The FDIC and the Department of Education provided the most noteworthy items in the last week.  The FDIC's New York regional office provided its views on risks in the banking industry, which offer a useful comparison to the OCC's recent and more extensive discussion of risk.  The FDIC also released materials on corporate governance, and community bankers can devote some free time to watching the archived video of the meeting of the FDIC's Advisory Committee on Community Banking.  As for the Department of Education, it issued new servicing standards for student loans.  While community banks are not in the student loan servicing business, the standards may be helpful in considering origination practices.

The full set of developments over the past week includes:

Community Banking

  • FDIC releases Technical Assistance Video on Corporate Governance (FIL-46-2016, July 19).
  • FDIC Advisory Committee on Community Banking meeting (July 20).

Commercial Real Estate Loans

  • FDIC alerts banks to possible increasing risks in CRE lending during New York Region Regulatory Teleconference, Commercial Real Estate – Risks and Effective Risk Management (July 21).
    • "Rising interest rates may put pressure on CRE debt service and capitalization rates."
    • "Multifamily might be approaching the supply/demand equilibrium point in some areas – suggesting that prices may weaken and vacancy rates may rise."
    • "Underwriting standards may continue to relax with increased competition."
    • Presentation available at

Fair Lending

Mortgage Loans

  • Banking agencies and CFPB propose changes to Regulation Z interpretation for annual inflation adjustment to threshold for exemption of small loans from higher priced mortgage loan appraisal requirements (July 22).

Payday Loans

Payment Systems

  • Federal Reserve adopts changes to Part II of Policy on Payment System Risk (July 21).
    • Changes conform with enhancements to Federal Reserve Banks' same-day ACH service announced on Sept. 23, 2015 (July 21).
    • Changes cover posting rules for settlement of credits and debits for different payment types. 
      • Adds second posting time for forward same-day ACH transactions.
    • Revised policy statement available at

Student Loans

Too Big to Fail

Truth in Lending

  • Federal Reserve and CFPB propose amendments for increasing exemption thresholds for consumer credit and leasing transactions under TILA (July 22).

Upcoming Events

  • July 26
    • OCC Director Workshop, "Credit Risk," Tampa FL.
  • July 27
    • OCC Director Workshop, "Operational Risk," Tampa FL.
  • July 28
    • CFPB field hearing on debt collection, Sacramento CA.
  • Aug. 4
    • FDIC 2016 Joint Mutual Forum, Arlington VA.
  • Aug. 16
    • OCC Director Workshop, "Risk Governance," Kansas City MO.
  • Aug. 17
    • OCC Director Workshop, "Credit Risk," Kansas City MO.

Regulatory Comment Deadlines

  • Aug. 2
    • Federal Reserve: ANPR on capital rules for certain insurance companies.
    • Federal Reserve: proposed enhanced prudential standards for systemically important insurance companies.
    • FinCEN: imposition of special measures against North Korea.
  • Aug. 5 
    • Federal Reserve/FDIC/OCC: net stable funding ratio.
    • Federal Reserve: amendment of QFCs to prevent immediate cancellation in event of bankruptcy or other resolution.
  • Aug. 8 – Treasury/IRS: foreign-owned, single-owner entities required to obtain EIN.
  • Aug. 22 – CFPB: ban on mandatory arbitration clauses.
  • Aug. 29 – FDIC: replacement of references to credit ratings in international banking regulations.
  • 30 days after publication in Federal Register
    • Federal Reserve/CFPB: changes to exemption thresholds under Truth in Lending Act for consumer loans and leases.
    • Federal Reserve/FDIC/OCC/CFPB: changes to threshold for exemption of small loans from higher priced mortgage loan appraisal requirements.
  • Aug. 30 – OCC: adjustment of maximum CMPs to account for inflation.
  • Sept. 14 – CFPB: payday loans.
  • Sept. 16 – Federal Reserve: capital requirements for certain insurance companies.