national banks

OCC Halts Publication of Fair Access Rule

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On January 28, the Office of the Comptroller of the Currency (OCC) announced that it would halt publication of its “fair access” rule, which would have prevented national banks from denying services to any individual customer unless justified by that customer’s documented failure to meet quantitative, impartial risk-based standards established by the bank. The rule, which was finalized by the OCC on January 14 and would have gone into effect on April 1, will be set aside for review by the next confirmed Comptroller of the Currency under the current administration. Release.

OCC Submitted Final Rule Clarifying When Bank is a “True Lender”

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On October 27, the Office of the Comptroller of the Currency (OCC) submitted a final rule for publication to determine when a national bank or federal savings association makes a loan to a third party and is the “true lender.” The rule clarifies that a bank is a “true lender” if, as of the date of origination, the bank (1) is named as the lender in the loan agreement or (2) funds the loan. OCC Bulletin.

Prohibition on Dealing or Investing in Industrial or Commercial Metals

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On January 3, 2017, the Office of the Comptroller of the Currency (the “OCC“) finalized a rule that prohibits national banks and federal savings associations from dealing or investing in industrial or commercial metals. An “industrial or commercial metal” is “a metal (or alloy), including copper, in a form primarily suited to industrial or commercial use.” Examples of metals and alloys considered to be “industrial or commercial metals” include copper cathodes, aluminum T-bars and gold jewelry. The rule becomes effective on April 1, 2017, and includes a divestiture period requiring national banks and federal savings associations to dispose of industrial or commercial metals acquired through dealing or investing activities “as soon as practicable, but not later than one year from the effective date of the regulation.” However, the OCC may grant up to four separate one-year extensions of this period for national banks or federal savings associations making a good faith effort to divest of the industrial or commercial metals and where the banks’ or savings associations’ retention of these metals is not inconsistent with their safe and sound operation. Press Release. Rule.

OCC Stress Testing Guidance and CRE Stress Test Tool

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On October 18, the OCC provided guidance to national banks and federal savings associations with assets of $10 billion or less on using stress testing to assess risk in their loan portfolios.  The guidance indicates that stress tests do not need to involve sophisticated analysis or third-party consultative support.  The OCC is also making available a new portfolio level stress tool for income producing commercial real estate loans.  OCC Release.