The OCC released a bulletin clarifying provisions of its market risk capital rules for OCC-regulated banks. The bulletin addresses the risk ratings of sovereign debt exposures, particularly as to countries that do not receive a Country Risk Classification number from the Organization for Economic Cooperation and Development (OECD). The bulletin also eases the OCC's position…

The Consumer Financial Protection Bureau (CFPB) has released a final rule based on an earlier proposed amendment to the new mandatory escrow rules applying to higher-priced mortgage loans (HPMLs), which are set to go into effect on June 1. In addition to finalizing the proposed amendment, this rule also fixes a problem with the previous…

Last week, the FDIC released guidance for Illinois banks affected by severe storms and flooding during the period of April 16 to May 5, 2013. The affected areas include Cook, DeKalb, DuPage, Fulton, Grundy, Kane, Kendall, Lake, LaSalle, McHenry, and Will counties. Among other things, the guidance encourages affected banks to work with borrowers in communities…

A joint letter from the ABA and ICBA asks Senators and House Members not to support expansion of the Farm Credit System (FCS)'s lending authority during the upcoming consideration of the Farm Bill. As explained in the letter, FCS competes directly for loans with banks, benefitting from tax advantages while putting taxpayers at risk. Read the…

The House Financial Services Committee approved nine bills this week, most related to derivatives. An ABA letter to committee members outlined its positions on the bills, which include the following: H.R. 634 provides that end users do not have to meet margin requirements for uncleared swaps. H.R. 992 clarifies that banks can continue to engage in swaps…

A recent study by the American Enterprise Institute examined how community banks are faring under Dodd-Frank and found that banks under $10 billion in assets are bearing significant burdens from CFPB rulemaking, new mortgage lending rules and the Basel III capital requirements. The study projected that many smaller banks will either close or merge due to…

How a law becomes a law always has a backstory, and creating the Consumer Financial Protection Bureau was no exception. The Washington Post Article entitled Act of Congress: How Barney Frank Foiled the Banking Lobby to Form a New Financial Watchdog is an educational must-read and provides a stark example of what happens when our industry…

The Consumer Financial Protection Bureau (CFPB) has issued a proposed rule to temporarily delay a prohibition on financing single-credit insurance premiums. The rule was scheduled to become effective on June 1, but the CFPB seeks comment on a delay of the rule, which will allow it to clarify when a creditor can charge credit insurance premiums…

Fannie Mae and Freddie Mac have extended the Home Affordable Refinance Program (HARP) by two years, to December 31, 2015. The program was set to expire at the end of 2013.

The Federal Housing Finance Administration (FHFA), the conservator of Fannie Mae and Freddie Mac, has proposed new restrictions on force-placed property insurance.The proposal prohibits sellers and servicers from receiving sales commissions for doing business with particular insurance providers or from affiliated reinsurers. The FHFA previously rejected a related Fannie Mae plan that required lenders to use…