90 Day Regulatory Outlook

July 17, 2022

Agencies Propose to Update and Modernize the Uniform Rules of Practice and Procedure for Formal Administrative Enforcement Proceedings

The Federal Deposit Insurance Corporation (FDIC) invites comment on an interagency proposal to update the rules governing formal administrative proceedings for insured depository institutions. The proposed updates would modernize these rules, aligning them with current practices and facilitating the use of electronic communications and technology in formal administrative proceedings. The proposal was jointly developed with the Federal Reserve Board, the Office of the Comptroller of the Currency, and the National Credit Union Administration.

August 5, 2022

Agencies Issue Proposal to Strengthen and Modernize CRA Regulations

Federal bank regulatory agencies today jointly issued a proposal to strengthen and modernize regulations implementing the Community Reinvestment Act (CRA) to better achieve the purposes of the law. CRA is a landmark law enacted 45 years ago to encourage banks to help meet the credit needs of their local communities, including low- and moderate-income (LMI) neighborhoods, in a safe and sound manner.

Course Updates: (Release Date TBD)

  • 4260B – Preparing for a CRA Exam
  • 20044 – CRA: An Overview
  • 30403B – Fair Lending: Essentials
  • 30405B – Community Reinvestment Act (CRA): Essentials
  • 30406B – Community Reinvestment Act (CRA): Comprehensive
  • 31708B – Compliance Officer: CRA Examination Management
  • 31807B – Commercial Lending: CRA, Reg O, and Other Portfolio Concerns

There are no notable regulatory updates for this month.

October 1, 2022

CFPB Issues Two Final Rules to Promote Access to Responsible, Affordable Mortgage Credit The Bureau has issued two rules related to QM loans. The first final rule, the General QM Final Rule, replaces the current requirement for General QM loans that the consumer’s debt-to-income ratio (DTI) not exceed 43 percent with a limit based on the loan’s pricing. In the second final rule issued today, the Bureau creates a new category for QMs, Seasoned QMs.

Course Updates: (Released February 1, 2021)

  • 4026 – Defining Ability-to-Repay and Qualified Mortgages [Mini-Course]
  • 20506 – Reg Z: Ability-to-Repay and Qualified Mortgages
  • 31432 – Mortgage: Reg Z, ATR, and calculating DTI in Underwriting

Past Highlights

Qualified Mortgage Definition to Change Fall 2022

In December 2020, the CFPB released a final rule that updated the definition of Qualified Mortgages. While the rule is effective March 1, 2021, compliance is not mandatory until October 1, 2022. The new definition eliminates the Debt-to-Income requirement and replaces it with price-based thresholds that compare a loan’s APR to the APOR. As a result, BAI has retired “Reg Z: Appendix Q” (20507BCMN) as the portion of the regulation it covers is now obsolete.

Recommended courses:

FinCEN Seeks Comments on Enhancing the Effectiveness of AML Programs (November 28th, 2020)

The Financial Crimes Enforcement Network (FinCEN) today issued an Advance Notice of Proposed Rulemaking (ANPRM) to solicit public comment on a wide range of questions pertaining to potential regulatory amendments under the Bank Secrecy Act (BSA). The proposals under consideration are intended to provide financial institutions greater flexibility in the allocation of resources and greater alignment of priorities across industry and government, resulting in the enhanced effectiveness and efficiency of anti-money laundering (AML) programs.

Course Updates:  BAI will release new and updated courses upon finalization of rules. (Release Date TBD)

FinCEN Issues Final Rule to Require CIP, AML Program, and Beneficial Ownership Requirements for Banks Lacking a Federal Functional Regulator  (March 28th, 2021)

To ensure consistent Bank Secrecy Act (BSA) coverage across the banking industry, the Financial Crimes Enforcement Network (FinCEN) today issued a final rule that requires minimum standards for anti-money laundering programs for banks lacking a Federal functional regulator. The final rule also extends customer identification program and beneficial ownership requirements to those banks.

Past Issues

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Agencies Approve Final Rule Requiring Computer-Security Incident Notification. Federal bank regulatory agencies today announced the approval of a final rule to improve the sharing of information about cyber incidents that may affect the U.S. banking system… Read more. 

FinCEN Provides Financial Institutions with Red Flags on Potential Russian Sanctions Evasion Attempts. The Financial Crimes Enforcement Network (FinCEN) today issued a FinCEN Alert, advising all financial institutions to be vigilant against potential efforts to evade the expansive sanctions and other U.S.-imposed restrictions implemented in connection with the Russian Federation’s further invasion of Ukraine… Read more.

FinCEN Proposes Rule for SAR Sharing Pilot Program. The pilot program would permit a financial institution with a SAR reporting obligation to share SARs and information related to SARs with the institution’s foreign branches, subsidiaries, and affiliates for the purpose of combating illicit finance risks, subject to approval and conditions set by FinCEN… Read more.

FinCEN Proposes Rule for SAR Sharing Pilot Program. The pilot program would permit a financial institution with a SAR reporting obligation to share SARs and information related to SARs with the institution’s foreign branches, subsidiaries, and affiliates for the purpose of combating illicit finance risks, subject to approval and conditions set by FinCEN… Read more.

Agencies Announce Threshold for Smaller Loan Exemption from Appraisal Requirements for HPMLs.bThe Consumer Financial Protection Bureau, the Federal Reserve Board, and the Office of the Comptroller of the Currency today announced that the 2022 threshold for exempting loans from special appraisal requirements for higher-priced mortgage loans will increase from $27,200 to $28,500… Read more.

CFPB Proposes Rule to Shine New Light on Small Businesses’ Access to Credit. The Consumer Financial Protection Bureau today proposed a new rule designed to help small businesses gain access to the credit they need and deserve by increasing transparency in the lending marketplace…Read more.

CFPB Issues Final Rule to Implement the Fair Debt Collection Practices Act. The Consumer Financial Protection Bureau (Bureau) today issued a final rule to restate and clarify prohibitions on harassment and abuse, false or misleading representations, and unfair practices by debt collectors when collecting consumer debt… Read more.

FDIC Issues Request for Information on Supervisory Approach to Bank Examinations During the Pandemic. The Federal Deposit Insurance Corporation (FDIC) today issued a Request for Information (RFI) seeking feedback and comments from FDIC-supervised financial institutions regarding the FDIC’s supervisory approach to examinations during the pandemic… Read more.

Federal Reserve Extends Comment Period on Proposed Rule to Govern Funds Transfers Over FedNow Service. The Federal Reserve Board announced on Tuesday that it will extend until September 9, 2021, the comment period for its proposal to govern funds transfers over the Federal Reserve Banks’ FedNow℠ Service… Read more.

Federal Reserve Invites Comment on Proposed Changes To Its Policy on Payment System Risk. The proposal would modify the PSR policy to (1) expand access to collateralized capacity and (2) clarify the terms for accessing and retaining uncollateralized capacity… Read more. 

Agencies Seek Wide Range of Views on Financial Institutions’ Use of Artificial Intelligence. The Federal Reserve System, the Consumer Financial Protection Bureau (CFPB), the Federal Deposit Insurance Corporation (FDIC), the National Credit Union Administration (NCUA) and the Office of the Comptroller of the Currency (OCC) announced the request for information (RFI) to gain input from financial institutions, trade associations, consumer groups, and other stakeholders on the growing use of AI by financial institutions….Read more.

Agencies Issue Statement and Request for Information on Bank Secrecy Act/Anti-Money Laundering Compliance. The agencies, along with the National Credit Union Administration and the Financial Crimes Enforcement Network, also announced a request for information (RFI) on the extent to which the principles discussed in the guidance support compliance by banks and credit unions with BSA/AML and Office of Foreign Assets Control requirements… Read more. 

CFPB Rules Tenants Can Hold Debt Collectors Accountable for Illegal Evictions. The Consumer Financial Protection Bureau (CFPB) today issued an interim final rule in support of the Centers for Disease Control and Prevention (CDC)’s eviction moratorium. The CFPB’s rule requires debt collectors to provide written notice to tenants of their rights under the eviction moratorium and prohibits debt collectors from misrepresenting tenants’ eligibility for protection from eviction under the moratorium… Read more.