Featured Product

    US Agencies Publish Regulatory Updates in December 2021

    December 23, 2021

    The Federal Deposit Insurance Corporation (FDIC) published its Quarterly Banking Profile for the third quarter of 2021. The report includes featured articles on conditions across major commercial real estate property types and covers implications of the record deposit inflows for banks during the pandemic. The National Credit Union Administration (NCUA) Board issued a final rule to permit federal credit unions to purchase mortgage servicing assets, referred to as mortgage servicing rights in the proposed rule, from other federally insured credit unions subject to certain requirements; the final rule becomes effective on April 01, 2022. Additionally, US Agencies issued a notice on the determination of the results of the review of the definition of qualified residential mortgage, the community-focused residential mortgage exemption, and the exemption for qualifying three-to-four unit residential mortgage loans.

    FDIC Report on Quarterly Banking Profile

    The report highlights that two-third of all banks reported annual improvements in quarterly net income. The report includes a special feature that analyzes conditions across major commercial real estate property types and discusses FDIC-insured institutions’ exposure to commercial real estate loans, credit quality, and potential challenges ahead. Market conditions improved with economic recovery in 2021, but some of the changes the commercial real estate industry experienced in the pandemic may be long-lasting. The issues facing CRE will be important considerations for a large share of the banking industry. Initially the pandemic threatened to significantly challenge banks’ commercial real estate loan quality, but loan delinquency rates remained low through third quarter 2021 against the backdrop of economic rebound, stimulus support, and loan forbearance.

    Final Rule on Mortgage-Servicing Assets

    The final rule removes the prohibition, on federal credit unions, from purchasing mortgage-servicing rights under the Investment Rule. The final rule also removes the current defined term “mortgage servicing rights” in the Investment Rule and replaces it with the term “mortgage servicing assets.” The final rule explicitly permits a federal credit union to purchase mortgage-servicing assets from other federally insured credit unions, provided

    • after the last full examination of the credit union, the federal credit union received a composite Capital adequacy, Asset quality, Management, Earnings, Liquidity, and Sensitivity (CAMELS) rating of 1 or 2, which also included a Management rating of 1 or 2.
    • the underlying mortgage loans of the mortgage-servicing assets are loans the federal credit union is empowered to grant.
    • the federal credit union purchases the mortgage servicing assets within the limitations of the federal credit union's board of directors' written purchase policies.
    • the board of directors, or the federal credit union's investment committee, approves the purchase in advance.

    Notice on Review Under Credit Risk Retention Regulation

    The US Agencies that are providing notice of determination of the results of the review are Board of Governors of the Federal Reserve System (FED), the Department of Housing and Urban Development (HUD), FDIC, the Federal Housing Finance Agency (FHFA), the Office of the Comptroller of the Currency, the U.S. Treasury (OCC), and the U.S. Securities and Exchange Commission (SEC). As part of the Credit Risk Retention Regulations, the agencies are required to review the definition of qualified residential mortgage periodically, the community-focused residential mortgage exemption, and the exemption for qualifying three-to-four unit residential mortgage loans. After completing the review, the agencies have determined not to propose any change to the definition of qualified residential mortgage, the community-focused residential mortgage exemption, or the exemption for qualifying three-to-four unit residential mortgage loans.

     

    Related Links

    Effective Date: April 01, 2022 (Rule on Mortgage-Servicing Assets)

    Keywords: Americas, US, Banking, Securities, Commercial Real Estate, Credit Risk, Financial Stability, Mortgage Servicing Assets, Lending, Residential Mortgage Loans, FDIC, NCUA, US Agencies

    Related Articles
    News

    EBA Publishes Final Regulatory Standards on STS Securitizations

    The European Banking Authority (EBA) published the final draft regulatory technical standards specifying and, where relevant, calibrating the minimum performance-related triggers for simple.

    September 20, 2022 WebPage Regulatory News
    News

    ECB Further Reviews Costs and Benefits Associated with IReF

    The European Central Bank (ECB) is undertaking the integrated reporting framework (IReF) project to integrate statistical requirements for banks into a standardized reporting framework that would be applicable across the euro area and adopted by authorities in other EU member states.

    September 15, 2022 WebPage Regulatory News
    News

    EBA Publishes Funding Plans Report, Receives EMAS Certification

    The European Banking Authority (EBA) has been awarded the top European Standard for its environmental performance under the European Eco-Management and Audit Scheme (EMAS).

    September 15, 2022 WebPage Regulatory News
    News

    MAS Launches SaaS Solution to Simplify Listed Entity ESG Disclosures

    The Monetary Authority of Singapore (MAS) set out the Financial Services Industry Transformation Map 2025 and, in collaboration with the SGX Group, launched ESGenome.

    September 15, 2022 WebPage Regulatory News
    News

    BCBS to Finalize Crypto Rules by End-2022; US to Propose Basel 3 Rules

    The Basel Committee on Banking Supervision met, shortly after a gathering of the Group of Central Bank Governors and Heads of Supervision (GHOS), the oversight body of BCBS.

    September 15, 2022 WebPage Regulatory News
    News

    IOSCO Welcomes Work on Sustainability-Related Corporate Reporting

    The International Organization of Securities Commissions (IOSCO) welcomed the work of the international audit and assurance standard setters—the International Auditing and Assurance Standards Board (IAASB)

    September 15, 2022 WebPage Regulatory News
    News

    BoE Allows One-Day Delay in Statistical Data Submissions by Banks

    The Bank of England (BoE) published a Statistical Notice (2022/18), which informs that due to the Bank Holiday granted for Her Majesty Queen Elizabeth II’s State Funeral on Monday September 19, 2022.

    September 14, 2022 WebPage Regulatory News
    News

    ACPR Amends Reporting Module Timelines Under EBA Framework 3.2

    The French Prudential Control and Resolution Authority (ACPR) announced that the European Banking Authority (EBA) has updated its filing rules and the implementation dates for certain modules of the EBA reporting framework 3.2.

    September 14, 2022 WebPage Regulatory News
    News

    ECB Paper Discusses Disclosure of Climate Risks by Credit Agencies

    The European Central Bank (ECB) published a paper that examines how credit rating agencies accepted by the Eurosystem, as part of the Eurosystem Credit Assessment Framework (ECAF)

    September 13, 2022 WebPage Regulatory News
    News

    APRA to Modernize Prudential Architecture, Reduces Liquidity Facility

    The Australian Prudential Regulation Authority (APRA) announced reduction in the aggregate Committed Liquidity Facility (CLF) for authorized deposit-taking entities to ~USD 33 billion on September 01, 2022.

    September 12, 2022 WebPage Regulatory News
    RESULTS 1 - 10 OF 8514