The Economy

  • State banking profiles for second quarter 2013 now available from the FDIC here.
    • Modest changes, primarily but not exclusively positive, from first quarter 2013 and earlier periods.  


  • FDIC interim final capital rules published in Federal Register, 78 Fed. Reg. 55340 (Sept. 10, 2013), available here, under FDIC.
    • Identical final rule from Federal Reserve and OCC not yet published.


  • Deposits in foreign branches of U.S. banks not eligible for deposit insurance—final rule approved by FDIC on Sept. 10. Rule available here.


  • BCBS and IOSCO release final framework on margin requirements for OTC derivatives. Publication available here.

Housing Reform

  • GSE reform legislation not included in House leadership's legislative agenda for fall 2013.
  • Rep. Maxine Waters (D-CA and ranking member of House Fin. Serv. Comm.) preparing housing reform bill "quite different" from Chairman Hensarling's proposed PATH Act.
  • Press release available here.

Mortgage Lending

  • CFPB finalizes modifications to mortgage rules on Sept. 13, based on rules proposed on June 24, 2013. Final rules available here. Rules appear to mark the end of CFPB mortgage lending rulemaking.
    • January 2014 implementation date unchanged.
  • Rules designed to:
    • Clarify what servicer activities are prohibited in first 120 days of delinquency. Note state law may play a greater role here.
    • Outline procedures for obtaining follow-up information on loss-mitigation applications.
    • Facilitate servicers' offering of short-term forbearance plans.
    • Clarify best practices for informing borrowers about the address for error resolution documents.
    • Facilitate lending in rural or underserved areas. More flexibility for community banks.
    • Make clarifications about financing of credit insurance premiums.
    • Clarify the definition of a loan originator.
    • Clarify the points and fees thresholds and loan originator compensation rules for manufactured housing.
    • Revise effective dates of many loan originator compensation rule provisions.
    • Customary six-month forbearance for delinquent borrowers retained.  
  • OCC warns about weaknesses in appraisal process: Remarks by Darrin Benhart, Deputy Comptroller for Credit and Market Risk Before the Mortgage Bankers Association's Risk Management and Quality Assurance Forum 2013, available here.
    • Qualifications of bank personnel.
    • Lack of audit, quality control, or internal control functions.
    • Shortcomings in the development, reporting, and review of evaluations, including prepackaged products and automated valuation models.
    • Deficiencies in review process for appraisals and evaluations.  


  • OCC issues revised "Other Real Estate Owned" booklet that is part of the Comptroller's Handbook. See OCC Bulletin 2013-20 (Sept. 13, 2013), available here
  • Rescinds OTS Examination Handbook, section 251 and OCC Bulletins 2011-10 and 2011-49.

Payroll Cards

  • CFPB issues Bulletin 2013-10, reiterating that employers cannot require employees to receive wages on a payroll card, per Regulation E. Bulletin available here.

Tax Sharing Agreements

  • Eleventh Circuit rules in favor of FDIC as receiver for NetBank, f.s.b., in dispute over tax refunds under tax sharing agreement with NetBank, Inc. FDIC v. Zucker, Case No. 12-13965 (11th Cir., Sept. 10, 2013), available here.
    • Agreement established holding company as agent for bank, rather than creating debtor-creditor relationship.
    • Opinion relies on In re BankUnited Fin. Corp., __ F.3d __, No. 12-11392, 2013 WL4106387 (11th Cir., Aug. 15, 2013), although precise terms of agreements differ.

Too Big to Fail

  • Minutes of FSOC meeting on July 16 released and available here.
  • Financial Stability Board publishes recommendations for G-20: "Progress and Next Steps Towards Ending 'Too-Big-To-Fail'" (Sept. 2, 2013). Report available here.

Bank Closings

  • The Community's Bank, Bridgeport, CT
    • Depositor payout; no assuming bank found.
  • First National Bank, Edinburg, TX (also operating as The National Bank of El Paso)
    • P&A (including loss-share) with PlainsCapital Bank, Dallas, TX  

Congressional Activity

  • Senate Banking Committee hearings
    • Nominations Hearing, Sen. Banking Comm. (Ex-Im Bank and HUD nominations) (Sept. 10).
    • "Essential Elements of Housing Finance Reform" (Sept. 12). Archived hearing and written testimony available here.
  • House Financial Services Committee hearings
    • Hearing, "Reducing Waste, Fraud, and Abuse in Housing Programs: Inspector General Perspectives," before the Oversight and Investigations Subcomm. (Sept. 10). Archived hearing and written testimony available here.
  • "The Fed Turns 100: Lessons Learned over a Century of Central Banking," Monetary Policy and Trade Subcomm. (Sept. 11). Archived hearing and written testimony available here.
  • "The Semi-Annual Report of the Consumer Financial Protection Bureau," full committee (Sept. 12). Archived hearing and written testimony available here.

Upcoming Events

  • Sept. 17-18
    • Federal Open Market Committee meeting.
  • Sept. 18
    • Senate Bkg. Comm., "Recovering from Superstorm Sandy: Assessing the Progress, Continuing Needs, and Rebuilding Strategy."
    • Senate Banking Comm. hearing, "Implementation of The Biggert-Waters Flood Insurance Act of 2012: One Year After Enactment."
    • House Fin. Serv. Comm. Hearing, "Examining the SEC's Money Market Fund Rule Proposal," (Capital Markets and GSE Subcommittee).  
  • Sept. 19
    • House Fin. Serv. Comm., "The Terrorism Risk Insurance Act of 2002" (full committee).

Regulatory Comment Deadlines

  • Sept. 16 – CFTC: standards for compliance with core principles of derivatives clearing organizations by systemically important derivatives clearing organizations.
  • Sept. 17 – SEC: Money market reforms.
  • Sept. 23 – SEC: Amendments to Regulation D.
  • Sept. 25 – Federal Reserve, FDIC, OCC: Stress Test Guidance for Medium-Sized Firms.
  • Sept. 27 – BCBS: Capital treatment of bank exposures to central counterparties; non-internal model method for capitalising counterparty credit risk exposures.
  • Sept. 30 – FSB: Principles for an Effective Risk Appetite Framework.
  • Oct. 4 – BCBS: Capital requirements for banks' equity investments in funds.
  • 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.
  • 60 days after publication – FRB, FDIC, OCC: Market risk capital rules.