- Conference, "Community Banking in the 21st Century," sponsored by the Federal Reserve Bank of St. Louis and CSBS, Oct. 3-4.
- Minority-owned depository institutions: speech by the Comptroller of the Currency to the National Bankers Association, Oct. 3. Speech available here.
- Midwest: national banks in the 9 midwestern states covered by the OCC's Central District show better earnings as a result of improving credit quality. States included are Illinois, Indiana, Kentucky, Michigan, Minnesota, North Dakota, Ohio, Wisconsin, and parts of Missouri. Fact sheets available here.
CARD Act: new CFPB areas of attention identified by Director Cordray in prepared remarks at the CARD Act field hearing in Chicago (Oct. 2), available here.
- Credit add-on products and related deceptive practices
- Upfront fees exceeding 25% of initial credit limit
- Deferred interest products
- Transparency, especially online disclosures
- Rewards products
- Grace periods
CFPB also issues report on the CARD Act, available here. Report concludes that: ◦CARD Act reduced penalty fees.
- CARD Act made costs of credit clearer to consumers.
- Total cost of credit declined by 2 percentage points between 2008 and 2012.
- Additional areas of concern remain.
Qualified Mortgages: HUD proposes definition for FHA-insured loans, available here.
Four basic criteria
- Periodic payments required
- Term not to exceed 30 years
- Generally, upfront points and fees capped at 3%
- Loan insured or guaranteed by HUD
- Omits 43% DTI ceiling that is part of CFPB definition.
- Comments due Oct. 30 – same as deadline for comments on credit risk retention proposal, which adopts CFPB definition of qualified mortgage.
- Four basic criteria
- Federal district court denies request by federally recognized Indian tribes for preliminary injunction to bar N.Y. Dept of Financial Services from bringing enforcement action or taking other action with respect to online lending to NY residents. See The Otoe-Missouria Tribe of Indians v. N.Y. State Dep't of Fin. Serv., No. 13 Civ. 5930 (RJS), slip op. available here.
- New York AG settles with 5 lenders regarding loans on terms that exceeded state usury limits. Press release available here.
- "'Fire Sales' as a Driver of Systemic Risk in Tri-Party Repo and Other Secured Funding Markets," Federal Reserve Bank of NY workshop, Oct.4.
CFPB Banking on Campus Forum, Sept. 30. A recording of the event is available here.
- Prepared remarks of Director Cordray available here.
Too Big to Fail
- Federal Reserve and FDIC release public sections of annual resolution plans filed by 11 of the largest banking institutions operating in the U.S.: BofA, BNY Mellon, Barclays, Citigroup, Credit Suisse, Deutsche Bank, Goldman Sachs, JPMorgan Chase, Morgan Stanley, State Street, UBS. Materials available here.
- Asset management: Office of Financial Research releases report on potential systemic risks presented by asset management firms. Asset Management and Financial Stability is available here.
Senate Banking Committee
- Hearing, "Housing Finance Reform: Fundamentals of a Functioning Private Label Mortgage Backed Securities Market" (Oct. 1). Archived webcast and written testimony available here.
- Postponed hearing, "Rebuilding American Manufacturing," originally scheduled for Oct. 2.
- House Financial Services Committee ◦Postponed hearing, "Examining Legislative Proposals to Reform the Consumer Financial Protection Bureau," originally scheduled for Oct. 1.
- Oct. 8
- Senate Banking Committee hearing, "Housing Finance Reform: Essential Elements of the Multifamily Housing Finance System."
- Senate Banking Committee hearing, "Impact of a Default on Financial Stability and Economic Growth"
- Federal Reserve's brief due in NACS v. Board of Governors
- FOMC meeting
Regulatory Comment Deadlines
- Oct. 11 – Federal Reserve, OCC, FDIC: changes to Schedule RC-R on call report.
- Oct. 11 – BCBS: Discussion paper, "Balancing risk sensitivity, simplicity and comparability."
- Oct. 21 – Federal Reserve, OCC, FDIC: Supplementary Leverage Ratio.
- Oct. 30 – Federal Reserve, OCC, FDIC, SEC, CFTC: Credit risk retention (including incorporation by reference of CFPB definition of qualified mortgage).
- Oct. 30 – HUD: Definition of qualified mortgage for FHA-insured mortgages.
- Nov. 25 – Federal Reserve: Interim final rules on incorporation of Basel III into stress testing and capital planning by large banking organizations.
- 60 days after publication – FRB, FDIC, OCC: Market risk capital rules.
- Dec. 4 – SEC: Regulation S-K disclosure of ratio of CEO compensation to median employee compensation.