Fed Notice on Enforcement of OTS Regulations

On July 21, the Fed, pursuant to the Dodd-Frank Act, issued a notice of its intention to continue to enforce certain current OTS regulations after the Fed assumes supervisory responsibility for savings and loan holding companies and their non-depository subsidiaries from the OTS on July 21. Comments must be submitted on or before August 31. Fed Release. Fed Notice.

Supervisory Guidance on Advanced Measurement Approach

On June 3, the FDIC, Fed, OCC, and OTS issued guidance on supervisory expectations and key considerations for an advanced measurement approach framework. The guidance focuses on the four required data elements: (i) internal operational loss event data; (ii) external operational loss event data; (iii) scenario analysis; and (iv) business environment and internal control factors. FDIC Release.

Agency Enforcement Action Against Servicers

On April 13, the Fed, OCC, and OTS announced formal enforcement actions against large servicers related to their foreclosure practices based on findings of an interagency review of foreclosure policies and practices. The FDIC also participated in the review as a back-up regulator. The enforcement orders require servicers to take certain actions to remedy deficiencies identified by the review. Interagency Review. Fed Release. OCC Release. OTS Release. FDIC Release.

Proposed Rule on Disclosure of Incentive-Based Compensation

On March 29, the SEC, Fed, FDIC, FHFA, NCUA, OCC, and OTS requested comment on a joint proposed rulemaking to implement Section 956 of the Dodd-Frank Act. The proposed rule prohibits incentive-based compensation arrangements that encourage inappropriate risk-taking by covered financial institutions and are deemed to be excessive or that may lead to material losses. Comments must be submitted within 45 days after publication in the Federal Register, which is expected soon. Joint Release. Proposed Rule.

Start of Registration Period under S.A.F.E. Act

On January 31, the Fed, the Farm Credit Administration, the FDIC, the National Credit Union Administration, the OCC, and the OTS announced that the Nationwide Mortgage Licensing System and Registry has begun to accept federal registrations as required under the Secure and Fair Enforcement for Mortgage Licensing Act (the S.A.F.E. Act). After the initial registration period expires on July 29, any employee of an agency-regulated institution subject to the registration requirements will be prohibited from engaging in the business of originating residential mortgage loans without first meeting the requirements. FDIC Release. Registration Process. Federal Register Notice.

Banking Agencies ANPR on Alternatives to Credit Ratings in Capital Rules

On August 10, the Fed, the FDIC, the OCC and the OTS issued an advance notice of proposed rulemaking regarding alternatives to the use of credit ratings in their risk-based capital rules for banking organizations.  The ANPR is being issued in response to Section 939A of the Dodd-Frank Act, which requires the agencies to remove references to credit ratings and adopt alternative standards of credit-worthiness.  The ANPR solicits comment on a range of potential alternative standards, a set of criteria the banking agencies believe are important in evaluating these standards, and the feasibility and burden associated with these alternative measures.  Comments must be received within 60 days of publication of the ANPR in the Federal Register. Release. Advance Notice of Proposed Rulemaking.

Joint Agency Release on S.A.F.E. Act Mortgage Originator Requirements

On July 28, the OCC, Fed, FDIC, OTS, Farm Credit Administration and National Credit Union Administration issued final rules requiring certain mortgage loan originators to meet the registration requirements of the Secure and Fair Enforcement for Mortgage Licensing Act of 2008 (S.A.F.E.).  The final rules are effective October 1 and the agencies anticipate that the registry could begin accepting federal registrations as early as January 28, 2011. Joint Release. Federal Register Notice and Final Rules.