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Monday, September 22, 2014

OCC To Host Workshops In Kansas City

The OCC will host two workshops — the Compliance Risk and Credit Risk: A Director’s Focus — in Kansas City, Missouri, for directors of national community banks and federal savings associations. The compliance risk workshop focuses on major compliance risks and consumer protection regulations, such as the Bank Secrecy Act and Community Reinvestment Act. The credit risk workshop focuses on current and emerging industry trends and news. Richard Dixon, Assistant Deputy Comptroller in the Los Angeles office and Credit Risk Instructor said:

These workshops are good for both new and experienced directors on the importance of a strong risk culture and how they can influence it. This is key to running a safe and sound institution.

The two workshops will be held on November 5-6 in Kansas City, Mo., at the Westin Kansas City at Crown Center.

Read more.

CBO: H.R. 5148, Insignificant Effect on CFPB Revenue

Enacting the Access to Affordable Mortgages Act of 2014 (H.R. 5148) would increase direct spending by about $1 million and decrease revenue by an insignificant amount over the 2015-2024 period, according to the Congressional Budget Office’s (CBO) analysis of information from the CFPB and the financial regulatory agencies.

The Access to Affordable Mortgages Act of 2014 would eliminate requirements that lenders making higher-risk mortgages obtain a written appraisal of the property securing the mortgages if the original loan amount is less than $250,000 and the lender holds the mortgage in its portfolio for at least three years. The bill also would exempt certain participants in a real estate transaction from paying civil penalties for failing to notify the appropriate state licensing agency if a real estate appraiser fails to comply with universal standards for appraisal practices.

Read the CBO cost estimate.

Friday, September 19, 2014

The Week Ahead: September 22-26

  • Comments Due FDIC: Proposed Rule to Revise Ratios and Ratio Thresholds for Deposit Insurance Assessments Read more.
  • Webcast: HPML, HCML (HOEPA), HPCT and Beyond Read more.
All times in Eastern Standard Time. See future events on the Dodd-Frank Calendar. Big Data is transforming the world, and agriculture stands to be among the most transformed. Are ag bankers ready for this new, big data world? Are the big times going to continue to roll? Omaha, Nebraska will be the setting for Big Times Demand Big Data - the epicenter of the great American agricultural boom of the 21st Century. Our planning committee is working to bring the best qualified, most expert speakers on agricultural finance to help you and your colleagues sort it all out. Read more.  

Thursday, September 18, 2014

Fed Publishes Interchange Report

The Federal Reserve Board published a report on the volume and value, interchange fee revenue, certain issuer costs and fraud losses related to debit card transactions in 2013. The report is the third in a series to be published every two years pursuant to section 920 of the Electronic Fund Transfer Act (EFTA).

In 2013, covered issuers' costs of authorizing, clearing, and settling (ACS) debit card transactions, excluding issuer fraud losses, varied greatly across respondents, with the median issuer having an average ACS cost of 14.9 cents and the issuer at the 75th percentile having an average ACS cost of 42.2 cents.

Issuers with the highest debit card transaction volume generally had the lowest ACS costs per transaction as reflected in an overall average of 4.4 cents per transaction, down from 5 cents per transaction in 2011. Conversely, issuers with the smallest debit card programs generally had the highest ACS costs per transaction.

The estimated debit-card fraud losses to all parties was $1.57 billion in 2013, with an average loss of approximately 8 basis points as a share of transaction value, up slightly from 2011.

Read more.

ABA, Trade Groups File Brief in TILA Rescission Case

ABA and several trade groups filed a friend-of-the-court brief urging the Supreme Court to uphold the appellate court decision in Jesinoski v. Countrywide when it hears the case in November. The matter at issue is what constitutes the rescission of a mortgage by a borrower during the three-year period allowed by the Truth in Lending Act should the creditor fail to make certain disclosures.

The appellate court in Jesinoski ruled that to rescind a mortgage under those conditions, a borrower must file a lawsuit before three years are up, as most other appellate circuits have found. The petitioners are urging the Supreme Court to find that a written notice of intent to rescind a mortgage is sufficient within the three-year window.

ABA and the other groups argued that requiring a lawsuit to rescind balances borrowers’ rights to full disclosure and redress while providing certainty to the mortgage marketplace. The petitioners’ approach, however, would “fundamentally undermine the finality and clarity Congress intended this statute to provide,” the groups explained.

Read the brief.

CFPB to Extend Oversight to Nonbank Auto Lenders

After issuing controversial guidance last year to banks that offer indirect auto loans through car dealers, the CFPB is seeking to expand its oversight of the auto lending market. The bureau proposed a rule that would allow it to supervise nonbank auto finance companies.

The rule would cover nonbanks making more than 10,000 auto loans per year, capturing an estimated 38 companies that originate approximately 90% of all nonbank auto loans and serve 6.8 million borrowers in a year. The CFPB also released a report on its previous supervision of auto loans and a detailed description of the proxy methodology the bureau uses to identify potential fair lending violations.

Read more.