FHFA Extends Comment Period on Proposed Revisions to Federal Home Loan Bank Membership Eligibility Requirements

On October 6, the FHFA announced that it is extending the comment period for its proposed rule on Federal Home Loan Bank membership by 60 days, or to January 12, 2015. The proposed rule would revise the requirements for financial institutions to apply for and retain membership in one of the 12 Federal Home Loan Banks. Press Release. Proposed Rule.

SEC Announces its Reg AB II Registration Statement Pilot Program

On October 6, the SEC announced its Regulation AB II pilot program for registration statements relating to asset-backed securities. The SEC will begin accepting email requests to participate at 9 am ET on October 20. The SEC will select at least two issuers per asset class (on a first-come-first-served basis), and the deadline for draft registration statements is expected to be in February 2015. The SEC plans to make the draft registration statements and staff comments available to the public.  Announcement.

OCC Proposes Rule on Margin and Capital Requirements for Covered Swap Entities

October 6, the OCC released a notice of proposed rulemaking to establish minimum requirements for the exchange of initial and variation margin between registered swap dealers, major swap participants, security-based swap dealers and major security-based swap participants (covered swap entities) and their counterparties to non-cleared swaps and non-cleared security-based swaps. Comments should be received on or before November 24. Press Release. NPR.

Federal Reserve Board Releases FAQs Regarding Certain Bank Transactions

On October 9, the Federal Reserve Board released answers to frequently asked questions regarding the competitive review process for bank acquisitions, mergers, and other transactions under the Bank Holding Company Act, the Bank Merger Act and the Home Owners’ Loan Act. Press Release. FAQs.

SEC Publishes Risk Alert and FAQs Reminding Broker-Dealers of their Obligations In Unregistered Transactions

On October 9, the SEC announced publication of a Risk Alert and FAQs to remind broker-dealers of their obligations when they engage in unregistered transactions on behalf of their customers. The publication of the staff guidance was accompanied by the announcement of an enforcement action against two firms for improperly selling billions of shares of penny stocks through such unregistered offerings. The Risk Alert summarizes deficiencies that were discovered by the SEC’s Office of Compliance Inspections and Examinations (OCIE) during a targeted sweep of 22 broker-dealers frequently involved in the sale of microcap securities. Announcement. Risk Alert.

Final Regulation AB II Rules Published in the Federal Register

On September 24, the final Regulation AB II rules were published in the Federal Register. The final Regulation AB II rules become effective on November 24 and market participants must be in compliance with the final Regulation AB II rules (other than the asset-level disclosure requirements) no later than November 23, 2015 and with the asset-level disclosure requirements no later than November 23, 2016. Published Rule.

Mortgage Performance Improvement Continues

On September 25, the OCC reported that the performance of first-lien mortgages serviced by large national and federal savings banks improved from a year earlier. The OCC Mortgage Metrics Report, Second Quarter 2014, showed 92.9% of mortgages were current and performing at the end of the quarter, compared with 90.6% a year earlier. The percentage of mortgages that were 30 to 59 days past due decreased 17.3% from a year earlier to 2.4% of the portfolio. Seriously delinquent mortgages 60 or more days past due or held by bankrupt borrowers whose payments are 30 days or more past due decreased 17.0% from a year earlier. Report.

Final Regulation AB II Rules Published in the Federal Register

On September 24, the final Regulation AB II rules were published in the Federal Register.  The final Regulation AB II rules become effective on November 24 and market participants must be in compliance with the final Regulation AB II rules (other than the asset-level disclosure requirements) no later than November 23, 2015 and with the asset-level disclosure requirements no later than November 23, 2016.  Published Rule.