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  • FFIEC Finalizes Updated Uniform Interagency Consumer Compliance Rating System

    Federal Issues

    On November 7, the Federal Financial Institutions Examination Council (FFIEC) announced the issuance of an updated Uniform Interagency Consumer Compliance Rating System, more commonly known as the “CC Rating System.” In final guidance the FFIEC explains that the new rating system has been re-designed “to better reflect current consumer compliance supervisory approaches and to more fully align the CC Rating System with the Agencies’ current risk-based, tailored examination processes.” The agency also notes that the revisions “were not developed to set new or higher supervisory expectations for financial institutions and their adoption will represent no additional regulatory burden” (emphasis added).

    Under the new CC Rating System, institutions will be assessed on a 1-to-5 rating scale in three distinct categories: (i) board and management oversight; (ii) compliance program and violations of law; and (iii) consumer harm. The new rating system will be used by all FFIEC member agencies – including CFPB in its evaluation of non-depository institutions. FFIEC member agencies plan to implement the updated rating system on consumer compliance examinations that begin on or after March 31, 2017.

    Federal Issues Consumer Finance CFPB FFIEC

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  • White to Testify Before House Financial Services

    Federal Issues

    SEC Chair Mary Jo White is scheduled to testify later this month at separate House Financial Services Committee hearings, a spokesman for the panel said.  White will appear before the committee on November 15 to answer questions regarding the SEC’s agenda, operations, and budget request. She will be the only witness.

    Federal Issues Consumer Finance CFPB SEC U.S. House House Financial Services Committee

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  • Financial Stability Oversight Council will hold its first post-election meetings on November 16

    Federal Issues

    On November 16, Treasury Secretary Jack Lew will preside over a meeting of the Financial Stability Oversight Council (FSOC). The agenda will include both an open and an executive session. The preliminary agenda for the open session includes an update on the work of the Alternative Reference Rates Committee, an update on the council's review of the asset management industry and revisions to the council's regulations under the Freedom of Information Act. The preliminary agenda for the executive session includes a presentation on stress tests of central counterparties conducted by the CFTC, a discussion of confidential data related to the Council’s review of asset management products and activities, and an update on the annual re-evaluation of the designation of a non-bank financial company.

    Open session Council meetings are made available to the public via live webcast and also can be viewed after they occur here. Meeting minutes for the most recent Council meeting are generally approved at the next Council meeting and posted online soon afterwards. Meeting minutes for past Council meetings are available here. Readouts for past Council meetings are available here.

    Federal Issues Consumer Finance Nonbank Supervision CFTC FSOC Department of Treasury

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  • Comptroller Curry Announces OCC Will Issue a Paper Soon Describing OCC's Thoughts on National FinTech Charters

    Federal Issues

    In prepared remarks delivered November 3 at the Chatham House “City Series” Conference in London, Comptroller of the Currency Thomas J. Curry discussed the OCC’s approach to regulating FinTech innovation. In his speech, entitled “The Banking Revolution: Innovation, Regulation and Consumer Choice,” Mr. Curry discussed the rapid growth of worldwide investment in FinTech over the past five years and walked through various regulatory responses to those developments–including the OCC’s guiding principles for its regulatory approach to innovation and its decision to establish a team dedicated to implementing those principles. The Comptroller emphasized that the OCC is still deciding whether to grant national charters to FinTech companies that conduct banking activities, but added that the agency would issue a paper “soon” describing the agency’s thoughts on the subject and inviting public comment.

    Federal Issues Consumer Finance Digital Commerce OCC Fintech Virtual Currency

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  • SBA Rebrands Core Business Loan Programs

    Federal Issues

    In a November 1 memorandum, the Small Business Administration (SBA) announced that the names of the popular 7(a) and 504 loan programs have been changed. The “7(a) program” will now be rebranded as the “SBA Advantage Loan Program,” while “504 loans” will be known going forward as the “SBA Grow Loan Program.” The SBA’s memo did not announce any substantive changes to the loan programs.

    Federal Issues Consumer Finance SBA

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  • OCC Updates Community Bank Supervision Comptroller's Handbook

    Federal Issues

    On November 3, the OCC announced an update to the “asset quality core assessment procedures” in its Community Bank Supervision Comptroller’s Handbook (Handbook). Among other things, the revised Handbook:  (i) updates concentration risk management procedures and stress testing guidance for community banks; (ii) incorporates procedures for credit underwriting assessments; (iii) enhances appraisal, evaluation, allowance, and credit review examination procedures; and (iv) updates the asset quality references and standard request letter.

    Federal Issues Banking OCC Community Banks Risk Management Stress Test Comptroller's Handbook

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  • FDIC Releases Second Volume in its Affordable Mortgage Lending Guide

    Federal Issues

    On November 3, the FDIC released the second volume of its recently-introduced Affordable Mortgage Lending Guide (Guide). The Guide is designed to help bankers learn about, and make comparisons of, available affordable mortgage-related programs, as well as their Community Reinvestment Act implications. This second installment of the Guide focuses on programs offered by and/or through state housing-related finance agencies across the country including, for instance, down payment and closing assistance, mortgage tax credit certificates, and homeownership education or counseling. The first volume in the series, released earlier this year, covered federal and GSE programs, and a third installment is expected to cover programs available through Federal Home Loan Banks.

    Federal Issues FDIC Mortgages Affordable Housing

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  • CFPB Releases Financial Literacy Annual Report for 2016

    Federal Issues

    On October 31, the CFPB released its Financial Literacy Annual Report for 2016. The report describes what the Bureau is doing to “help consumers navigate the financial marketplace and build financial well-being” per its mandate under Dodd-Frank to improve the “financial literacy” of consumers in America. The 2016 edition of the report is broken down into three sections: (i) why there is a need for financial literacy amongst consumers; (ii) the Bureau’s approach to increasing financial literacy; and (iii) research initiatives designed to “understand consumers and the financial market place,” “effective financial education practices,” and “how best to prepare youth for financial capability in adulthood.”

    Federal Issues Consumer Finance CFPB Dodd-Frank

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  • CFPB Releases Supervisory Highlights Report for Fall 2016

    Federal Issues

    On October 31, the CFPB released the 13th Edition of its Supervisory Highlights Report, covering the period May through August of this year. The report shares recent supervisory observations in the areas of automobile loan origination, automobile loan servicing, debt collection, mortgage origination, mortgage servicing, student loan servicing, and fair lending. The report found that the CFPB’s recent supervisory actions returned more than $11 million to approximately 225,000 consumers. The Bureau also set forth new examination procedures for reverse mortgage servicing, student loan servicing, and the Military Lending Act.

    Federal Issues Consumer Finance CFPB Mortgage Origination Student Lending Debt Collection Reverse Mortgages Military Lending Act

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  • CFPB Clarifies "Flexibility" in Third-Party Risk Management

    Federal Issues

    On November 1, the CFPB issued an update to its previous guidance on risk management for third-party service providers. The update is substantially similar to the Bureau’s previous guidance on third-party risk management, but clarifies that the depth and formality of an entity’s risk management program for service providers may vary depending upon (i) the service being performed, and (ii) the service provider’s compliance with federal consumer financial laws and regulations. With this update, the CFPB emphasized that supervised entities have flexibility to allow appropriate risk management of these relationships.

    Federal Issues Banking Consumer Finance CFPB Risk Management Vendor Management

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