July Regulatory Compliance Briefing

  • July 20, 2023
  • Quantivate

The July Regulatory Compliance Briefing includes recent alerts, advisories, and pending actions to be aware of this month.

Regulatory Effective Dates – Next 90 Days

Consumer Financial Protection Bureau (CFPB)

CFPB Final Rule on Small Business Lending Data Collection

  • Effective Date: August 29, 2023

National Credit Union Administration (NCUA)

NCUA Final Rule on Cyber Incident Reporting

  • Effective Date: September 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 FAQs on Small Business Lending Rule

The CFPB published a list of 21 Small Business Lending Rule FAQs. The FAQs address questions related to institutional coverage and covered credit transactions and small businesses.

Federal Deposit Insurance Corporation (FDIC)

FDIC Updated Guidance on Multiple Re-Presentment NSF Fees

On June 16, 2023, the FDIC issued Financial Institution Letter FIL-32-2023, announcing updates to its Supervisory Guidance on Multiple Re-Presentment NSF Fees (FIL-40-2022) to clarify its supervisory approach for corrective action when a violation of law is identified. The FDIC’s current supervisory approach is to not request an institution to conduct a lookback review absent a likelihood of substantial consumer harm.

FDIC 2022 Financial Institution Diversity Self-Assessments

On July 13, 2023, the FDIC issued Financial Institution Letter FIL-35-2023, encouraging FDIC-supervised financial institutions to voluntarily conduct and submit self-assessments of their diversity policies and practices by September 30, 2023. The self-assessment is not an examination requirement, and the results are not shared with examiners.

National Credit Union Administration (NCUA)

NCUA Proposed Changes to MDI Preservation Program IRPS

On June 22, 2023, the NCUA issued proposed changes to the Interpretive Ruling and Policy Statement (IRPS) on the Minority Depository Institution Preservation Program. The proposed amendments include: recognizing the transfer of the MDI program administration to CURE; incorporating recent program initiatives; simplifying “community it services, as designated in its charter” to refer to an MDI’s field of membership; referencing guidance to examination staff; explaining how the NCUA will review an MDI’s designation status during routine evaluations; and adding new subsections on engagement, technical assistance, MDI examinations, Community Development Revolving Loan Fund grants and loans, training and education, and MDI preservation.

Interagency Statement

Interagency Policy Statement on Prudent Commercial Real Estate Loan Accommodations and Workouts

On July 6, 2023, the FDIC, FRB, NCUA, and OCC issued a Final Interagency Policy Statement on Prudent Commercial Real Estate Loan Accommodations and Workouts. The final statement updates the 2009 Interagency Policy Statement, including: a) adding a new section on short-term loan accommodations, b) reflecting changes in GAAP, including those in relation to the CECL methodology, and c) providing updated information about industry loan workout practices including revised and new examples intended to illustrate the application of existing rules, regulatory reporting instructions, and supervisory guidance on credit classifications and the determination of nonaccrual status.

Future & Pending Regulatory Actions and Compliance Alerts

Financial Crimes Enforcement Network (FinCEN)

  • FinCEN Advance Notice of Proposed Rulemaking to address the vulnerability of the U.S. real estate market to money laundering and other illicit activity — public comment period ended February 14, 2022.
  • FinCEN Pilot Program for SARs Sharing proposed rule — public comment period ended March 28, 2022.
  • FinCEN Proposed Phase II Beneficial Ownership Rule — public comment period ended February 14, 2023.

Consumer Financial Protection Bureau (CFPB)

  • CFPB Notice and Request for Comment Regarding the CFPB’s Inquiry Into Buy-Now-Pay-Later (BNPL) Providers — public comment period ended on March 25, 2022.
  • CFPB Proposed Rule on Credit Card Late Fees – public comment period ended on April 3, 2023.
  • CFPB Statement of Policy Regarding Prohibition of Abusive Acts and Practices – public comment period ended on July 3, 2023.

Federal Deposit Insurance Corporation (FDIC)

  • FDIC Climate Risk Principles — public comment period ended on 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 Proposed Amendments to FCU Bylaws related to member expulsion — public comment period ended on December 2, 2022; final rule expected July 2023.
  • NCUA Proposed Financial Innovation Rule — public comment period ended on February 28, 2023.
  • NCUA Proposed Field of Membership Rule – public comment period ended on May 30, 2023.

Interagency Proposed Rules

  • OCC, NCUA, FDIC, FRB — Joint, proposed rulemaking regarding uniform rules and procedures for administrative hearings. The public comment period ended on June 13, 2022.
  • CFPB, OCC, FRB, NCUA, FDIC, and FHFA — Joint, proposed rule to implement automated valuation model (AVM) quality control standards. The public comment period ends on August 21, 2023.

Stay on Top of Compliance Changes

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