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The Consumer Financial Protection Bureau released an updated guide on its TILA-RESPA Integrated Disclosure rule forms. 
The guide to the TRID Loan Estimate and Closing Disclosure forms incorporates amendments and clarifications from the final rule issued in July.
The updates amend tolerances for the total of payments, clarify fees and transfer taxes that may be charged in connection with housing-assistance lending transactions, extend the rule to cooperative units, and outline how creditors may provide separate disclosure forms to consumers and sellers.
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The Federal Reserve Board announced final plans for the production of three new reference rates based on overnight repurchase agreement (repo) transactions  secured by Treasury securities. The three reference rates will be produced by the Federal Reserve Bank of New York (FRBNY), in cooperation with the U.S. Office of Financial Research.
The Federal Reserve Board had previously sought public comment on the proposed production of these rates. In response to comments received, the FRBNY has adjusted its expected daily publication time and now plans to publish the rates no later than 8 a.m. ET. As previously indicated by the FRBNY, publication of the rates is expected to begin in the second quarter of 2018. The Federal Register Notice also clarifies details related to the governance and calculation of the rates.
As in the original proposal, each rate will be calculated as a volume-weighted median of transacted rates. The most comprehensive of the rates, the Secured Overnight Financing Rate (SOFR), will be a broad measure of overnight Treasury financing transactions and was
selected by the Alternative Reference Rates Committee
as its recommended alternative to U.S. dollar LIBOR. SOFR will include triparty repo data from Bank of New York Mellon (BNYM) and cleared bilateral and GCF Repo data from the Depository Trust & Clearing Corporation (DTCC).
Another rate, the Triparty General Collateral Rate (TGCR) will be based solely on triparty repo data from BNYM. The final rate, the Broad General Collateral Rate (BGCR) will be based on the triparty repo data from BNYM and GCF Repo data from DTCC.
The three interest rates will be constructed to reflect the cost of short-term secured borrowing in highly liquid and robust markets. Because these rates are based on transactions secured by Treasury securities, they are essentially risk-free rates, providing a valuable benchmark for market participants to use in financial transactions.
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Although the Justice Department has ended its controversial "Opera
tion Choke Point" initiative, the House overwhelmingly passed a bill that would preve
nt it from being resurrected. The House voted 395 to 2 to pass H.R. 2706, which will prevent federal banking agencies from requesting or ordering a bank or credit union to terminate a customer account without a material reason. Under the bill, that reason could not be based solely on reputation risk.
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The Government Accountability Office
issued a legal opinion that the Consumer Financial Protection Bureau's 2013 guidance on fair lending risks in indirect auto  lending constitutes a "rule" for purposes of the Congressional Review Act. The GAO ruled that the guidance - issued without notice and comment - is a general statement of policy with general applicability, does not meet any CRA exceptions and thus counts as a rule. The controversial guidance sought to impose limits on how and what indirect lenders pay car dealers who provide financing and how much discretion dealers have to set loan terms and rates.
"GAO's decision makes clear that the CFPB's back-door effort to regulate auto loans, which was based on a dubious legal justification, did not comply with the Congressional Review Act,"
said Sen. Pat Toomey (R-Pa.)
, who requested the GAO review of the indirect auto guidance.
Under the CRA, Congress can in certain cases vote to overturn a regulation. "I intend to do everything in my power to repeal this ill-conceived rule using the Congressional Review Act," Toomey added.
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The Treasury's Financial Crimes Enforcement Network (FinCEN)
launched
a new program, FinCEN Exchange, in an effort to enhance information sharing between  law enforcement and financial institutions.
Participation in the program is voluntary, and the program does not introduce any new regulatory requirements.
As part of this program, FinCEN will convene regular briefings with financial institutions to exchange information on "priority illicit finance" and national security threats to:
- Enable financial institutions to better identify Bank Secrecy Act/Anti-Money Laundering (BSA/AML) risks and focus on high priority issues; and
- Help FinCEN and law enforcement receive critical information to disrupt money laundering and other financial crimes.
In addition, FinCEN encourages financial institutions to
voluntarily share information
with other FinCEN Exchange participants of the USA PATRIOT Act.
Operational briefings under the FinCEN Exchange program are expected to begin in the coming weeks.
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Short-Term Flood Insurance Extension Approved
Congress extended the National Flood Insurance Program through Dec. 22 within its two-week spending bill. 
The extension gives lawmakers more time to consider a longer-term bill to reform and reauthorize the NFIP. The House last month approved a five-year extension, sending the debate to the Senate.
Community bankers continue working with the House and Senate to address concerns with a provision that exempts commercial properties from the mandatory purchase requirement. This change could unnecessarily put community banks at risk relative to larger banks as they try to compete for commercial and small-business loans where the property is in a flood hazard area.
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State Legal Lending Limit Memorandum
Commissioner Franks issued a Memorandum in reference to loans or relationships acquired from Bankers Healthcare Group (BHG). Recognizing that  there is a statutory conflict between the UCC and Arkansas Code § 23-47-501, regarding loans purchased and endorsed without recourse, the State Bank Department will take the position that those loans, not just consumer loans, but commercial loans that are sold and endorsed without recourse, will not count against a bank's legal loan limit which will align with the UCC provision. We will interpret § 23-47-501 of the Arkansas Banking Code in this manner with the intention that the conflict is remedied in our next regular session of the General Assembly in 2019. Please be aware of this change.
Bankers Health Group (BHG) is an ACB Associate Member.
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