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Friday, August 25, 2017

The Dodd-Frank Tracker is Moving to a New Location

The ABA Dodd-Frank Tracker is moving from its current blogger format to ABA's online Banking Journal. Posts on blogger will be discontinued on Monday, August 28th. As such, email subscribers to the current format will no longer receive updates. The current blog will be closed on September 8th.

ABA will continue posting Dodd-Frank content, which can be found at

You may subscribe to receive email updates through the RSS feed: Please note that in order to subscribe, the link must be opened in Internet Explorer, Firefox or Safari browsers.

Thank you for reading, and we hope you continue following Dodd-Frank updates in the new location.

This Week Ahead: August 28-September 1

  • Comments Due CFTC: Disclosure and Retention of Certain Information Relating to Cleared Swaps Customer Collateral (PRA)
    Read more.
  • Comments Due CFTC: Protection of Collateral of Counterparties to Uncleared Swaps; Treatment of Securities in a Portfolio Margining Account in a Commodity Broker Bankruptcy
    Read more.
  • Comments Due FDIC: Consolidated Call Reports
    Read more.
  • Comments Due CFTC: Derivatives Clearing Organizations, General Regulations and International Standards 
    Read more.
  • Comments Due EBSA: Draft Model Non-Quantitative Treatment Limitations Form
    Read more.
All times in Eastern Standard Time. See future events on the Dodd-Frank Calendar.

CFPB Finalizes HMDA Technical Corrections, HELOC Reporting Threshold

The CFPB issued a final rule making several technical corrections and clarifications to the expanded data collection under Regulation C, which implements the Home Mortgage Disclosure Act, as well as temporarily raising the threshold at which banks are required to report data on home equity lines of credit.

In finalizing the technical corrections, the bureau took note of at least one compliance challenge discussed in ABA’s comment letter and backtracked on a proposal to define multifamily dwellings as including properties in multiple locations. However, the bureau declined to adopt other ABA suggestions that would improve compliance and clarity and finalized the rules largely as proposed, including a provision ABA characterized as “significant and substantive” that would increase the number of institutions subject to HMDA.

Under the rule as originally written, banks originating more than 100 HELOCs would have been generally required to report under HMDA, but the final rule temporarily raises that threshold to 500 HELOCS for calendar years 2018 and 2019, allowing the bureau time to assess whether to make the adjusted threshold permanent. This provision takes effect on Jan. 1, along with compliance for most HMDA expansion provisions. 

Read the final rule.
Read ABA’s comment letter

Fed Names New Director of Payments Strategy

The Federal Reserve named Dave Sapenaro as its new payments strategy director. In his role, Sapenaro will be responsible for overseeing the Fed's efforts to improve the U.S. payments system, including its faster payments initiative. Sapenaro has been with the Federal Reserve for 32 years, serving most recently as first vice president and chief operating at the Federal Reserve Bank of St. Louis.

Read more

Wednesday, August 23, 2017

In First Step to Simplify Capital Rules, Agencies Pause Basel III Phase-In for Most Banks

The Federal Reserve, FDIC and OCC issued a proposed rule that would pause the transition to the Basel III capital framework for banks not using the Basel advanced approaches. The rule comes as regulators are working on a broader effort to simplify the regulatory capital rules for non-advanced approaches banks as has been long advocated by ABA and championed in the Treasury Department report on financial reform.

“As part of the recent review of regulations under the Economic Growth and Regulatory Paperwork Reduction Act, the agencies announced that they are developing a proposal that would simplify the capital rules to reduce regulatory burden, particularly for community banks,” the agencies said. “That proposal would simplify the capital rules' treatment of mortgage servicing assets and other items. However, under the current capital rules, the transitional treatment for those items is scheduled to be replaced with a different treatment on Jan. 1, 2018.”

The proposed rule would pause the full transition to the Basel III treatment of mortgage servicing assets, certain deferred tax assets, investments in the capital of unconsolidated financial institutions and minority interests pending a new rulemaking addressing these topics. Since advanced approaches are principally used by banking organizations with over $250 billion in assets or foreign bank subsidiaries with over $10 billion in assets, the pause would apply broadly to community, midsize and even several regional banks.

ABA plans to comment on the proposal and will strongly urge the agencies to include the advanced approaches banks in both the extended transition period and the future rulemaking simplifying the capital framework. Comments on the proposed pause are due 30 days after the rule is published in the Federal Register.

Read the proposed rule.
Read ABA's June letter urging a Basel III pause.
Read ABA's white paper on regulatory capital reform.

Agency Guidelines on HMDA Data Testing Fall Harder on Smaller Lenders

The federal banking agencies issued guidelines for how examiners will test the accuracy of data collected and reported by financial institutions under the Home Mortgage Disclosure Act.

Despite coming after concerns expressed by ABA and others about the burdens imposed by unreasonable error tolerances that require a bank to resubmit its HMDA data 
 in light of the vastly expanded data fields that must be reported beginning in March 2019  the new guidelines are expected to have the opposite result, creating disproportionate expectations for smaller volume lenders. For example, an examiner will review 30 loan files of a bank that only makes 50 mortgage loans but only 159 files for a bank that originates 100,000 loans. Moreover, a small number of errors in any given data field will trigger review and resubmission.

In comments filed to the proposed guidelines, ABA called for more reasonable tolerances. The association intends to ask the congressional banking committees to review the new guidelines and consider whether the level of perfection required will undermine the ability of banks to serve their customers. 

Read more