December Regulatory Compliance Briefing

While there were no compliance alerts for November, there are two changes going into effect on January 1, 2023, and a number of additional advisories and announcements to look out for! Learn more about December’s regulatory compliance changes below.

Recap of November Compliance Alerts

None

Compliance Alerts Expected in December

To Be Decided 

Regulatory Effective Dates – Next 90 Days

CFPB Annual Updates to Exemption Thresholds (Reg. Z and Reg. M)

Effective – January 1, 2023

FDIC Amendments to Assessments Rule to Incorporate Troubled Debt, Restructuring Accounting Standards Update

Effective – January 1, 2023

Additional Advisories and Announcements

The selected advisories and/or announcements below provide information that may be helpful to your organization but were not included as compliance alerts because they do not contain any regulatory changes.

Consumer Financial Protection Bureau (CFPB)

CFPB Circular 2022-07, Reasonable Investigation of Consumer Reporting Disputes

The CFPB issued a circular related to the investigation of consumer reporting disputes. The Circular reiterates that consumer reporting agencies and furnishers are liable under the FCRA if they fail to investigate any dispute that meets the statutory and regulatory requirements.

CFPB Fall Supervisory Highlights

The CFPB released its Fall Supervisory Highlights. The highlights discuss the CFPB’s examinations in the areas of auto servicing, consumer reporting, credit card account management, debt collection, deposits, mortgage origination, mortgage servicing, and payday lending that were completed between January 1, 2022, and June 31, 2022.

Federal Deposit Insurance Corporation (FDIC)

FDIC Updated Consumer Compliance Examination Manual

The FDIC announced updates to several sections of the Consumer Compliance Examination Manual, including SOURCE Violation Codes (II-14.1), Sample Letter for Pre-Examination Packet (III-1.1), and Overdraft Payment Programs (V-14.1).

Office of the Comptroller of the Currency (OCC)

OCC Revised Civil Money Penalties

The OCC released a revised Policies and Procedures Manual for assessing civil money penalties, with the revisions being effective January 1, 2023. The updated Manual includes revisions to the Civil Money Penalty Matrix, including: 1) revised mitigating factors of (a) self-identification, (b) remediation or corrective action, and (c) restitution, 2) increased scoring weight of mitigating factors, and revised table titled “Suggested Action Based on Total Matrix Score and Total Assets of Bank.”

Federal Financial Institutions Examination Council (FFIEC)

FFIEC Updated Community Reinvestment Act Data Entry Software

The FFIEC announced an update to its Community Reinvestment Act data entry software. Version 2022 for the calendar year 2022 CRA data, which is due March 1, 2023, is now available.

United States Department of Housing and Urban Development (HUD)

HUD Final Rule Permitting Private Flood Insurance with FHA Loans

The Department of Housing and Urban Development issued a Final Rule permitting the use of private flood insurance policies with FHA-insured mortgage loans. The Final Rule applies to Title I manufactured home loans, Title II single-family home loans, and HECM loans. To qualify as private flood insurance under the Final Rule, a policy must be issued by an insurance company that meets certain conditions, and the policy must provide flood insurance coverage that is at least as broad as the coverage provided under a standard flood insurance policy issued under the NFIP.

Federal Housing Finance Agency (FHFA)

FHFA Conforming Loan Limits for 2023

The Federal Housing Finance Agency announced the conforming loan limits for residential mortgage loans acquired by Fannie Mae and Freddie Mac in 2023.  The standard loan limit for a one-unit home increased to $726,200 for 2023. For high-cost areas, and also for Alaska, Guam, Hawaii and the U.S. Virgin Islands, the loan limit for a one-unit home increased to $1,089,300 for 2023. Fannie Mae sets forth the limits in Lender Letter 2022-06.

Future & Pending Regulatory Actions and Compliance Alerts

Financial Crimes Enforcement Network (FinCEN)

• FinCEN Advance Notice of Proposed Rulemaking seeking comments on a potential rule to address the vulnerability of the U.S. real estate market to money laundering and other illicit activity. Public Comments ended on February 14, 2022.
• FinCEN Pilot Program for SARs Sharing proposed rule ended March 28, 2022.

Consumer Financial Protection Bureau (CFPB)

• CFPB Notice and Request for Comment Regarding the CFPB’s Inquiry Into Buy-Now-Pay-Later (BNPL) Providers. CFPB public comments ended on March 25, 2022.

Federal Deposit Insurance Corporation (FDIC)

• FDIC Climate Risk Principles public comment period ended June 1, 2022.

National Credit Union Administration (NCUA)

• NCUA rulemaking to modernize and improve the NCUA’s investment rule and to provide regulatory relief was expected in September 2022.
• NCUA’s Proposed Rule on Reportable Cyber Incidents – public comment period ended September 26, 2022.
• NCUA Proposed Amendments to Subordinated Debt Rule – public comment period ended December 5, 2022.
• NCUA Proposed Amendments to FCU Bylaws related to member expulsion – comment period ended December 2, 2022.

Federal Reserve Board (FRB)

• FRB Proposed Rule to implement the Adjustable Interest Rate (LIBOR) Act – public comment period ended August 29, 2022.

Joint Federal Banking Agency Proposed Rules

• OCC, NCUA, FDIC, FRB – joint, proposed rulemaking regarding their uniform rules and procedures for administrative hearings. The public comment period ended on June 13, 2022.
• OCC, FRB, FDIC, NCUA, FHFA, and CFPB – rulemaking to implement quality control standards for the use of automated valuation models by mortgage originators and secondary market issuers. Notice of Proposed Rulemaking was expected in October 2022.

Stay on Top of Compliance Changes

For access to the complete analysis, executive summaries, and actions needed to ensure compliance, contact us.