October Regulatory Compliance Briefing

Stay up to date with recent regulatory activity and advisories for banks, credit unions, and other financial institutions.

The October Regulatory Compliance Briefing includes recent alerts, proposed rules, and other announcements to be aware of this month.

Recap of September/October Compliance Alerts

NCUA Final Fair Hiring in Banking Rule

• Rule/Action Final: September 19, 2024
• Effective Date: October 30, 2024
• Alert Date: September 23, 2024

NCUA Final Share Insurance Rule

• Rule/Action Final: September 19, 2024
• Effective Date: December 1, 2026
• Alert Date: September 23, 2024

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

• Rule/Action Final: October 4, 2024
• Effective Date: January 1, 2025
• Alert Date: October 8, 2024

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)

Supervisory Highlights: Auto Finance Special Edition, Issue 35 (Fall 2024)

On October 7, 2024, the CFPB issued its Fall Supervisory Highlights, covering select examinations related to auto-finance. The Supervisory Highlights addresses examination findings related to: 1) origination disclosures, 2) repossession activities, 3) servicing activities, 4) add-on products, and 5) furnishing deficiencies. The Supervisory Highlights emphasizes a trend of significant violations related to the handling of add-on products (optional or ancillary products), specifically including: 1) including add-on products without consumers’ consent, 2) failing to allow consumers to cancel the products during the initial cancellation period, 3) failing to provide the benefit of the product, or 4) failing to ensure consumers receive refunds when the loan terminates early.

Federal Deposit Insurance Corporation (FDIC)

Guidance to Help Financial Institutions and Facilitate Recovery in Areas of Illinois Affected by Severe Storms, Tornadoes, Straight-Line Winds, and Flooding

On September 25, 2024, the FDIC issued FIL-66-2024, announcing a series of steps intended to provide regulatory relief to financial institutions and facilitate recovery in areas of Illinois affected by severe storms, tornadoes, straight-line winds, and flooding.

Guidance to Help Financial Institutions and Facilitate Recovery in Areas of Connecticut Affected by a Severe Storm, Flooding, Landslides, and Mudslides

On September 25, 2024, the FDIC issued FIL-67-2024, announcing a series of steps intended to provide regulatory relief to financial institutions and facilitate recovery in areas of Connecticut affected by the severe storm, flooding, landslides, and mudslides.

Guidance to Help Financial Institutions and Facilitate Recovery in Areas of Georgia Affected by Tropical Storm Debby

On September 27, 2024, the FDIC issued FIL-68-2024, announcing a series of steps intended to provide regulatory relief to financial institutions and facilitate recovery in areas of Georgia affected by Tropical Storm Debby.

Guidance to Help Financial Institutions and Facilitate Recovery in Areas of Vermont Affected by Severe Storms, Flooding, Landslides, and Mudslides

On September 27, 2024, the FDIC issued FIL-69-2024, announcing a series of steps intended to provide regulatory relief to financial institutions and facilitate recovery in areas of Vermont affected by severe storms, flooding, landslides, and mudslides.

Guidance to Help Financial Institutions and Facilitate Recovery in Areas Affected by Hurricane Helene

On October 1, 2024, the FDIC issued FIL-70-2024, announcing a series of steps intended to provide regulatory relief to financial institutions and facilitate recovery in areas affected by Hurricane Helene.

Guidance to Help Financial Institutions and Facilitate Recovery in Areas of Arizona Affected by the San Carlos Apache Tribe Watch Fire

On October 15, 2024, the FDIC issued FIL-73-2024, announcing a series of steps intended to provide regulatory relief to financial institutions and facilitate recovery in areas of Arizona affected by the San Carlos Apache Tribe Watch Fire.

Guidance to Help Financial Institutions and Facilitate Recovery in Areas of Florida Affected by Hurricane Milton

On October 15, 2024, the FDIC issued FIL-74-2024, announcing a series of steps intended to provide regulatory relief to financial institutions and facilitate recovery in areas of Florida affected by Hurricane Milton.

Guidance to Help Financial Institutions and Facilitate Recovery in Areas of Alaska Affected by Flooding

On October 18, 2024, the FDIC issued FIL-76-2024, announcing a series of steps intended to provide regulatory relief to financial institutions and facilitate recovery in areas of Alaska affected by flooding.

Office of the Comptroller of the Currency (OCC)

OCC Bulletin 2024-29: Commercial Lending: Refinance Risk

On October 3, 2024, the OCC issued a bulletin providing guidance for managing credit risk associated with refinance risk in commercial loan transactions and portfolios. The bulletin explains that refinance risk primarily affects loans with principal balances remaining at maturity and borrowers who rely on recurring debt to finance their capital structure or business operations. The bulletin suggests that banks should have processes to identify, measure, monitor, and control refinance risk at both the transaction and portfolio levels and that the tools to monitor refinance risk should be tailored to the bank’s size, complexity, risk profile, and types of lending. The bulletin rescinds Banking Bulletin 1993-50, “Loan Refinancing.”

Interagency Statements

Interagency Statement on Supervisory Practices Regarding Financial Institutions Affected by Hurricane Helene

On October 2, 2024, the FDIC, FRB, NCUA, OCC, and state financial regulators issued an interagency statement indicating that the agencies recognize the serious impact of Hurricane Helene on the customers and operations of many financial institutions and that the agencies will provide appropriate regulatory assistance to affected institutions subject to their supervision. The statement discusses expectations for: 1) lending, 2) temporary facilities, 3) publishing requirements, 4) regulatory reporting requirements, 5) the Community Reinvestment Act, and 4) investments. The statement also refers to the Interagency Supervisory Examiner Guidance for Institutions Affected by a Major Disaster for additional information.

Interagency Statement on Supervisory Practices Regarding Financial Institutions Affected by Hurricane Milton

On October 14, 2024, the FDIC, FRB, NCUA, OCC, and state financial regulators issued an interagency statement indicating that the agencies recognize the serious impact of Hurricane Milton on the customers and operations of many financial institutions and that the agencies will provide appropriate regulatory assistance to affected institutions subject to their supervision. The Statement discusses expectations for: 1) lending, 2) temporary facilities, 3) publishing requirements, 4) regulatory reporting requirements, 5) the Community Reinvestment Act, and 4) investments. The statement also refers to the Interagency Supervisory Examiner Guidance for Institutions Affected by a Major Disaster for additional information.

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.

Consumer Financial Protection Bureau (CFPB)

• CFPB Statement of Policy Regarding Prohibition of Abusive Acts and Practices — public comment period ended on July 3, 2023.
• CFPB Proposed Rule to Supervise Nonbank Digital Payment App Providers — public comment period ended on January 8, 2024.
• CFPB Proposed Personal Financial Data Rights Rule — public comment period ended on December 29, 2023.
• CFPB Proposed NSF Fee Rule — public comment period ended on March 25, 2024.
• CFPB Proposed Overdraft Rule — public comment period ended on April 1, 2024.
• CFPB Proposed Rule Amending Reg. V Concerning Medical Debt — public comment period ended on August 12, 2024.
• CFPB Proposed Rule Amending Mortgage Servicing Requirements — public comment period ended on September 9, 2024.
• CFPB Proposed Remittance Transfer Rule — public comment period ends on November 4, 2024.

Office of the Comptroller of the Currency (OCC)

• OCC Proposed Rule Under the Bank Merger Act — public comment period ended on April 15, 2024.

Federal Deposit Insurance Corporation (FDIC)

• FDIC Climate Risk Principles — public comment period ended on June 1, 2022.
• FDIC Proposed Large Bank Capital Rules — public comment period ended on January 16, 2024.
• FDIC Proposed Rule on Parent Companies of Industrial Banks and Industrial Loan Companies — public comment period ended on October 11, 2024.
• FDIC Proposed Amendment to Regulations Implementing the Change in Bank Control Act — public comment period ended on October 18, 2024.
• FDIC Proposed Rule on Brokered Deposits — public comment period ended on October 22, 2024.
• FDIC Proposed Rule on Recordkeeping for Custodial Accounts — public comment period ends on December 2, 2024.

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 Field of Membership Rule — public comment period ended on May 30, 2023.
• NCUA Proposed Rule on Credit Union Succession Planning — public comment period ended on September 23, 2024.

Federal Reserve Board (FRB)

• FRB Proposed Rule on Debit Card Interchange Fees and Routing — public comment period ended on February 12, 2024.

Interagency Proposed Rules

• FDIC, FRB, NCUA, OCC — Joint, proposed rulemaking regarding uniform rules and procedures for administrative hearings. The public comment period ended on June 13, 2022.
• FDIC, FRB, OCC — Joint, proposed interagency rulemaking on amendments to the regulatory capital rule. The public comment period ended on January 16, 2024.
• FDIC, FRB, OCC — Joint, proposed rulemaking to impose a long-term debt requirement for certain insured depository institutions. The public comment period ended on January 16, 2024.
• FDIC, FRB, NCUA, OCC — Joint, proposed rule on anti-money laundering and countering the financing of terrorism program requirements. The public comment period ended on October 8, 2024.

Stay on Top of Compliance Changes

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