FDIC Amends Rules Governing Real Estate Lending Standards
FDIC adopted the final rule to amend certain sections of the existing FDIC regulations governing real estate lending standards. The rules are applicable to all insured depository institutions for which the FDIC is the appropriate Federal banking agency. The final rule rescinds and removes the “Lending and Investment” regulations and “Registration of Residential Mortgage Loan Originators” regulations. The regulations related to the registration of residential mortgage loan originators have been amended because the supervision and rulemaking authority in this area was transferred to CFPB by the Dodd-Frank Act. The final rule is effective on July 31, 2019.
Earlier, FDIC had issued the notice of proposed rulemaking with a sixty-day comment period, which closed on April 08, 2019. FDIC received no comments on the proposal and, consequently, the final rule is being adopted without change. The final rule covers the following key changes:
- 12 CFR part 390, sub-part P is being rescinded in its entirety because other existing FDIC regulations concerning permissible activities, safety and soundness standards, and real estate lending standards replicate the current requirements of part 390, subpart P.
- To clarify that part 365 applies to all institutions for which FDIC is the appropriate Federal banking agency, FDIC is amending sections 365.1 and 365.2 of part 365 to replace the phrases “insured state nonmember banks (including state-licensed insured branches of foreign banks)” and “state nonmember bank” throughout sub-part A with the phrase “FDIC-supervised institution.” In addition, section 365.1 is being revised to add the definition of the term “FDIC-supervised institution” to mean any insured depository institution for which FDIC is the appropriate Federal banking agency.
- FDIC rescinded subpart B of part 365, which relates to registration requirements for residential mortgage loan originators, due to the CFPB's issuance of Regulation G pursuant to the CFPB's authority under the Dodd-Frank Act.
Related Link: Final Rule
Effective Date: July 31, 2019
Keywords: Americas, US, Banking, Residential Mortgage, Dodd-Frank Act, Residential Real Estate, Loan Origination, FDIC
Related Articles
ECB Allows Temporary Relief in Leverage Ratio Amid COVID-19 Pandemic
ECB published a decision allowing the euro area banks under its direct supervision to exclude certain central bank exposures from the leverage ratio.
ESAs Launch Survey on Templates for Product Disclosures Under SFDR
ESAs launched a survey seeking feedback on the presentational aspects of product templates under the Sustainable Finance Disclosure Regulation (SFDR or Regulation 2019/2088).
ECB Proposes Integrated Reporting Framework to Reduce Burden for Banks
ECB published input of the European System of Central Banks (ESCB) into the EBA feasibility report on reducing the reporting burden for banks in EU.
ECB Finalizes Methodology to Assess CCR and A-CVA Risk of Banks
ECB finalized the guide on assessment methodology for the internal model method for calculating exposure to counterparty credit risk (CCR) and the advanced method for own funds requirements for credit valuation adjustment (A-CVA) risk.
EBA Provides Opinion on Definition of Credit Institution in CRR
EBA published an Opinion addressed to EC to raise awareness about the opportunity to clarify certain issues related to the definition of credit institution in the upcoming review of the Capital Requirements Directive and Regulation (CRD and CRR).
APRA Consults on Alignment of Daily Liquidity Report for Banks
APRA is consulting on updates to ARS 210.0, the reporting standard that sets out requirements for provision of information on liquidity and funding of an authorized deposit-taking institution.
FED Releases Scenarios for Second Round of Stress Tests on Banks
FED released hypothetical scenarios for a second round of stress tests for banks.
FED to Temporarily Revise FR Y-14 Reports to Conduct Stressed Analysis
FED is proposing to temporarily revise the capital assessments and stress testing reports (FR Y-14A/Q/M) to implement the changes necessary to conduct stressed analysis in connection with the re-submission of capital plans, using data as of June 30, 2020.
FED Revises Information Collection Under Market Risk Capital Rule
FED adopted a proposal to extend for three years, with revision, the information collection under the market risk capital rule (FR 4201; OMB No. 7100-0314).
EBA Seeks Input on ESG Disclosure Practices of Banks
EBA published a voluntary online survey seeking input from credit institutions on their practices and future plans for Pillar 3 disclosures on the environmental, social, and governance (ESG) risks.
