• Interagency Statement on Supervisory Approach to Qualified and Non-Qualified Mortgage Loans.
On December 13th, the Federal Reserve Board, Federal Deposit Insurance Corporation ("FDIC"), National Credit Union Administration ("NCUA"), and Office of the Comptroller of the Currency ("OCC") issued a statement clarifying the safety-and-soundness expectations and Community Reinvestment Act considerations related to Qualified Mortgage loans and non-Qualified Mortgage loans offered by regulated institutions. The statement is intended to guide institutions as they assess the implementation of the Consumer Financial Protection Bureau's Ability-to-Repay and Qualified Mortgage Standards Rule, which takes effect January 10, 2014. From a safety-and-soundness perspective, the agencies emphasize that an institution may originate both Qualified Mortgage and non-Qualified Mortgage loans, based on its business strategy and risk appetite. The agencies will not subject a residential mortgage loan to safety-and-soundness criticism solely because of the loan's status as a Qualified Mortgage or non-Qualified Mortgage loan. Joint Press ReleaseSee also OCC Bulletin.
  • OCC 2014 Fees.

On December 12th, the OCC published the fees and assessments it will charge in calendar year 2014. Bulletin.

  • OCC Bulletin on SEC Municipal Advisor Requirements.

On December 12th, the OCC published a bulletin on the SEC's final rule for the registration of municipal advisors. This OCC bulletin rescinds OCC Bulletin 2010-38, "Dodd-Frank Act Section 975 and SEC Interim Final Temporary Rule."

  • Exemption from Appraisal Requirements for Certain Higher-Priced Mortgage Loans.

On December 12th, six federal financial regulatory agencies issued a final rule that creates exemptions from certain appraisal requirements for a subset of higher-priced mortgage loans. The final rule provides that loans of $25,000 or less and certain "streamlined" refinancings are exempt from the Dodd-Frank Act appraisal requirements, which go into effect on January 18, 2014. In addition, the final rule contains special provisions for manufactured homes. To ensure that access to affordable housing options is not hindered while creditors make the necessary adjustments, the requirements for manufactured home loans will not become effective for 18 months. Joint Press Release.

  • Federal Reserve Board Proposes Amendments to Check Collection Rules.

On December 12th, the Federal Reserve Board ("Board") requested public comment on proposed amendments to check collection and return rules. The check collection and return provisions in Regulation CC (Availability of Funds and Collection of Checks) currently apply only to paper checks. The Board is proposing that electronic checks and electronic returned checks that banks exchange by agreement also be subject to these rules unless otherwise agreed by the sending and receiving banks. In addition, the Board is requesting comments on alternative approaches to modify the current expeditious-return and notice of nonpayment requirements to encourage the few remaining banks demanding paper returns to accept electronic returns. The Board is also proposing a new indemnity for electronic items cleared through the check-collection system that did not originate as paper checks. Comments should be submitted on or before May 2, 2014. Federal Reserve Board Press Release.

  • FDIC's Consumer News Discusses Mortgage Loans.

On December 12th, the FDIC published the Fall 2013 issue of FDIC Consumer News, which features an overview of important rules taking effect that are intended to protect consumers from risky mortgage loans. FDIC Press Release.

  • FDIC Proposes SIFI Resolution Plan.

On December 10th, the FDIC published for comment the Single Point of Entry strategy for the resolution of Systemically Important Financial Institutions. Comments should be submitted within 60 days after publication in the Federal Register, which is expected shortly. Proposed StrategyFDIC Press Release.

  • Federal Reserve Board Technical Amendments to Market Capital Risk Rule.

On December 6th, the Federal Reserve Board issued a final rule that makes technical changes to the Board's market risk capital rule to align it with the Basel III revised capital framework adopted by the Board earlier this year. The technical changes reflect modifications by the Organization for Economic Cooperation and Development regarding country risk classifications. The final rule also clarifies criteria for determining whether underlying assets are delinquent for certain traded securitization positions. It clarifies disclosure deadlines, and modifies the definition of a covered position. The Federal Reserve also made minor modifications to the Basel III revised capital framework to clarify the criteria for subordinated debt instruments that may be counted as tier 2 capital. Federal Reserve Board Press Release.