On April 25th, the FDIC published for comment proposed supervisory guidance to FDIC-supervised financial institutions that offer or may consider offering deposit advance products. The proposal is intended to ensure that banks are aware of a variety of safety and soundness, compliance, and consumer protection risks posed by deposit advance loans. The proposal details the principles that the FDIC expects financial institutions to follow in connection with deposit advance products in order to effectively mitigate potential legal, reputational, consumer protection, compliance, and credit risks. The proposal discusses supervisory expectations for the use of deposit advance products, including underwriting and credit administration policies and practices. The proposal supplements existing FDIC guidance on payday loans and subprime lending. FDIC Press Release. Separately, the OCC published for comment similar guidance for national banks and federal savings associations. The OCC will closely review the activities of banks that offer or propose to offer deposit advance products, through direct examination of the bank, examination of any third party participating in such transactions under an arrangement with the bank, and, where applicable, review of any licensing proposals involving this activity. These examinations will focus not only on safety and soundness risks, but also on compliance with applicable consumer protection laws. The OCC also withdrew its proposed guidance on Deposit-Related Consumer Credit Products published on June 8, 2011. OCC Press Release; OCC Bulletin. Comments on either proposal should be submitted within 30 days after publication in the Federal Register, which is expected shortly.