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Compliance News

The latest compliance news items. Past months’ news items are found under the specific Compliance Topic page related to the news item.

Bank members-only content =

October 2018 | November 2018

November News

  • ABA Issues Comment Letter Writing Guide to Help Bankers Draft CRA Comments  (11/9/18)
    ABA has developed a comment letter writing guide to help bankers draft letters in response to the OCC's advanced notice of proposed rulemaking on modernizing the Community Reinvestment Act (CRA). With the comment deadline of Nov. 19 fast approaching, it is critical that regulators receive feedback from as many banks as possible, regardless of regulator. The guide includes directions for filing comment letters and suggests several key themes bankers could address, including the challenges of the current CRA framework, CRA performance standards, assessment areas, and the various activities that count toward CRA credit. Bankers need not address all points in their letters; comments that provide one example or describe one CRA challenge can be very impactful. The financial regulatory agencies have signaled that banker feedback will play an important role as they work collaboratively to update the CRA regulations. For bankers, this initiative is a critical opportunity to make meaningful changes that will help bring the 30-year-old statute into the 21st century. For more information, contact ABA's Krista Shonk.
  • FHFA, Bureau Release Mortgage Origination Data (11/9/18)
    The Federal Housing Finance Agency and the Bureau of Consumer Financial Protection released a new loan-level data set collected through its National Survey of Mortgage Originations. The survey — which asks borrowers about their experiences obtaining a mortgage, perceptions of the mortgage market and future expectations — is part of the agencies' National Mortgage Database. The NMDB was established in 2012 and includes detailed information from more than 10 million borrowers. ABA previously raised concerns about the survey initiative, particularly regarding the scope of the data collected and about consumer privacy. Specifically, ABA noted that the data could be used to identify individual borrowers and that consumer privacy could be at risk in the event of a data breach. The association is reviewing this data release and will continue to engage with FHFA and the Bureau on their data collection efforts going forward.
  • Agencies Issue Proposal to Reduce Call Report Burden on Small Institutions (11/8/18)
    The financial regulatory agencies proposed changes that would expand the number of banks eligible to file a more streamlined version of the Call Report, as directed by S. 2155, the new regulatory reform law. Under the proposal, non-complex institutions with less than $5 billion in assets would be permitted to file the FFIEC 051 Call Report. Banks filing the FFIEC 051 Call Report would also see a reduction of the number of data items required in their first and third quarter filings, the agencies said. Comments on the proposal are due 60 days after publication in the Federal Register. For more information, contact ABA's Alison Touhey.
  • Fed to Host Webinar on Fair Lending Hot Topics (11/7/18)
    The Federal Reserve will host an interagency webinar on Monday, Dec. 3, at 2 p.m. EST, to discuss emerging fair lending issues and hot topics. Presenters from seven agencies will be on hand to discuss a host of topics, including redlining, risk-based assessment, marital status discrimination and disability discrimination. A Q&A session will follow the presentation.
  • ABA, BPI Petition Regulators to Codify Joint Statement on Regulatory Guidance (11/6/18)
    After regulators in September issued a joint statement clarifying that regulatory guidance does not have the force and effect of law, ABA and the Bank Policy Institute submitted a rare petition to each agency calling on them to institutionalize the statement by codifying it in a formal rulemaking. The associations asked regulators specifically to clarify that matters requiring attention (MRA), matters requiring immediate attention (MRIA) and other such supervisory actions may only be based on a violation of statute or regulation, and not on a failure to comply with supervisory guidance. The associations emphasized that while codifying the interagency statement would raise the threshold for the issuance of MRAs or MRIAs and other adverse supervisory actions, it should not limit examiners' ability to engage with banks constructively on matters that do not rise to that threshold. For more information, contact ABA's Wayne Abernathy.
  • OIG Releases Report on Bureau's Information Security Program (11/6/18)
    The Bureau of Consumer Financial Protection's information security program is consistently implemented and performs at a higher maturity level, according to a recent OIG report. Using a rating level from a low of 1 to a high of 5, the OIG rated the Bureau's program across several areas. Overall, the Bureau's information security program is operating at level 3 (consistently implemented). The Bureau’s information security continuous monitoring process is effective and operating at level 4 (managed and measurable). The OIG made several recommendations to strengthen the Bureau's information security program in the areas of configuration management, identity and access management, and data protection and privacy. The Bureau agreed with the recommendations.
  • McWilliams: Innovation Needed to Bring Consumers Back to Financial Services Sector (11/2/18)
    In an op-ed published in American Banker, FDIC Chairman Jelena McWilliams noted the importance of bringing underbanked and unbanked consumers into the regulated banking system. McWilliams recounted her own experience of being unbanked when she first immigrated to the United States from the former Yugoslavia as a young adult. With just $500 to her name and no credit history, she obtained a secured credit card shortly after arriving, which she noted was a critical first step on the road to financial success. As technology continues to advance, she added that she sees opportunities to bring more unbanked and underbanked consumers back into the banking sector, particularly through mobile banking. Watch McWilliams' recent session at the ABA Annual Convention​. ​​

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October News

  • Fed Webinar: Healthy Communities: Opportunities for CRA Collaboration (10/31/18)
    The Federal Reserve is holding a webinar on Opportunities for CRA Collaboration. The webinar, which will start at 2:00 p.m. ET on November 1, will include a presentation from the Federal Reserve System Community Development staff on how community and economic development intersect with public health and health care. Attendees will learn about the Federal Reserve's Community Development function and potential opportunities for depository institutions to receive credit under the Community Reinvestment Act.
  • Bureau Updates HMDA Small Entity Compliance Guide (10/30/18)
    The Bureau of Consumer Financial Protection updated its Home Mortgage Disclosure (Regulation C) Small Entity Compliance Guide to reflect amendments made by Section 104(a) of the Economic Growth, Regulatory Relief, and Consumer Protection Act (S. 2155)​ and the 2018 HMDA Rule​. The Bureau updated general information about Section 104(a) of S. 2155 and the 2018 HMDA Rule; key changes and effective date; and, institutions eligible to rely upon the partial exemptions created by Section 104(a), among others.
  • ​​​​​Remittance Rule Led to Additional Compliance Costs, Delayed Transfers (10/29/18)
    The Bureau's rule on remittance transfers has resulted in initial compliance costs for remittance transfer providers of $86-92 million and ongoing compliance costs of $19-102 million per year, according to the Bureau's five-year assessment of the rule. The Dodd-Frank Act requires that the Bureau conduct an assessment of each "significant rule" within five years of the rule's effective date. The assessment of the remittance rule is the first the Bureau has completed.
  • Bureau to Extend Compliance Date, Revisit Small-Dollar Loan Rule (10/29/18)
    The Bureau of Consumer Financial Protection expects to extend the compliance date and revisit certain provisions of its small-dollar lending rule. The agency said last week that it expects to issue proposed rules in January 2019 addressing both the compliance date and the ability-to-repay provisions of the rule. ABA has long urged the Bureau to design a regulatory framework that encourages the supply and access to small dollar credit by minimizing regulatory burdens and promoting efficiency. See ABA's Small Dollar page  for more information.
  • ABA Continues Push for New TCPA Rules (10/26/18)
    In a comment letter, ABA continued its push for new rules from the Federal Communications Commission to ensure that customers can receive important communications from their banks. The letter was submitted as the FCC considers the impact of a recent federal appellate court decision from California in Marks v. Crunch San Diego, LLC, which expansively interpreted a key term in the Telephone Consumer Protection Act — the definition of an "automatic telephone dialing system," commonly known as an "autodialer." ABA urged the FCC not to follow the Marks decision, noting that the decision is inconsistent with the Washington, D.C. court's decision, as well as with the TCPA's text and legislative history. Contact Jonathan Thessin for more information.
  • Agencies Release 2017 CRA Data on Small Business, Community Development Lending (10/26/18)
    The federal banking agencies released 2017 Community Reinvestment Act (CRA) data on small business, small farm and community development lending. The CRA requires banks with more than $1.2 billion in assets to report data in these areas.
  • Bureau Announces 2019 HMDA Filing Instructions Guide (10/23/18)
    The Bureau of Consumer Financial Protection announced the availability of the Filing Instructions Guide (FIG) for data collected in 2019. The FIG is a technical resource to help financial institutions file HMDA data collected in 2019 and reported in 2020. There are no significant changes to the submission process for data collected in 2019 and reported in 2020.
  • Bureau Updates Rulemaking Agenda for Fall 2018​, Read ABA's Staff Analysis  (10/19/18)
    The Bureau of Consumer Financial Protection updated its rulemaking agenda for the remainder of 2018. Significantly, the Bureau moved its rulemaking on small business lending data collection to its “long-term actions” list, which also includes plans for a rulemaking to define abusive acts and practices and a rulemaking regarding consumer access to financial records. In the nearer term, the Bureau projected that a proposed rule on small dollar lending will be issued in January and that a proposed rule to update the Fair Debt Collection Practices Act will be published in March.
  • Free ABA Member Webinar: How to Get Ahead of Your HMDA Data  (10/18/18)
    With the reporting of the expanded HMDA data less than six months away, banks must devote serious attention to understanding and explaining their data. The dramatic increase in the publicly available HMDA data will significantly change how your bank's mortgage lending is analyzed and will impact your regulatory, litigation, and reputational risk exposure. In preparation for these changes, ABA will host a free webinar on October 31 at 12:00 p.m. — 1:00 p.m. EDT to update members on regulatory developments and introduce an ABA program to assist members with their HMDA analysis. ABA members must login to register.
  • Bureau Launches Innovation Webpage (10/18/18)
    As part of its effort to encourage innovation, the Bureau of Consumer Financial Protection has launched a new webpage to help facilitate consumer-focused innovation. Banks can learn how to apply to run a disclosure trial, pitch a pilot program and access additional resources, including information about the Global Financial Innovation Network.
  • ​​​ABA, Trade Groups Urge Bureau to Support Companies that Test New Disclosure (10/11/18)
    ABA, U.S. Chamber of Commerce, and Consumer Bankers Association urged the Bureau of Consumer Financial Protection to support banks and other businesses that seek to test a new disclosure that may be clearer and more understandable than an existing, legally required disclosure, in a comment letter submitted on October 10. The groups also noted that a business may also seek to test an existing disclosure in a new format – such as on a smartphone or tablet – but may not be legally permitted to use the improved format. Contact Jonathan Thessin for more information.
  • ABA Urges FDIC to Rescind Overdraft and Deposit Advance Guidance (10/11/18)
    In a comment letter, ABA urged the Federal Deposit Insurance Corporation to withdraw its supervisory expectations with respect to bank overdraft payment programs and to rescind the FDIC’s 2013 guidance regarding deposit advance programs. The letter responds to the FDIC’s proposal to “retire” certain Financial Institution Letters to an “inactive” status, as part of the agency’s efforts to reduce regulatory burden. FILs provide information to banks and other financial institutions about new regulations, supervisory guidance, and other regulatory actions of interest to the banking industry. Contact Jonathan Thessin for more information. ​​
  • FCC Seeks Comment on Scope of Dialing Equipment Covered by TCPA (10/9/18)
    The Federal Communications Commission is seeking further comment on which dialing equipment is subject to the Telephone Consumer Protection Act, which imposes restrictions on the calls that banks and other businesses can place to their customers. The FCC released the request for comment after the Ninth Circuit Court of Appeals issued a decision in Marks v. Crunch San Diego, LLC that interpreted a key term in the TCPA — “automatic telephone dialing system” (commonly known as an “autodialer”) — so expansively that it would capture most modern dialing technologies. In a prior comment letter, ABA urged the FCC to issue a new interpretation of the definition of an autodialer to ensure that customers can receive important communications from their banks. Contact Jonathan Thessin​ for more information. See also ABA's TCPA page .
  • ABA Staff Analysis: Updates to FCRA Model Disclosure Forms  (10/9/18)
    ABA issued a summary on the Bureau's interim final rule​ to update the Bureau’s model forms about consumers' rights to "freeze" their credit reports without charge. See also the FTC's FAQs on new credit report freeze rights and fraud alerts. ABA members must login to view the document. For more information, contact Nessa Feddis.
  • ABA Staff Analysis: Final Amendments to Regulation CC  (10/4/18)
    ABA issued a summary and guidance on the Federal Reserve Board's final amendments to Regulation CC. The ABA-supported Final Rule addresses situations where there is a dispute as to whether a check has been altered or was issued with an unauthorized signature, and the original paper check is not available for inspection. ABA's staff analysis provides definitions on altered check and unauthorized check, and a summary of the rule. ABA members must login to view the document. For more information, contact Nessa Feddis.
  • Agencies Issue Statement on Sharing Resources for BSA Compliance (10/4/18)
    The financial regulatory agencies and the Financial Crimes Enforcement Network issued a joint statement outlining how banks may enter into collaborative arrangements to share resources in order to more effectively manage their Bank Secrecy Act and anti-money laundering obligations. The agencies described several situations in which collaboration might be beneficial for financial institutions, such as conducting internal control functions, independent testing and BSA/AML training. ​​​
  • Labor Department to Host Public Feedback Event on Overtime Rule (10/4/18)
    As the U.S. Department of Labor continues to examine potential revisions to the Obama administration's "overtime rule" — which was adopted in 2016 but never took effect due to a federal judge’s ruling later that year — the department has scheduled an additional public "listening session" on Oct. 17 in Washington, D.C.
  • Fed Seeks Feedback on Its Role in Faster Payments Settlement​ (10/4/18)
    The Fed is seeking comment on whether the Federal Reserve Banks should consider developing a real-time gross settlement service for faster payments that would settle faster payments using participating banks’ balances in accounts at the 12 regional Fed banks. Meanwhile, the potential liquidity management tool would operate 24/7/365 to facilitate the movement of funds during evenings, weekends and holidays when traditional settlement systems are not open.  The suggestion was made in the 2017 final report of the Faster Payments Task Force, which included more than 70 American Bankers Association member bankers. The task force’s 2017 report said that to be effective, a faster payments service would require interbank settlement within 30 minutes of an end user receiving a completed payments and that credit and liquidity risks arising from a settlement lag must be managed. Responses to the Fed’s request are due by Dec. 14. Contact Steve Kenneally​ for more information.
  • OIG Releases Report on Bureau's Management Challenges for 2018 (10/3/18)
    The Office of Inspector General (OIG) released a report on the Bureau of Consumer Financial Protection's major management challenges. The OIG identified three challenges for the Bureau: ensuring an effective information security program; managing its human capital program; and, strengthening controls and managing risks. These challenges were also identified in last year's report. This year, the challenge on managing and acquiring workspace has been removed because the Bureau has since completed renovating its office building and employees have moved in.
  • FDIC Seeks Feedback on Communication, Transparency (10/3/18)
    As part of an effort to increase efficiency and transparency, the FDIC issued a request for information seeking feedback on its communication methods and related initiatives. Comments are due 60 days after publication in the Federal Register. Specifically, the FDIC is seeking input on the various forms of communication it uses to provide information to financial institutions about regulations, policies and guidance, industry data, educational materials and other updates and how these channels could be improved or streamlined. Contact Diana Banks​ for more information.
  • FinCEN, Agencies Provide CIP Relief for Premium Finance Loans (10/1/18)
    The Financial Crimes Enforcement Network and the financial regulatory agencies announced an exemption from the customer identification program (CIP) rules for premium finance loans made by banks to commercial customers. The action is the result of a years-long advocacy effort by ABA and several member banks. FinCEN took action in 2016 (and again in 2018) to provide an exemption from beneficial ownership requirements. The exemption is another critical step that will allow banks to maintain these business lines and ensure that premium finance loans remain within the regulated financial sector.
  • FinCEN Encourages Financial Institutions Affected by Hurricane Florence to Contact FinCEN (10/1/18)
    The Financial Crimes Enforcement Network (FinCEN) is encouraging financial institutions affected by Hurricane Florence to contact FinCEN and their regulator to discuss any delays in their ability to file required Bank Secrecy Act reports. Institutions seeking to contact FinCEN should e-mail FinCEN also warns financial institutions of potential fraudulent transactions in the wake of disasters.
  • Associations Call for Changes to Loan Originator Compensation Rule (10/1/18)
    In a letter to the Bureau of Consumer Financial Protection on Thursday, ABA joined several financial and real estate trade organizations in calling for amendments to the loan originator compensation rule that would ensure greater consumer protection while reducing regulatory burden on lenders. For more information, contact ABA's Rod Alba​.

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