BCG Monthly Newsletter

Bankers’ Compliance Group® is pleased to provide its members with a monthly online Newsletter that keeps members informed on current topics related to Dodd-Frank Regulatory Reform, Consumer Finance, Operations, Commercial Lending, etc. BCG members can view the current Newsletter by selecting the download button below.
 

DFPI Issues Updated Fair Lending Notice
The California Holden Act prohibits redlining and other discriminatory practices.

Lender as Loss Payee on Condo Association’s Flood Insurance Policy
Question: When a designated loan is secured by, say, one unit in a condominium building, and the lender accepts the condominium association’s flood insurance policy on the entire building, must the lender be listed as a loss payee on the association’s building policy’s declarations page?

IRS Issues New W-8BEN and W-8BEN-E Forms
Last month, the Internal Revenue Service (IRS) issued updated Forms W-8BEN and W-8BEN-E (Forms).  U.S. financial institutions and other types of U.S. withholding agents are required to withhold a percentage of applicable income if the financial institution is not able to document the person’s foreign status.

FDIC Amends Interagency Real Estate Lending Policy Guidelines
The FDIC issued a final rule on October 27, 2021, that once effective will amend the Interagency Guidelines for Real Estate Lending Policies (Real Estate Lending Standards). 

Federal and State Financial Regulators Issue “Joint Statement on Managing the LIBOR Transition”
The regulators released a joint statement last month to emphasize their collective expectation that supervised institutions with LIBOR exposure must continue to transition away from the reference rate that is expected to cease publication at the end of next month on December 31, 2021.

NCUA Publishes Final CAMELS Rule
The NCUA’s final rule to update its CAMEL rating system to CAMELS was published in the Federal Register late last month at (NCUA CAMELS FR).  (86 FR 59282).  The final rule adds the “S” (Sensitivity to Market Risk) component to the existing CAMEL rating system and redefines the “L” (Liquidity Risk) component.

OCC Publishes FAQs for CRA Proposal
The OCC recently released a series of FAQs related to its September 2021 notice of proposed rule-making (NPR) that if finalized would replace the OCC’s current Community Reinvestment Act (CRA) rule for national banks and federal savings associations.

Table of Contents

Consumer Finance

• DFPI Issues Updated Fair Lending Notice  
• DOJ Announces New Initiative Against Redlining 
• OCC Announces Revised Interagency Exam Procedures 
• CFPB Updates Supervision and Exam Manual 
• Agencies’ 2022 Regulation Z Thresholds for Various Provisions
• Debt Collection Recent Developments

Consumer Finance Q&A

• Consumer Finance Q&A: Lender as Loss Payee on Condo Association’s Flood Insurance Policy

Banking Operations & FinTech

• IRS Issues New W-8BEN and W-8BEN-E Forms

Corporate Governance

• FDIC Amends Interagency Real Estate Lending Policy Guidelines
• New California Public Banking Option Act  
• Warning -  CECL Audits Will Be Tough Next Year

Commercial Lending

• Federal and State Financial Regulators Issue “Joint Statement on Managing the LIBOR Transition”
• Feds Remind Financial Institutions to Stop Using LIBOR by the End of Next Month
• HUD ANPR to Transition its ARMs from LIBOR

Credit Unions

• NCUA Publishes Final CAMELS Rule
• NCUA Publishes Final Rule Expanding CUSO Permissible Activities and Services

CRA/HMDA Corner

• OCC Publishes FAQs for CRA Proposal