Banking and Finance Law Daily Wrap Up, REGULATION TRACKER—Upcoming comment deadlines and effective dates, (Jun 24, 2024)

By WK Editorial Staff

Comment deadlines and effective dates for regulatory activity issued by the federal financial institution agencies.

The Banking and Finance Law Daily Regulation Tracker includes a Proposed Rules Comment Calendar and a table of Final Rule Effective Dates. Recent activity includes the following:

The Consumer Financial Protection Bureau is seeking public comment on a proposed rule amending Regulation V, which implements the Fair Credit Reporting Act (FCRA). The CFPB is proposing to remove a regulatory exception in Regulation V from the limitation in the FCRA on creditors obtaining or using information on medical debts for credit eligibility determinations. The proposed rule would also provide that a consumer reporting agency generally may not furnish to a creditor a consumer report containing information on medical debt that the creditor is prohibited from using.

The Federal Deposit Insurance Corporation has issued a final rule revising 12 C.F.R. §360.10 that requires the submission of resolution plans or informational filings by covered insured depository institutions (IDIs). Key elements of the final rule include: insured depository institutions (IDIs) with $100 billion or more in average total assets (Group A) will submit resolution plans, while IDIs with total assets at least $50 but less than $100 billion in average total assets (Group B) will submit more limited informational filings. In addition, Group A IDIs are required to submit an “Identified Strategy” that discusses their potential failure to liquidation or return of the ownership interests to the private sector. The Identified Strategy would likely use a default approach whereby the FDIC, as receiver of the failed institution, operates the institution under a bridge bank although this approach would not be required. Group B IDIs’ informational filings do not have to contain the Identified Strategy.

The FDIC, along with the Office of the Comptroller of the Currency, Federal Reserve Board, and National Credit Union Administration, is seeking comment on a proposed rule that would amend the requirements that each agency has issued for its supervised banks to establish, implement, and maintain effective, risk-based, and reasonably designed Anti-Money Laundering (AML) and Countering the Financing of Terrorism (CFT) programs. The amendments are intended to align with changes that are being concurrently proposed by the Financial Crimes Enforcement Network as a result of the Anti-Money Laundering Act of 2020 (AML Act). Among other things, the proposed rule incorporates a risk assessment process in the AML/CFT program rules that requires, among other things, consideration of the national AML/CFT Priorities published by FinCEN.

Finally, the OCC, Fed, FDIC, NCUA, CFPB, and Federal Housing Finance Agency have issued a final rule to implement quality control standards for automated valuation models (AVMs) used by mortgage originators and secondary market issuers in valuing residential real estate collateral securing mortgage loans. Under the final rule, institutions that engage in certain credit decisions or securitization determinations must adopt policies, practices, procedures, and control systems to ensure that AVMs used in these transactions to determine the value of mortgage collateral adhere to quality control standards designed to ensure a high level of confidence in the estimates produced by AVMs; protect against the manipulation of data; seek to avoid conflicts of interest; require random sample testing and reviews; and comply with applicable nondiscrimination laws.

See the Regulation Tracker for details.

RegulatoryActivity: BankingOperations BankSecrecyAct ConsumerCredit CFPB DebtCollection DepositInsurance DoddFrankAct EqualCreditOpportunity FairCreditReporting FinancialStability Loans Mortgages Receiverships