March 2024 Compliance Journal

Compliance Journal

March 2024

Special Focus

DOR Issues Emergency Rule to Interpret State Commercial Loan Income Exemption.

On March 18, 2024, the Wisconsin Department of Revenue (DOR) published an emergency rule to clarify the commercial loan exemption under ss. 71.05(1)(i) and 71.26(1)(i), Stats., and prescribe how the $5,000,000 loan limitation is computed. The emergency rule was effective upon publication. The following is background regarding the new law and the emergency rule text.

Background

An important provision of 2023 Wisconsin Act 19 (also known as Wisconsin’s 2023-2025 Biennial Budget) is a new, historic tax-exemption for banks related to certain business and agricultural lending. Act 19 created new sections 71.05(1)(i) and 71.26(1)(i). This has been an advocacy priority for WBA for quite some time.

Section 71.05 provides a list of exemptions and excluded income which are exempt from taxation under an income computation for individuals and fiduciaries. New section 71.05(1)(i) reads as: Commercial loans. Income from a tax-option corporation that is a financial institution, as defined in s. 69.30(1)(b), including interest, fees, and penalties, derived from a commercial loan of five million dollars or less provided to a person residing or located in this state and used primarily for a business or agricultural purpose.

Section 71.26 provides a list of exemptions and excluded income which are exempt from taxation under an income computation for corporations. New section 71.26(1)(i) reads as: Commercial loans. Income of a financial institution, as defined in s. 69.30(1)(b), including interest, fees, and penalties, derived from a commercial loan of five million dollars or less provided to a person residing or located in this state and used primarily for a business or agricultural purpose.

On March 12th, the Senate concurred on a technical correction to Act 19 (SB 616) which is meant to clarify the new tax exemption. Governor Evers is expected to call for the bill early for his signature.

SB 616 creates new section 71.365(4m)(d)1.bd. which reads as: “For taxable years beginning after December 31, 2022, the income exclusion under s. 71.05(1)(i) shall be allowed.” This new section is important to clarify that tax-option banks that elect to pay franchise or income tax at the entity level may avail themselves of the exemption for certain excluded income that is available under section 71.05(1)(i).

SB 616 amended the new section 71.05(1)(i) to read as: Commercial loans. Income of a tax-option corporation that is a financial institution, as defined in s. 69.30(1)(b), including interest, fees, and penalties, derived from a commercial loan of five million dollars or less provided to a person residing or located in this state and used primarily for a business or agricultural purpose in this state. The underlined words are the changes made to section 71.05(1)(i) from that which was previously created under the language of the 2023-2025 Biennial Budget.

SB 616 makes a similar amendment to section 71.26 as was made to section 71.05(1)(i) to include “in this state” to the purpose of the commercial loan. Under SB 616 section 71.26(1)(i) now reads as: Commercial loans. Income of a financial institution, as defined in s. 69.30(1)(b), including interest, fees, and penalties, derived from a commercial loan of five million dollars or less provided to a person residing or located in this state and used primarily for a business or agricultural purpose in this state

Special Focus

The treatment of sections 71.05(1)(i), 71.26(1)(i), and 71.365(4m)(d)1.bd. first applies to taxable years beginning after December 31, 2022.

On March 18, 2024, DOR published an emergency rule in the Wisconsin Administrative Register and the Wisconsin State Journal to clarify the commercial loan income exemption under ss. 71.05(1)(i) and 71.26(1)(i), Stats., and prescribe how the $5,000,000 loan limitation is computed. The following is the text of the emergency rule.

DOR Emergency Rule – Tax 3.10 Commercial Loan Income Exemption

Tax 3.10 Commercial loan income exemption

(1) PURPOSE. This section clarifies the commercial loan income exemption under ss. 71.05(1)(i) and 71.26(1)(i), Stats., and prescribes how the $5,000,000 loan limitation is computed.

(2) DEFINITIONS. In this section and in ss. 71.05(1)(i) and 71.26(1)(i), Stats.:

“Agricultural purpose” means the preparation of plant or animal products for use in a business or for sale or distribution to markets. “Agricultural purpose” includes agriculture, horticulture, viticulture, dairy, livestock, wildlife, poultry, bees, forest products, fish and shellfish, and any products thereof, and all products raised or produced on farms and any processed products thereof. “Agricultural purpose” does not include fishing preserves, recreational uses, or personal uses.

“Business purpose” means activities undertaken for an industrial, commercial, or professional purpose. “Business purpose” does not include the following:

1. Investment in stocks, bonds, and other securities or ownership interests in entities including the borrower’s own stock or ownership interests, unless such assets are regularly held for sale in a trade or business;

2. Personal or consumer expenditures;

3. The purchase, expansion, or improvement by an owner of a one-to-four unit residential facility if such owner or their parent or child uses all or a portion of the facility as their personal residence.

4. Activities conducted by any unit of government or any agency or instrumentality of one or more units of government.

5. Activities conducted by nonprofit organizations, unless one of the following apply:

The commercial loan proceeds are used in this state for activities in which the nonprofit organization reports unrelated business taxable income on Form 990-T to the federal department of the treasury.

The nonprofit organization has over 50 full-time employees in the calendar year immediately preceding the calendar year in which the commercial loan is issued, and the loan proceeds are used in this state for activities regularly conducted by such employees.

“Commercial loan” means a loan issued to a borrower and the proceeds of which are used primarily for a business or agricultural purpose in this state.

“Commercial domicile” means the location from which a trade or business is principally managed and directed. It shall be rebuttably presumed that the location from which a trade or business is principally managed and directed is the location where the greatest number of the business’s employees have their office or their base of operations from which they regularly work and are directed or controlled. a. b.

Special Focus

“Financial Institution” means a financial institution defined in s. 69.30(1)(b) that is authorized to do business under state or federal laws relating to financial institutions and is one of the following:

1. A bank as defined under 12 USC 1841(c), including a national bank organized and existing as a national bank association pursuant to provisions of 12 USC ch. 2 and a state bank organized and operating under ch. 221, Stats, or a comparable law in another state.

2. A savings bank organized under ch. 214, Stats., or a comparable law in another state.

3. A savings and loan association organized and operating under ch. 215, Stats., or a comparable law in another state; or organized according to federal law.

4. Any credit union to the extent not exempt under s. 71.26(1)(a), Stats., and s. 186.113(20), Stats.

“Income” means all income, including interest, fees, and penalties, derived from a commercial loan. “Income” does not include income derived from persons other than the borrower of the commercial loan, including income derived from the sale of a commercial loan or income derived from another financial institution for a loan participation agreement.

“Loan” means money given in exchange for an obligation to pay back such money that results from direct negotiation between a financial institution and a borrower. “Loans” do not include unsecured open-end lines of credit such as credit cards and other unsecured revolving credit plans and letters of credit; conversions; sales or leases of property; futures or forward contracts; options; notional principal contracts such as swaps; credit card receivables, including credit card relationships; non-interest bearing balances; cash items in the process of collection; federal funds sold; securities purchased under agreements to resell; assets held in a trading account; securities; interest in a real estate mortgage investment conduit, or other mortgage-backed or asset-backed security; and other similar items.

“Primarily” means the loan proceeds are used 75 percent or more for a business or agricultural purpose in this state.

“Residing in this state” means any of the following, determined for the person’s taxable year in which the loan origination occurs:

1. A natural person or fiduciary who is a resident of this state as determined under s. 71.01(1n) or 71.14, Stats.

2. A person whose commercial domicile of their business or agricultural activity is in this state.

“Located in this state” means a person (including a natural person or fiduciary) who has a fixed business location in this state such as a commercial office, warehouse, or manufacturing facility.

(3) QUALIFYING BORROWERS. A commercial loan may qualify for the exemption in ss. 71.05(1)(i) and 71.26(1)(i), Stats., if the loan is provided to a person residing or located in this state.

(4) PROCEEDS USED IN THIS STATE. A commercial loan may qualify for the exemption in ss. 71.05(1)(i) and 71.26(1)(i), Stats., if the loan proceeds are used primarily for a business or agricultural purposes in this state.

Example: Financial Institution A issues a loan to Business B for $4,000,000. Business B uses $3,000,000 of the loan proceeds to expand their manufacturing facility in Wisconsin and $1,000,000 to renovate their headquarters office in Illinois. The loan is used primarily for a business purpose in Wisconsin since 75% of the loan proceeds ($3,000,000 / $4,000,000) were used to expand the Wisconsin facility.

(5) COMMERCIAL LOAN LIMITATION. A commercial loan may qualify for the exemption in ss. 71.05(1)(i) and 71.26(1)(i), Stats., if the commercial loan is $5,000,000 or less. This subsection interprets the $5,000,000 limitation.

(a) General.

1. The original full amount of the loan obligation is used to determine the $5,000,000 limitation. In the case of secured open-end lines of credit and other secured revolving credit plans and letters of credit, the full amount of the loan obligation is the maximum amount of credit available to the borrower.

2. Costs and fees rolled into the loan are included as part of the original loan obligation.

3. Charge-offs or amounts not expected to be recoverable from a borrower do not reduce the original loan obligation.

Special Focus

Examples: (1) A borrower is issued a commercial loan with an obligation of $4,900,000 and incurs costs and fees of $150,000 on that loan. The borrower does not pay the $150,000 up front but instead rolls the amount into the loan. Since the loan obligation and costs and fees equal an original loan obligation of $5,050,000, income from the loan does not qualify for the exemption.

(2) A bank lends a borrower $6,000,000 on an original commercial loan but charges off $2,000,000 and keeps track of the charged-off balance. Since the original borrowed obligation is $6,000,000, income from the loan does not qualify for the exemption.

(b) Commercial loan refinancing. A commercial loan that is refinanced is considered a new original loan obligation and the $5,000,000 limitation is computed based on the facts contained in the refinanced loan documentation.

(c) Loan participation and assignment. A commercial loan with an original loan obligation over $5,000,000 to a single borrower does not qualify for the exemption, regardless of whether the loan is sold or assigned, in whole or in part, to another financial institution for $5,000,000 or less. A financial institution that acquires a commercial loan through a purchase, assignment, or participation agreement may not exempt the income derived from the acquired loan if the original loan obligation is more than $5,000,000.

Examples: (1) Bank A issues a commercial loan of $7,000,000. Bank B purchases a loan participation of $3,000,000 in the commercial loan. The income derived from the commercial loan does not qualify for the exemption for Bank A or Bank B because the original loan obligation is over $5,000,000.

(2) Assume the same facts as Example 1, except that $3,000,000 of the original loan obligation is assigned by Bank A to Bank B. The income derived from the commercial loan does not qualify for the exemption for Bank A or Bank B because the original loan obligation is over $5,000,000.

(3) A commercial loan of $5,000,000 is issued by Bank A. Bank B purchases a loan participation of $3,000,000 in the commercial loan from Bank A. The income derived from the commercial loan may qualify for the exemption for Bank A and Bank B because the original loan obligation was for $5,000,000 or less.

(d) Loan syndication. If one or more financial institutions enter a loan syndication where both financial institutions will be originating the loans, the total loan amount provided to the borrower is used to determine the original loan obligation, not each financial institution’s portion of the syndicated loan. If the original loan obligation is $5,000,000 or less, each financial institution may qualify for the exemption in proportion to the financial institution’s interest in the syndicated loan.

Example: Four financial institutions pool their resources to fund a loan syndication to a borrower for a total original loan obligation of $20,000,000. Although each financial institution funds $5,000,000 of the loan, income derived from the $20,000,000 loan does not qualify for the exemption.

(e) Aggregation. For purposes of claiming the income exemption:

1. A financial institution may not create separate commercial loan agreements for $5,000,000 or less for a borrower that seeks a commercial loan over $5,000,000, including refinancing a single loan into separate loans.

2. A financial institution may have multiple qualifying commercial loans of $5,000,000 or less with the same borrower if the loans are obtained for a different use and qualifying purpose.

3. A commercial loan over $5,000,000 does not qualify, regardless of whether a portion of the loan is used for purposes outside this state.

Example: A commercial loan is issued for $15,000,000 and 33% or $4,950,000 of the proceeds are used for a business purpose in Wisconsin and 67% outside Wisconsin. The income derived from the commercial loan does not qualify for the exemption because the original loan obligation is over $5,000,000.

Special Focus

(6) Record keeping.

Financial institutions shall keep electronic records in easily accessible and usable form to substantiate the exemption from income for each loan, including electronic data that can be queried and analyzed for each of the following data elements:

1. Borrower’s legal name

2. Borrower’s state of residence

3. Loan ID number

4. Name of originating underwriter of the loan if someone other than the financial institution

5. Loan origination date

6. Original loan obligation amount, including costs and fees rolled into the loan obligation

7. Detailed description of the purpose of the loan, including whether there is more than one purpose, and where the loan proceeds will be used.

Financial institutions shall keep records to substantiate whether the borrower is a person who is a resident of this state, such as tax returns and trust agreements.

The records must be kept for as long as any period of limitation for assessment for the taxable year in which the exemption is claimed has not expired under ss. 71.76 and 71.77, Stats. If the taxable year results in a net loss, the records must be kept for as long as the period of limitation for assessment for the taxable year in which the loss carryforward is used, as described in ss. 71.05(8)(b)1. and 71.26(4)(a), Stats., has not expired.

Resources

DOR will continue the steps necessary to promulgate a permanent rule. Financial institutions can sign up for email updates regarding DOR’s administrative rules, including receiving notification when public comment periods and hearings are available. DOR will also post “Common Questions” on its website and will update their 2023 S Corporation form instructions once the Governor has signed SB 616 into law.

The Emergency Rule may be viewed at: https://docs.legis.wisconsin.gov/code/register/2024/819a3/register/emr/emr2404_ rule_text/emr2404_rule_text

To subscribe to DOR E-News: https://www.revenue.wi.gov/Pages/HTML/lists.aspx

WBA Legal has created a series of FAQs regarding the tax law provision and the emergency rule. Contact WBA Legal at wbalegal@wisbank.com to receive a copy of the FAQs.

FTC Final Rule Prohibits Impersonation of Government and Businesses Under FTCA.

The Federal Trade Commission (FTC) has finalized its rule prohibiting government and business impersonation schemes as an unfair or deceptive act or practice under the Federal Trade Commission Act (FTCA). The final rule marks the first time since 1980 that FTC has finalized a new trade regulation rule prohibiting an unfair or deceptive practice. FTC has found that impersonation schemes cheat consumers out of billions of dollars every year by fraudsters pretending to represent government agencies, including impersonating the Social Security Administration and the Internal Revenue Service.

According to FTC’s Fraud Reports: Trends Over Time (2021), this category of fraud skyrocketed during the coronavirus pandemic with imposters scamming consumers out of a reported $2 billion between October 2020 and September 2021, an 85 percent increase year-over-year. FTC data further shows that in 2023, consumers reported losing $2.7 billion to reported imposter scams. Impersonation fraud has remained one of the largest sources of total reported consumer financial losses for several years.

Below is a summary of the new sections (Part 461) prohibiting the impersonation of government and businesses. A reminder of the prohibition under state law regarding the misuse of bank’s name, logo, or symbol is also included. The final rule is effective April 1, 2024.

Special Focus

Definitions - Part 461.1

As used in Part 461:

“Business” means a corporation, partnership, association, or any other entity that provides goods or services, including not-for-profit entities.

“Government” includes federal, state, local, and tribal governments as well as agencies and departments thereof.

“Materially” means likely to affect a person’s choice of, or conduct regarding, goods or services.

“Officer” includes executives, officials, employees, and agents.

Impersonation of Government Prohibited – Part 461.2

The final rule sets forth that it is a violation of Part 461, and is an unfair or deceptive act or practice to: (a) materially and falsely pose as, directly or by implication, a government entity or officer thereof, in or affecting commerce as commerce is defined in FTCA; or (b) materially misrepresent, directly or by implication, affiliation with, including endorsement or sponsorship by, a government entity or officer thereof, in or affecting commerce as commerce is defined in FCTA. The FTCA may be found at 15 U.S.C. 44.

Impersonation of Businesses Prohibited – Part 461.3

The final rule also sets forth that it is a violation of Part 461, and is an unfair or deceptive act or practice to: (a) materially and falsely pose as, directly or by implication, a business or officer thereof, in or affecting commerce as commerce is defined in FTCA; or (b) materially misrepresent, directly or by implication, affiliation with, including endorsement or sponsorship by, a business or officer thereof, in or affecting commerce as commerce is defined in FTCA.

Definition of “Commerce”

As both sections reference the definition of “commerce” under FTCA, 15 U.S.C. 44 defines “commerce” to mean commerce among the several States or with foreign nations, or in any Territory of the United States or in the District of Columbia, or between any such Territory and another, or between any such Territory and any State or foreign nation, or between the District of Columbia and any State or Territory or foreign nation.

State Law Prohibition Against Mis-Use of Bank Name, Logo, or Symbol

While discussing the topic of impersonating a business or officers thereof, financial institutions are reminded that state law prohibits the misuse of a bank’s name, logo, or symbol. Pursuant to Wis. Stat. § 221.0404, no person may use the name, logo, or symbol of a bank, or such that is deceptively similar to that of a bank, in any marketing material provided to another person in a manner that a reasonable person may believe that the marketing material originated from the bank.

The Wisconsin Department of Financial Institutions (DFI) has enforcement authority over this section and has been helpful in investigating and issuing cease and desist orders when possible to stop such actions. Banks that encounter such letters are encouraged to contact WBA Legal and DFI.

To be a violation under state law, the item must be deceptive, meaning that a reasonable person reading the marketing material could believe it originated from the bank. A marketing piece is not a violation if a reasonable person should recognize that it did not originate from the bank. This can include letters which display a disclaimer, such as to indicate that the sender is not affiliated with the bank. However, depending upon how the disclaimer is used and the location of the disclaimer, the disclaimer may not be sufficient to avoid the marketing material being considered misleading in violation of s. 221.0404. For example, a letter might be deceptive based upon its envelope. Specifically, envelopes with a “window,” which reveals a portion of the letter including bank’s name. Even if there is a disclaimer in the letter inside, if it’s not visible on the envelope or through the “window,” it could be considered deceptive.

Summary

to extend liability for violations of the new rule to parties who provide goods and services with knowledge or reason to know that those goods or services will be used in impersonations of the kind that are themselves unlawful under the final rule. To that end, FTC issued a proposed rule for which comments are due April 30, 2024. See the “Regulatory Spotlight” section of this publication regarding the proposed rule.

Banks are reminded to send redacted examples of deceptive marketing materials received from customers which misuse bank name, logo, or symbol to WBA Legal for review. If the marketing material violates state law, WBA Legal will forward the item to DFI on behalf of the bank requesting that DFI issue a cease and desist order to the imposter to stop the unauthorized use of the bank’s name, logo, or symbol.

The final FTC rule may be viewed at: https://www.govinfo.gov/content/pkg/FR-2024-03-01/pdf/2024-04335.pdf

FCC Adopts Final Rule Clarifying Revocation of Consent under TCPA.

Earlier this month, the Federal Communications Commission (FCC) published a final rule which amended the Telephone Consumer Protection Act (TCPA) to clarify how consumers may revoke consent to receiving autodialed or prerecorded voice calls or texts. The final rule also requires that callers and texters honor such requests in a timely manner.

The final rule amends section 64.1200 regarding delivery restrictions. The amendments regarding the ability to send a one-time text message to confirm a consent revocation request (64.1200(a)(12)) is effective April 4, 2024.

The effective date for amendments which create the new provisions regarding revocation of consent and the time frame to honor revocation (64.1200(a)(10) and (11)) are delayed. The effective date for the amendment made to section 64.1200(d)(3) regarding when a person or entity making autodialed or prerecorded voice calls must honor a residential subscriber’s do-not-call request is also delayed. FCC will publish a document in the Federal Register announcing the effective date of the delayed provisions.

The amendments made by the final rule regarding sections 64.1200(a)(10),(11), and (12) are separate from the rules under section 64.1200(a)(9)(iii) which permits financial institutions to make calls and text message so long as all conditions under paragraphs (A) - (H) of that section are met.

Consent Revocation – Sections 64.1200(a)(10) and (a)(11)

Under the amendments made the by the final rule, a called party may revoke prior express consent, including express written consent, to receive autodialed or prerecorded voice calls or texts by using any reasonable method to clearly express a desire not to receive further calls or text messages from the caller or sender. Callers or senders of autodialed or prerecorded voice calls or texts may not designate an exclusive means to request revocation of consent.

Any revocation request made using an automated, interactive voice or key press-activated opt-out mechanism on a call; using the words “stop,” “quit,” “end,” “revoke,” “opt out,” “cancel,” or “unsubscribe” sent in reply to an incoming text message; or to a website or telephone number designated by the caller to process opt-out requests, constitutes a reasonable means to revoke consent. If a called party uses any such method to revoke consent, that consent is considered definitively revoked and the caller may not send additional autodialed or prerecorded voice calls or texts.

If a reply to an incoming text message uses words other than “stop,” “quit,” “end,” “revoke,” “opt out,” “cancel,” or “unsubscribe,” the caller must treat that reply text as a valid revocation request if a reasonable person would understand the words to have conveyed a request to revoke consent.

If a text initiator chooses to use a texting protocol that does not allow reply texts, the text initiator must provide a clear and conspicuous disclosure on each text to the consumer that two-way texting is not available due to technical limitations of the texting protocol, and clearly and conspicuously provide on each text reasonable alternative ways to revoke consent.

Special Focus

All requests to revoke prior consent or prior express written consent made in any reasonable manner must be honored within a reasonable time not to exceed ten business days from receipt of such request.

New section 64.1200(a)(11) provides that the use of any other means to revoke consent not listed under new section 64.1200(a)(10), such as a voicemail or email to any telephone number or email address intended to reach the caller, creates a rebuttable presumption that the consumer has revoked consent when the called party satisfies their obligation to produce evidence that such a request has been made, absent evidence to the contrary. In those circumstances, a totality of circumstances analysis will determine whether the caller can demonstrate that a request to revoke consent has not been conveyed in a reasonable manner.

One-Time Text Message Sent to Confirm Revocation Request – Section 64.1200(a)(12)

The final rule also clarifies that a one-time text message confirming a request to revoke consent from receiving any further calls or text messages does not violate TCPA as long as the confirmation text merely confirms the text recipient’s revocation request and does not include any marketing or promotional information. Also, the confirmation request can be the only additional message sent to the called party after receipt of the revocation request.

If the confirmation text is sent within five minutes of receipt, it will be presumed to fall within the consumer’s prior express consent. If it takes longer, however, the sender will have to make a showing that such delay was reasonable.

To the extent that the text recipient has consented to several categories of text messages from the text sender, the confirmation message may request clarification as to whether the revocation request was meant to encompass all such messages. The sender must cease all further texts for which consent is required absent further clarification that the recipient wishes to continue to receive certain text messages.

Recording and disclosure of do-not-call requests – Section 64.1200(d)(3)

While section 64.1200(d)(3) does not pertain to the revocation of prior consent, the section was revised by the final rule. Section (d)(3) pertains to the recording and disclosure of do-not-call requests. Currently under section 64.1200(d)(3), if a person or entity making an artificial or prerecorded-voice telephone call pursuant to an exemption under 64.1200(a)(3) (ii) through (v) or any call for telemarketing purposes (or on whose behalf such a call is made) receives a request from a residential telephone subscriber not to receive calls from that person or entity, the person or entity must record the request and place the subscriber’s name, if provided, and telephone number on the do-not-call list at the time the request is made.

Persons or entities making such calls (or on whose behalf such calls are made) must honor a residential subscriber’s do-notcall request within a reasonable time from the date such request is made. This period may not exceed 30 days from the date of such request. The final rule revises the current 30-day time period to instead be 10 business days. Under the final rule, section 64.12009(d)(3) now sets forth that the period is not to exceed ten business days from receipt of such request.

Summary

FCC has finalized amendments meant to clarify that consumers may revoke prior consent to receiving autodialed or prerecorded voice calls or texts in any reasonable manner, requires that callers honor do-not-call and consent revocation requests within a reasonable time not to exceed ten business days of receipt, and limit text senders to a one-time text message confirming a consumer’s request that no further text messages be sent under TCPA.

While several amendments have a delayed effective date, financial institutions making autodialed or prerecorded voice calls or texts, should consider whether the amendments have any impact on current consumer consent revocation procedures or do-not-call requests. It is expected that FCC will finalize the effective date of the delayed sections in the upcoming months. FCC will publish a document in the Federal Register announcing the effective date of the delayed provisions.

Special Focus

The final rule may be viewed at: https://www.govinfo.gov/content/pkg/FR-2024-03-05/pdf/2024-04587.pdf

Section 64.1200 may be viewed at: https://www.ecfr.gov/current/title-47/chapter-I/subchapter-B/part-64#64.1200

Regulatory Spotlight

CFPB Updates Supervisory Appeals Process.

The Bureau of Consumer Financial Protection (CFPB) announced it has updated its internal supervisory appeals process for institutions seeking to appeal a compliance rating or an adverse material finding. CFPB first published its process for supervisory appeals 10/31/2012, as Bulletin 2012-07. On 11/03/2015, CFPB revised its process, superseding the 2012 Bulletin. CFPB has reviewed its current process and revisions made by prudential regulators since 2015. As a result, CFPB has revised its process to evaluate appealed matters, the options for resolving an appeal, and the matters subject to appeal. The revised supervisory appeals process is applicable as of 02/22/2024. The revised process may be viewed at: https://www.govinfo.gov/content/pkg/FR-2024-02-22/pdf/2024-03615.pdf. Federal Register, Vol. 89, No. 36, 02/22/2024, 13263-13265.

CFPB Proposes Overdraft Lending Rules for Large Financial Institutions.

CFPB proposed to amend Regulations E and Z to update regulatory exceptions for overdraft credit provided by large financial institutions. CFPB believes the proposal will ensure that extensions of overdraft credit adhere to consumer protections required of similarly situated products, unless the overdraft fee is a small amount that only recovers applicable costs and losses. Comments are due 04/01/2024. The proposed rule may be viewed at: https://www.govinfo.gov/content/ pkg/FR-2024-02-23/pdf/2024-01095.pdf. Federal Register, Vol. 89, No. 37, 02/23/2024, 13852-13908.

CFPB Seeks Comment on Consumer Complaint Survey.

CFPB seeks comment regarding an information collection titled, Consumer Complaint Survey. The Dodd-Frank Act charges CFPB with researching, analyzing, and reporting on topics relating to its mission including consumer behavior, consumer awareness, and developments in markets for consumer financial products and services. To improve its understanding of consumers and institutional actors in financial markets, CFPB makes use of data collected through the complaint process. CFPB proposes to collect data with two new surveys intended to identify factors that influence a consumer’s decision to use the complaint process. Comments are due 05/06/2024. The notice may be viewed at: https:// www.govinfo.gov/content/pkg/FR-2024-03-06/pdf/2024-04775.pdf. Federal Register, Vol. 89, No. 45, 03/06/2024, 15981-15982.

FRB Announces Final Approval of Information Collections.

The Board of Governors of the Federal Reserve System (FRB) announced final approval of an information collection titled, Recordkeeping and Disclosure Requirements Associated with Regulation O. The notice may be viewed at: https://www. govinfo.gov/content/pkg/FR-2024-02-16/pdf/2024-03214.pdf. Federal Register, Vol. 89, No. 33, 02/16/2024, 12340.

FRB announced final approval of an information collection titled, Reporting, Recordkeeping, and Disclosure Requirements Associated with Rules Regarding Availability of Information. The information collection consists of reporting, recordkeeping, and disclosure requirements under subpart C of the Rules Regarding Availability of Information (12 CFR part 261). Subpart C contains information collections as further described in the notice. The notice may be viewed at: https://www.govinfo.gov/content/pkg/FR-2024-02-16/pdf/2024-03215.pdf. Federal Register, Vol. 89, No. 33, 02/16/2024, 12341.

FRB announced final approval of an information collection titled, Reporting, Recordkeeping, and Disclosure Provisions Associated with the Guidance on Response Programs for Unauthorized Access to Customer Information and Customer

Regulatory Spotlight

Notice. The information collection is associated with the Interagency Guidance on Response Programs for Unauthorized Access to Customer Information and Customer Notice which includes certain voluntary reporting, recordkeeping, and disclosure provisions. The notice may be viewed at: https://www.govinfo.gov/content/pkg/FR-2024-02-16/pdf/2024-03220. pdf. Federal Register, Vol. 89, No. 33, 02/16/2024, 12343-12344.

FRB announced final approval of an information collection titled, Disclosure Requirements Associated with CFPB’s Regulation DD. The information collection is triggered by specific events, and disclosures must be provided to consumers within the time periods established by the Truth in Savings Act and Regulation DD. The notice may be viewed at: https:// www.govinfo.gov/content/pkg/FR-2024-03-07/pdf/2024-04890.pdf. Federal Register, Vol. 89, No. 46, 03/07/2024, 16570.

FRB Seeks Comment on Information Collections.

FRB seeks comment regarding an information collection titled, Recordkeeping Provisions Associated with Stress Testing Guidance. The guidance was issued jointly by the federal banking agencies in 2012 to outline high-level principles for stress testing practices applicable to all FRB-supervised banking organizations with more than $10 billion in total consolidated assets. Comments are due 04/16/2024. The notice may be viewed at: https://www.govinfo.gov/content/pkg/ FR-2024-02-16/pdf/2024-03217.pdf. Federal Register, Vol. 89, No. 33, 02/16/2024, 12339-12340.

FRB seeks comment regarding an information collection titled, Margin Credit Reports. The collection is comprised of six reports which relate to extension of credit secured by margin stock. FRB collects the information gathered by the Margin Credit Reports so that it may meet certain obligations under the Securities Exchange Act. Comments are due 04/16/2024. The notice may be viewed at: https://www.govinfo.gov/content/pkg/FR-2024-02-16/pdf/2024-03221.pdf. Federal Register, Vol. 89, No. 33, 02/16/2024, 12342-12343.

FRB seeks comment regarding an information collection titled, Recordkeeping Requirements Associated with Regulation F. Regulation F, Limitations on Interbank Liabilities (12 CFR part 206), establishes limits on depository institutions’ credit exposure to individual correspondents in order to mitigate the risk that the failure of a correspondent would pose to an insured depository institution. Section 206.3 of Regulation F requires insured depository institutions to establish and maintain policies and procedures designed to prevent excessive exposure to correspondents. Comments are due 04/16/2024. The notice may be viewed at: https://www.govinfo.gov/content/pkg/FR-2024-02-16/pdf/2024-03218.pdf. Federal Register, Vol. 89, No. 33, 02/16/2024, 12344-12345.

FRB seeks comment regarding an information collection titled, Country Exposure Report for U.S. Branches and Agencies of Foreign Banks, FFIEC 019. The information collection is required pursuant to sections 7 and 13 of the International Banking Act for FRB, sections 7 and 10 of the Federal Deposit Insurance Act for Federal Deposit Insurance Corporation (FDIC), and the National Bank Act as applied through section 4 of the International Banking Act for Office of the Comptroller of the Currency (OCC). The FFIEC 019 report must be filed by each U.S. branch or agency of a foreign bank that has total direct claims on foreign residents in excess of $30 million. Comments are due 05/03/2024. The notice may be viewed at: https://www.govinfo.gov/content/pkg/FR-2024-03-04/pdf/2024-04398.pdf. Federal Register, Vol. 89, No. 43, 03/04/2024, 15575-15576.

FRB seeks comment regarding an information collection titled, Recordkeeping and Disclosure Requirements Associated with CFPB’s Regulation M. The Consumer Leasing Act (CLA) and Regulation M require lessors uniformly to disclose to consumers the costs, liabilities, and terms of consumer lease transactions. The information collection is used in recordkeeping requirements under CLA and Regulation M. Comments are due 05/06/2024. The notice may be viewed at: https://www.govinfo.gov/content/pkg/FR-2024-03-07/pdf/2024-04892.pdf. Federal Register, Vol. 89, No. 46, 03/07/2024, 16567-16568.

FRB seeks comment regarding an information collection titled, Senior Financial Officer Surveys. FRB uses the surveys in the collection to gather qualitative and limited quantitative information about liability management, the provision of financial services, and the functioning of key financial markets from a selection of up to 80 large commercial banks and other depository institutions. FRB proposes revisions to the surveys to increase the panel size from 80 to 100 and change the method of collection from email to an online survey tool. Comments are due 05/06/2024. The notice may be viewed at: https://www.govinfo.gov/content/pkg/FR-2024-03-07/pdf/2024-04887.pdf. Federal Register, Vol. 89, No. 46, 03/07/2024, 16568-16570.

Regulatory Spotlight

FRB seeks comment regarding an information collection titled, Reporting Requirements Associated with Emergency Lending Under Section 13(3). Section 13(3) of the Federal Reserve Act provides that FRB may authorize any Federal Reserve Bank to extend credit to an individual, partnership, or corporation, subject to conditions. FRB’s Regulation A establishes policies and procedures with respect to emergency lending under section 13(3). FRB’s information collection is associated with Regulation A and consists of reporting requirements for entities’ compliance with the terms and conditions of the emergency lending facilities. Comments are due 05/06/2024. The notice may be viewed at: https:// www.govinfo.gov/content/pkg/FR-2024-03-07/pdf/2024-04889.pdf. Federal Register, Vol. 89, No. 46, 03/07/2024, 16570-16571.

FRB seeks comment regarding an information collection titled, Survey of Consumer Finances. The survey is triennial and is the only source of representative information on the structure of U.S. families’ finances. The survey collects data on the assets, debts, income, work history, pension rights, use of financial services, and attitudes of a sample of U.S. families. Comments are due 05/06/2024. The notice may be viewed at: https://www.govinfo.gov/content/pkg/FR-2024-03-07/ pdf/2024-04888.pdf. Federal Register, Vol. 89, No. 46, 03/07/2024, 16571-16572.

FRB seeks comment regarding an information collection titled, Recordkeeping Requirements Associated with Regulation GG. Regulation GG, Prohibition on Funding of Unlawful Internet Gambling (12 CFR part 233), is related to the Unlawful Internet Gambling Enforcement Act. The information collection requires participants in designated payment systems to establish written policies and procedures related to unlawful internet gambling. Comments are due 05/06/2024. The notice may be viewed at: https://www.govinfo.gov/content/pkg/FR-2024-03-07/pdf/2024-04891.pdf. Federal Register, Vol. 89, No. 46, 03/07/2024, 16572-1573.

FDIC Announces Intent to Terminate Receiverships.

The Federal Deposit Insurance Corporation (FDIC), as Receiver for the institutions listed in the notice, announced it intends to terminate its receiverships for the institutions. The liquidation of the assets for the receiverships has been completed. To the extent permitted by available funds and in accordance with law, the Receiver will be making a final dividend payment to proven creditors. Based upon the foregoing, the Receiver has determined that the continued existence of the receiverships will serve no useful purpose. Consequently, notice is given that the receiverships shall be terminated, to be effective no sooner than thirty days after the date of the notice. If any person wishes to comment concerning the termination of the receiverships, such comment must be made in writing, identify the receivership to which the comment pertains, and sent within thirty days of the date of the notice to: Federal Deposit Insurance Corporation, Division of Resolutions and Receiverships, Attention: Receivership Oversight Section, 600 North Pearl, Suite 700, Dallas, TX 75201. No comments concerning the termination of the receivership will be considered which are not sent within this time frame. The notice may be viewed at: https://www.govinfo.gov/content/pkg/FR-2024-02-28/ pdf/2024-04071.pdf. Federal Register, Vol. 89, No. 40, 02/28/2024, 14649-14650.

FDIC Seeks Comment on Information Collections.

FDIC seeks comment regarding three information collections. The information collection titled, Uniform Application/ Uniform Termination for Municipal Securities Principal or Representative, is used for notification by a bank municipal securities dealer that a municipal securities principal’s or a municipal securities representative’s association with the dealer has terminated and the reason for the termination. The second information collection is titled, Interagency Guidance on Asset Securitization Activities. The information collections contained in the Interagency Guidance are needed by institutions to manage their asset securitization activities in a safe and sound manner. The third information collection is titled, Interagency Statement on Sound Practices Concerning Complex Structured Finance Transactions. The Interagency Statement describes the types of internal controls and risk management procedures that the federal banking agencies believe are particularly effective in assisting financial institutions to identify, evaluate, assess, document, and control the full range of credit, market, operational, legal, and reputational risks. Comments are due 03/18/2024. The notice may be viewed at: https://www.govinfo.gov/content/pkg/FR-2024-02-16/pdf/2024-03283.pdf. Federal Register, Vol. 89, No. 33, 02/16/2024, 12336-12338.

FDIC seeks comment on information collections for qualified financial contracts of subsidiaries of certain banks and for industrial loan companies. In the first information collection, Restrictions on Qualified Financial Contracts (QFCs) of Subsidiaries of Certain FDIC Supervised Institutions; Revisions to the Definition of Qualifying Master Netting Agreement

and Related Definitions, FDIC seeks comment regarding its revised total estimated annual burden hours. The information collection is used to ensure QFCs are amended in compliance with Part 382 of FDIC regulations. The second information collection is titled, Industrial Banks and Industrial Loan Companies (ILCs). Part 354 of FDIC regulations establishes filing requirements for ILCs and companies that are not subject to consolidated supervision by the Board of Governors of the Federal Reserve System but control an industrial bank or an ILC. The information collection is used in connection with requirements of Part 354. Comments are due 05/06/2024. The notice may be viewed at: https://www.govinfo.gov/ content/pkg/FR-2024-03-05/pdf/2024-04580.pdf. Federal Register, Vol. 89, No. 44, 03/05/2024, 15872-15874.

FDIC seeks comment regarding an information collection titled, Visitor Notification Form. FDIC proposes to use the form to collect biographical, passport (for foreign nationals), and employment information from certain visitors to FDIC in order to assess the risk to FDIC facilities and personnel. FDIC will require certain visitors to FDIC facilities, including support staff and interpreters, to complete and submit the form. Comments are due 05/06/2024. The notice may be viewed at: https://www.govinfo.gov/content/pkg/FR-2024-03-05/pdf/2024-04625.pdf. Federal Register, Vol. 89, No. 44, 03/05/2024, 15871-15872.

OCC Issues Proposed Rule on Mergers Involving National Banks and FSAs.

The Office of the Comptroller of the Currency (OCC) seeks comment regarding a proposed rule to increase the transparency of the standards that apply to OCC’s review of business combinations involving national banks and federal savings associations. In particular, the proposed rule would amend the procedures and would add, as an appendix, a policy statement that summarizes the principles OCC uses when it reviews proposed bank merger transactions under the Bank Merger Act. Comments are due 04/15/2024. The proposed rule may be viewed at: https://www.govinfo.gov/ content/pkg/FR-2024-02-13/pdf/2024-02663.pdf. Federal Register, Vol. 89, No. 30, 02/13/2024, 10010-10018.

OCC Proposes Amendments to FOIA Regulations.

OCC issued a proposed rule to amend its Freedom of Information Act (FOIA) regulations to provide for expedited processing of FOIA requests and establish procedures for requestors to appeal denials of expedited processing and fee waiver requests. The proposal also would remove the competitive harm standard for information provided to the government on an involuntary basis and make a conforming amendment to OCC’s FOIA regulations to be consistent with FOIA. Comments are due 04/22/2024. The proposed rule may be viewed at: https://www.govinfo.gov/content/pkg/FR2024-02-22/pdf/2024-02990.pdf. Federal Register, Vol. 89, No. 36, 02/22/2024, 13289-13293.

OCC Seeks Comment on Information Collections.

OCC seeks comment regarding an information collection titled, Capital Adequacy Standards. OCC uses the information collection for the recordkeeping, reporting, and disclosure requirements associated with capital adequacy standards applicable to national banks and federal savings associations. OCC proposes revisions to the collection to reflect more granular detail for certain existing reporting and recordkeeping provisions. In addition, reporting burden associated with 12 CFR 3.304 has been removed as that portion of the rule is no longer in effect. Comments are due 03/13/2024. The notice may be viewed at: https://www.govinfo.gov/content/pkg/FR-2024-02-12/pdf/2024-02736.pdf. Federal Register, Vol. 89, No. 29, 02/12/2024, 9909-9913.

OCC seeks comment regarding an information collection titled, Uniform Interagency Transfer Agent Registration and Deregistration Forms. Section 17A(c) of the Securities Exchange Act requires all transfer agents for qualifying securities registered under section 12 of the Act, as well as for securities that would be required to be registered except for the exemption from registration provided by section 12(g)(2)(B) or section 12(g)(2)(G), to file with the appropriate regulatory agency an application for registration. The information collection is used to collect and report the required information for registration and deregistration as further outlined in the notice. Comments are due 04/12/2024. The notice may be viewed at: https://www.govinfo.gov/content/pkg/FR-2024-02-12/pdf/2024-02822.pdf. Federal Register, Vol. 89, No. 29, 02/12/2024, 9908-9909.

OCC seeks comment regarding an information collection titled, Fair Housing Home Loan Data System Regulation. Part 27 requires national banks to record and retain certain home loan data. OCC issued part 27 as part of a settlement agreement in a case in which the plaintiffs alleged that Federal agencies, including OCC, were obligated to exercise

supervisory and regulatory powers to prevent discrimination in home mortgage lending under Title VIII of the Civil Rights Act. Comments are due 03/27/2024. The notice may be viewed at: https://www.govinfo.gov/content/pkg/FR-2024-0226/pdf/2024-03855.pdf. Federal Register, Vol. 89, No. 38, 02/26/2024, 14143-14145.

OCC seeks comment regarding an information collection titled, OCC Guidelines Establishing Heightened Standards for Certain Large Insured National Banks, Insured Federal Savings Associations, and Insured Federal Branches. OCC’s guidelines, codified in 12 CFR part 30, appendix D, establish minimum standards for the design and implementation of a risk governance framework for insured national banks, insured federal savings associations, and insured federal branches of a foreign bank. The standards for the design and implementation of the risk governance framework contain collections of information, as outlined in the notice. Comments are due 03/27/2024. The notice may be viewed at: https://www.govinfo. gov/content/pkg/FR-2024-02-26/pdf/2024-03816.pdf. Federal Register, Vol. 89, No. 38, 02/26/2024, 14145-14148.

HUD Adjusts CMPs for Inflation.

The Department of Housing and Urban Development (HUD) issued a final rule to implement its 2024 inflation adjustments of civil monetary penalty (CMP) amounts as required by the Federal Civil Penalties Inflation Adjustment Act, as amended by the Federal Civil Penalties Inflation Adjustment Act Improvements Act. See the final rule for the specific amounts. The final rule is effective 03/25/2024. The final rule may be viewed at: https://www.govinfo.gov/content/pkg/ FR-2024-02-23/pdf/2024-03736.pdf. Federal Register, Vol. 89, No. 37, 02/23/2024, 13614-13617.

HUD Issues Indexing Methodology for Manufactured Home Loan Limits.

HUD issued a final rule to establish indexing methodologies using data from the United States Census Bureau to annually calculate the loan limits for Manufactured Home Loans, Manufactured Home Lot Loans, and Manufactured Home and Lot Combination Loans insured under Title I of the National Housing Act for the Manufactured Home Loan program. Section 2145 of the Housing and Economic Recovery Act (HERA) amended the maximum loan limits for manufactured home loans insured under Title I of the National Housing Act and required regulations to implement future indexing of the loan limit amounts for manufactured homes originated under the Manufactured Home Loan program. The final rule is effective 03/29/2024. The final rule may be viewed at: https://www.govinfo.gov/content/pkg/FR-2024-02-28/pdf/2024-04138. pdf. Federal Register, Vol. 89, No. 40, 02/28/2024, 14582-14588.

HUD Adjusts Mark-to-Market Program.

HUD issued a final rule meant to provide clarity to the Mark-to-Market Program. The Mark-to-Market Program preserves affordability and availability of affordable rental multifamily properties with federally-insured mortgages, reducing rents to market levels by restructuring existing debt to levels supportable by the rents. The final rule revises the Mark-to-Market Program regulations to clarify that annual adjustment of restructured rents under the program will be based on an operating cost adjustment factor determined by HUD and to further clarify when HUD may approve rent adjustments on a budget basis. The final rule will align HUD’s regulations with recent legislative changes that specifically allow budget-based rent adjustments for the program. The final rule is effective 03/29/2024. The final rule may be viewed at: https://www.govinfo. gov/content/pkg/FR-2024-02-28/pdf/2024-04081.pdf. Federal Register, Vol. 89, No. 40, 02/28/2024, 14588-14590.

HUD Adjusts Mortgage Limits for Multifamily Housing Programs.

HUD announced its adjustment to the Basic Statutory Mortgage Limits for Multifamily Housing Programs for calendar year 2024 as further outlined in the notice. The notice may be viewed at: https://www.govinfo.gov/content/pkg/FR-202402-13/pdf/2024-02870.pdf. Federal Register, Vol. 89, No. 30, 02/13/2024, 10089-10090.

HUD Seeks Comment on Information Collections.

HUD seeks comment regarding an information collection titled, Mortgage Record Change. In accordance with 23 CFR 203.502(a), servicing of insured mortgages must be performed by a mortgagee that is approved by HUD to service insured mortgages. The information collection is used by Federal Housing Administration (FHA) approved mortgagees to comply with HUD requirements for reporting the sale of a mortgage between investors, the transfer of the mortgage servicing responsibility, and/or a change of mortgagor, as appropriate. Comments are due 04/16/2024. The notice may

be viewed at: https://www.govinfo.gov/content/pkg/FR-2024-02-16/pdf/2024-03315.pdf. Federal Register, Vol. 89, No. 33, 02/16/2024, 12373-12374.

HUD seeks comment regarding an information collection titled, Rehabilitation Mortgage Insurance Underwriting Program, Section 203(k). The section 203(k) program requires mortgagees to collect information about the scope of repair and improvement work, its cost, and control of escrow funds to pay for the improvements as they are completed. The program operates in conjunction with the Federal Housing Administration’s underwriting standards. Comments are due 04/16/2024. The notice may be viewed at: https://www.govinfo.gov/content/pkg/FR-2024-02-16/pdf/2024-03314. pdf. Federal Register, Vol. 89, No. 33, 02/16/2024, 12372-12373.

HUD seeks comment regarding an information collection titled, Quality Control Requirements for Direct Endorsement Lenders. Generally speaking, per 24 CFR 202.8(a)(3), a Direct Endorsement (DE) lender that sponsors third party originators (TPOs) is responsible for the actions of its third-party originators or mortgagees in originating loans or mortgages. As a result, DE lenders are responsible for conducting quality control reviews on TPO originations of Federal Housing Administration (FHA) insured mortgage loans and ensuring that their Quality Control Plans contain an oversight provision. Comments are due 03/25/2024. The notice may be viewed at: https://www.govinfo.gov/content/pkg/FR-202402-23/pdf/2024-03716.pdf. Federal Register, Vol. 89, No. 37, 02/23/2024, 13735-13736.

HUD seeks comment regarding an information collection titled, Mortgagee’s Application for Partial Settlement (Multifamily Mortgage). When a Federal Housing Administration (FHA) insured multifamily mortgage goes into default, the mortgagee may file a claim with HUD to receive the insurance benefits. The mortgagee is required by HUD to furnish the application prior to assignment. Comments are due 05/06/2024. The notice may be viewed at: https://www.govinfo. gov/content/pkg/FR-2024-03-07/pdf/2024-04787.pdf. Federal Register, Vol. 89, No. 46, 03/07/2024, 16586-16587.

FEMA Issues Final Changes in Flood Hazard Determinations.

The Federal Emergency Management Agency (FEMA) announced new or modified Base (1-percent annual chance) Flood Elevations (BFEs), base flood depths, Special Flood Hazard Area (SFHA) boundaries or zone designations, and/or regulatory floodways (hereinafter referred to as flood hazard determinations) as shown on the indicated Letter of Map Revision (LOMR) have been made final for communities in the states of Illinois, Minnesota, Ohio, and Wisconsin, as listed in the table in the notice. Each LOMR revises the Flood Insurance Rate Maps (FIRMs), and in some cases the Flood Insurance Study (FIS) reports, currently in effect for the listed communities. Each LOMR was finalized as indicated in the table in the notice. The final notice may be viewed at: https://www.govinfo.gov/content/pkg/FR-2024-02-16/pdf/202403262.pdf. Federal Register, Vol. 89, No. 33, 02/16/2024, 12361-12264.

FEMA Issues Proposed Flood Hazard Determinations.

FEMA seeks comment regarding proposed flood hazard determinations, which may include additions or modifications of any Base Flood Elevation (BFE), base flood depth, Special Flood Hazard Area (SFHA) boundary or zone designation, or regulatory floodway on the Flood Insurance Rate Maps (FIRMs), and where applicable, in the supporting Flood Insurance Study (FIS) reports for communities in the state of Illinois, as listed in the table in the notice. The FIRM and FIS report are the basis of the floodplain management measures that the community is required either to adopt or to show evidence of having in effect in order to qualify or remain qualified for participation in the National Flood Insurance Program (NFIP). Comments are due 05/16/2024. The notice may be viewed at: https://www.govinfo.gov/content/pkg/FR-2024-02-16/ pdf/2024-03264.pdf. Federal Register, Vol. 89, No. 33, 02/16/224, 12360.

FEMA seeks comment regarding proposed flood hazard determinations, which may include additions or modifications of any Base Flood Elevation (BFE), base flood depth, Special Flood Hazard Area (SFHA) boundary or zone designation, or regulatory floodway on the Flood Insurance Rate Maps (FIRMs), and where applicable, in the supporting Flood Insurance Study (FIS) reports for communities in the state of Ohio, as listed in the table in the notice. The FIRM and FIS report are the basis of the floodplain management measures that the community is required either to adopt or to show evidence of having in effect in order to qualify or remain qualified for participation in the National Flood Insurance Program (NFIP). Comments are due 05/23/2024. The notice may be viewed at: https://www.govinfo.gov/content/pkg/FR-2024-02-23/ pdf/2024-03723.pdf. Federal Register, Vol. 89, No. 37, 02/23/2024, 13727-13728.

Regulatory Spotlight

FEMA Withdraws Proposed Flood Hazard Determinations.

FEMA announced the withdrawal of proposed flood hazard determinations, which may include the addition or modification of any Base Flood Elevation, base flood depth, Special Flood Hazard Area boundary or zone designation, or regulatory floodway (herein after referred to as proposed flood hazard determinations) on the Flood Insurance Rate Maps and, where applicable, in the supporting Flood Insurance Study reports for Rock County, Minnesota and Incorporated Areas. The withdrawal is effective 02/23/2024. The notice may be viewed at: https://www.govinfo.gov/content/pkg/FR2024-02-23/pdf/2024-03725.pdf. Federal Register, Vol. 89, No. 37, 02/23/2024, 13729.

FinCEN Proposes to Extend BSA-Related Requirements to Certain Investment Advisers and Real Estate Transfers.

The Financial Crimes Enforcement Network (FinCEN) issued a proposed rule to include certain investment advisers in the definition of “financial institution” under the Bank Secrecy Act (BSA), prescribe minimum standards for antimoney laundering/countering the financing of terrorism (AML/CFT) programs to be established by covered investment advisers, require covered investment advisers to report suspicious activity to FinCEN pursuant to BSA, and make several other related changes to FinCEN regulations. FinCEN proposed the rule to address gaps in the existing AML/ CFT regulatory framework in the investment advisor sector. Comments are due 04/15/2024. The proposed rule may be viewed at: https://www.govinfo.gov/content/pkg/FR-2024-02-15/pdf/2024-02854.pdf. Federal Register, Vol. 89, No. 32, 02/15/2024, 12108-12193.

FinCEN issued a proposed rule to require certain persons involved in real estate closings and settlements to submit reports and keep records on identified non-financed transfers of residential real property to specified legal entities and trusts on a nationwide basis. Transfers made directly to an individual would not be covered by the proposed rule. The proposed rule describes the circumstances in which a report must be filed, who must file a report, what information must be provided, and when a report is due. The reports are expected to assist the U.S. Department of the Treasury; Federal, State, and local law enforcement; and national security agencies in addressing illicit finance vulnerabilities in the U.S. residential real estate sector and to curtail the ability of illicit actors to anonymously launder illicit proceeds through the purchase of residential real property. Comments are due 04/16/2024. The proposed rule may be viewed at: https://www. govinfo.gov/content/pkg/FR-2024-02-16/pdf/2024-02565.pdf. Federal Register, Vol. 89, No. 33, 02/16/2024, 12424-12470.

FinCEN Seeks Comment on BSA-Related Information Collections.

FinCEN seeks comment regarding an information collection titled, Reports by Financial Institutions of Suspicious Transactions (31 CFR 1020.320, 1021.320, 1022.320, 1023.320, 1024.320, 1025.320, 1026.320, and 1029.320), Form 111. Under Bank Secrecy Act regulations, financial institutions are required to report suspicious transactions using FinCEN Form 111. Comments are due 04/12/2024. The notice may be viewed at: https://www.govinfo.gov/content/pkg/ FR-2024-02-12/pdf/2024-02747.pdf. Federal Register, Vol. 89, No. 29, 02/12/2024, 9913-9915.

FinCEN seeks comment regarding an information collection titled, Reports and Records of Certain Domestic Transactions (31 U.S.C. 5326; 31 CFR 1010.370 and 1010.410(d)). FinCEN may issue a geographic targeting order (GTO) requiring any domestic financial institution or nonfinancial trade or business or group of domestic financial institutions or domestic nonfinancial trades or businesses in a geographic area to obtain information about certain transactions, as described in the GTO. Entities that receive a GTO are required to report, in the manner and to the extent specified in the GTO, information concerning any transaction in which such entity is involved for the payment, receipt, or transfer of funds. There are recordkeeping requirements related to a GTO. Comments are due 04/23/2024. The notice may be viewed at: https://www.govinfo.gov/content/pkg/FR-2024-02-23/pdf/2024-03681.pdf. Federal Register, Vol. 89, No. 37, 02/23/2024, 13802-13804.

FinCEN seeks comment regarding an information collection titled, Beneficial Ownership Requirements for Legal Entity Customers (31 CFR 1010.230). The information collection requirements relate to beneficial ownership requirements for legal entity customers. Under Bank Secrecy Act (BSA) regulations, covered financial institutions are required to collect, and to maintain records of, the information used to identify and verify the identity of each beneficial owner of their legal entity customers, subject to certain exclusions and exemptions. Comments are due 04/26/2024. The notice may be viewed at: https://www.govinfo.gov/ content/pkg/FR-2024-02-26/pdf/2024-03965.pdf. Federal Register, Vol. 89, No. 38, 02/26/2024, 14148-14149.

Regulatory Spotlight

IRS Seeks Comment on Mortgage Credit Certificates.

The Internal Revenue Service (IRS) seeks comment regarding an information collection titled, Mortgage Credit Certificates (MCCs). MCCs provide qualified holders of the certificates with a credit against income tax liability. In general, an issuer elects to establish a mortgage credit certificate program in lieu of issuing qualified mortgage revenue bonds. Section 25 of the Internal Revenue Code permits states and political subdivisions to elect to issue MCCs in lieu of qualified mortgage revenue bonds. The information collection is used by lending institutions and by state and local governments to provide IRS with information on the issuance of MCCs authorized under Code section 25. IRS matches the information supplied by lenders and issuers to ensure that the credit is computed properly. Comments are due 05/06/2024. The notice may be viewed at: https://www.govinfo.gov/content/pkg/FR-2024-03-07/pdf/2024-04839.pdf. Federal Register, Vol. 89, No. 46, 03/07/2024, 16620-16621.

FHFA Seeks Comment on American Survey of Mortgage Borrowers.

The Federal Housing Finance Agency (FHFA) seeks comment regarding an information collection titled, American Survey of Mortgage Borrowers (ASMB). The ASMB, conducted annually or biennially, is a voluntary survey of individuals who currently have a first mortgage loan secured by single-family residential property. The survey is a component of the National Mortgage Database Program, which is a joint effort of FHFA and the Bureau of Consumer Financial Protection (CFPB). A copy of the 2023 survey questionnaire appears at the end of the notice. Comments are due 04/29/2024. The notice may be viewed at: https://www.govinfo.gov/content/pkg/FR-2024-02-28/pdf/2024-04126.pdf. Federal Register, Vol. 89, No. 40, 02/28/2024, 14650-14664.

SBA Adjusts Loan Programs for Inflation.

The Small Business Administration (SBA) announced it finalized, without change, its July 2023 proposed rule to adopt the current statutory alternative size standard for its 7(a) Business and Certified Development Company (CDC/504) Loan Programs (collectively, Business Loan Programs), subject to a 34.46 percent adjustment for inflation that has occurred since the establishment of the statutory alternative size standard in 2010. The inflation adjustment would increase the size standard’s level for tangible net worth to $20 million and for net income to $6.5 million. SBA also adjusted for inflation the applicable statutory limits for contract size under the Surety Bond Guarantee (SBG) Program. The adjustment increases the contract limit to $9 million and the contract limit for federal contracts, if a federal contracting officer certifies that such a guarantee is necessary, to $14 million. The final rule is effective 03/18/2024. The final rule may be viewed at: https://www. govinfo.gov/content/pkg/FR-2024-02-15/pdf/2024-02776.pdf. Federal Register, Vol. 89, No. 32, 02/15/2024, 11703-11713.

SBA Clarifies Administrator May Extend WOSB Recertification.

SBA issued an interim final rule which contains amendments to the regulations governing the Women-Owned Small Business (WOSB) program. SBA has revised its regulations to specifically recognize that the SBA Administrator may extend the date of WOSB recertification where appropriate. Section 127.400 of SBA’s WOSB regulations specifies that any concern seeking to remain a certified WOSB or Economically Disadvantaged Women-Owned Small Business (EDWOSB) must undergo a program examination every three years. Currently, there is no discretion in postponing recertification beyond the three-year anniversary date of a firm’s WOSB or EDWOSB certification. SBA believes that SBA should have the discretion to postpone a firm’s recertification date in appropriate circumstances. The interim final rule is effective 03/07/2024. Comments are due 05/06/2024. The interim final rule may be viewed at: https://www.govinfo.gov/ content/pkg/FR-2024-03-07/pdf/2024-04854.pdf. Federal Register, Vol. 89, No. 46, 03/07/2024, 16445-16446.

SBA Announces Military Reservist Economic Injury Disaster Loans Interest Rate.

SBA publishes an interest rate for the Military Reservist Economic Injury Disaster Loans on a quarterly basis. The interest rate will be 4.000 for loans approved on or after 01/29/2024. The notice was issued 02/06/2024. The notice may be viewed at: https://www.govinfo.gov/content/pkg/FR-2024-02-14/pdf/2024-02981.pdf. Federal Register, Vol. 89, No. 31, 02/14/2024, 11331.

Regulatory Spotlight

SBA Revises Lender Risk Rating System.

SBA announced revisions to its Lender Risk Rating System. The SBA Lender Risk Rating System is an internal, off-site monitoring tool used by SBA’s Office of Credit Risk Management (OCRM) to assess and monitor the risk of each active 7(a) Lender and Certified Development Company (CDC) and to inform supervision and enforcement activities. SBA is also updating the Lender Portal to reflect the changes to the SBA Lender Risk Rating System and corresponding metrics. The notice is applicable 03/07/2024. Comments are due 05/06/2024. The notice may be viewed at: https://www.govinfo.gov/ content/pkg/FR-2024-03-07/pdf/2024-04830.pdf. Federal Register, Vol. 89, No. 46, 03/07/2024, 16604-16607.

FSA Revises Eligibility Criteria for Lender Programs.

The Farm Service Agency (FSA) announced revised loan volume eligibility criteria for existing lenders participating in the Preferred Lender Program (PLP) for FSA-guaranteed loans or who have recently participated in PLP but lost that status due to loan volume requirements and wish to reapply. Due to decreased loan demand, many former PLP lenders, who would have otherwise been expected to have renewed their PLP status, have been unable to qualify for the renewal of their status in PLP within the past 5 years due solely to loan volume requirements. The notice applies lower loan volume eligibility criteria to PLP lenders who renew their PLP status and to former PLP lenders who reapply for PLP status after losing that status because they were unable to renew due solely to decreased loan volume within the 5 years immediately preceding the date of the notice. FSA also announced the revised loan volume eligibility criteria for all lenders participating in the Certified Lender Program (CLP) for FSA-guaranteed loans due to the same decreased loan demand. The notice applies less restrictive loan volume eligibility criteria to all lenders currently participating in the CLP program and lenders applying to participate in the CLP program. The notice is effective 02/23/2024. The notice may be viewed at: https://www.govinfo.gov/content/pkg/FR-2024-02-23/pdf/2024-03687.pdf. Federal Register, Vol. 89, No. 37, 02/23/2024, 13682-13684.

FCA Announces Effect Date for Amended YBS Program Rule.

The Farm Credit Administration (FCA) announced the effective date of the final rule that amended FCA regulations governing young, beginning, and small farmers and ranchers (YBS) programs. The final rule, published in the Federal Register on 12/27/2023, is effective 02/14/2024. The notice may be viewed at: https://www.govinfo.gov/content/pkg/FR2024-02-26/pdf/2024-03870.pdf. Federal Register, Vol. 89, No. 38, 02/26/2024, 13975.

Agencies Seek Applications for Strategic Economic and Community Development Priority.

The Rural Business-Cooperative Service (RBC), Rural Utilities Service (RUS), and Rural Housing Service (RHS) (collectively, the agencies) issued a notice to solicit applications (NOSA) for the Strategic Economic and Community Development (SECD) priority for projects that support multi-jurisdictional and multi-sectoral strategic community investment plans. SECD supports projects that promote and partially or completely implement strategic community investment plans. See the NOSA for program details and application deadlines. The NOSA may be viewed at: https:// www.govinfo.gov/content/pkg/FR-2024-02-13/pdf/2024-02782.pdf. Federal Register, Vol. 89, No. 30, 02/13/2024, 10026-10029.

RBC Seeks Comments on Rural Microentrepreneur Assistance Program Information Collection.

The Rural Business-Cooperative Service (RBC) seeks comment regarding an information collection titled, Microentrepreneur Assistance Program (RMAP). The purpose of RMAP is to support the development and ongoing success of rural microentrepreneurs and microenterprises. Loans and grants are made to Microenterprise Development Organizations (MDOs) to provide rural microentrepreneurs with the skills necessary to establish new rural microenterprises, to provide continuing technical and financial assistance related to the successful operation of rural microenterprises, and to assist with the cost of providing other activities and services related to the successful operation of MDOs and rural microenterprises. The loans establish or augment a rural microentrepreneur revolving loan fund and the grants provide technical assistance and training to microenterprises. Comments are due 04/15/2024. The notice may be viewed at: https://www.govinfo.gov/content/pkg/FR-2024-02-15/pdf/2024-03166.pdf Federal Register, Vol. 89, No. 32, 02/15/2024, 11811-11812.

Regulatory Spotlight

CCC Revises Dairy Margin Coverage Regulation.

The Commodity Credit Corporation (CCC) issued a final rule which revises the regulations for Dairy Margin Coverage (DMC) as required by the Further Continuing Appropriations and Other Extensions Act, which extends provisions of the Agriculture Improvement Act and amends the Agricultural Act to allow eligible dairy operations to make a one-time adjustment to established production history and extend DMC through 2024. In addition, the final rule extends eligibility of multi-year (lock-in) contracts for an additional year until 12/31/2024, and applies the discounted DMC premium rate to the newly established adjusted base production history. The final rule is effective 02/27/2024. The final rule may be viewed at: https://www.govinfo.gov/content/pkg/FR-2024-02-27/pdf/2024-03991.pdf Federal Register, Vol. 89, No. 39, 02/27/2024, 14372-14376.

CFTC Proposes Access to Electronic Trading for Foreign Boards of Trade.

The Commodity Futures Trading Commission (CFTC) issued a proposed rule to amend its regulations to permit a foreign board of trade (FBOT) registered with CFTC to provide direct access to its electronic trading and order matching system to an identified member or other participant located in the United States and registered with CFTC as an introducing broker for submission of customer orders to the FBOT’s trading system for execution. CFTC also proposed to establish a procedure for an FBOT to request revocation of its registration, and to remove certain outdated references to “existing no- action relief.” Comments are due 04/22/2024. The proposed rule may be viewed at: https://www.govinfo.gov/content/ pkg/FR-2024-03-01/pdf/2024-04117.pdf. Federal Register, Vol. 89, No. 42, 03/01/2024, 15083-15094.

CFTC Proposes Regulations to Address Margin Adequacy and Account for Treatment of Separate Accounts by FCMs.

On 04/14/2023, CFTC published a proposed rule (First Proposal) to amend the derivatives clearing organization (DCO) risk management regulations adopted under the Commodity Exchange Act (CEA) to permit futures commission merchants (FCMs) that are clearing members of DCOs (clearing FCMs), subject to specified requirements, to treat separate accounts of a single customer as accounts of separate legal entities for purposes of certain CFTC regulations. In light of comments received supporting direct application of separate account treatment requirements to FCMs in CFTC regulations, CFTC has withdrawn the First Proposal. CFTC has now proposed to require an FCM to ensure that a customer does not withdraw funds from its account with the FCM if the balance in the account after the withdrawal would be insufficient to meet the customer’s initial margin requirements, and relatedly, to permit an FCM, in certain circumstances and subject to certain conditions, to treat the separate accounts of a single customer as accounts of separate entities for purposes of certain CFTC regulations. The proposed amendments would establish the conditions under which an FCM may engage in such separate account treatment. Comments are due 04/22/2024. The proposed rule may be viewed at: https://www.govinfo.gov/content/pkg/FR-2024-03-01/pdf/2024-04107.pdf. Federal Register, Vol. 89, No. 42, 03/01/2024, 15312-15363.

CFTC Reopens Comment Periods for Proposals Related to Swap Participants and Swap Data Recordkeeping.

CFTC announced an extension of the comment period for its proposal regarding operational resilience framework for futures commission merchants, swap dealers, and major swap participants. The comment period for the proposal closed 03/02/2024. CFTC has extended the comment period for the proposed rule published in the Federal Register on 12/18/2023, by an additional thirty days to 04/01/2024. The notice may be viewed at: https://www.govinfo.gov/content/ pkg/FR-2024-02-26/pdf/2024-03826.pdf. Federal Register, Vol. 89, No. 38, 02/26/2024, 14007.

CFTC announced an extension of the comment period for its proposal titled, Real-Time Public Reporting Requirements and Swap Data Recordkeeping and Reporting Requirements. The comment period for the proposal closed 02/26/2024. CFTC has reopened the comment period for the proposed rule published in the Federal Register on 12/28/2023, by an additional forty-five days. Comments are due 04/11/2024. The notice may be viewed at: https://www.govinfo.gov/ content/pkg/FR-2024-02-29/pdf/2024-04255.pdf. Federal Register, Vol. 89, No. 41, 02/29/2024, 14790.

SEC Adopts Rules to Enhance Investor Protections in Transactions Involving Special Purpose Acquisition Companies.

The Securities and Exchange Commission (SEC) adopted a final rule intended to enhance investor protections in initial public offerings by special purpose acquisition companies (commonly known as SPACs) and in subsequent business combination transactions between SPACs and private operating companies (commonly known as de-SPAC transactions). Specifically, SEC adopted disclosure requirements with respect to, among other things, compensation paid to sponsors, conflicts of interest, dilution, and the determination, if any, of the board of directors (or similar governing body) of a SPAC regarding whether a de-SPAC transaction is advisable and in the best interests of the SPAC and its security holders. The final rule would also require a minimum dissemination period for the distribution of security holder communication materials in connection with de-SPAC transactions; require the re-determination of smaller reporting company (SRC) status in connection with de-SPAC transactions; and addressed the scope of the safe harbor for forward-looking statements under the Private Securities Litigation Reform Act. Further, SEC adopted a rule that would deem any business combination transaction involving a reporting shell company, including a SPAC, to be a sale of securities to the reporting shell company’s shareholders and has adopted amendments to a number of financial statement requirements applicable to transactions involving shell companies. In addition, SEC provided guidance on the status of potential underwriters in de-SPAC transactions and adopted updates to SEC guidance regarding the use of projections in SEC filings as well as requiring additional disclosure regarding projections when used in connection with business combination transactions involving SPACs. Finally, SEC has provided guidance for SPACs to consider when analyzing their status under the Investment Company Act. The final rule is effective 07/01/2024. See the final rule for mandatory compliance dates. The final rule may be viewed at: https://www.govinfo.gov/content/pkg/FR-2024-02-26/pdf/2024-01853.pdf. Federal Register, Vol. 89, No. 38, 02/26/2024, 14158-14327.

SEC Issues Final Rule to Clarify Definitions Under the Securities Exchange Act.

SEC issued a final rule to further define the phrase “as a part of a regular business” as used in the statutory definitions of “dealer” and “government securities dealer” under sections 3(a)(5) and 3(a)(44), respectively, of the Securities Exchange Act. The final rule is effective 04/29/2024. See section II.B of the final rule for compliance dates. The final rule may be found at: https://www.govinfo.gov/content/pkg/FR-2024-02-29/pdf/2024-02837.pdf. Federal Register, Vol. 89, No. 41, 02/29/2024, 14938-15010.

SEC Proposes Qualifying Venture Capital Funds Inflation Adjustment.

SEC proposes to implement the requirements of the Economic Growth, Regulatory Relief, and Consumer Protection Act (EGRRCPA) to adjust for inflation the dollar threshold used in defining a “qualifying venture capital fund” under the Investment Company Act. The proposed rule also would allow SEC to adjust for inflation the threshold amount by order every five years and specify how adjustments would be determined. Comments are due 03/22/2024. The proposed rule may be viewed at: https://www.govinfo.gov/content/pkg/FR-2024-02-21/pdf/2024-03436.pdf. Federal Register, Vol. 89, No. 35, 02/21/2024, 12995-13000.

FTC Issues Final and Proposed Rules on Impersonation of Government and Businesses.

The Federal Trade Commission (FTC) issued a final rule which prohibits the impersonation of government, businesses, and their officials or agents in interstate commerce. Under the final rule, the term “government” includes federal, state, local, and tribal governments as well as agencies and departments thereof. The term “business” includes a corporation, partnership, association, or any other entity that provides goods or services, including not-for-profit entities. The final rule is effective 04/01/2024. The final rule may be viewed at: https://www.govinfo.gov/content/pkg/FR-2024-03-01/ pdf/2024-04335.pdf. Federal Register, Vol. 89, No. 42, 03/01/2024, 15017-15031.

FTC seeks comment regarding a proposal to amend the trade regulation rule entitled, Rule on Impersonation of Government and Businesses, to revise the title of the rule, add a prohibition on the impersonation of individuals, and extend liability for violations of the rule to parties who provide goods and services with knowledge or reason to know that the goods or services will be used in impersonations of the kind that are themselves unlawful under the rule. FTC believes the changes are necessary based on all the comments it received on the final impersonation rule highlighted in the previous paragraph and other information discussed in the proposed rule. Comments are due 04/30/2024.

Regulatory Spotlight

The proposed rule may be viewed at: https://www.govinfo.gov/content/pkg/FR-2024-03-01/pdf/2024-03793.pdf. Federal Register, Vol. 89, No. 42, 03/01/2024, 15017-15031.

FCC Issues Final and Proposed Rules Meant to Stop Robocalls.

The Federal Communications Commission (FCC) issued a final rule to amend and codify previously adopted protections that make it simpler for consumers to revoke consent to unwanted robocalls and robotexts while requiring that callers and texters honor the requests in a timely manner. Specifically, FCC adopted rules to make clear that revocation of consent can be made in any reasonable manner, require that callers honor do-not-call and consent revocation requests within a reasonable time not to exceed ten business days of receipt, and limit text senders to a one-time text message confirming a consumer’s request that no further text messages be sent under the Telephone Consumer Protection Act. Amendatory instruction 2 (adding 47 CFR 64.1200(a)(12)) is effective 04/04/2024, and amendatory instruction 3 (revising 47 CFR 64.1200(a)(9)(i)(F) and (d)(3) and adding 47 CFR 64.1200(a)(10) and (11)) is delayed indefinitely. FCC will publish a document in the Federal Register announcing an effective date. The final rule may be viewed at: https://www.govinfo.gov/ content/pkg/FR-2024-03-05/pdf/2024-04587.pdf. Federal Register, Vol. 89, No. 44, 03/05/2024, 15756-15763.

FCC seeks comment on whether the Telephone Consumer Protection Act (TCPA) applies to robocalls and robotexts from wireless providers to their own subscribers and therefore whether such providers must have consent to make robocalls and send robotexts to their own subscribers. To the extent that wireless providers have consent to robocall or robotext their own subscribers, FCC seeks comment on whether wireless subscribers can exercise their right to revoke such consent by communicating a revocation of consent request to their wireless provider and that such requests must be honored. In addition, FCC seeks comment on a request to require automated opt-out mechanisms on every call that uses an artificial or prerecorded voice. Comments are due 04/04/2024. The proposed rule may be viewed at: https://www. govinfo.gov/content/pkg/FR-2024-03-05/pdf/2024-04586.pdf. Federal Register, Vol. 89, No. 44, 03/05/2024, 15802-15806.

NCUA Revised IRPS on Minority Depository Institution Preservation Program.

The National Credit Union Administration (NCUA) issued revisions to Interpretive Ruling and Policy Statement (IRPS) 131, regarding the Minority Depository Institution Preservation Program for credit unions. NCUA first established IRPS 13-1 in 2015 to encourage the preservation of minority depository institutions and the establishment of new ones. The revised IRPS is effective 03/27/2024. The reviewed IRPS may be viewed at: https://www.govinfo.gov/content/pkg/FR-2024-0226/pdf/2024-03603.pdf. Federal Register, Vol. 89, No. 38, 02/26/2027, 14113-14119.

NCUA Seeks Comment on Information Collections.

NCUA seeks comment regarding three information collections. The first collection is titled, Investment and Deposit Activities. The Federal Credit Union Act lists securities, deposits, and other obligations in which a Federal Credit Union (FCU) may invest. NCUA regulations set forth requirements related to maintaining an adequate investment program. The information collected is used by NCUA to determine compliance and is used to determine the level of risk that exists within a credit union, the actions taken by the credit union to mitigate such risk, and helps prevent losses to federal credit unions and the National Credit Union Share Insurance Fund (NCUSIF). The second information collection is titled, Loans in Areas Having Special Flood Hazards and is used in connection with requirements under the National Flood Insurance Flood Act, as amended. The third collection is titled, Minority Depository Institution Preservation Program. The collection is used to document that a FCU is designated a minority depository institution. Comments are due 05/06/224. The notice may be viewed at: https://www.govinfo.gov/content/pkg/FR-2024-03-06/pdf/2024-04688.pdf. Federal Register, Vol. 89, No. 45, 03/06/2024, 16035.

EEOC Amends Procedural Regulations to Include Pregnant Workers Fairness Act.

The Equal Employment Opportunity Commission (EEOC) issued an interim final rule to amend some of its existing procedural regulations to include references to the Pregnant Workers Fairness Act (PWFA), which requires covered employers to provide reasonable accommodations to to a qualified applicant’s or employee’s known limitations related to, affected by, or arising out of pregnancy, childbirth, or related medical conditions, unless the accommodation will cause

the employer an undue hardship. The PWFA became law on 12/29/2022 and became effective 06/27/2023. EEOC’s procedures for PWFA will follow the rules found at 29 CFR parts 1601 (procedural regulations), 1602 (recordkeeping and reporting requirements under Title VII, the Americans with Disabilities Act, and the Genetic Information Nondiscrimination Act), 1603 (procedures for previously exempt state and local government employee complaints of employment discrimination under section 304 of the Government Employee Rights Act (GERA)), and 1614 (federal sector equal employment opportunity). In the interim final rule, therefore, EEOC has amended its procedural and administrative regulations to add references in the rules to PWFA. The interim final rule is effective 02/14/2024. Comments are due 04/15/2024. EEOC also issued a correction to the interim final rule. Due to drafting errors, two of the changes would not be recognized in the Code of Federal Regulations. EEOC issued the correcting amendments to ensure that its procedural regulations reference PWFA where appropriate. The interim final rule may be viewed at: https://www.govinfo.gov/ content/pkg/FR-2024-02-14/pdf/2024-02764.pdf. Federal Register, Vol. 89, No. 31, 02/14/2024, 11167-11172. The correction is effective 02/23/2024. The correction may be viewed at: https://www.govinfo.gov/content/pkg/FR-2024-0223/pdf/2024-03691.pdf. Federal Register, Vol. 89, No. 37, 02/23/2024, 13617-13618.

VA Seeks Comment on Revisions to VA-Guaranteed or Insured Interest Rate Reduction Refinancing Loans.

The Department of Veterans Affairs (VA) seeks comment regarding a proposed rule to amend its regulations on VAbacked interest rate reduction refinancing loans (IRRRLs). The proposed rule changes the recoupment standard of a proposed rule published 11/01/2022, regarding IRRRLs. Comments are due 05/06/2024. The proposed rule may be viewed at: https://www.govinfo.gov/content/pkg/FR-2024-03-07/pdf/2024-04884.pdf. Federal Register, Vol. 89. No. 46, 03/07/2024, 16491-16496.

Compliance Notes

FHFA announced updates to the implementation of new credit score requirements for single-family loans acquired by Fannie Mae and Freddie Mac (the Enterprises). Following extensive stakeholder engagement and input, FHFA is aligning the implementation date of the bi-merge credit reporting requirement with the transition from the Classic FICO credit score model. The aligned transition is expected to occur in the fourth quarter of 2025. To better support market participants with the transition, FHFA announced the Enterprises will accelerate the publication of VantageScore® 4.0 historical data, originally expected to be published in the first quarter of 2025, to early in the third quarter of 2024. FHFA and the Enterprises continue to work towards providing similar data to support the transition to the FICO® 10T model, contingent upon achieving the necessary conditions for acquisition and publication of the data. FHFA will provide further details on implementation timing for FICO 10T once the process is complete. The announcement may be viewed at: https://capitalmarkets.fanniemae.com/mortgage-backed-securities/fhfa-announces-key-updates-implementationenterprise-credit-score-requirements

FHA announced a new loss mitigation home retention option for borrowers with FHA-insured single family forward mortgages who are behind on their mortgage payments. The new offering, called the Payment Supplement, provides mortgage servicers with an additional tool to temporarily reduce a borrower’s monthly mortgage payment by up to 25 percent without modifying the mortgage’s current interest rate. The Payment Supplement is meant to help those borrowers who cannot sufficiently be assisted by existing FHA home retention solutions because the interest rate on their mortgage is lower than current interest rates. More about the new loss mitigation option may be viewed at: https://www. hud.gov/press/press_releases_media_advisories/HUD_No_24_033

Compliance Notes

- CFPB released Circular 2024-01 regarding whether operators of digital comparison-shopping tools or lead generators violate the Consumer Financial Protection Act by preferencing products or services based on financial or other benefits to the operator. The circular may be viewed at: https://www.consumerfinance.gov/compliance/circulars/ consumer-financial-protection-circular-2024-01-preferencing-and-steering-practices-by-digital-intermediaries-forconsumer-financial-products-or-services/

FDIC announced the release of updated “Securities” and “Enforcement” sections of its Risk Management Manual The updated manual may be viewed at: https://www.fdic.gov/resources/supervision-and-examinations/examinationpolicies-manual/index.html

SBA released the next generation of its Lender Match tool. The tool allows small businesses to connect to capital through SBA’s network of approved banks and private lenders. On the enhanced Lender Match platform, small business owners benefit from an improved, mobile-first user interface that ensures better access and usability. Borrowers will now be able to easily view all of their matched lenders in one place, allowing the borrower to find and compare lenders to help them decide where to apply for a loan. The enhanced tool will also verify borrowers and screen for fraud to streamline the process for both lenders and borrowers. Importantly, with Lender Match, small businesses that are not matched to lenders will be connected to the SBA’s local network of free advisors to help them get capital-ready. The announcement and Lender Match tool may be viewed at: https://www.sba.gov/article/2024/03/04/sba-launches-enhanced-lendermatch-platform

FHFA released statistics which reflect that U.S. house prices rose 6.5 percent over the last year. The values were up 1.5 percent from the third quarter. The statistics also reflect state specific house prices and other home comparison information, including the trends in the top 100 MSAs. The release may be viewed at: https://www.fhfa.gov/Media/ PublicAffairs/Pages/US-House-Prices-Rise-6pt5-Percent-over-the-Last-Year-Up-1pt5-Percent-from-Q3.aspx

The CFPB posted a blog article, “Unlawful fees in the mortgage market,” in which CFPB announced it joined the Federal Trade Commission in filing an amicus brief with the U.S. Court of Appeals for the Eleventh Circuit (Atlanta, Georgia) in the case of Glover and Booze v. Ocwen Loan Servicing, LLC. The case involves Ocwen’s practice of charging a fee for making a payment online or by telephone, where the fee had not been agreed to in the agreement creating the debt, and a law had not affirmatively authorized the fee. Glover and Booze sued Ocwen after learning that such fees are illegal and won their cases in a lower court. Ocwen has appealed the lower court’s verdict to the Court of Appeals. The blog article may be viewed at: https://www.consumerfinance.gov/about-us/blog/unlawful-fees-in-the-mortgage-market/

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March

1 CRA Workshop

Wisconsin Dells or virtual – $245/attendee

5 Advanced IRA Workshop

Madison or virtual – $245/attendee

6 Health Savings Account Workshop

Madison or virtual – $245/attendee

6–7 FIPCO Software & Compliance Forum: Deposits

Virtual half days – $250/attendee

7 Branch Manager Boot Camp: Session II

Four-part series, virtual half days – $800/attendee

11–15 Loan Compliance School

Madison or virtual – $1,295/attendee

13-15 Real Estate Compliance School

Madison or virtual – $795/attendee

14–15 Call Report Workshop

Virtual half days – $245/attendee

18–20 WBA/ABA Washington Summit Washington, D.C.

20 Security Officer Workshop

Wisconsin Dells or virtual – $245/attendee

25–28 Residential Mortgage Lending School

Madison – $1,045/attendee

27 Online Workshop: Fundamentals of Comm.

Lending 201: Analyzing Repayment Sources

Virtual full day – $250/attendee

28 Branch Manager Boot Camp: Session III

Four-part series, virtual half days – $800/attendee

April

2,

11–12

15–20

Wisconsin Dells - $300/ag section member; $350/non-

April (Cont.)

22–26 School of Bank Management

Madison – $1,395/attendee

23 Community Bankers for Compliance (CBC) –Session II

Virtual half-day – annual membership/pricing varies

25 Branch Manager Boot Camp: Session IV

4/28–

Wisconsin

1–18

Wisconsin

Four-part series, virtual half days – $800/attendee

5/1 WBA/ICBA Capital Summit

Washington, D.C.

4/30–

5/23 Understanding Bank Performance Virtual Series

Eight-part webinar series – $1,000/attendee

May

2 Human Resources Conference

Wisconsin Dells – $245/attendee

7 CFO Conference

Madison – $245/attendee

8–9 Personal Banker School

Wausau – $495/attendee

9 FDIC Bank Directors College

Madison – $225/attendee

14–15 BSA/AML Compliance Conference

Wisconsin Dells – $450/attendee

15–16 Principles of Banking

Mineral Point – $550/attendee

22–23 Principles of Banking

Wausau – $550/attendee

23 Trust Conference

Madison – $245/attendee

KEY: Color-Coded Event Descriptions

Conferences/Summits – One or more days, based on hot topics, industry news and best practices, scheduled time for peer networking

Schools/Boot Camps – Focused on a particular area of banking, allowing for a deep dive into that focused area over the course of two to six days

Workshops/Seminars – One-day programs, sometimes in multiple locations, focused on a specific topic or area of banking.

WBA-Hosted Webinars – Two-hour webinars instructed with a particular focus on Wisconsin state law and rules.

Other Events

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