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.
 

Paycheck Protection Program (PPP) Loans Continue to Dominate the Headline
On June 5, 2020, the President signed H.R. 7010, the “Paycheck Protection Program Flexibility Act of 2020” (PPP Flexibility Act or Act), which amends the Small Business Administration Act and the CARES Act with respect to the PPP in various ways, the more significant of which are discussed below.

FRB’s Commonly Cited Consumer Compliance Violations
Last month, the FRB issued its first “Consumer Compliance Outlook” publication for 2020. The Outlook provides an overview of frequently cited violations.  These violations are those that FRB examiners continue to routinely find in the time since the FRB published its first Outlook article on common violations in 2012.

CCPA Still a Big Deal
In recent months financial institutions have largely been focused on addressing regulatory and compliance issues specific to the COVID-19 crisis.  However, despite the pandemic’s severity, institutions still have general compliance responsibilities beyond COVID-19 which should not be forgotten.  The elephant in the room, of course, is the CCPA.

Regulation CC Amendments
Question:  Does Regulation CC apply to banks in American Samoa, the Commonwealth of the Northern Mariana Islands and Guam?

Financial Regulators Issue Final ACL Interagency Policy Statement
Last month, the FDIC, FRB, NCUA and OCC (agencies) issued the final interagency policy statement (Statement) on allowances for credit losses (ACLs) in response to changes in U.S. generally accepted accounting principles as promulgated by the Financial Accounting Standards Board (FASB) in Accounting Standards Update 2016-13, “Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments” and subsequent amendments issued since June 2016 (ASC Topic 326).

NCUA Modifies Military Personnel Consideration for Low-Income Designation
Many benefits come with being a “low-income” federal credit union (FCU).  For example, low-income FCUs are exempt from the aggregate member business loan limits.  The NCUA uses its income assessment tool to determine whether an FCU qualifies for low-income status.  The NCUA’s income assessment tool only geocodes members’ income with physical street addresses.  As a result, the tool excludes active-duty military personnel with Army/Air Post Office (APO) or Fleet Post Office (FPO) mailing addresses.

Recent LIBOR Developments
With its expected cessation in 2021, interested parties continue to work toward the transition from LIBOR.  Here are three recent LIBOR developments. ARRC releases LIBOR transition best practices.

Table of Contents

Covid-19 PANDEMIC

• Paycheck Protection Program (PPP) Loans Continue to Dominate the Headlines
• SBA Issues PPP Loan Processing Fee Guidance
• SBA Publishes Additional PPP FAQs
• PPPLF & MMLF Loans Excluded from Liquidity Coverage Ratio
• NCUA PPP Loan Developments
• SBA Issues PPP Foreign-language Resources
• DOJ and FBI Warn of SBA Loan Scams
• DOJ and FBI Also Prosecuting SBA Loan Fraud
• CFPB Issues No-Action Letter Templates for Small-Dollar Loans & Risk Mitigation Program
• Agencies Issue Statement on Responsible Small-Dollar Loans Lending Principles
• GSEs: When COVID-19-impacted Borrowers Can Refinance or Get a New Loan
• CFPB Extends Comment Period for Proposed Time-Barred Debt Disclosures - Again
• CFPB Tries to Define Dwelling and Loan Modification under the ECOA Valuations Rule
• COVID-19’s Impact on Flood Insurance Regulations
• CFPB Issues Final Remittance Transfer Rule
• FDIC Proposes to Mitigate Deposit Insurance Assessment Effects of PPP, PPPLF and MMLF Participation
• OCC Permits Electronic Director, Shareholder and Member Meetings
• Conducting Virtual Shareholder Meetings under California Law
• CARES Act Temporarily Increases SBA Express Loan Lending Limit Through 2020
• Main Street Lending Program Should be Operational Soon
• USDA to Provide $1 Billion in Loan Guarantees for Rural Businesses and Agricultural Producers

Consumer Finance

• FRB’s Commonly Cited Consumer Compliance Violations
• CFPB Issues Mortgage Servicing Transfer Guidance
• CFPB Issues 2020 Fair Lending Report
• PACE Lending Developments

Banking Operations & FinTech

• CCPA: Still a Big Deal
• FRB Issues Q&As on Removal of Six-Per-Month Limit For Saving Accounts and MMDAs
• New Ballot Initiative: California Privacy Rights and Enforcement Act of 2020

Banking Operations & FinTech Q&A

• Regulation CC Amendments

Corporate Governance

• Financial Regulators Issue Final ACL Interagency Policy Statement

Credit Unions

• NCUA Modifies Military Personnel Consideration for Low-Income
  Designation

Commercial Lending

• Recent LIBOR Developments
• CFPB’s Small Business Fair Lending Focus

CRA/HMDA Corner

• OCC Issues Final Rule Modernizing CRA Regulations
• FDIC Is Not Prepared to Finalize the CRA Proposal at this Time
• CFPB Updates HMDA Small Entity Compliance Guide