Last week was fairly quiet from a regulatory perspective. The banking agencies' EGRPRA/regulatory reform meeting in Boston on May 7 yielded useful summaries from agency heads about the progress they have made in reducing the regulatory burden on community banks. Banks that make mortgage loans to or receive applications from participants in the HUD Section 8 Homeownership Program should review carefully a bulletin that the CFPB released last week on the program. FDIC Director Jeremiah Norton announced his resignation, effective June 5.
The full set of developments over the past week is as follows:
The Economy
- Jobs report for April released (May 6).
- Unemployment rate: 5.4%.
- Nonfarm payroll employment increased by 223,000 in April.
- Report available at http://www.bls.gov/news.release/empsit.nr0.htm.
Community Banking
- Federal Reserve Bank of New York releases interactive maps of consumer credit behavior on county-by-county basis throughout the United States (May 4).
- Maps and related material available at http://www.newyorkfed.org/data-and-statistics/data-visualization/community-credit-profiles/#overview.
CFPB
- Remarks of CFPB Director Cordray at Academic Research Council (May 7).
Credit Reports
- CFPB publishes Data Point: Credit Invisibles (May 5).
- Approximately 10% of Americans do not have a credit record.
- Another 8% are unscorable.
- Consumers in low-income neighborhoods are more likely to be credit invisible or to have an unscored record.
- Black and Hispanic consumers are more likely to have limited credit records.
- Report available at http://www.consumerfinance.gov/newsroom/cfpb-report-finds-26-million-consumers-are-credit-invisible/.
- Prepared remarks of CFPB Director Cordray available at http://www.consumerfinance.gov/newsroom/prepared-remarks-of-cfpb-director-richard-cordray-on-the-credit-reporting-press-call/.
FDIC
- Jeremiah Norton resigns from FDIC board, effective June 5.
- Information available at https://www.fdic.gov/news/news/press/2015/pr15039.html.
Financial Literacy
- "Finance and Society," remarks of Federal Reserve Chair Yellen at the Institute for New Economic Thinking (May 6).
- Remarks available at http://www.federalreserve.gov/newsevents/speech/yellen20150506a.htm.
Mortgage Lending
- CFPB issues Bulletin 2015-02, Section 8 Housing Choice Voucher Homeownership Program(May 11).
- Purpose of bulletin is to remind creditors of ECOA requirement to provide non-discriminatory access to credit for mortgage applicants using income from Section 8 Homeownership Program.
- Advice on managing fair lending risk.
- Bulletin available at http://www.consumerfinance.gov/newsroom/cfpb-provides-guidance-to-help-lenders-avoid-discrimination-against-consumers-receiving-public-housing-assistance/.
- FDIC announces teleconference on implementation of the CFPB mortgage rules on May 21.
- Registration required by May 19.
- Announcement available at https://www.fdic.gov/news/news/financial/2015/fil15020.html.
- CFPB files suit against Nationwide Biweekly Administration, alleging misrepresentation of interest savings that consumers may gain through NBA program (May 11).
Regulatory Reform/EGRPRA
- Outreach meeting held in Boston (May 4).
- Remarks of FDIC Chairman Gruenberg.
- In response to first EGRPRA request for comment in November 2014, FDIC has issued FAQs on application process for deposit insurance and reduction in application requirements for bank subsidiaries formed as LLCs.
- Remarks available at https://www.fdic.gov/news/news/speeches/spmay0415.html.
- Remarks of Federal Reserve Governor Tarullo available at http://www.federalreserve.gov/newsevents/speech/tarullo20150504.htm.
- Remarks of Comptroller Curry.
- Three legislative proposals:
- Lift asset threshold for 18-month exam cycle from $500 million to $750 million.
- Exempt community banks from Volcker Rule.
- Expand business model for federal savings associations.
- Collaborative projects of community banks.
- Remarks available at http://www.occ.gov/news-issuances/index-news-issuances.html.
- Three legislative proposals:
- Remarks of FDIC Chairman Gruenberg.
Bank Closings
- Edgebrook Bank (Chicago IL) (May 8).
- All deposits assumed by Republic Bank of Chicago pursuant to P&A agreement.
- Republic Bank also purchased approximately $80 million of Edgebrook's $90 million in total assets.
- Information available at https://www.fdic.gov/news/news/press/2015/pr15040.html.
Congressional Activity – Upcoming
- May 13
- House Financial Services Committee hearings.
- "The Dodd-Frank Act and Regulatory Overreach."
- "Legislative Proposals to Enhance Capital Formation and Reduce Regulatory Burdens, Part II."
- House Financial Services Committee hearings.
- May 14
- House Financial Services Committee hearings.
- "Protecting Consumers: Financial Data Security in the Age of Computer Hackers."
- "TILA-RESPA Integrated Disclosure: Examining the Costs and Benefits of Changes to the Real Estate Settlement Process."
- House Financial Services Committee hearings.
- May 21
- Senate Banking Committee mark-up.
- Executive session to mark up S. __, "The Financial Regulatory Improvement Act of 2015."
- Senate Banking Committee mark-up.
Upcoming Events
- May 19
- OCC Director Workshop, Risk Governance, Birmingham, AL.
- OCC Director Workshop, Risk Governance, Birmingham, AL.
- May 20
- OCC Director Workshop, Compliance Risk, Birmingham, AL.
- OCC Director Workshop, Compliance Risk, Birmingham, AL.
- May 20 – 21
- Federal Reserve Bank of New York, Mortgage Contract Design: Implications for Households, Monetary Policy, and Financial Stability.
- Federal Reserve Bank of New York, Mortgage Contract Design: Implications for Households, Monetary Policy, and Financial Stability.
- May 21
- FDIC teleconference on implementation of CFPB mortgage rules.
- FDIC teleconference on implementation of CFPB mortgage rules.
- June 2
- OCC Director Workshop, Risk Governance, Detroit, MI.
- OCC Director Workshop, Risk Governance, Detroit, MI.
- Jun. 2 – 3
- NACHA Payments Innovation, Alliance Meeting.
- NACHA Payments Innovation, Alliance Meeting.
- June 3
- OCC Director Workshop, Credit Risk, Detroit, MI.
- OCC Director Workshop, Credit Risk, Detroit, MI.
- June 8-10
- OCC Director Workshop, Building Blocks for Directors, Raleigh, NC.
- OCC Director Workshop, Building Blocks for Directors, Raleigh, NC.
- Jun. 14 – 17
- ABA National Regulatory & Compliance Conference.
- ABA National Regulatory & Compliance Conference.
- June 16
- OCC Director Workshop, Risk Governance, Jacksonville, FL.
- OCC Director Workshop, Risk Governance, Jacksonville, FL.
- June 17
- OCC Director Workshop, Compliance Risk, Jacksonville, FL.
- FDIC Chicago Region regulatory conference call, "Intermediate Small Ban k CRA: Maximizing Your Bank's Success."
- June 16-17
- FOMC meeting.
- FOMC meeting.
- July 13-15
- 2015 Interagency Minority Depository Institution and CDFI Conference, Washington, DC.
- 2015 Interagency Minority Depository Institution and CDFI Conference, Washington, DC.
- Oct. 15-16
- FDIC, 5th Annual Consumer Research Symposium, Arlington, VA.
- FDIC, 5th Annual Consumer Research Symposium, Arlington, VA.
- Nov. 19-20
- National Community Investment Fund, 2015 Development Banking Conference, Chicago, IL.
Regulatory Comment Deadlines
- May 11 – CFTC: Supplementation of rulemaking on eight swaps-related rules, per D.C. Circuit decision in SIFMA v. CFTC.
- May 14 – Federal Reserve/OCC/FDIC: EGRPRA review of regulations covering banking operations, capital, and CRA.
- May 18 -- Federal Reserve: technical amendments to Regulation D.
- May 19 – Federal Reserve: inclusion of legal entity identifiers in certain FR Y reports.
- May 25 – FTC: proposed settlement with Nomi Technologies in connection with consumer tracking.
- June 12 – Federal Reserve: statements of interest for membership in Community Advisory Council.
- June 16-17 – Federal Open Market Committee meeting.
- June 23 – CSBS/AARMR: prudential regulatory standards for non-bank mortgage servicers.
- 90 days after publication in Federal Register – FDIC: ANPR on deposit account recordkeeping by large banks.