tag:blogger.com,1999:blog-86819881203615860932018-05-11T14:09:04.136-04:00ABA Dodd-Frank TrackerABA Regulatory Policy Staff 2http://www.blogger.com/profile/11301563447196059381noreply@blogger.comBlogger31125tag:blogger.com,1999:blog-8681988120361586093.post-54507019770258241612017-08-25T09:52:00.000-04:002017-08-25T09:52:08.411-04:00Fed Names New Director of Payments Strategy<span style="font-family: Arial, sans-serif; font-size: 10pt;">The Federal Reserve named Dave Sapenaro as its new payments strategy director. In his role, Sapenaro will be responsible for overseeing the Fed's efforts to improve the U.S. payments system, including its faster payments initiative. Sapenaro has been with the Federal Reserve for 32 years, serving most recently as first vice president and chief operating at the Federal Reserve Bank of St. Louis.</span><br /><span style="font-family: Arial, sans-serif; font-size: 10pt;"><strong><br /></strong></span><span style="font-family: Arial, sans-serif; font-size: 10pt;"><strong><span style="color: #005a8c;"><a href="http://app.response.aba.com/e/er?utm_campaign=ABA-Newsbytes-082517-HTML&utm_medium=email&utm_source=Eloqua&s=1527&lid=9612&elqTrackId=84ac39e4dc66494e84bf224a601554de&elq=168652a6e84d4d5aa10ed83e96968cdd&elqaid=16980&elqat=1" target="_blank">Read more</a></span></strong>. </span>ABA Regulatory Policy Staff 2http://www.blogger.com/profile/11301563447196059381noreply@blogger.com27tag:blogger.com,1999:blog-8681988120361586093.post-59789729779233781672017-08-23T09:27:00.001-04:002017-08-23T09:30:31.216-04:00ABA to CFPB: Process for Overdraft Study, Forms Falls Short<span style="font-family: "arial" , sans-serif;"><span style="font-size: 10pt;">The CFPB must base its studies of overdrafts on current, rigorous data and adopt any new disclosures through an open and transparent process, ABA told the bureau in a comment letter. Moreover, the bureau must explore why frequent users continue to use overdrafts and how their needs for short-term liquidity would be affected by CFPB regulatory activity. ABA remarked on the importance of allowing customer </span><span style="font-size: 13.3333px;">flexibility</span><span style="font-size: 10pt;"> for access to different short-term credit products.</span></span><br /><blockquote class="tr_bq"><span style="font-family: "arial" , sans-serif;"><span style="font-size: 10pt;">People of all walks of life rely upon overdraft and other short-term credit products to meet small dollar account shortfalls. Absent compelling evidence of knowledge gaps or that consumers tend to use the product irrationally </span></span><span style="background-color: white; color: #545454; font-family: "roboto" , "arial" , sans-serif; font-size: x-small;">— </span><span style="font-family: "arial" , sans-serif;"><span style="font-size: 10pt;">neither of which has been demonstrated during the bureau’s five-year study of overdraft </span></span><span style="background-color: white; color: #545454; font-family: "roboto" , "arial" , sans-serif; font-size: x-small;">—</span><span style="font-family: "arial" , sans-serif;"><span style="font-size: 10pt;"> ABA believes that people should be assumed to be the best judges of what is in their best interests and should remain free to choose.</span></span></blockquote><span style="font-family: "arial" , sans-serif;"><span style="font-size: 10pt;">The bureau’s recent report on customers who frequently overdraw their accounts is based on an outdated sample of data from only a few banks that do not represent the entire industry </span></span><span style="background-color: white; color: #545454; font-family: "roboto" , "arial" , sans-serif; font-size: x-small;">—</span><span style="font-family: "arial" , sans-serif;"><span style="font-size: 10pt;"> particularly community banks and credit unions. The report relies on data provided between January 2011 and June 2012 </span></span><span style="background-color: white; color: #545454; font-family: "roboto" , "arial" , sans-serif; font-size: x-small;">—</span><span style="font-family: "arial" , sans-serif;"><span style="font-size: 10pt;"> before the recent growth in mobile banking and other technologies that help bank customers avoid overdrafts. Moreover, the outdated report neglects key changes since that time in how banks handle and process overdrafts, ABA added.</span></span><br /><br /><span style="font-family: "arial" , sans-serif;"><span style="font-size: 10pt;">As for the prototype disclosures also issued by the bureau, ABA noted particular instances in which they are less clear than the existing model form and argued that the existing disclosure “is providing information necessary for bank customers to make informed decisions.” ABA also said that the bureau must use notice-and-comment rulemaking to adopt any new disclosure form for overdrafts. </span></span><br /><strong style="font-family: Arial, sans-serif; font-size: 10pt;"><br /></strong><strong style="font-family: Arial, sans-serif; font-size: 10pt;"><span style="color: #005a8c;"><a href="http://app.response.aba.com/e/er?utm_campaign=ABA-Newsbytes-082317-HTML&utm_medium=email&utm_source=Eloqua&s=1527&lid=9552&elqTrackId=e6b37b5960454753817b563f380ef838&elq=7470810d88b7422caae234fa2fdeaa5f&elqaid=16978&elqat=1" style="font-family: Arial, sans-serif; font-size: 10pt;" target="_blank">Read the letter</a></span></strong><span style="font-family: "arial" , sans-serif;"><span style="font-size: 10pt;">. </span></span>ABA Regulatory Policy Staff 2http://www.blogger.com/profile/11301563447196059381noreply@blogger.com4tag:blogger.com,1999:blog-8681988120361586093.post-8555580779099934822017-08-18T10:00:00.000-04:002017-08-18T10:00:31.140-04:00Justice Department Formally Ends ‘Operation Choke Point’<span style="font-family: Arial, sans-serif; font-size: 10pt;">In a letter to House Judiciary Committee Chairman Bob Goodlatte (R-Va.), a Department of Justice official formally confirmed that the agency has ended the controversial Operation Choke Point initiative, which under the Obama administration sought to curtail legal but politically disfavored businesses by working through bank regulators to pressure financial institutions to end customer relationships with those businesses. Assistant Attorney General Stephen Boyd expanded on DOJ's change.</span><br /><blockquote class="tr_bq"><span style="font-family: Arial, sans-serif; font-size: 10pt;">All of the Department’s bank investigations conducted as part of Operation Choke Point are now over, the initiative is no longer in effect, and it will not be undertaken again. The Department will not discourage the provision of financial services to lawful industries, including businesses engaged in short-term lending and firearms-related activities.</span></blockquote><span style="font-family: Arial, sans-serif; font-size: 10pt;">ABA has long opposed Choke Point, successfully urging the FDIC to end its participation in the initiative and supporting legislation to prevent similar activities in the future. However, many financial institutions had been concerned about serving Choke Point-targeted businesses without a clear statement from DOJ that the initiative has been dropped. </span><br /><span style="font-family: Arial, sans-serif; font-size: 10pt;"><strong><br /></strong></span><span style="font-family: Arial, sans-serif; font-size: 10pt;"><strong><span style="color: #005a8c;"><a href="http://app.response.aba.com/e/er?utm_campaign=ABA-Newsbytes-081817-HTML&utm_medium=email&utm_source=Eloqua&s=1527&lid=9510&elqTrackId=f1ce44db8c254040b6f4494a253185a4&elq=385ed341a06441699658b1e59f96b862&elqaid=16932&elqat=1" target="_blank">Read the letter</a></span></strong>.</span>ABA Regulatory Policy Staff 2http://www.blogger.com/profile/11301563447196059381noreply@blogger.com2tag:blogger.com,1999:blog-8681988120361586093.post-80302547352906058012017-08-10T09:45:00.000-04:002017-08-10T09:45:14.543-04:00Fed Issues Final Guidelines for Evaluating Joint Federal Reserve Account Requests<span style="font-family: Arial, sans-serif; font-size: 10pt;">The Federal Reserve issued its framework for how it will evaluate applications for joint accounts at Federal Reserve banks. Joint accounts can be used to facilitate faster settlement for payment transactions among the joint account holders. <br /><br />Under the guidelines, joint account applicants must be depository institutions eligible to open individual accounts at Federal Reserve banks. Applicants must designate one “agent” for the account, indemnify the Fed for losses related to operating the account and rely on the payment system operator or agent to provide clearing services and manage positions within the joint account. The Fed will evaluate all applications it receives based on six specific criteria. <br /><br />ABA generally supports the Fed’s guidelines as the industry continues to work toward the goal of a faster, more efficient payments system. In previous comments, ABA emphasized the need to maintain the safety and integrity of the payments system by limiting access to joint accounts to those that are already eligible to open individual accounts with the Fed. “Put simply, banks are held to higher standards in order to protect the interests of their customers,” ABA said. “Any entity that is not subject to the same standards and oversight would present unacceptable risk as a payments system participant.” </span><br /><span style="font-family: Arial, sans-serif; font-size: 10pt;"><strong><br /></strong></span><span style="font-family: Arial, sans-serif; font-size: 10pt;"><strong><span style="color: #005a8c;"><a href="http://app.response.aba.com/e/er?utm_campaign=ABA-Newsbytes-081017-HTML&utm_medium=email&utm_source=Eloqua&s=1527&lid=9411&elqTrackId=3ede13b1b1884106b0057b54735aa599&elq=e9dfd6e1790042b188465a53f3f03aa5&elqaid=16864&elqat=1" target="_blank">Read the final guidelines</a></span></strong>. </span><br /><span style="font-family: Arial, sans-serif; font-size: 10pt;"><a href="http://app.response.aba.com/e/er?utm_campaign=ABA-Newsbytes-081017-HTML&utm_medium=email&utm_source=Eloqua&s=1527&lid=9410&elqTrackId=85256cac39ca4964ad7453a2bc50aaf8&elq=e9dfd6e1790042b188465a53f3f03aa5&elqaid=16864&elqat=1" target="_blank"><strong><span style="color: #005a8c;">Read ABA's comment letter</span></strong></a>.</span>ABA Regulatory Policy Staff 2http://www.blogger.com/profile/11301563447196059381noreply@blogger.com2tag:blogger.com,1999:blog-8681988120361586093.post-54554979147407465242017-07-10T10:25:00.000-04:002017-07-10T10:25:10.868-04:00Fed Researchers: Durbin Amendment Led to Loss of Free Checking<span style="font-family: Arial, sans-serif; font-size: 10pt;">Confirming long-observed anecdotal evidence, a recent paper from two Federal Reserve researchers found that after the Durbin Amendment took effect, affected banks were 35.2% less likely to offer a “free checking” product than they were before Durbin. Without the Durbin Amendment, 65.2% of checking accounts at covered banks would have been offered with no monthly maintenance fees; in actuality, just 30% were.<br /><br />The study also showed the link between Durbin and rising fees on accounts, with non-interest checking accounts seeing monthly fees raised by 20%. The minimum balance required to avoid monthly maintenance fees rose by 50%, or more than $400, for non-interest checking accounts. While banks exempt from Durbin also raised fees as part of the competitive environment, the absence of an interchange price cap meant they raised fees by significantly less than Durbin-covered banks did.<br /><br />ABA has long opposed the Durbin Amendment’s arbitrary price controls and has argued that it is responsible for the substantial decline in popular free checking accounts. </span><br /><span style="font-family: Arial, sans-serif; font-size: 10pt;"><strong><br /></strong></span><span style="font-family: Arial, sans-serif; font-size: 10pt;"><strong><span style="color: #005a8c;"><a href="http://app.response.aba.com/e/er?utm_campaign=ABA-Newsbytes-071017-%20HTML&utm_medium=email&utm_source=Eloqua&s=1527&lid=8929&elqTrackId=896de337a3ee4cc98ea992c2970974af&elq=97dd0c064bee43e8a0f90febd5be0f75&elqaid=16582&elqat=1" target="_blank">Read the paper</a></span></strong>. </span>ABA Regulatory Policy Staff 2http://www.blogger.com/profile/11301563447196059381noreply@blogger.com0tag:blogger.com,1999:blog-8681988120361586093.post-65750096841184580102017-06-01T11:58:00.000-04:002017-06-01T11:58:04.577-04:00Updates to Reg CC Encourage Faster Check Processing, Include Electronically-Created ItemsThe Fed announced long-awaited changes to certain sections of Regulation CC, which implements the Expedited Funds Availability Act. The changes will update the check collection framework to reflect a system that is now largely electronic-based. The amendments do not address the sections of Regulation CC regarding funds availability schedules or related customer notices.<br /><br />The final rule modifies the current check return requirements by requiring that all returned checks, both paper and electronic, be returned by 2:00 p.m. on the second business day and eliminating the “forward collection” option. In addition, the rule adds a condition that the depositary bank must have arrangements to accept returned checks electronically in order to make a claim for damages due to a late return. The final rule also applies the return requirements to electronic images of checks, including images that are not derived from a paper check (i.e., electronically-created items). It also creates new indemnities for losses caused by unauthorized or duplicate electronically-created items. Finally, the rule adds a new indemnity that indemnifies a depositary bank that received a deposit of an original paper check if the item is returned unpaid after being deposited using a remote deposit capture service.<br /><br />In addition to the final rule, the Fed is also seeking comments on proposed amendments to address situations involving a dispute about whether portions of an electronic check have been altered or whether the item is a forgery. In cases where the original paper check is not available, for purposes of determining the burden of proof, it would be assumed that the item has been altered rather than forged. Comments on the proposal are due 60 days after the notice is published in the Federal Register.<br /><br />ABA has long sought updates to Reg CC to promote a more efficient check processing system that reflects the changes in technology that have taken place over the past several years. The association is carefully reviewing the proposed amendments and will provide feedback to the Federal Reserve.<br /><br /><a href="https://www.federalreserve.gov/newsevents/pressreleases/bcreg20170531a.htm?utm_campaign=ABA-Newsbytes-060117-HTML&utm_medium=email&utm_source=Eloqua" target="_blank">Read more</a>.ABA Regulatory Policy Staff 2http://www.blogger.com/profile/11301563447196059381noreply@blogger.com0tag:blogger.com,1999:blog-8681988120361586093.post-36242676331846356252017-05-24T10:52:00.000-04:002017-05-24T10:52:34.665-04:00ABA Calls on CFPB to Examine Consumer Access to Remittance Services<span style="font-family: "arial" , sans-serif; font-size: 10pt;">As the CFPB prepares to assess the effectiveness of its final rule governing remittance transfers, ABA in a comment letter called on the bureau to conduct an evidence-based assessment on whether the rule has preserved consumers’ access to remittance services. <br /><br />The rule is intended to provide additional information to help consumers shop for remittances and establish error resolution procedures and protections. However, according to an ABA survey and other banker feedback, the rule has “restricted consumers’ access to remittances, increased fees for use of the service, and unnecessarily delayed remittance requests.” ABA added that there is “little evidence that the final rule has improved consumer decision-making or facilitated comparison shopping.” <br /><br />ABA urged the bureau to examine whether consumers, including those in rural areas, have access to remittance transfer services; whether consumers are given information about remittance services that inform rather than confuse; and whether regulation of remittances is not unnecessarily burdensome to the financial institutions that provide this service. <br /><br />In a separate joint letter with the Clearing House and the Consumer Bankers Association, ABA and BAFT </span><span style="font-family: "calibri" , sans-serif; font-size: 11pt;">– </span><span style="font-family: "arial" , sans-serif; font-size: 10pt;">ABA’s global transaction banking subsidiary </span><span style="font-family: "calibri" , sans-serif; font-size: 11pt;">–</span><span style="font-family: "arial" , sans-serif; font-size: 10pt;"> also urged the CFPB to examine the effects of the rule from the perspective of both consumers sending remittances and the providers offering those services. <br /><br />The groups called on the CFPB to continue to permit banks to provide estimates of third-party fees and exchange rates rather than actual fees and rates in cases where obtaining exact data is not feasible; to exclude from the rule transfers in excess of a certain dollar amount and those providing funds onto prepaid cards; to modify disclosure requirements and cancellation and resend rights; and to make changes to the rule’s error resolution provisions to hold the sender responsible for transaction costs resulting from sender error. </span><br /><span style="font-family: "arial" , sans-serif; font-size: 10pt;"><strong><br /></strong></span><span style="font-family: "arial" , sans-serif; font-size: 10pt;"><strong><span style="color: #005a8c;"><a href="http://app.response.aba.com/e/er?utm_campaign=ABA-Newsbytes-052417-HTML&utm_medium=email&utm_source=Eloqua&s=1527&lid=8285&elqTrackId=012f74c215ac40fd89e42c42443e2d08&elq=677a3242677f45a5afdb421f499317c5&elqaid=16074&elqat=1" target="_blank">Read ABA's letter</a></span></strong>.</span><br /><span style="font-family: "arial" , sans-serif; font-size: 10pt;"><a href="http://app.response.aba.com/e/er?utm_campaign=ABA-Newsbytes-052417-HTML&utm_medium=email&utm_source=Eloqua&s=1527&lid=8284&elqTrackId=c3a2ca588ce94917b6827d7ce8e642aa&elq=677a3242677f45a5afdb421f499317c5&elqaid=16074&elqat=1" target="_blank"><strong><span style="color: #005a8c;">Read the ABA/BAFT letter</span></strong></a>. </span>ABA Regulatory Policy Staff 2http://www.blogger.com/profile/11301563447196059381noreply@blogger.com0tag:blogger.com,1999:blog-8681988120361586093.post-27257580717483654112017-05-19T11:50:00.000-04:002017-05-19T11:50:16.818-04:00The Week Ahead: May 22 - 26<div><b>Monday</b></div><ul><li>Implementation Date CFPB: <b>Policy on Ex Parte Presentations in Rulemaking Proceedings</b><br /><a href="https://www.gpo.gov/fdsys/pkg/FR-2017-04-21/pdf/2017-08096.pdf" target="_blank">Read more.</a></li></ul><div><b>Tuesday</b></div><ul><li>Comments Due CFPB: <b>Request for Information Regarding Remittance Rule Assessment</b><br /><a href="https://www.gpo.gov/fdsys/pkg/FR-2017-03-24/pdf/2017-05681.pdf" target="_blank">Read more.</a></li></ul><div><b>Wednesday</b></div><ul><li>Comments Due FHFA: <b>Minority and Women Outreach Program</b><br /><a href="https://www.gpo.gov/fdsys/pkg/FR-2017-03-24/pdf/2017-05894.pdf" target="_blank">Read more.</a></li></ul><div><b>Thursday</b></div><ul><li>Comments Due CFPB: <b>Technical Corrections and Clarifying Amendments to the Home Mortgage Disclosure (Regulation C) October 2015 Final Rule; Proposed Rule</b><br /><a href="https://www.gpo.gov/fdsys/pkg/FR-2017-04-25/pdf/2017-07838.pdf" target="_blank">Read more.</a></li></ul>All times in Eastern Standard Time. See future events on the <a href="http://regreformtracker.aba.com/p/dodd-frank-calendar.html" target="_blank">Dodd-Frank Calendar</a>.<br />ABA Regulatory Policy Staff 2http://www.blogger.com/profile/11301563447196059381noreply@blogger.com0tag:blogger.com,1999:blog-8681988120361586093.post-56482765658430820612017-04-21T09:13:00.003-04:002017-04-21T09:13:49.227-04:00CFPB Finalizes Delay of Prepaid Rule Effective DateThe CFPB has finalized a six-month extension of the effective date of its final rule on covered prepaid accounts. Originally scheduled to take effect on Oct. 1, it will now go into effect on April 1, 2018.<br /><br />The bureau said it will also revisit two thorny implementation issues through a separate rulemaking process. These issues relate to linking credit cards to digital wallets capable of storing funds and error resolution and limits on liability for prepaid accounts that are not registered or cannot be registered. <br /><br /><a href="https://s3.amazonaws.com/files.consumerfinance.gov/f/documents/20170420_cfpb_Final_Rule_Prepaid_Accounts_Effective_Date_Delay.pdf" target="_blank">Read the final rule</a>.ABA Regulatory Policy Staff 2http://www.blogger.com/profile/11301563447196059381noreply@blogger.com0tag:blogger.com,1999:blog-8681988120361586093.post-7834027104300488902017-03-31T11:11:00.002-04:002017-03-31T11:11:56.040-04:00The Week Ahead: April 3 – 7<div><b>Monday</b></div><ul><li>Comments Due HUD: <b> 60-Day Notice of Proposed Information Collection: FHA-Insured Mortgage Loan Servicing for Performing Loans Including: Collection and Payment of Mortgage Insurance Premiums, Escrow Administration, Providing Loan Information and Customer Services, Assessment of Post Endorsement Fees and Charges and Servicing Section 235 Loans (PRA) </b><br /><a href=”https://www.gpo.gov/fdsys/pkg/FR-2017-01-31/pdf/2017-02052.pdf” target=”_blank”>Read more.</a></li><li>Comments Due OCC: <b> Agency Information Collection Activities: Information Collection Renewal; Submission for OMB Review: Record and Disclosure Requirements--Consumer Financial Protection Bureau Regulations B, C, E, M, Z, and DD and Board of Governors of the Federal Reserve System Regulation CC (PRA) </b><br /><a href="https://www.gpo.gov/fdsys/pkg/FR-2017-03-03/pdf/2017-04081.pdf" target="_blank">Read more.</a></li></ul><div><b> Wednesday </b></div><ul><li>Comments Due CFPB: <b>Prepaid Accounts Under the Electronic Fund Transfer Act (Regulation E) and the Truth in Lending Act (Regulation Z); Delay of Effective Date</b><br /><a href="https://www.gpo.gov/fdsys/pkg/FR-2017-03-15/pdf/2017-05060.pdf" target="_blank">Read more.</a></li></ul><div><b>Thursday</b></div><ul><li>Comments Due IRS: <b>Chapter 4 Regulations Relating to Verification and Certification Requirements for Certain Entities and Reporting by Foreign Financial Institutions</b><br /><a href="https://www.gpo.gov/fdsys/pkg/FR-2017-01-06/pdf/2016-31589.pdf" target="_blank">Read more.</a></li></ul><br />All times in Eastern Standard Time. See future events on the <a href="http://regreformtracker.aba.com/p/dodd-frank-calendar.html" target="_blank">Dodd-Frank Calendar</a>.<br />ABA Regulatory Policy Staff 2http://www.blogger.com/profile/11301563447196059381noreply@blogger.com1tag:blogger.com,1999:blog-8681988120361586093.post-48975649202104496972017-03-20T09:30:00.000-04:002017-03-20T09:30:06.745-04:00CFPB to Assess Effectiveness of Remittance RuleThe CFPB has released a plan to assess the effectiveness of its final rule governing remittance transfers. Among other things, the rule requires companies to give certain disclosures to consumers before they pay for a remittance transfer, and to investigate disputes and remedy certain errors related to remittance transactions. The bureau’s review of the effectiveness of the rule is required by the Dodd-Frank Act, and comments on the plan will be accepted for 60 days after publication in the Federal Register. <br /><br />ABA played an instrumental role in securing changes to the remittance rule before it was finalized in 2013, winning an extension on the rule’s implementation timeline and reducing banks’ liability for losses due to senders’ errors. The CFPB also made optional in certain circumstances a sending bank’s requirement to disclose fees that a recipient’s financial institution may charge. In addition, the bureau made it optional for the sending bank to disclose how much tax might be deducted before the funds reach the recipient, instead only requiring a simple disclaimer that foreign taxes and recipient bank fees may apply. <br /><br />ABA is in the process of carefully reviewing the CFPB’s proposed assessment plan and will submit comments.<br /><br /><a href="https://s3.amazonaws.com/files.consumerfinance.gov/f/documents/201703_cfpb_Notice_Request-for-Comment_Remittance-Rule-Assessment.pdf" target="_blank">Read the assessment proposal</a>.<br /><a href="http://www.aba.com/Advocacy/commentletters/Documents/clJointRemittanceApr2012.pdf" target="_blank">Read ABA’s comment letter on the remittance rule</a>.ABA Regulatory Policy Staff 2http://www.blogger.com/profile/11301563447196059381noreply@blogger.com0tag:blogger.com,1999:blog-8681988120361586093.post-73305993615851121202017-03-10T09:30:00.000-05:002017-03-10T09:30:05.340-05:00CFPB Delays Prepaid Rule Effective DateThe CFPB has proposed extending the effective date of its final rule on covered prepaid accounts. Originally scheduled to take effect on Oct. 1, the proposal would move the effective date to April 1, 2018.<br /><br />The bureau said that "through our efforts to support industry implementation, we have learned that some industry participants believe they will have difficulty complying with certain provisions of the rule by the current October 1, 2017 effective date."<br /><br />The bureau also invited comments from the public on how implementation challenges may affect consumers. "If we determine that any substantive changes to the prepaid accounts rule are necessary and appropriate, we will issue a separate proposal and provide the public an opportunity to comment on those changes before finalizing, it said. Comments on the proposal are due 21 days after it is published in the Federal Register.<br /><br /><a href="https://www.consumerfinance.gov/about-us/blog/cfpb-proposes-effective-date-extension-prepaid-accounts-rule/" target="_blank">Read more</a>.ABA Regulatory Policy Staff 2http://www.blogger.com/profile/11301563447196059381noreply@blogger.com1tag:blogger.com,1999:blog-8681988120361586093.post-71323092904385189082017-01-09T09:30:00.000-05:002017-01-09T09:30:07.721-05:00Fed to Evaluate Large Bank ‘Living Wills,’ Fintech in 2017Speaking at a legal event in Washington, D.C., Federal Reserve General Counsel Scott Alvarez outlined several issues the agency will focus on in 2017, including certain regulatory relief measures and the entrance of nonbank fintech companies into the Federal Reserve System. <br /><br />The Fed is currently exploring whether to change its annual filing requirement for banks submitting “living wills” detailing how they would be resolved in the event of bankruptcy, Alvarez said. He noted that the agency is also considering creating different asset-based schedules for banks required to file. Additionally, the Fed will continue streamlining reporting and capital requirements for community banks this year, and plans to move forward with rulemakings related to derivatives contracts for global systemically important banks, physical commodities activities and metrics reporting for the Volcker rule, he said. <br /><br />Another important focus will be the treatment of fintech firms entering the Fed system under the OCC’s proposed limited-purpose national bank charter, which was announced by Comptroller of the Currency Thomas Curry in December 2016. The OCC and the Fed are currently working closely to determine how fintech companies under a limited-purpose charter will access the benefits of the Federal Reserve System, such as the payments network, Alvarez said.ABA Regulatory Policy Staff 2http://www.blogger.com/profile/11301563447196059381noreply@blogger.com1tag:blogger.com,1999:blog-8681988120361586093.post-62079090285534948352016-03-21T17:30:00.000-04:002016-03-21T17:30:16.341-04:00Agencies Release Guidance on Applying CIP Requirements to Prepaid Card HoldersThe FDIC, Federal Reserve, NCUA, OCC and FinCEN issued guidance clarifying the applicability of the Customer Identification Program (CIP) rule to prepaid cards issued by banks.<br /> <br />The guidance applies to banks, savings associations, credit unions and U.S. branches and agencies of foreign banks (collectively “banks”). The guidance clarifies that a bank’s CIP should apply to the holders of certain prepaid cards issued by the institution as well as holders of such prepaid cards purchased under arrangements with third-party program managers that sell, distribute, promote, or market the prepaid cards on the bank’s behalf. The guidance describes when, in accordance with the CIP rule, the bank should obtain information sufficient to reasonably verify the identity of the cardholder, including at a minimum, obtaining the name, date of birth, address and identification number, such as the Taxpayer Identification Number of the cardholder.<br /><br /><a href="http://www.occ.gov/news-issuances/news-releases/2016/nr-ia-2016-31.html" target="_blank">Read more.</a>ABA Regulatory Policy Staff 2http://www.blogger.com/profile/11301563447196059381noreply@blogger.com0tag:blogger.com,1999:blog-8681988120361586093.post-70027454284535818252016-03-14T11:01:00.000-04:002016-03-14T11:01:00.726-04:00OCC: Fintech Firms Inquiring About National Bank ChartersSeveral fintech companies — including one virtual currency firm — have made inquiries to the OCC about applying for national bank charters, American Banker reported, citing comments by OCC Chief Counsel Amy Friend at a recent fintech forum at George Washington University. Friend said firms could “be seeking the ‘regulatory umbrella’ of federal preemption of state rules,” since many are challenged by the number of state licenses needed to operate as nonbank lenders or money transmitters. <br /><br />Across the financial industry, regulators are facing increased calls to address the challenges and opportunities the fintech sector presents, though they “are still scratching the surface when it comes to understanding how to handle them,” American Banker said. <br /><br />Ray Grace, banking commissioner for North Carolina, commented recently that regulators need to help the banking industry become a “laboratory for change” by approving new types of “innovative” banks. While he noted that de novo activity has been slow since the financial crisis, “I’m beginning to sense we’re coming to a pivot point,” he added. <br /><br />In an op-ed earlier this year, ABA President and CEO Rob Nichols emphasized the need for consistent regulatory treatment of activities like payments, loans, deposits and other financial products, whether offered by banks or fintech providers. Nichols stressed that doing so would lead to greater consumer protection and encourage more robust collaboration between banks and fintech companies.ABA Regulatory Policy Staff 2http://www.blogger.com/profile/11301563447196059381noreply@blogger.com0tag:blogger.com,1999:blog-8681988120361586093.post-44643769038964744432015-09-11T09:13:00.000-04:002015-09-11T09:13:18.964-04:00Chicago Fed’s Aadland to Lead Secure Payments StrategyThe Federal Reserve named Todd Aadland as the system’s secure payments strategy leader, responsible for leading the Fed’s efforts to manage fraud risk and advance the payments system’s safety and resiliency as the Fed and private sector move toward faster payments. Aadland is currently SVP at the Federal Reserve Bank of Chicago and will report to the Chicago Fed’s Gordon Werkema, who in June was named strategy director for the overall faster payments effort. Werkema said:<br /><br /><blockquote>Todd's combination of business experience and technical expertise is exactly what is needed to partner with the industry on improved payments security. Equally important, he has a collaborative leadership style that will be key to advancing on some very tough industry challenges.</blockquote><br /><a href="http://www.federalreserve.gov/newsevents/press/other/20150910a.htm" target="_blank">Read more.</a>ABA Regulatory Policy Staff 2http://www.blogger.com/profile/11301563447196059381noreply@blogger.com0tag:blogger.com,1999:blog-8681988120361586093.post-76965477642933644482015-06-04T09:55:00.000-04:002015-06-04T09:55:00.052-04:00Curry Calls for Level Playing Field in PaymentsRegulated financial institutions bring security and stability to the payments system, Comptroller of the Currency Thomas Curry said at an industry event. He added that regulators are working on measures to hold nonbank payments providers to the same standards that banks meet — a position for which ABA has long advocated. He said:<br /><br /><blockquote>Efforts are well underway to bring e-commerce and emerging payments systems deployed by nonbank players under greater regulatory scrutiny. Using authority granted by the Dodd-Frank Act, we can ensure a more level playing field and protections for customers of nonbanks.</blockquote><br />He added that banks have an “advantage” over nonbank competitors in cybersecurity and anti-money laundering because of regulation and “the industry’s collective interest in protecting the security of the payments system.” <br /><br />Curry also dismissed conjecture that banks will be bypassed as new payments platforms come on line. He said:<br /><br /><blockquote>The tendency to underestimate the dynamism of the banking system should be resisted because banks have been the source of so many of the innovative products and technologies of recent years.</blockquote><br /><a href="http://www.occ.gov/news-issuances/speeches/2015/pub-speech-2015-78.pdf" target="_blank">Read the speech.</a>ABA Regulatory Policy Staff 2http://www.blogger.com/profile/11301563447196059381noreply@blogger.com0tag:blogger.com,1999:blog-8681988120361586093.post-83051518795723174102015-06-01T08:30:00.000-04:002015-06-01T08:30:02.812-04:00Federal Reserve Names Gordon Werkema as Payments Strategy DirectorThe Fed named Gordon Werkema as Payments Strategy Director, responsible for leading payment system improvement initiatives. Werkema is currently the First Vice President and Chief Operating Officer of the Federal Reserve Bank of Chicago and Product Director for the Fed’s National Consumer Relations and Support Office.<br /><br /><a href="http://www.federalreserve.gov/newsevents/press/other/20150529a.htm"target="blank">Read More.<br /></a>ABA Regulatory Policy Staff 2http://www.blogger.com/profile/11301563447196059381noreply@blogger.com0tag:blogger.com,1999:blog-8681988120361586093.post-65149101602688049812015-05-22T09:40:00.000-04:002015-05-22T09:40:00.527-04:00Fed Seeks Comments on NACHA Same-Day Payments RuleThe Federal Reserve requested comments on changes that the regional Federal Reserve Banks would make in connection to NACHA’s same-day ACH rule.<br /><br />The Reserve Banks are proposing to adopt the enhanced same-day ACH service by including NACHA’s new rule in their operating documents. The Fed is seeking comments on the rule’s provisions making same-day ACH capability mandatory for all financial institutions and the 5.2 cent per transaction fee paid to receiving institutions.<br /><br />Comments are due by July 2, giving the Fed 11 weeks to review the comments and approve the proposal before NACHA’s Sept. 23 deadline for the Fed board to approve the rule. <br /><br /><a href="http://www.federalreserve.gov/newsevents/press/other/frnotice20150521a1.pdf" target="_blank">Read the request for comments.</a>ABA Regulatory Policy Staff 2http://www.blogger.com/profile/11301563447196059381noreply@blogger.com0tag:blogger.com,1999:blog-8681988120361586093.post-43887132387935432292015-02-20T08:55:00.000-05:002015-02-20T08:55:20.790-05:00TILA/RESPA, Payments, Governance to Top RCC Agenda Increasing regulatory attention to payments, mortgage disclosures and compliance governance will bring shifts in focus for compliance officers — and will top the agenda at the ABA Regulatory Compliance Conference, June 14-17 in Washington, D.C.<br /><br />The recently announced advance program — subject to change — will also cover the soon-to-take-effect TILA/RESPA rule, big data, SCRA compliance, UDAAP governance, implications of .bank, mortgage servicing, complaint management, liability risk, consumer compliance, fair lending, e-signatures, privacy, flood insurance, elder financial abuse, overdraft protection and data analytics, among many others.<br /><br />The perennially popular conference will also feature meet-the-regulator sessions, peer group exchanges and four “deep dive” sessions on topics of special focus. It offers compliance officers, bank counsel, bank auditors and regulatory agency staff access to authoritative information and best practices on compliance issues. Attendees must register by March 27 to receive early-bird discounts. <br /><br /><a href="http://www.aba.com/Training/Conferences/Pages/RCC_schedule.aspx" target="_blank">View the advance program.</a><br /><a href="http://www.aba.com/Training/Conferences/Pages/RCC.aspx" target="_blank">Register now.</a>ABA Regulatory Policy Staff 3http://www.blogger.com/profile/10081301448182787260noreply@blogger.com0tag:blogger.com,1999:blog-8681988120361586093.post-44596775835656405882014-11-21T09:15:00.000-05:002014-11-21T09:15:00.694-05:00Cordray Discusses Consumer Protections in PaymentsCFPB Director Richard Cordray urged banks and payments system administrators to prioritize consumer protection in the processing of payments through the Automated Clearing House and emerging payments platforms.<br /><br />In a speech to the Clearing House in New York, Cordray highlighted unauthorized automated debits and uncertainty about when transactions will be credited or debited as particular challenges. He remarked:<br /><br /><blockquote>We have seen good practices by some banks and credit unions that have developed screening mechanisms to detect abuse before authorizing charges. But more needs to be done.</blockquote><br />In response, ABA VP Steve Kenneally commented:<br /><br /><blockquote>ACH rules and the CFPB’s own Regulation E provide extensive protections against unauthorized transactions. A consumer who reports unauthorized ACH transactions within 60 days of receiving a statement has no liability.</blockquote><br />Cordray also praised the Clearing House’s initiative to develop a real-time payments system. He cautioned that this system should allow faster access to deposited funds, real-time access to balance information and robust protections for unauthorized debits in order “to work for consumers as well as for financial institutions and their commercial clients.” <br /><br /><a href="http://www.consumerfinance.gov/newsroom/prepared-remarks-of-cfpb-director-richard-cordray-at-the-clearing-house/">Read the speech.</a>ABA Regulatory Policy Staff 3http://www.blogger.com/profile/10081301448182787260noreply@blogger.com0tag:blogger.com,1999:blog-8681988120361586093.post-21693279072822472942014-10-23T09:32:00.001-04:002014-10-23T09:32:31.269-04:00Clearing House to Develop Real-Time Payments SystemThe Clearing House, a bank-owned association that operates the largest private ACH network in the U.S., announced that it and its member banks will, over the next several years, develop a real-time payments system to meet customers’ expectations. The newer platform is intended to replace the fast but not real-time technologies on which today’s clearing system is based.<br /><br />Features of this system will include direct person-to-person payments, immediate notification of funds availability and transfer, lower costs than other payment options and greater control over cash flow for cash-constrained customers, the Clearing House said. To enhance security and privacy, payments will be routed with one-time “tokens” so that account information is not compromised.<br /><br />“The digital economy moves in real time and our customers expect us to keep pace,” said Clearing House Chairman Richard Davis, who is chairman, president and CEO of U.S. Bancorp, Minneapolis. “We will work with the industry to build a real-time payment infrastructure, which will enable consumers to pay and get paid securely and conveniently.” <br /><br /><a href="https://www.theclearinghouse.org/press-room/in-the-news/2014/10/20141022-tch-to-develop-real-time-payments-system">Read more.</a> ABA Regulatory Policy Staff1http://www.blogger.com/profile/10196546380026000818noreply@blogger.com1tag:blogger.com,1999:blog-8681988120361586093.post-5189529286397875052014-09-18T16:00:00.000-04:002014-09-18T16:00:02.232-04:00Fed Publishes Interchange ReportThe Federal Reserve Board published a report on the volume and value, interchange fee revenue, certain issuer costs and fraud losses related to debit card transactions in 2013. The report is the third in a series to be published every two years pursuant to section 920 of the Electronic Fund Transfer Act (EFTA).<br /><br />In 2013, covered issuers' costs of authorizing, clearing, and settling (ACS) debit card transactions, excluding issuer fraud losses, varied greatly across respondents, with the median issuer having an average ACS cost of 14.9 cents and the issuer at the 75th percentile having an average ACS cost of 42.2 cents. <br /><br />Issuers with the highest debit card transaction volume generally had the lowest ACS costs per transaction as reflected in an overall average of 4.4 cents per transaction, down from 5 cents per transaction in 2011. Conversely, issuers with the smallest debit card programs generally had the highest ACS costs per transaction.<br /><br />The estimated debit-card fraud losses to all parties was $1.57 billion in 2013, with an average loss of approximately 8 basis points as a share of transaction value, up slightly from 2011.<br /><br /><a href="http://www.federalreserve.gov/newsevents/press/bcreg/20140918a.htm">Read more.</a>ABA Regulatory Policy Staff 3http://www.blogger.com/profile/10081301448182787260noreply@blogger.com0tag:blogger.com,1999:blog-8681988120361586093.post-8993847604853185842013-01-17T07:43:00.000-05:002013-01-17T07:43:28.352-05:002013 Outlook for Payments IndustryThe January issue of The Credit Line, a new digital newsletter about credit card trends developed by ABA for policymakers, features an outlook on the payments industry’s future. The stories include insights from industry experts, survey data on what consumers want to see in 2013 and seven trends that will have the greatest impact on U.S. financial institutions this year.<br /><br /><a href="http://www.thecreditline.com/current-issue/">Read January’s The Credit Line.</a> ABA Regulatory Policy Staff1http://www.blogger.com/profile/10196546380026000818noreply@blogger.com0tag:blogger.com,1999:blog-8681988120361586093.post-16685779135765095582012-03-20T12:49:00.002-04:002012-03-20T13:11:20.512-04:00Mobile Payment Systems Could Change Financial Services IndustryRichard Oliver, co-author of the <i>Mobile Payments in the United States; Mapping out the Road Ahead</i>, spoke to the Financial Institutions and Consumer Credit Subcommittee today at a hearing entitled “The Future of Money: How Mobile Payments Could Change Financial Services.” <br /><br />Oliver summarized the findings of research teams from the Federal Reserve Banks of Atlanta and Boston on the state and potential for the deployment of mobile payment options in the U.S. Over the course of the research, the Mobile Payments Work Group (MPWG) was developed and has identified key factors which must be met to ensure a successful and safe mobile payment system in the U.S.<br /><br />These factors included: the proposed environment would be best defined by the concept of an “open mobile wallet,” standards would be designed, adopted, and complied with through an industry certification program, and a better understanding of a regulatory oversight model should be proactively developed in concert with banks and non-bank regulators to clarify compliance responsibilities. <br /><br /><a href="http://financialservices.house.gov/Calendar/EventSingle.aspx?EventID=284912">Read more about the hearing and Richard Oliver’s testimony. </a>ABA Regulatory Policy Staff 2http://www.blogger.com/profile/11301563447196059381noreply@blogger.com2