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- 12 CFR part 390, sub-part P is being rescinded in its entirety because other existing FDIC regulations concerning permissible activities, safety and soundness standards, and real estate lending standards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- FDIC rescinded subpart B of part 365, which relates to registration requirements for residential mortgage loan originators, due to the CFPB's issuance of Regulation G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
Previous Article
BNM Finalizes Net Stable Funding Ratio Requirements for BanksRelated Articles
HKMA Enhances Loan Guarantee Scheme to Alleviate Pressure on SMEs
HKMA announced that enhancements will be made to the Special 100% Loan Guarantee of the SME Financing Guarantee Scheme (SFGS) and the application period will be extended to December 31, 2021.
EBA Proposes Standards for Supervisory Cooperation Under IFD
EBA launched consultations on the regulatory and implementing technical standards on cooperation and information exchange between competent authorities involved in prudential supervision of investment firms.
BoE Sets Out Plan to Transform Data Collection from Financial Sector
BoE has set out a three-phased plan to transform data collection from the UK financial sector over the next decade.
BIS Issues Updates on Technology Initiatives on Cross-Border Payments
BIS recently made a couple of announcements with respect to the planned and ongoing work in the area of financial technology.
ESRB Updates List of Macro-Prudential Measures in February 2021
ESRB updated the list of national macro-prudential measures applied by each member state in the European Economic Area.
BoE Survey Shows Positive COVID Impact on Outsourced Banking Services
BoE has set out results of a survey on the impact of COVID-19 events on the use of machine learning and data science.
ECB Issues Opinion on Proposal to Regulate Crypto-Asset Markets in EU
In response to a request from the European Council and Parliament, ECB published an opinion on the proposed regulation on markets in crypto-assets.
APRA Announces Aggregate Committed Liquidity Facility for Banks
APRA announced the updated aggregate amounts for the 2021 Committed Liquidity Facility (CLF) established between the Reserve Bank of Australia (RBA) and certain locally incorporated authorized deposit-taking institutions that are subject to the Liquidity Coverage Ratio (LCR).
ECB and UK Authorities Agree on Post-Brexit Supervisory Cooperation
ECB published supervisory Memorandums of Understanding (MoUs) with UK as well as other European and non-European authorities.
EIOPA Outlines Strategic Supervisory Priorities for Insurance Sector
EIOPA identified business model sustainability and adequate product design as the two EU-wide strategic supervisory priorities.
