On December 19, Fed, FDIC and OCC issued a statement seeking comment on supplemental guidance on income tax allocation agreements involving holding companies and insured depository institutions. The proposed guidance will clarify ownership of any tax refunds. Release. Proposed Addendum.
OCC
Three Agencies Issue FAQ Regarding CDOs Backed by Trust Preferred Securities Under the Volcker Rule
On December 19, Fed, FDIC and OCC issued Frequently Asked Questions to clarify rules applicable to investments in covered funds and whether collateralized debt obligations backed by trust preferred securities (TruPS CDOs) could be determined to be covered funds under the Volcker Rule. The FAQs clarify that banking entities that have holdings in TruPS CDOs may use the conformance period to determine if they can be brought into conformance by July 21, 2015. Release. FAQ.
Three Agencies Release Annual CRA Asset-Size Threshold Adjustments for Small and Intermediate Small Institutions
On December 19, the Fed, FDIC and OCC announced the annual adjustment to the asset-size thresholds used to define small bank, small savings association, intermediate small bank and intermediate small savings association under the Community Reinvestment Act. Release.
FDIC and CFPB Settle with American Express Centurion Bank Charges of Unfair and Deceptive Practices
On December 24, the FDIC and CFPB announced a settlement with American Express Centurion Bank concerning charges of unfair and deceptive marketing practices related to credit card “add-on products” in violation of Section 5 of the Federal Trade Commission (FTC) Act. Together, the FDIC and CFPB will require restitution of no less than $40.9 million. The OCC and CFPB also announced actions against other American Express affiliated institutions for the same unfair and deceptive practices. Release. Order.
Agencies are Reviewing Treatment of CDOs Backed by Trust Preferred Securities Under the Volcker Rule
On December 27, the Fed, FDIC, OCC and the SEC stated that they are in the process of reviewing whether it would be appropriate to subject collateralized debt obligations backed by trust preferred securities to the Volcker rule. The agencies intend to address the matter no later than January 15, 2014. Statement.
Supervisory Approach for Qualified and non-Qualified Mortgage Loans
On December 13, Fed, FDIC, NCUA and OCC issued a statement to clarify safety-and-soundness expectations in order to guide institutions engaged in residential mortgage lending as they assess the implementation of the CFPB’s Ability-to-Repay and Qualified Mortgage Standards Rule, which is effective January 10, 2014. Joint Release. Joint Statement.
Final Rules on Appraisal Exemptions for Higher-Priced Mortgages
On December 12, the Fed, FDIC, CFPB, FHFA, NCUA and OCC issued a final rule that creates exemptions from certain appraisal requirements for certain higher-priced mortgage loans. The final rule provides that loans of $25,000 or less and certain “streamlined” refinancings are exempt from the Dodd-Frank Act appraisal requirements, which go into effect on January 18, 2014. Joint Release. Joint Final Rule.
Final Rules Implementing the Volcker Rule
On December 10, the Fed, CFTC, FDIC, OCC and SEC issued final rules to implement Section 619 of the Volcker Rule Act (the Volcker Rule), which prohibit insured depository institutions and banking entities from engaging in short-term proprietary trading of certain securities, derivatives, commodity futures and options for their own account. Banking organizations covered by the rules will be required to fully conform their activities and investments by July 21, 2015. Joint Release. Final Rules. Fact Sheet.
Questions and Answers Regarding Community Reinvestment
On November 15, the Fed, the OCC and the FDIC released final revisions to “Interagency Questions and Answers Regarding Community Reinvestment,” which provide additional guidance to financial institutions and the public on the agencies’ Community Reinvestment Act regulations. Joint Release. Q&A.
Regulatory Capital Estimation Tool for Community Banks
On November 19, the Fed, the OCC and the FDIC released an estimation tool to help community banks understand the potential effects on their capital ratios of the regulatory capital reforms imposed by Basel III and the Dodd-Frank Act. Joint Release. Estimation Tool.