All banks and credit unions must adhere to other existing guidance applicable to investment policy requirements though the Division cautions that, despite the repeal of this bulletin. Regulatory Bulletin 2.1-104, Branch workplace Notice and Application treatments, had been updated to permit filing of notices and applications making use of media that are electronic such as for instance through FDICconnect. The Division additionally combined its guidance for Fair Lending and CRA evaluation requirements get redirected here into one bulletin, Regulatory Bulletin 1.3-106, Community Reinvestment and Fair Lending Policy, and updated Regulatory Bulleting 2.3-106, Deposit Return Item costs, to include the DivisionвЂ™s methodology for determining the charge.
Nutter Notes : In past rounds of its regulatory review effort, the Division has released revisions to
its regulatory bulletins linked to reasonable financing exams, I . t danger administration, restrictive rent covenants, CRA reviews, and marketing directions for CDs and cash market records. The Division revised Regulatory Bulletin 1.3-103, customer Protection and Fair Lending exams, to simplify the DivisionвЂ™s authority to enforce state and regulations that are federal. Regulatory Bulletin 2.3-102, CRA reviews Policy, ended up being revised to explain the applicability regarding the DivisionвЂ™s guidance to institutions that are large. Regulatory Bulletin 2.3-103, Alternative CRA Examination treatments, happens to be renumbered as Regulatory Bulletin 1.3-105 and updated to add Mortgage Lender Community Investment examinations which can be carried out by the Division at specific mortgage brokers. Regulatory Bulletin 2.2-102, Management Suggestions Systems exams, happens to be repealed with its entirety. Particular guidance included in the previous Regulatory Bulletin 2.2-102 handling the necessity for information technology providers to supply a Letter of Assurance acknowledging that their solutions would be susceptible to legislation and examination by the Division into the exact same level as in the event that services were being done by the entity it self by itself premises happens to be updated and included into Regulatory Bulletin 1.1-101, Examination Policies, which continues to be under review. Regulatory Bulletin 2.2-103, Exclusive Leases and Other Restrictive Agreements, happens to be updated to broaden the exemptions from the restrictions.
Regulatory Bulletin 2.3-105, Certificate of Deposit and Money marketplace Account Advertising instructions, is repealed in its entirety.
3. FDIC and OCC Propose Help With Payday Advances
The FDIC and OCC have actually granted proposed guidance to depository organizations that provide or may think about deposit that is offering credit items, commonly described as payday advances. The proposals released concurrently on 15 would caution banks about a variety of safety and soundness, compliance and consumer protection risks posed by deposit advance loans april. The proposed guidance defines the axioms that the FDIC and OCC each expect depository organizations to adhere to regarding the deposit advance items so that you can handle dangers associated with payday lending, including appropriate, reputational, customer protection, conformity and credit risks. The proposition additionally talks about supervisory objectives for the application of deposit advance services and products, including underwriting and credit administration policies and techniques. The proposition describes deposit advance items as a form of small-dollar, short-term credit item provided to consumers having a deposit account, reloadable prepaid credit card or comparable deposit-related car at a bank whereby the financial institution provides a credit function enabling the customer to simply just take down that loan prior to the consumerвЂ™s next direct deposit in line with the consumerвЂ™s history of recurring deposits. The proposed guidance encourages banking institutions to keep to supply the products, in line with security and soundness along with other supervisory factors. The proposal supplements current FDIC and OCC guidance on payday advances and subprime lending. Responses in the proposed guidance are due by might 30, 2013.