Banker Compliance News

Banking compliance professionals require hot-topic news on consumer and regulatory compliance updates, decisions, amendments, changes and launches from across a wide spectrum of news agencies and federal websites. Not only do we update our News pages with individual news items and their links, but these are sent to members in a Daily Bank Compliance email that can be signed up for once new members log-in. Compliance Alliance monitors these agencies for bank compliance news updates throughout the day—posting relevant information to our News page. This is a valuable resource for Bank Managers and their employees.

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  • Mortgages Rates See a Slight Decline

    November 30, 2015 / Source: Freddie Mac

    The average 30-year fixed mortgage rate declining slightly leading up to the Thanksgiving holiday. The average 30-year fixed rate mortgage hasn't risen above 4 percent since the week of July 23rd of this year, which is helping homebuyer affordability in the face of rising house prices due to low levels of inventory in many markets.

  • Feds Finalize Amendments to the Capital Plan and Stress Test Rules

    November 30, 2015 / Source: Federal Reserve

    The Feds finalized amendments to the Capital Plan and Dodd-Frank Act-mandated stress tests for banks and holding companies on Wednesday. Capital planning and stress testing are two key components of the Board’s supervisory framework for large financial companies. There are two related components of the framework: the Comprehensive Capital Analysis and Review (CCAR), which is conducted pursuant to the Board’s capital plan rule (12 CFR 225.8), and stress testing, which is conducted pursuant to the Board’s stress test rules (subparts E and F of Regulation YY) and section 165(i) of the Dodd-Frank Wall Street Reform and Consumer Protection Act (Dodd-Frank Act)

  • Quarterly Banking Prolfe - Banks Made $40.4 Billion in Third Quarter

    November 25, 2015 / Source: FDIC

    Earnings Rise, Profitability Remains Flat Reductions in expenses for litigation reserves outweighed weakness in net operating revenue at large banks as third quarter net income for FDIC-insured institutions totaled $40.4 billion. This represents an increase of $1.9 billion (5.1 percent) from the $38.4 billion reported in third quarter 2014. Well over half of all banks, or 58.9 percent, reported higher quarterlyearnings than the year-ago quarter. The proportion of banks that were unprofitable fell to 5 percent, compared with 6.6 percent in third quarter 2014. The average return on assets was essentially unchanged at 1.02 percent, versus 1.01 percent the year before.

  • Feds Propose New Rule Regarding Liquidity Coverage Ratio

    November 25, 2015 / Source: Federal Reserve

    The proposed rule would apply to all depository institution holding companies and covered nonbank companies that are required to calculate the LCR (covered companies) under 12 CFR part 249. A covered company would be required to publicly disclose on a quarterly basis quantitative information about its LCR calculation, as well as a discussion of certain features of its LCR results. The proposed rule also would amend 12 CFR part 249 to provide a full year for certain companies to come into compliance with 12 CFR part 249.

  • CFPB Releases Bulletin for Preauthorized EFT

    November 24, 2015 / Source: CFPB

    The CFPB is issuing this Compliance Bulletin to industry to remind entities of their obligations under the Electronic Fund Transfer Act (EFTA) and Regulation E when obtaining consumer authorizations for preauthorized electronic fund transfers (EFTs) from a consumer’s account. The CFPB has observed that some entities may not fully comply with the requirements imposed by EFTA and Regulation E.

  • CFPN

    November 24, 2015

  • CFPN

    November 24, 2015

  • FDIC Releases Cybersecurity Awareness Resources

    November 24, 2015 / Source: FDIC

    As part of the FDIC's Community Banking Initiative, the agency is adding to its cybersecurity awareness resources for financial institutions. These include a Cybersecurity Awareness video and three new vignettes for the Cyber Challenge, which consists of exercises that are intended to encourage discussions of operational risk issues and the potential impact of information technology disruptions on common banking functions. Note: This only applies to institutions with total assets under $1 Billion.

  • Updated FFIEC Management Booklet Part of IT Examination Handbook Series

    November 23, 2015 / Source: FFIEC

    The Federal Financial Institutions Examination Council (FFIEC) has issued a revised "Management" booklet that provides guidance to assist examiners in evaluating the information technology (IT) governance at financial institutions and service providers. The booklet is part of the IT Examination Handbook series.

  • FDIC Board of Directors Approves Notice of Proposed Rulemaking (NPR)

    November 23, 2015 / Source: FDIC

    On October 22, 2015, the FDIC Board of Directors approved the attached Notice of Proposed Rulemaking (NPR) to implement the provisions of the Dodd-Frank Wall Street Reform and Consumer Protection Act: (1) raising the minimum reserve ratio of the Deposit Insurance Fund (DIF) from 1.15 percent to 1.35 percent; (2) requiring that the reserve ratio reach 1.35 percent by September 30, 2020; and (3) requiring that the FDIC offset the effect of the increase in the minimum reserve ratio on insured depository institutions with total consolidated assets of less than $10 billion (small banks).

  • OCC Enforcement Actions and Terminations for November 2015

    November 20, 2015 / Source: OCC

    The Office of the Comptroller of the Currency (OCC) today released new enforcement actions taken against national banks, federal savings associations, and individuals currently and formerly affiliated with national banks and federal savings associations. All Cease and Desist Orders, Civil Money Penalty Orders, and Removal/Prohibition Orders are issued with the consent of the parties, unless otherwise indicated as a Decision and Order issued by the Comptroller of the Currency.

  • Federal Reserve States Plan to Redistribute Unclaimed Funds

    November 20, 2015 / Source: Federal Reserve

    The Federal Reserve Board on Thursday announced a plan to redistribute unclaimed funds under the Independent Foreclosure Review Payment Agreement to eligible borrowers who have cashed or deposited checks. The plan covers borrowers of mortgage servicers regulated by the Federal Reserve.

  • Consumer Price Index Increased in October

    November 19, 2015 / Source: Bureau of Labor Statistics

    The Consumer Price Index increased 0.2 percent in October on a seasonally adjusted basis, the U.S. Bureau of Labor Statistics reported today. Over the last 12 months, the all items index increased 0.2 percent before seasonal adjustment.

  • December Rate Increase Possiable

    November 19, 2015 / Source: Federal Open Market Committee

    Federal Open Market Committee meeting held last month suggest a possible rate increase is likely to happen when they meet again On December 16. "Household spending and business fixed investment have been increasing at solid rates in recent months, and the housing sector has improved further; however, net exports have been soft. The pace of job gains slowed and the unemployment rate held steady."

  • CFPB Releases Retirement Planning Tool

    November 18, 2015 / Source: Ballard Spahr

    The CFPB held a meeting with the Social Security Administration last Thursday to voice grave concern for future retirees. Research conducted by the CFPB, found that many retirees take a "substantial reduction in Social Security benefits by starting to collect before their full retirement age." It also found that a lack of and inaccurate information hinders the ability of many people to make an informed decision about when to claim benefits, citing to studies indicating that people claiming Social Security benefits early have less information about benefits and claiming options as compared to those who claim at their full retirement age or later.

  • Consumer Credit Default Rates Increase in October

    November 18, 2015 / Source: S&P Dow Jones Indices

    Data through October 2015, released today by S&P Dow Jones Indices and Experian for the S&P/Experian Consumer Credit Default Indices, a comprehensive measure of changes in consumer credit defaults, shows the composite rate at 0.94% in October, up five basis points from the previous month. The auto loan default rate was 1.00%, up eight basis points for October. The first mortgage default reported in at 0.81%, up five basis points from the previous month. The bank card default rate was the only rate to decline in October, reporting at 2.75% for the month, a decrease of two basis points.

  • FDIC Clarifies Bank Offering Products to Non-Bank Payday Lenders

    November 17, 2015 / Source: FDIC

    The FDIC is reissuing FIL-14-2005, the 2005 Payday Lending Guidance to ensure that bankers and others are aware that it does not apply to banks offering products and services, such as deposit accounts and extensions of credit, to non-bank payday lenders. FIL-14-2005 applies to all FDIC-supervised financial institutions that make payday loans.

  • FinCEN, Director Calvery:  MSBs Examined for Compliance with AML and BSA is Critical

    November 17, 2015 / Source: FinCEN Director Calvery

    In a speech addressed to key banking members, Calvery addressed the importance of regulatory compliance within the MSB industry. Supervision of the MSB industry is performed at both the state and Federal level and involves both MSB principals and agents. At the federal level, FinCEN has delegated its examination authority for MSB compliance with the federal AML regulatory regime, under the Bank Secrecy Act (BSA), to the Internal Revenue Service (IRS). In contrast with state authorities, the IRS focuses its resources primarily on agent examinations, with an average of about 8,000 examinations taking place each year. IRS uses a risk-based approach to selecting MSBs for exams each year. FinCEN also provides exam referrals to IRS based on our own intelligence analysis.

  • Majority of Business Owners Not EMV Compliant

    November 16, 2015 / Source: Small Business Authority

    In an article written by the Small Business Authority, over 59% of business who take credit cards are not EMV compliant and are using POS machines which are unable to accept the chip cards. Of those who do not have an EMV compliant terminal, 53% do not plan on upgrading their terminals to become EMV compliant.

  • Brokered Deposit FAQ Updated by the FDIC

    November 16, 2015 / Source: FDIC

    The FDIC on Friday updated its controversial FAQs on identifying, accepting, and reporting brokered deposits and sought comment on the revisions. The FDIC is seeking comment for 45 days (closing 12-28-2015) on a proposed update to a series of frequently asked questions (FAQs) and an accompanying introductory letter regarding identifying, accepting and reporting brokered deposits that were issued in January 2015 through FIL-2-2015.

  • Mortgages Rates Rise Second Consecutive Week

    November 13, 2015 / Source: Freddie Mac

    Freddie Mac released the results of their mortgage survey showing and increase in rates in the second consecutive week. Fixed mortgage rates rose amid continued market expectations of a possible rate increase by the Federal Reserve and following a stronger than expected jobs report.

  • Fed Announces Annual Indexing of Reserve Requirements

    November 13, 2015 / Source: Federal Reserve

    The Federal Reserve Board on Thursday announced the annual indexing of two amounts used in determining reserve requirements of depository institutions. These amounts are the reserve requirement exemption amount and the low reserve tranche.

  • Loan Originator Pleads Guilty In Fraudulent Mortgage Scheme

    November 12, 2015 / Source: FDIC

    Baltimore, Maryland – David B. Pick, age 47, of Bowie, Maryland, pleaded guilty today to making false statements arising from a real estate closing. The guilty plea was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Deputy Inspector General for Investigations Rene Febles of the Federal Housing Finance Agency Office of Inspector General; and Special Agent in Charge Fran Mace, of the Federal Deposit Insurance Corporation Office of Inspector General.

  • CFPB 2015 Fall Supervisory Report Issued

    November 12, 2015 / Source: CFPB

    CFPB shares recent supervisory observations in the areas of consumer reporting, debt collection, mortgage origination, mortgage servicing, student loan servicing, and fair lending. CFPB actions have led to public enforcement actions, resulting in $764.9 million being returned to consumers and $50.7 million in civil money penalties and restitution of approximately $107 million to more than 238,000 consumers.

  • NY Regulator Aimed at Increasing Cyber Security

    November 12, 2015 / Source: NYDFS

    New York Department of Financial Services voiced their concern over cyber security threats with the banking industry, and potential new regulations in a letter written to Financial and Banking Information Infrastructure Committee (FBIIC) Members. "Cyber security programs must remain dynamic to keep pace with this fast-changing landscape."