB is extending compliance deadlines for the small business lending rule. After the CFPB issued this rule on March 30, 2023, some lenders filed challenges against it in federal court in Texas. On July 31, 2023, that court stayed the rule  for certain lenders pending the Supreme Court’s decision in CFPB v. CFSA; on October 26, it extended that stay  to all lenders covered by the rule. In the event of a reversal in CFSA, the Texas court ordered the CFPB to extend the rule’s compliance deadlines to compensate for the period stayed.

The CFPB now plans to issue an interim final rule to extend compliance deadlines:

  • For Tier 1 institutions (highest volume lenders), the original compliance date of October 1, 2024, will be extended to July 18, 2024, and the first filing deadline will be June 1, 2026.
  • For Tier 2 institutions (moderate volume lenders), the April 1, 2025, compliance date will be extended to January 16, 2026, with a first filing deadline on June 1, 2027.
  • For Tier 3 institutions (smallest volume lenders), the January 1, 2026, compliance date will be extended to October 18, 2026, with a first filing deadline on June 1, 2027.

Why Is This Important to Me?

  • Now that CFPB vs. CFSA has been settled, we will likely see an increase in 1071 training events around the new deadline extensions.

Reg CC Funds Availability Inflation Adjustments

The Board & the CFPB are amending Regulation CC, which implements the Expedited Funds Availability Act (EFA Act) and the Check Clearing for the 21st Century Act (Check 21 Act), to fulfill a statutory requirement in the EFA Act to adjust the dollar amounts under the EFA Act for inflation, effective July 1, 2025. The new amounts are as follows:

  • The “next day” minimum availability amount will increase from $225 to $275
  • The cash withdrawal amount in § 229.12(d) will increase from $450 to $550
  • The new account, large deposit threshold, and repeatedly overdrawn thresholds in § 229.13 will increase from $5,525 to $6,725
  • The civil liability minimum and maximum for individuals actions in § 229.21(a)(2)(i) will increase from $100 and $1,100 to $125 and $1,350
  • The civil liability maximum for class action in § 229.21(a)(2)(ii)(B) will increase from $552,500 to $672,950 or 1 percent of the bank’s worth, whichever is less.

Why Is This Important to Me?

  • All of OnCourse Learning’s applicable courseware will be updated to reflect the new amounts beginning in 2025.

Agencies Issue Guide to Assist Community Banks to Develop and Implement Third-Party Risk Management Practices

Federal bank regulatory agencies today released a guide to support community banks in managing risks presented by third-party relationships. Community banks engage with third parties to help compete in and respond to an evolving financial services landscape. Third-party relationships present varied risks that community banks are expected to appropriately identify, assess, monitor, and control to ensure that their activities are performed in a safe and sound manner and in compliance with applicable laws and regulations. These laws and regulations include, but are not limited to, those designed to protect consumers and those addressing financial crimes. The guide offers potential considerations, resources, and examples through each stage of the third-party relationship and may be a helpful resource for community banks. While the guide illustrates the principles discussed in the third-party risk management guidance issued by the agencies in June 2023, it is not a substitute for that guidance.

Why Is this Important to Me?

Rachel Davis - Product Manager at OCL

About the Author

Jeff Kelly

General Manager at OnCourse Learning

As General Manager at OnCourse Learning, Jeff leads the product management and learning development teams, along with solutions architecture and compliance functions. Jeff has worked in the financial services industry for 20 years and keeps up to date on financial industry changes and updates. Jeff obtained his Bachelor’s Degree in Marketing from the University of Wisconsin – Whitewater and his MBA from the University of Wisconsin – Milwaukee. He also served in the U.S. Marine Corps as a non-commissioned officer. His focus is building strong collaborative teams with passion for delivering excellence in outcomes for customers and employees.

Rachel Davis - Product Manager at OCL

About the Author

Jeff Kelly

General Manager at OnCourse Learning

As General Manager at OnCourse Learning, Jeff leads the product management and learning development teams, along with solutions architecture and compliance functions. Jeff has worked in the financial services industry for 20 years and keeps up to date on financial industry changes and updates. Jeff obtained his Bachelor’s Degree in Marketing from the University of Wisconsin – Whitewater and his MBA from the University of Wisconsin – Milwaukee. He also served in the U.S. Marine Corps as a non-commissioned officer. His focus is building strong collaborative teams with passion for delivering excellence in outcomes for customers and employees.

By |2024-06-03T08:59:14-06:00June 3rd, 2024|Uncategorized|Comments Off on May Bank Industry News