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Tuesday, May 5, 2015

Comptroller Curry: Reshape Regulations to Reduce Burden

“Smaller banks and thrifts don’t have the same kind of resources that large institutions can bring to bear on regulatory compliance, and if we can eliminate unnecessary rules and streamline others, we can make it easier for these institutions to serve the economic needs of their communities,” Comptroller of the Currency Thomas J. Curry said at the Interagency Outreach Meeting on EGRPRA.

Comptroller Curry listed three ways that the OCC supports reshaping regulations that are unduly burdensome for community institutions.

First, the OCC supports raising the asset threshold for institutions able to qualify for the 18-month exam cycle from $500 million to $750 million in assets. The extension would qualify several hundred additional banks and thrifts for the extended cycle, reducing the burden for those well-managed institutions and allowing federal banking agencies to focus their supervisory resources on those banks and thrifts that present issues of supervisory concern.

Second, Comptroller Curry supports congressional action to exempt community banks from the Volcker Rule, saying that the OCC supports a $10 billion asset threshold which would exempt more than 6,000 banks and thrifts.

Finally, the OCC has developed a proposal to provide federal savings associations with greater flexibility to expand their business model without changing their governance structure, giving these institutions greater flexibility to adapt to changing economic and business environments in order to meet the needs of their communities.

Read the speech.

Monday, May 4, 2015

FDIC to Offer Teleconference on CFPB Mortgage Rules

The FDIC will hold a teleconference for bankers on the CFPB’s mortgage rules on May 21. During the call, FDIC staff will share observations from examinations and highlight practices at some institutions that they consider useful for compliance officers. Participants must register by May 19.

Learn more and register.

Agencies Revise Exam Procedures for TILA-RESPA Integration

The banking agencies issued revised examination procedures and exam manual narratives for consumer compliance rules under the Truth in Lending Act and the Real Estate Settlement Procedures Act — primarily related to the CFPB’s TILA-RESPA integrated disclosures taking effect Aug. 1.

Download the manuals and exam procedures.

Friday, May 1, 2015

The Week Ahead: May 4 - 8

  • Meeting FRB/OCC/FDIC: Regulatory Publication and Review Under the Economic Growth and Regulatory Paperwork Reduction Act of 1996  Read more.

  • Comments Due OCC: Agency Information Collection Activities  Read more.

  • Comments Due FDIC: Comment Request Regarding the National Survey of Unbanked and Underbanked Households  Read more.

  • Meeting CFPB: Academic Research Council Meeting  Read more.
  • Meeting Treas: Federal Advisory Committee on Insurance  Read more.

  • Comments Due CFPB: Consumer Response Intake Form  Read more.
  • Comments Due CFPB: Generic Information Collection Plan for Consumer Complaint and Information Collection System  Read more.

All times in Eastern Standard Time. See future events on the Dodd-Frank Calendar.

ABA: Ensure Basel Accounting Guidance Matches U.S. Standards

Responding to draft Basel Committee guidance on bank examination procedures for accounting for expected credit losses, ABA cautioned the committee that regulatory expectations must be proportional to the size and sophistication of individual banks.

The guidance, when approved, is intended to become the basis for bank examinations worldwide and — while intended mainly for large, internationally-active banks — U.S. regulators may apply the guidance to examinations of banks of all sizes. As drafted, the guidance sets detailed expectations that often closely link credit risk management, capital management and accounting, while also listing specific steps in those processes.

Noting that the Federal Accounting Standards Board has not issued its new impairment accounting standard, ABA warned that much of the guidance focuses on the recently finalized international accounting standard on impairment and may need additional changes once the FASB standard is finalized.

In a separate letter to the U.S. banking agencies, ABA recommended that any changes to industry guidance related to accounting for loan losses be subject to the formal rulemaking process to ensure that all perspectives are considered prior to finalizing the guidance.

Read the letter to the Basel Committee.
Read the letter to regulators.

Agencies Finalize Standards for State Appraisal Regulations

The federal financial agencies, along with the regulator of Fannie Mae and Freddie Mac, finalized minimum requirements for state supervision of appraisal management companies. The rule was issued under the Dodd-Frank Act.

The rule does not require states to regulate AMCs, but if states do, AMCs must register in the state, use only state-certified or licensed appraisers for federally related transactions and ensure appraisals are independent. However, in states that do not establish an AMC regulatory structure within three years, non-federally regulated AMCs may not provide services for federally related transactions, such as loans backed by Fannie or Freddie.

Federally regulated AMCs will be required to meet the same standards as state-regulated companies, with the exception of a requirement for state registration.

Read the final rule.