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  • CFPB releases RFI on rulemaking process

    Federal Issues

    On March 7, the CFPB released its seventh Request for Information (RFI) in a series seeking feedback on the Bureau’s operations. This RFI solicits public comment regarding “the overall efficiency and effectiveness of its rulemaking processes.” The RFI emphasizes that the Bureau is not seeking information related to the particular content of any proposed or final rule—existing rules will be addresses in separate RFIs—or information related to elements of the rulemaking process which are required by law. Specifically, the RFI requests feedback regarding the discretionary aspects of the Bureau’s rulemaking processes, including (i) mechanisms (such as RFIs) the Bureau uses to gather information from stakeholders in advance of initiating a rulemaking; (ii) the Small Business Regulatory Enforcement Fairness Act (SBREFA) panel process; (iii) the content and structure of notices of proposed rulemaking (NPRMs); (iv) the NPRM comment process, including time periods and feedback mechanisms; and (v) the content and structure of notices of final rules. The RFI is expected to be published in the Federal Register on March 9. Comments will be due 90 days from publication.

    Federal Issues RFI CFPB Succession Consumer Complaints Agency Rule-Making & Guidance Federal Register

  • CFPB releases 2018 lists of rural, underserved counties

    Agency Rule-Making & Guidance

    On March 6, the CFPB released its annual list of rural counties and rural or underserved counties for lenders to use when determining qualified exemptions under certain TILA regulatory requirements. In addition to these lists, the Bureau also directed lenders to use its web-based Rural or Underserved Areas Tool to assess whether a rural or underserved property qualifies for safe harbor for purposes of Regulation Z.

    Agency Rule-Making & Guidance CFPB TILA Regulation Z Consumer Finance Lending

  • CFPB issues final rule on periodic statements during bankruptcy

    Agency Rule-Making & Guidance

    On March 8, the CFPB issued a final rule updating technical aspects of the upcoming periodic statement requirements for borrowers in bankruptcy under Regulation Z. The Bureau adopted the proposed rule, released in October 2017, without revision (previously covered by InfoBytes here). Specifically, the final rule changes the transition rules for borrowers who enter or leave bankruptcy by replacing the previous single-billing-cycle exemption with a single-statement exemption for the next periodic statement or coupon book that a servicer would otherwise have to provide, regardless of when in the billing cycle the triggering event occurs. The Bureau also added new commentary to clarify the operation of the single-statement exemption. The rule is effective April 19. 

    Agency Rule-Making & Guidance CFPB Mortgage Servicing Bankruptcy Consumer Finance Regulation Z

  • OCC provides banks with resources for community revitalization efforts

    Agency Rule-Making & Guidance

    On February 27, the OCC published a new edition of its Community Developments Investments newsletter entitled, “Expanding Housing Opportunities: Single-Family Rehabilitation Financing Programs.” The publication provides resources and programs for national banks and federal savings associations to utilize to assist in community revitalization efforts. Highlighted is program guidance set forth previously in OCC Bulletin 2017-28, “Mortgage Lending: Risk Management Guidance for Higher-Loan-to-Value Lending Programs in Communities Targeted for Revitalization,” which outlines criteria geared towards residential rehabilitation loan financing. (See previous InfoBytes coverage here.) The publication also covers significant revitalization initiatives in communities across America, explains the ways in which loan programs sponsored by the Federal Housing Administration and Fannie Mae are supporting single-family rehabilitation financing initiatives, and notes that banks participating in such programs may qualify for Community Reinvestment Act consideration during evaluation.

    Agency Rule-Making & Guidance OCC Mortgages CRA

  • OCC updates Comptroller’s Licensing Manual to revise background investigation guidance

    Agency Rule-Making & Guidance

    On February 23, the OCC released Bulletin 2018-5 announcing a revised version of its “Background Investigations (Version 1.1)” booklet, which is part of the Comptroller’s Licensing Manual. The revised booklet replaces a November 2017 booklet of the same name, and reflects minor technical corrections and one process update. The booklet outlines the OCC’s procedures for carrying out background investigations of individuals, companies, and other organizations who file applications or notices seeking to acquire control of or influence a national bank or a federal branch or agency of a foreign bank. Specifically, the changes made under the heading “Application Process” (i) removes enforcement actions and 12 USC §1818 approval conditions from a list of filers subject to OCC background investigations; and (ii) adds a description of language the OCC may use should the agency decide to allow an individual to assume his duties before the background investigation has been completed.

    Agency Rule-Making & Guidance OCC Comptroller's Licensing Manual

  • FCC publishes Restoring Internet Freedom Order overturning net neutrality

    Agency Rule-Making & Guidance

    On February 22, the FCC formally published its Restoring Internet Freedom Order (Order) to overturn the 2015 Title II Order (known as, “Net Neutrality” rules). As previously covered in InfoBytes, the FCC voted last December to remove the restrictions barring internet service providers (ISPs) from slowing down or speeding up web traffic based on business relationships. Among other things, the Order’s “light-touch regulatory framework” will require ISPs to “publicly disclose accurate information regarding the network management practices, performance characteristics, and commercial terms of its broadband internet access services sufficient to enable consumers to make informed choices regarding the purchase and use of such services and entrepreneurs and other small businesses to develop, market, and maintain internet offerings. Such disclosure shall be made via a publicly available, easily accessible website or through transmittal to the Commission.” The Order takes effect April 23. The FCC will publish a separate document in the Federal Register announcing the effective date of certain delayed amendatory instructions and the Declaratory Ruling, Report and Order, and Order.

    As discussed previously in InfoBytes, two governors signed executive orders last month designed to protect net neutrality in their states.

    Agency Rule-Making & Guidance FCC Net Neutrality Federal Register

  • FFIEC releases 2018 HMDA reporting guide

    Agency Rule-Making & Guidance

    On February 21, the Federal Financial Institutions Examination Council (FFIEC) issued the 2018 edition of the “A Guide to HMDA Reporting: Getting it Right!” which reflects updates to the Home Mortgage Disclosure Act (HMDA) rule, effective January 1, 2018. The HMDA reporting guide is updated annually to assist institutions with their reporting requirements for the specified calendar year. Additionally, the CFPB recently launched their 2018 Loan/Application Register (LAR) Formatting Tool to assist small volume lenders in creating an electronic file to submit to the FFIEC HMDA platform, previously covered by InfoBytes here.

    Agency Rule-Making & Guidance Fannie Mae Freddie Mac Servicing Guide HMDA Mortgages FFIEC

  • FDIC adopts final rule to remove references to external credit ratings from international banking regulations

    Agency Rule-Making & Guidance

    On February 15, the FDIC announced it adopted a final rule, which removes references to external credit ratings from its international banking regulations related to permissible investment activities and the pledging of assets. According to FIL-9-2018, among other things, the amended final rule (adopted February 14) modifies the FDIC’s definition of “investment grade” under FDIC Rules and Regulations Part 347 by replacing references to external credit ratings with standards of creditworthiness that conform to Section 939A of the Dodd-Frank Act. As FIL-9-2018 explains, the final rule defines “investment grade” as a security issued by an entity that has adequate capacity to meet financial commitments for the projected life of the exposure. And as the final rule itself explains, this revision was made to “encourage regular, in-depth analysis by the banking organization of credit risks of securities, which is a prudent practice already expected of banks.” The final rule takes effect on April 1.

    Agency Rule-Making & Guidance FDIC International Credit Ratings Dodd-Frank

  • Fannie and Freddie update charge-off recommendations in servicing guides

    Agency Rule-Making & Guidance

    On February 14, Fannie Mae issued Servicing Guide Announcement SVC-2018-01 which, in addition to other items, updates the requirements for servicer charge-off recommendations, as directed by the Federal Housing Finance Agency (FHFA). According to Fannie Mae’s announcement, effective August 1, a servicer may submit a request to cease collection efforts and charge off a delinquent loan when either (i) a servicer deems the debt uncollectable and all appropriate measures to collect on the debt have been exhausted; or (ii) for certain mortgage loans, a foreclosure sale cannot be completed and at least one situation outlined in section D1-1-02 of the Servicing Guide applies. Freddie Mac also issued Bulletin 2018-2, which covers similar policy changes. According to both announcements, the change in charge-off policies reflects FHFA’s desire to avoid “neighborhood blight” for vacant properties.

    Agency Rule-Making & Guidance Fannie Mae Freddie Mac Mortgage Servicing Servicing Guide

  • VA issues guidance for IRRRL loans

    Agency Rule-Making & Guidance

    On February 1, the Department of Veterans Affairs released Circular 26-18-1, which informs lenders about new policy guidance for Interest Rate Reduction Refinance Loans (IRRRL) disclosures. Effective April 1, lenders are required to provide the Veteran’s Statement disclosure and the Lender Certification disclosure (if applicable) with the initial disclosure documents, which should be no later than three business days after receiving an application, and should confirm delivery in the Loan Guaranty Certificate process. According to the circular, the early disclosure of the Veteran’s Statement will assist the borrower in making informed decisions about whether the IRRRL is in their best interest. The circular also provides details for lenders about what specific information needs to be included in the Veteran’s Statement throughout the loan process.

    Agency Rule-Making & Guidance Department of Veterans Affairs Mortgages Refinance IRRRL

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