Bankers Compliance Task Force Current News Archive - SEPTEMBER 2005
September 30, 2005 The FFIEC has announced that the CD-ROM recently mailed to all reporting institutions, containing 2004 HMDA aggregate tables and disclosure statements, has errors. All affected tables of the aggregate reports, disclosure statements, and national aggregates have been corrected and updated on the FFIEC web site. A patch for the CD-ROM application has been placed on the FFIEC web site (http://www.ffiec.gov/) and can be downloaded to correct all table and functionality errors on the CD-ROM. Additional errors have also been discovered that will be corrected in a few days. For more information, visit: http://www.ffiec.gov/.
September 29, 2005 The U.S. Treasury has unveiled a new, more secure design for the $10 note that will go into circulation in early 2006. The security features include subtle shades of orange, yellow and red along with images of the Statue of Liberty's torch and the words "We the People". To view the new $10 note, go to: http://www.moneyfactory.gov/.
September 29, 2005 Policy changes that originate outside of bank regulation represent a special class of risks to depository institutions, according to the Fall 2005 edition of FDIC Outlook. In a series of reports on what the agency is calling "stroke-of-the-pen" risks, FDIC analysts examined changes in monetary, tax, agricultural and other policies that have led to or may lead to significant and unintended negative consequences for banks. The latest FDIC Outlook can be found at http://www.fdic.gov/.
September 28, 2005 Superior Mortgage Corp., a lender with 40 branch offices in 10 states and multiple Web sites, has agreed to settle FTC charges that it violated federal law by failing to provide reasonable security for sensitive customer data and falsely claiming that it encrypted data submitted online. For more information, visit http://www.ftc.gov/.
September 26, 2005 Speaking before the ABA Convention, Comptroller of the Currency John Dugan praised the record of the competitive banking industry in providing a rich array of financial services to consumers while attaining record profits and and high levels of capital. He went on to address the impact of recent HMDA data, the agency's commitment to balanced supervisory judgment on BSA matters and the need to implement regulations in ways that minimize unnecessary reporting or other undue burdens on community banks. Dugan's speech can be accessed at: http://www.occ.treas.gov/.
September 23, 2005 FinCEN's QuikNews, a subscriber-based e-mail service that is part of FinCEN's public website and is hosted externally, was recently used to convey an unauthorized message. FinCEN reports that no sensitive information or Bank Secrecy Act data has been compromised in this incident. FinCEN has also permanently shut down QuikNews and advises subscribers to delete any further messages they might receive from "FinCEN News," fincennews@fincen.gov" or "FinCEN QuikNews Mailing List." Please visit www.fincen.gov for more information.
September 21, 2005 Federal Reserve Check Services has issued a list of recommendations for the handling of checks that may have been contaminated as a result of Hurricane Katrina. The list may be accessed at: http://www.frbservices.org/.
September 20, 2005 The Federal Open Market Committee raised its target for the federal funds rate by 25 basis points to 3-3/4 percent. For more information, visit: http://www.federalreserve.gov/.
September 20, 2005 The OCC has revised the Capital and Dividends booklet of the OCC Licensing Manual to incorporate an advisory on reverse stock splits. To access the booklet, visit: http://www.occ.treas.gov/.
September 19, 2005 The Federal Financial Institutions Examination Council (FFIEC) is forming an interagency working group to enhance the agencies' coordination and communication on, and supervisory responses to, issues facing the industry in the aftermath of Hurricane Katrina. The group, composed of senior level supervision officials from each member agency and the FFIEC's State Liaison Committee, will build upon the cooperative efforts, already in place, among the federal and state financial institution regulators. For more information, go to: http://www.ffiec.gov/.
September 19, 2005 The OCC has issued updated information assist national banks and their customers affected by Hurricane Katrina and informs bankers that the OCC has established sections on its Website and BankNET that provide information on, and links to, Katrina-related information. This information updates the August 29, 2005 press release (NR 2005-83) encouraging national banks to consider measures to assist borrowers who have been affected by Hurricane Katrina. Efforts taken by national banks to work with their borrowers and customers in affected communities, if conducted in a reasonable and prudent manner, are consistent with safe and sound banking practice. In accordance with the Community Reinvestment Act (CRA), the OCC will favorably consider activities that revitalize or stabilize a designated disaster area. To view the updated information, visit: http://www.occ.treas.gov/.
September 19, 2005 The Federal Reserve has published the new reference rates which lenders must use to determine if loans for which applications are received in October 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, you use the yield in effect on the 15th of the month that precedes the month you received the application. To access the new reference rates, visit: http://www.federalreserve.gov/.
September 16, 2005 Treasury Department and the IRS have announced that 401(k) plans and similar plans, such as those under section 403(b), will be permitted to make loans and hardship distributions to Hurricane Katrina victims. For more information, go to: http://www.treas.gov/.
September 16, 2005 Federal Reserve Board has issued a statement reminding banking organizations that regulatory flexibility is available to facilitate recovery in areas affected by this disaster and encourages them to work with borrowers and other customers in communities affected by Hurricane Katrina. To view the FRB statement, visit: http://www.federalreserve.gov/.
September 15, 2005 The previously issued guidance regarding the cashing of FEMA checks and government benefit assistance checks issued by Treasury for Katrina victims has been updated. To access the new updated information, go to: http://www.frbservices.org/.
September 15, 2005 FRB Financial Services has announced that Treasury is activating its accelerated direct deposit enrollment procedures for displaced Social Security and Supplemental Social Security check recipient evacuees. For more information on these procedures, visit: http://www.frbservices.org/.
September 14, 2005 Mississippi Bankers Association Executive Director Mac Deaver testified on behalf of the ABA, and as representative of bankers in the Katrina impacted communities, pointing out that banks are working cooperatively with one another and the government to quickly restore normal customer services and have taken extraordinary steps to assist hurricane victims. In concluding his remarks, Deaver noted, "Banks will continue to do everything possible to help the victims of Hurricane Katrina and to support a regional economic recovery. Many of our member banks have been part of their communities for more than a hundred years. They plan to stay. http://financialservices.house.gov/
September 14, 2005 FDIC will conduct one-hour seminars on Oct. 11, Oct. 25 and Nov. 15 to show how bank employees can use the agency's deposit insurance tools and resources to explain FDIC insurance coverage to depositors. Each seminar will include question-and-answer sessions. Institutions can participate through the Internet or by conference call. For more information, please visit http://www.fdic.gov/.
September 14, 2005 A FAQ has been issued by the OCC regarding national banks and Katrina related issues including space and employee sharing, temporary banking facilities and branches, branch closings, and minimum payments. Information concerning the FAQ can be found at http://www.occ.treas.gov/.
September 13, 2005 In an attempt to help those individuals affected by Hurricane Katrina, FRB Financial Services has announced that the Bureau of Public Debt has authorized savings bonds paying agents to redeem Series EE and I savings bonds that are less than one year old. For more information, go to http://www.frbservices.org/.
September 13, 2005 FFIEC announced the availability of data for the year 2004 regarding mortgage lending transactions at 8,853 financial institutions covered by the Home Mortgage Disclosure Act (HMDA). The HMDA data include disclosure statements for each financial institution, aggregate data for each metropolitan statistical area (MSA), nationwide summary statistics regarding lending patterns, and the Loan Application Register (LAR) submitted by each institution to its supervisory agency on March 1, 2005. For more information, visit http://www.ffiec.gov/.
September 9, 2005 Treasury has requested that financial institutions refrain from imposing ATM fees on the MasterCard-branded debit cards being issued by FEMA to Katrina victims. Information regarding the request can be located a http://www.frbservices.org/.
September 9, 2005 The SEC issued an order further extending until Sept. 30, 2006, the compliance dates for banks with respect to certain broker registration requirements contained in GLBA. The Commission does not expect banks to develop compliance systems to meet the terms of the "broker" exceptions until the Commission amends its rules. Banks have indicated that they will need time to implement systems to ensure compliance with the new statutory requirements regarding the definition of "broker." http://www.sec.gov/
September 9, 2005 The federal bank, thrift and credit union regulatory agencies and FinCEN have issued responses to questions frequently asked by financial institutions regarding the application of Customer Identification Program rule and other Bank Secrecy Act obligations in providing services to victims of Hurricane Katrina. The guidance emphasizes that under the CIP rule banks have a reasonable time to verify identity and what is reasonable will be interpreted taking into account the special circumstances presented by the impact of Katrina on banks and prospective customers. The FAQ may be accessed at http://www.fincen.gov/.
September 8, 2005 HUD announced that as part of wide ranging hurricane relief effort, Ginnie Mae, a government-owned corporation located within HUD, will extend its Targeted Lending Initiative (TLI) to the areas hardest hit by Hurricane Katrina. The TLI is an innovative program that encourages lenders to finance housing in underserved areas. Under the TLI, Ginnie Mae will reduce its guarantee fee by as much as 50 percent when approved issuers originate or purchase mortgage loans in the hardest hit hurricane disaster areas. Reducing the guaranty fee lowers the lender's expenses and provides an incentive to make more loans. Ultimately, this disaster relief will make more money available for affordable housing in the areas devastated by Hurricane Katrina. The HUD press release can be found by visiting http://www.hud.gov/.
September 8, 2005 Hurricane Katrina victims will be eligible to receive debit cards worth $2,000 each under a plan outlined yesterday by Homeland Security Department officials, news reports said. The cards — which would carry a one-year expiration date, be embossed with "FEMA Assistance" and be eligible for use on major ATM networks — would allow people affected by the hurricane to purchase food, gasoline and other basics. Click here for FEMA Q & A on Debit Cards: http://www.aba.com/.
September 7, 2005 Guidance has been issued by Treasury regarding the verification of the identity of individuals cashing government benefit checks and third party drafts. Information concerning the Guidance can be found at: http://www.frbservices.org/.
September 7, 2005 FinCEN has published requirements and conditions for filing Currency Transactions Report Form 104 and Designation of Exempt Person Form 110 on magnetic media. For more information, go to http://www.fincen.gov/.
September 6, 2005 The joint Federal Regulatory Agencies are asking insured depository institutions to consider all reasonable and prudent steps to assist customers' and credit union members' cash and financial needs in areas affected by Hurricane Katrina. The agencies are working with state regulatory agencies, financial industry trade groups, and affected financial institutions to identify customer needs and monitor institutions' restoration of services. For more information, visit: http://www.federalreserve.gov/.
September 6, 2005 In response to Hurricane Katrina, the U.S. Department of the Treasury is encouraging depository institutions to ease their customary identification requirements for presenting Treasury checks for Social Security benefit payments. For more information, go to: http://www.frbservices.org/.
September 6, 2005 FinCEN has issued a new Form 110, Designation of Exempt Person. This form will replace form TD F 90-22.53. Previous editions of old form will not be accepted after January 2006. To access the new form, go to: http://www.fincen.gov/.
September 1, 2005 Under the new Community Reinvestment Act rule and small bank exam procedures, intermediate small institutions-those with assets between $250 million and $1 billion-may stop collecting small business, farm and community development loan data on September 1, 2005. Any CRA loan data collected prior to September 1st will NOT be reported to the agencies. Banks may retain data collected in 2005, at their option, for internal tracking, analysis, or planning purposes. (Note that this does not change HMDA reporting obligations.) Visit www.ffiec.gov for more information.
