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Weekly Rewind...News from Your Regulators

FDIC Updates Risk Management Exam Manual

Updated RMS Exam Manual – The FDIC updated Section 4.1 of its Risk Management Manual of Examination Policies to include a new section on model risk management. It also updated multiple sections of its Consumer Compliance Examination Manual.

FDIC Publishes Consumer Compliance Highlights

Supervisory Highlights – The FDIC published the March 2022 issue of its Consumer Compliance Supervisory Highlights. The issue includes a description of the most frequently cited violations and other consumer compliance examination observations.

Climate Risk Management

Climate Related Risk Management – The FDIC issued a request for comments on its Statement of Principles for Climate-Related Financial Risk Management. The draft principles would provide a high-level framework for the safe and sound management of exposures to climate-related financial risks, consistent with the existing risk management framework described in existing FDIC rules and guidance.

Computer-Security Incident Notification – The FDIC published FIL-12-2022 reminding institutions that the Computer-Security Incident Notification Implementation Rule compliance date is May 1, 2022. The Rule requires institutions to notify their primary federal regulator of any significant computer-security incidents (notification incident) as soon as possible, and no later than 36 hours, after the institution determines that a cyber incident has occurred. (See our blog post.)

2022 HMDA Guide Released

Getting It Right! – The 2022 Guide to HMDA Reporting, Getting It Right! is now available on the FFIEC’s website. The Guide is a valuable resource for assisting all institutions in their HMDA reporting. It includes a summary of responsibilities and requirements, directions for assembling the necessary tools, and instructions for reporting HMDA data. The FFIEC also announced that the CRA Data Entry Software for calendar year 2022 is now available.

From the NCUA

Prohibition Orders – The NCUA has issued three prohibition orders so far in 2022 for unauthorized transfers over $99,000, embezzlement of $1.024 million and loan manipulations, and approving and underwriting loans against the credit union’s and NCUA’s policies.

Credit Reporting Changes

Credit Reports & Medical Debt – The three nationwide credit reporting agencies, Equifax, Experian, and Transunion, announced that effective July 1, 2022, paid medical collection debt will no longer be included on consumer credit reports. In addition, the time period before unpaid medical collection debt would appear on a consumer’s report will be increased from 6 months to one year, and in the first half of 2023, the CRAs will no longer include medical collection debt under at least $500 on credit reports.

From the CFPB

Credit Card Late Fees – The CFPB issued the report, which shows that in 2020 credit card issuers charged $12 billion in late fees. The report states that issuers continue to rely on late fees that, in turn, negatively affect consumers.

Overdraft Fees – The CFPB blogged that in 2019, financial institutions collected approximately $15.5 billion from overdraft and NSF fees. The blog states “overdraft fees among the kinds of junk fees that far exceed what it costs the institution to provide the associated product or service and often do not appear to be subject to competitive market forces.”

Federal Reserve Issues Prohibition Orders

Prohibition Orders – The Federal Reserve issued prohibition orders against a bank Assistant Vice President who “instructed staff to execute approximately sixty-two unauthorized cash advances for twenty-two revolving credit line customers and provide those funds directly to him.”

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