Although last week's volume of public developments in bank regulation was modest, a few announcements deserve special attention. For mortgage lenders, the OCC issued a new mortgage lending handbook that incorporates the changes to Regulations X and Y made by the CFPB and now in effect. The CFPB also is considering massive changes to the types and amounts of data to be reported under HMDA. Additionally, the new Chair of the Federal Reserve, Janet Yellen, will appear for her first time before the Senate Banking and House Financial Services Committees to deliver the Federal Reserve's semi-annual report on monetary policy and the U.S. economy. Her testimony should be interesting in light of last week's disappointing jobs numbers and as her first formal statements as Chair on the economy and Federal Reserve policy.

The Economy

Community Banking

  • Note HMDA and Mortgage Lending developments below.

Bank Secrecy Act/Anti-Money Laundering


  • CFPB to consider changes to rules on data reporting and collection. Material available at No formal advance notice of proposed rulemaking or proposed rule.
    • New requirements to be reported include:
      • Total points and fees, and rate spreads for all loans.
      • Riskier loan features including teaser rates, prepayment penalties, and non-amortizing features.
      • Lender information, including a unique identifier for the loan officer and the loan.
      • Property value and improved property location information.
      • Age and credit score.
    • Changes required by Dodd-Frank Act:
      • Mandatory reporting of denial reasons.
      • Debt-to-income ratio.
      • Qualified mortgage status of loan.
      • Combined loan-to-value ratio.
      • Automatic underwriting systems results.
      • Additional points and fees information, including total origination charges, total discount points, risk-adjusted, pre-discounted interest rate, and interest rate.
      • Deed restricted as affordable housing.
      • Manufactured housing data.
    • Improved collection
  • CFPB and FFIEC launch new tool for public access to HMDA data, available at

Mortgage Lending

Paying Agents

  • FDIC issues FIL-8-2014 to confirm that amended SEC Rule 17Ad-17 regarding notices to unresponsive payees is applicable to FDIC-supervised institutions.

Payment Systems


  • FinCEN enforcement action for illegal money transfers to Yemen. See Bank Secrecy Act/Anti-Money Laundering above.


Securities Transactions

  • Recordkeeping and Confirmation Requirements for Securities Transactions, FDIC FIL-7-2014 (Feb. 4), available at
    • Applicable to state nonmember banks and state savings associations.
    • Raises threshold for small transaction exception from 200 to 500 transactions.
    • Amends 12 C.F.R. part 344 and rescinds 12 C.F.R. part 390, subpart K.

Swaps and Derivatives

Too Big to Fail

  • OCC Bulletin 2014-1, OCC Guidelines Establishing Heightened Standards for Certain Large Insured National Banks, Insured Federal Savings Associations, and Insured Federal Branches, notice of proposed rulemaking, 79 Fed. Reg. 4282 (Jan. 27).

Volcker Rule

  • Trust preferred securities: prohibition in final Volcker Rule on investments in CDOs extends to investments in pooled TruPS (Dec. 19).
    • Issues:
      • Important accounting consequence for banks now holding pooled TruPS: prohibition means that the investments have suffered an other-than-temporary impairment and must be written down.
  • Chronology of events:
  • Dec. 19: agencies issue FAQs and related material available, at
  • Dec. 23: ABA and 4 banks file suit in D.C. federal district court to block application of Volcker Rule to TruPS holdings and seek emergency relief in D.C. Circuit.
  • Dec. 27: agencies issue statement that they are reviewing application of Volcker Rule to TruPS investment vehicles, partly in light of Collins Amendment, available at
    • Accounting: agency accountants advise that developments in January 2014 before filing of fourth quarter call reports and FR Y-9Cs should be taken into account in preparing filings.
  • Jan. 8-9: "Fairness for Community Job Creators Act" introduced to prohibit Volcker Rule from requiring banks to divest holdings of pooled TruPS and to prevent banks from having to take write-down.
    • S. 1907
    • H.R. 3819
  • Jan. 14: agencies issue interim final rule authorizing retention of interests in and sponsorship of CDOs backed by TruPS, available at
    • Prerequisites:
      • Underlying TruPS issued before May 19, 2010, by bank holding company with less than $15 billion in assets.
      • CDO established and interest issued before May 19, 2010.
      • Interest acquired on or before Dec. 10, 2013.
    • Comment deadline: 30 days after publication in Federal Register.
  • Jan. 15: ABA announces withdrawal of request for emergency relief in D.C. Circuit but reserves judgment on continuing litigation.
  • Jan. 15: House Financial Services Committee hearing. Written testimony and archived webcast available at
  • Jan. 29: European Commission counterpart proposal.
  • Jan. 30: Agencies announce Mar. 3 as deadline for comments on interim final rule.
  • Feb. 5: House Banking Committee hearing, see Congressional Hearings below.

Bank Closings

  • None.

Congressional Hearings

Upcoming Events

  • Feb. 10
    • Closed meeting of Federal Reserve Board
      • Advance and discount rates to be charged by Federal Reserve Banks.
    • Meeting of CFTC Technology Advisory Committee.
  • Feb. 11
    • House Financial Services Committee hearing.
      • "Monetary Policy and the State of the Economy."
  • Feb. 12
  • Feb. 13
    • Senate Banking Committee hearing.
      • "The Semiannual Monetary Policy Report to the Congress."
    • FSOC monthly meeting.
  • Mar. 18-19
    • Federal Open Market Committee.
  • Mar. 31
    • OCC Symposium, "Building on 150 Years: The Future of National Banking."

Regulatory Comment Deadlines

  • Feb. 10 – CFPB: Debt collection (advance notice of proposed rulemaking).
  • Feb. 10 – Federal Reserve: amendments to Policy Statement on Payment System Risk regarding posting of debits and credits to Federal Reserve accounts and Regulation J regarding settlements of checks and payments of proceeds to Federal Reserve Banks.
  • Feb. 10 – CFTC: Position limits and aggregation of positions.
  • Feb. 18 – FDIC: Single point of entry strategy for orderly liquidations.
  • Feb. 28 – CFPB: Advance notice of proposed rulemaking on debt collection practices.
  • Mar. 3 – Federal Reserve, OCC, FDIC, SEC, CFTC: exemption from Volcker Rule for certain CDOs backed by certain trust preferred securities.
  • Mar. 7 – Federal Reserve: amendments to Regulation A, emergency lending authority.
  • Mar. 10 – SEC: Strategic Plan for 2014-2018.
  • Mar. 17 – Federal Reserve: advance notice of proposed rulemaking on physical commodity holdings by financial holding companies.
  • Mar. 17 – CFPB: Regulation E, list of countries qualifying for safe harbor.
  • Mar. 24 – SEC: amendments to Regulation A.
  • Mar. 28 – OCC: heightened expectations for large national banks and federal savings associations.
  • Mar. 31 – Federal Reserve: amendments to Policy Statement on Payment System Risk and to Regulation HH (financial market utilities) to reflect international Principles for Financial Market Infrastructures.
  • April 1 – CFPB: supervision of larger international money transmitters.
  • April 11 – BCBS: Basel III: The Net Stable Funding Ratio.
  • May 2 – Federal Reserve: Application of Regulation CC to electronic checks and electronic returned checks.