ABA Dodd-Frank Tracker

FDIC Consolidates Change in Bank Control Requirements

2015-10-28T10:08:00.000-04:00

The FDIC is finalizing a rule to consolidate its notice requirements when non-Fed-member state banks and state thrifts experience a change in control in a single subpart of the agency’s regulations. The rule also aligns the FDIC’s requirements with “best practices” from the OCC and the Federal Reserve.

The final rule transfers a rebuttable presumption of control from the Change in Bank Control Act while adding a rebuttable presumption of acting in concert, consistent with Federal Reserve regulations.

Read the final rule.

The FDIC is also rescinding certain rules that had been transferred to the agency after the closure of the Office of Thrift Supervision. The rules, which have been consolidated with FDIC guidance, cover fair credit reporting and safety and soundness. The FDIC also rescinded regulations implementing the now-expired, financial crisis-era Temporary Liquidity Guarantee Program.

View the rescinded rules.

FDIC Rescinds Rule Transferred from OTS

2015-10-27T09:13:00.003-04:00

The FDIC rescinded a regulation on “Electronic Operations.” The rule had been transferred to the FDIC after the closure of the Office of Thrift Supervision, but was deemed “obsolete and unnecessary and burdensome.” The rescission takes effect on Nov. 26.

Read more.

The Week Ahead: March 2 - 6

2015-02-27T11:00:00.000-05:00

Monday

Comments Due: Risk-Based Capital Guidelines for GSIBs Read more.

Final Rule: Final Rule Rescinding and Amending FDIC Regulations Regarding Administrative Hearings Read more.

Final Rule: Final Rule Rescinding OTS Regulations for Receivers of Savings Associations Read more.

Tuesday

Hearing: Federal Reserve Accountability and Reform Read more.

Hearing: The Semi-Annual Report of the CFPB Read more.

Thursday

Comments Due: Exemption for small savings and loan holding companies from capital requirements (Regulation Q) Read more.

Comments Due: Proposed increase in applicability threshold for the Small Bank Holding Company Policy Statement Read more.

All times in Eastern Standard Time. See future events on the
Dodd-Frank Calendar.

OCC Names Official to Supervise Problem Banks

2015-01-27T08:03:00.001-05:00

The OCC appointed Michael Brickman to be deputy comptroller for special supervision, in which capacity he will supervise the agency’s “most critical problem midsize and community banks” and help plan their closings, resolutions or turnarounds. Brickman joined the OCC from the Office of Thrift Supervision in 2011. He replaces Kristina Whittaker, who retires next month.

Read more.

OCC Warns on Auto Lending, HELOC, Debt Sale Risks

2014-10-29T09:21:00.001-04:00

The OCC wants banks to be aware of risks arising from auto lending, home equity lines of credit and sales of bad debt, Deputy Comptroller Darrin Benhart said at an industry conference in Las Vegas.

Competitive pressure is driving higher risk in car loans, Benhart said, adding that rising risk is quantified in the higher loan-to-value ratio of car loans and an average charge-off that is 12% higher than the year before. Benhart also warned about the risks associated with the end-of-draw periods on HELOCs taken out during the housing boom.

Benhart mentioned the OCC's guidance on sales of consumer debt: "In their work, OCC examiners will determine whether bank management has established controls and implemented a rigorous analytical process to identify, measure, monitor, and manage the risks associated with debt sales."

Read the speech.

The Week Ahead: October 6 - October 10

2014-10-03T08:56:00.001-04:00

Monday

Workshop OCC: Mastering the Basics: A Director’s Challenge Read more.
Comment Due FDIC:Revised Proposal to Rescind OTS Regulations for Receivers of Savings Associations Read more.

Tuesday

Workshop OCC: Mastering the Basics: A Director’s Challenge Read more.

Wednesday

Workshop OCC: Mastering the Basics: A Director’s Challenge Read more.

All times in Eastern Standard Time. See future events on the Dodd-Frank Calendar. Big Data is transforming the world, and agriculture stands to be among the most transformed. Are ag bankers ready for this new, big data world? Are the big times going to continue to roll? Omaha, Nebraska will be the setting for Big Times Demand Big Data - the epicenter of the great American agricultural boom of the 21st Century. Our planning committee is working to bring the best qualified, most expert speakers on agricultural finance to help you and your colleagues sort it all out. Read more.

OCC Finalizes Mid-Year Assessment Increases for Large Banks

2014-07-09T09:29:00.000-04:00

The OCC is finalizing mid-year increases in the assessment on banks and thrifts with over $40 billion in assets. The increases will apply to the assessment due Sept. 30 based on the June 30 call reports.

The marginal assessment rate will increase by 14.5%, which combined with the base fee will increase banks’ total assessments from 0.32% to 14%, depending on a bank’s total assets. The agency said the increase is necessary due to continuing costs of integrating the Office of Thrift Supervision and the OCC’s increased responsibilities under the Dodd-Frank Act.

Read more.

OCC to Integrate Licensing Rules for National Banks, Thrifts

2014-05-23T09:16:00.000-04:00

The OCC proposed a rule that would integrate the agency’s licensing rules for national banks and federal savings associations — including mutual institutions — and to a large extent create filing parity.

The 500-page proposal — part of the OCC's continuing process of reviewing national bank and thrift rules to determine whether it is appropriate to integrate them — makes changes to policies and procedures for both bank types related to new charters, conversions, mergers, branching, subsidiaries and other licensing issues.

The proposal would more closely align thrifts’ and national banks’ abilities to establish subsidiaries and invest in bank service companies, subject to statutory differences. The requirements for organizing documents for a new charter are different for national banks, thrifts and mutuals; the proposal would apply national bank requirements to thrifts with some additions. Consistent with underlying statutory authority, the proposal would align thrifts' authority to engage in reorganizations and business combinations with that of national banks.

The OCC also proposed several changes in regulations governing thrifts’ investment in premises, home office relocations and corporate title changes that would not generally apply to national banks. As they are today, national banks and thrifts would continue under the proposal to be subject to substantively different rules for branching and capital distributions.

The OCC’s changes to procedures for voluntary liquidation and changes in control, directors or senior management, addresses and assets apply to both charter types. ABA is examining the proposal closely and organizing a working group to review it. Comments will be due 60 days after publication in the Federal Register.

Read the proposed rule.
Read the OCC’s section-by-section overview.

OCC Issues Notice of Proposed Rule on Licensing

2014-05-22T11:11:00.001-04:00

The OCC issued a Notice of Proposed Rulemaking (NPRM) to integrate its rules for national banks and federal savings associations relating to policies and procedures for corporate activities and transactions (licensing rules). The NPRM eliminates unnecessary requirements and would create filing parity for national banks and federal savings associations for all activities and transactions addressed in the OCC’s licensing rules.

The NPRM will be published in the Federal Register soon and will allow a 60 day comment period.

Read the NPRM press release.

OCC Begins Final Integration of Thrift Rules

2014-05-16T09:13:00.002-04:00

The OCC will publish in the Federal Register the first in a series of rules that combine OCC regulations with those of the now-defunct Office of Thrift Supervision, which the OCC absorbed in 2011. Each pair of rules is already “substantively identical,” the OCC said, noting that “their integration will have no substantive effect on banks and savings associations and this rulemaking serves only to simplify the OCC’s rulebook.”

The first set of rules to be formally integrated are those adopted on an interagency basis by the OCC and OTS. They cover consumer protection in insurance sales, the Bank Secrecy Act, management interlocks, appraisals, Community Reinvestment Act-related disclosures and reporting and the Fair Credit Reporting Act.

Read the rule.

OCC Proposes Mid-Year Assessment Increases for Large Banks

2014-04-28T08:06:00.000-04:00

The OCC is proposing mid-year increases in the assessment on banks and thrifts with over $40 billion in assets. The increases would apply to the assessment due Sept. 30 based on the June 30 Call Reports.

The marginal assessment rate would increase by 14.5%, which, combined with the base fee would increase banks’ total assessments from 0.32% to 14%, depending on a bank’s total assets.

The proposal is expected to increase the OCC’s assessment revenues by 7 to 7.5%, which the agency said is necessary due to continuing costs of integrating the OTS and the OCC’s increased responsibilities under the Dodd-Frank Act. Comments on the proposed increases are due 45 days after publication in the Federal Register.

Read the proposal.

OCC Adds Asset-Based Lending Booklet

2014-03-28T09:05:00.002-04:00

The OCC added a new booklet on asset-based lending to the Comptroller’s Handbook. The new booklet provides risk management guidance and presents risk-rating examples. It expands on guidance in the “Accounts Receivable and Inventory Financing” booklet and replaces Section 214 of the exam handbook of the former Office of Thrift Supervision.

Download the new booklet.

OCC’s Wides: QM Rule Is Opportunity for CDFIs

2014-03-27T09:12:00.001-04:00

The exemption for community development financial institutions from the Ability-to-Repay/Qualified Mortgage rule is an opportunity to win mortgage business, OCC Deputy Comptroller Barry Wides said at a conference in Memphis, Tenn.

If a bank is reluctant to make a mortgage loan to a customer because the loan would not meet the requirements for a Qualified Mortgage, would it make sense for a bank to refer the borrower to a CDFI that has an effective program for providing responsible, affordable mortgages? It seems like this could potentially offer a great opportunity for mutually beneficial referral relationships.

Wides also discussed other loan referrals, grants, loan participation and other ways banks can engage with CDFIs.

Read the speech.

OCC Releases Description of TruPS Interim Final Rule

2014-03-25T17:01:00.002-04:00

The OCC released a summary of the interim final rule permitting banks to retain interest in TruPS CDOs, as approved by the OCC, Federal Reserve, FDIC, SEC and CFTC on January 14, 2014. The rule permits banks to retain an interest in TruPS CDOs if:

The TruPS CDO was established and the interest was issued before May 19, 2010.
The banking entity reasonably believes that the offering proceeds received by the TruPS CDO were invested primarily in qualifying TruPS collateral.
The banking entity’s interest in the TruPS CDO was acquired on or before December 10, 2013, the date when the agencies issued final rules implementing section 619 of Dodd-Frank.

In an effort to help community banks identify which CDOs remain permissible, agencies also have issued a nonexclusive list of TruPS CDOs that meet the requirements of the interim final rule.

Read the rule.
Non-exclusive list of qualified TruPS CDOs.

ABA Offers Free Recording on OCC Dispute Resolution

2014-03-19T09:22:00.002-04:00

ABA members may now download audio from a free online briefing by OCC Ombudsman Larry Hattix on regulatory dispute resolution. Hattix discussed the OCC’s bank appeals process and informal dispute resolution and addressed updates to interagency ombudsman activities. The recording will be available to members for 30 days.

Download the recording now.

Indicates ABA members-only material.

Not an ABA member?
Learn about the benefits of membership and ways to join here.

ABA to Offer Free Briefing on OCC Dispute Resolution

2014-03-10T11:25:00.002-04:00

ABA will host a free, members-only online briefing this Wednesday, from 2-3 p.m., on the OCC's regulatory dispute resolution process. The briefing will feature OCC Ombudsman Larry Hattix, who will discuss the OCC’s bank appeals process as well as interagency ombudsman activities.

Learn more and register now.

Indicates ABA members-only material.

Not an ABA member?
Learn about the benefits of membership and ways to join here.

Regulators Finalize Stress Test Guidance for Medium-Sized Banks

2014-03-06T09:25:00.003-05:00

The FDIC, OCC and Federal Reserve finalized guidance on stress tests for medium-sized banks as mandated by the Dodd-Frank Act. The guidance is tailored to institutions with assets between $10 billion and $50 billion. Such institutions must conduct their first stress tests by March 31.

ABA sought additional clarity on model validation and other aspects of the guidance. In response, the agencies said that a bank may use an unvalidated or partially validated model — either internally or from a third party — provided the bank continues to seek full validation, controls for risk from an unvalidated model and recognizes that such practices must be temporary. The agencies declined to recommend specific vendors.

Read the guidance.

FRB, OCC: “Advanced Approaches” to Determine Capital Requirements

2014-02-24T06:00:00.000-05:00

The Federal Reserve Board and the OCC have permitted certain financial institutions to begin using the agencies’ Advanced Approaches capital framework to determine their risk-based capital requirements. Under the framework, which implements standards developed by the Basel Committee on Banking Supervision, firms must meet specific risk measurement and management criteria. The agencies’ framework applies to large, internationally active financial institutions and includes the financial institutions’ subsidiaries.

Financial institutions intending to use the Advanced Approaches framework must conduct a satisfactory trial run (“parallel run”) to show that the firm can comply with the framework for at least four consecutive quarters using risk-measurement and risk-management systems that adhere to the Advanced Approaches framework. Eight bank holding companies, plus their eligible subsidiaries, have successfully completed their trial runs, the agencies said, and may now begin using advanced approaches.

In, addition the Federal Reserve published a final rule clarifying that these institutions using the Advanced Approaches framework will also incorporate the changes into the capital planning and stress testing cycles that begin October 1, 2015, a year later than previously decided in order to give financial institutions more time to comply.

Read more.

OCC Updates Handbook on Mortgage Banking

2014-02-10T09:06:00.003-05:00

The OCC updated the Comptroller’s Handbook, replacing 1996, 1998 and 2008 guidance for banks and thrifts on mortgage banking. The handbook provides guidance for examiners and bankers on assessing mortgage banking risk management and updates content on production, secondary marketing, servicing and mortgage servicing rights. The updates include several changes required under the Dodd-Frank Act to Regulation X and Z.

Download the handbook.

ABA, Groups Welcome Diversity Approach, Suggest Refinements

2014-02-10T09:05:00.001-05:00

ABA and several trade groups said that they agreed with the financial regulators’ use of voluntary self-assessments in the interagency diversity standards proposed in October, although they offered some cautions on vendor diversity standards and confidentiality of reports.

Noting that some commentators had called for incorporating diversity assessments into examinations or mandatory disclosure, the groups praised the agencies for their “flexible self-assessment” approach, which they said “is likely to be more effective than examination or other supervisory assessment in assessing diversity.”

In a separate letter, ABA, the Independent Community Bankers of America and state bankers associations strongly urged the agencies not to include procurement and vendor diversity in the standards.

Last fall, under the aegis of Section 342 of the Dodd-Frank Act, the FDIC, CFPB, OCC, Federal Reserve, SEC and NCUA proposed to assess firms’ commitment to diversity, the makeup of their workforces, vendor practices and transparency about diversity. The standards were developed jointly by the regulators’ Offices of Minority and Women Inclusion.

Read the groups' letter.
Read the state associations' letter.

OCC Proposes Heightened Standards for Large Banks

2014-02-06T10:35:00.000-05:00

The OCC is proposing a rule that would establish minimum standards for the design and implementation of a risk governance framework for large insured national banks, insured federal savings associations, and insured federal branches of foreign banks with average total consolidated assets of $50 billion or more. The proposal also would establish minimum standards for an institution’s board of directors in overseeing the framework’s design and implementation.

Some highlights of the proposed rule include:

Banks should have a comprehensive written statement that articulates its risk appetite and serves as a basis for the framework;
Each member of the board has a duty to oversee a bank’s compliance with safe and sound banking practices, and;
The board should actively oversee a bank’s risk-taking activities and hold management accountable for adhering to the framework.

Comments are due March 28, 2014.

Read more.

Regulators Form Interagency Group on Volcker Rule

2014-02-05T10:11:00.001-05:00

The federal financial regulators have formed a formal working group for Volcker Rule implementation. Officials from the FDIC, Federal Reserve, OCC, SEC and CFTC first met on Jan. 23 to discuss coordinated responses to interpretive questions and approaches to supervision.

Prompted by aggressive advocacy and a lawsuit from ABA, the agencies issued an interim final rule last month exempting most collateralized debt obligations backed by trust preferred securities from the Volcker Rule’s prohibition of covered funds.

The House Financial Services Committee will hold a hearing this morning at 10 am on the impact of the Volcker rule. The witness list includes many regulatory agencies.

In prepared testimony, Fed Governor Daniel Tarullo called the agencies’ action on TruPS CDOs “an early example of the constructive interagency cooperation that the agencies plan to bring to resolving issues raised by the regulations implementing the Volcker Rule.”

Read Tarullo’s testimony.
Watch the hearing live.

The Week Ahead: February 3 - February 7

2014-01-31T08:49:00.000-05:00

Monday

Hearing: Safeguarding Consumers' Financial Data Read more.

Tuesday

Webinar FDIC: Promoting Savings Read more.

Wednesday

Hearing: The Impact of the Volcker Rule on Job Creations, Part II Read more.
Hearing: The Annual Report of the Office of Financial Research Read more.

Thursday

Hearing: Oversight of Financial Stability and Data Security Read more.

Friday

Comments Due: CFPB FDIC SEC OCC NCUA: Diversity Policies Read more.
Comments Due CFPB: Mortgage Closing Process Read more.

All times in Eastern Standard Time. See future events on the Dodd-Frank Calendar.

Join Us at the Premier Event for Community Bank CEOs — Our banker working group is designing a program that will provide information and advice on the latest industry developments and challenges, legislative and regulatory actions, and products and services available to community bankers. Register!

OCC Names Top Supervisor for Large Banks

2014-01-30T08:57:00.001-05:00

As the OCC formalizes its “heightened expectations” program for large banks, the agency named Molly Scherf deputy comptroller for large bank supervision. She joined the OCC in 1990 and most recently was large bank lead expert for governance and ERM.

Read more.

OCC Names Senior Official for Market Risk

2014-01-27T08:57:00.004-05:00

The OCC named Kevin Walsh as deputy comptroller for market risk, succeeding Martin Pfinsgraff, who was named senior deputy comptroller for large bank supervision last year. Walsh is currently an official in the OCC’s chief national bank examiner’s financial market risk unit.

Read more.