Bankers Compliance Task Force Current News Archive - May 2005

May 27, 2005   FinCEN's 314(a) Fact Sheet has been updated to include data as of May 25, 2005.  The new data can be accessed at: http://www.fincen.gov/.

May 27, 2005   The OTS has released the 2004 Fact Book - A Statistical Profile of the Thrift Industry.  The book contains the annual update to the compilation of statistics concerning the OTS regulated thrift industry and can be found at: http://www.ots.treas.gov/.

May 20, 2005   The Federal Reserve Board has published final amendments to Regulation DD, which implements the Truth in Savings Act, and the regulation's official staff commentary to improve the uniformity and adequacy of information provided to consumers when they overdraw their deposit accounts. The final amendments, in part, address services often referred to as "bounced-check protection" or "courtesy overdraft protection." To address concerns about the marketing of this service, the final rule expands the regulation's prohibition against misleading advertisements to cover institutions' communications with current customers about their existing accounts. The staff commentary provides examples of advertisements that would ordinarily be misleading. Other revisions to Regulation DD require additional disclosures about fees and other terms for overdraft services, including in advertisements. To assist consumers in understanding the financial impact of overdrawing their accounts, the final rule requires institutions that promote the payment of overdrafts in an advertisement to disclose on periodic statements the total dollar amount imposed for overdraft fees and the total dollar amount imposed for returned- item fees, both for the statement period and for the calendar year to date. The final rule is effective July 1, 2006. The final rule can be accessed at: http://www.federalreserve.gov/.

May 17, 2005   HOEPA June 2005 Reference Rates have been published. The Federal Reserve has posted the new reference rates which lenders must use to determine if loans for which applications are received in June 2005 will be subject to HOEPA under the APR trigger test. Use the FRB H.15 to find applicable release which lists the Treasury Security with the same maturity term as your loan. To make the calculation, use the yield in effect on the 15th of the month prior to the month the application was received. To access the rates, go to: http://www.federalreserve.gov/.

May 17, 2005   ABA will host Regulatory Update for Directors, part of the Bank Directors Telephone Briefing Series, on June 22nd. ABA experts will explore the regulatory matters that today's bank directors must understand. Directors must know the basics of the huge body of regulations affecting financial institutions. This 90-minute session will be a brisk, de-jargoned program to present regulation the way directors view the business of a community bank—in terms of banking functions such as deposit gathering, business lending and compliance. Check out the full series of Director Briefings sponsored by ABA's Community Bankers Council. For additional information visit http://www.aba.com/.

May 17, 2005   The latest edition of FDIC Consumer News (Spring 2005) is now available on-line. This edition is a special issue devoted to helping young adults, including those just beginning a career or family and others still in college or high school, learn the right ways to save and manage money right from the start. The new publication, entitled “Taking Control of Your Finances: A Special Guide for Young Adults,” is now available on the FDIC Web site at www.fdic.gov/consumers/consumer/news/cnspr05.

May 17, 2005   The Federal Reserve Financial Services has announced that eLearning Tools regarding its services are now available online. For more information, visit: http://www.frbservices.org/.

May 17, 2005   - The OTS recently issued the historical and March 2005 National Average Cost of Funds Ratio to OTS Regulated, SAIF - Insured Institutions Reports. For the March report, visit: http://www.ots.treas.gov/.  The historical report can be accessed at: http://www.ots.treas.gov/.

May 16, 2005   The September 2004 issue of the Quarterly Journal, Vol. 23, No. 3 (for the 2nd quarter 2004), is now available on-line. This issue contains the condition and performance of commercial banks, as well as recent licensing decisions, appeals, special supervision and enforcement activities, speeches and testimony, interpretive letters, mergers, corporate structure and financial performance data. You can access the journal at http://www.occ.treas.gov/.

May 16, 2005   The federal bank, thrift and credit union regulatory agencies today issued guidance that promotes sound risk management practices for home equity lines of credit and loans. The agencies have found that in some cases credit risk management practices for home equity lending have not kept pace with the product’s rapid growth and eased underwriting standards. This guidance outlines the agencies’ expectations for sound underwriting standards and effective credit risk management practices for a financial institution’s home equity lending activity. The guidance can be found at http://www.occ.treas.gov/.

May 13, 2005   The FDIC has made its Trust Examination Manual available online. The manual can be accessed at: http://www.fdic.gov/.

May 11, 2005   The Federal Financial Institutions Examination Council (FFIEC), on behalf of the Joint Federal Regulatory Agencies, is seeking public comment on the proposed “Interagency Advisory on the Unsafe and Unsound Use of Limitation of Liability Provisions and Certain Alternative Dispute Resolution Provisions in External Audit Engagement Letters.” The purpose of the advisory is to alert financial institutions to the safety and soundness implications of provisions that limit the external auditor’s liability in a financial statement audit. The guidance would apply to all financial institutions, regardless of size, whether or not the financial institution is a public company, or whether the external audit is required or voluntary. All interested parties are invited to submit written comments to the FFIEC. All comments, which will be shared among the agencies, will be accepted on or before June 9. To read the proposed advisory, visit: http://www.occ.treas.gov/.

May 11, 2005   FinCEN recently issued a BSA Direct E-Filing Fact Sheet. BSA Direct E-Filing (formerly known as the PACS System) is the system that supports electronic filing of BSA forms by a financial institution to the BSA database through a FinCEN secure network. The Fact Sheet provides detailed information about the filing system and encourages its use by institutions. For more information, see http://www.fincen.gov/.

May 11, 2005   FinCEN recently issued an updated 314a Fact Sheet which provides summary information on the 314a process. Visit http://www.fincen.gov/ for additional information.

May 9, 2005   FinCEN recently filed a Statement of Interest of the United States in the case of FDIC v. Flagship Auto Center, Inc. opposing defendant’s motion to compel production of suspicious activity report by FDIC. To read the statement, visit: http://www.fincen.gov/.

May 4, 2005   Since the March 1, 2005, implementation of FinCEN's Secure Information Sharing System (SISS), financial institutions' Section 314(a) points of contact should be receiving biweekly e-mail notifications about new information available on the SISS Web site for their review. Usage statistics for the SISS have been provided to the FDIC. Current results indicate that a number of FDIC-supervised institutions are not registered to access the site, and a number of registered institutions have not logged on to SISS since their initial registration. There are also a number of financial institutions that receive e-mail notifications from FinCEN stating new information has been posted to the SISS, but have not yet registered on the new system. The registration process can be completed at https://www.fincen.gov/314a/.

May 4, 2005   The Federal Banking Regulatory Agencies are issuing jointly the attached “Interagency Advisory on Accounting and Reporting for Commitments to Originate and Sell Mortgage Loans.” The purpose of the advisory is to provide additional guidance on the appropriate accounting and reporting for commitments to originate mortgage loans that will be held for resale and commitments to sell mortgage loans under mandatory delivery and best efforts contracts. You can access the advisory at: http://www.occ.treas.gov/.

May 4, 2005   Acting Comptroller of the Currency Julie L. Williams said today there may be no more immediate challenge facing community development today than the problem of foreclosures, and they represent a huge challenge for government, financial institutions, and non-profits dedicated to the goal of expanding home ownership and saving at-risk communities. She also stressed the need for multi-dimensional mortgage delinquency intervention programs. For more information, visit: http://www.occ.treas.gov/.

May 4, 2005   OTS has posted the 2005 Thrift Financial Report Form 1313 online. The form can be accessed at: http://www.ots.treas.gov/.

May 3, 2005   The Federal Open Market Committee has raised it's target for the federal funds rate by 25 basis points to 3 percent. In a related action, the Board of Governors unanimously approved a 25-basis-point increase in the discount rate to 4 percent. For more information, visit: http://www.federalreserve.gov/.

May 2, 2005   The FDIC is sponsoring identity theft symposiums in Atlanta, Los Angeles, and Chicago. The symposiums will discuss the findings of the December 2004 FDIC study: Putting an End to Account-Hijacking Identity Theft, and explore ways to further educate consumers about the problem as recommended by the study. For more information, visit: http://www.fdic.gov/.

May 2, 2005   FinCen has released and opinion letter dated April 8, 2005 regarding the availability of SAR safe harbor following notification to law enforcement. To read more, visit: http://www.fincen.gov/.