This article highlights key regulatory and compliance updates for banks and credit unions that occurred in May 2021. Read more for details and how these changes affect you and your institution.
FDIC Publishes 2021 Risk Review
On May 11, 2021, the FDIC published its 2021 Risk Review, which is a comprehensive summary of emerging risks in the U.S. banking system. The FDIC began reporting key banking sector risks in its Risk Review publication in 2019, and this year’s report expands coverage of key risks during a time of heightened uncertainty.
Why Is This Important to Me?
Utilize this review to gain a deeper understanding of the emerging risks facing financial institutions.
OCC Releases Report on Key Risks and Effect of Pandemic
The OCC released a report on the key issues facing the federal banking system due to the COIVD-19 pandemic in its Semiannual Risk Perspective for Spring 2021. Some highlights include:
- Elevated credit risk due to borrowers’ ability to pay debts
- Elevated operational risk due to increased cybersecurity threats
- Elevated compliance risk as expedited efforts to implement assistance programs continue to challenge risk management practices
Why Is This Important to Me?
Review this report to understand the longer-term of the COVID-19 pandemic on financial institutions.
CFPB Adds TRID FAQs
The CFPB has added five FAQs relating to housing assistance loans. The new FAQs center around the BUILD Act and TRID rule requirements for certain housing assistance loans.
Why Is This Important to Me?
Share this information with your institution’s mortgage department.
Federal Reserve Extends Regulation O PPP Rule
The Federal Reserve Board has announced it is extending the Regulation O amendment so certain bank directors and shareholders can apply to their banks for PPP loans for their small businesses. The extension is effective immediately and applies to loans made from 3/31/2021 to 6/30/2021.
Why Is This Important to Me?
Share with those colleagues involved in the PPP loan process.
About the Author
Rachel Davis
Product Manager at OnCourse Learning
Rachel Davis is the Product Manager of GRC and professional education for banks, credit unions, and non-bank financial services at OnCourse Learning. Rachel has worked in the financial services industry for 12 years and keeps up to date on financial industry hot topics. Rachel received her Bachelor of Arts in English Literature from Saint Louis University.
About the Author
Rachel Davis
Product Manager at OnCourse Learning
Rachel Davis is the Product Manager of GRC and professional education for banks, credit unions, and non-bank financial services at OnCourse Learning. Rachel has worked in the financial services industry for 12 years and keeps up to date on financial industry hot topics. Rachel received her Bachelor of Arts in English Literature from Saint Louis University.
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