May 2023 WBA Compliance Journal

May 2023

Special Focus

Recent Agency Guidance Reflect Upcoming Examination Focus

Over the past several weeks, agencies have released guidance that identifies activities which are expected to be the focus of upcoming compliance examinations. Compliance officers need know how each guidance may impact their institution in anticipation of examiner questions and review.

Each guidance relates to activities the respective federal banking regulatory agency believes violate Section 1036(a)(1) (B) of the Dodd-Frank Act (Dodd-Frank UDAAP) and Section 5 of the Federal Trade Commission Act (FTC UDAP), which prohibits unfair or deceptive acts or practices (UDAP). The agencies use the same standards in determining whether the identified act or practice is unfair under the respective statutes. In particular, an act or practice is unfair when it (1) causes or is likely to cause substantial injury to consumers, (2) cannot be reasonably avoided by consumers, and (3) is not outweighed by countervailing benefits to consumers or to competition.

In each guidance, the agencies provide their analysis of how the identified acts are unfair, how the components of Dodd-Frank UDAAP and FTC UDAP are met, and what financial institutions should consider to avoid a potential UDAAP/UDAP violation.

FDIC: Supervisory Guidance on Charging Overdraft Fees for Authorize Positive, Settle Negative Transactions

On April 26, 2023, the Federal Deposit Insurance Corporation (FDIC) issued guidance to ensure that supervised institutions are aware of the consumer compliance risks associated with charging an overdraft fee on a transaction that was authorized against a positive balance but settled against a negative balance, a practice FDIC refers to as “authorize positive, settle negative” (APSN). FDIC previously identified concerns with APSN in its June 2019 Consumer Compliance Supervisory Highlights. The guidance expands on the 2019 Supervisory Highlights article by discussing FDIC’s concerns with both the available and ledger balance methods used by financial institutions when assessing overdraft fees. The guidance also clarifies that disclosures describing transaction processing may not mitigate the concerns.

Background

FDIC recognizes that overdraft programs, transaction clearing, and settlement processes are complex. In the case of APSN transactions, which involve consumers being assessed overdraft fees for transactions where they had sufficient account balances at the time the transactions were initiated, it may not be possible for consumers to determine when fees will be assessed and how they may be avoided.

Financial institutions’ processing systems generally use either a ledger balance method or an available balance method, including for the purpose of assessing overdraft-related fees. A ledger balance method calculates the account balance based only on transactions settled during the relevant period and does not take into account authorization holds. The method typically correlates to the balance reflected on a consumer’s periodic statement.

An available balance method calculates the account balance based on authorized (but not settled) transactions the financial institution is obligated to pay under contractual or other obligations, as well as settled transactions and pending deposits. The available balance is generally the amount of money/funds the consumer can access because it accounts for any pending debit or credit transactions. The balance typically correlates to the balance accessible to consumers

online, through a mobile application, at an ATM, or by phone. An account’s available balance may be impacted by pending debit transactions. This type of authorization hold is sometimes referred to as a debit hold, a temporary debit authorization hold, or a preauthorization.

Some financial institutions assess overdraft fees on debit card transactions that authorize when a customer’s available balance is positive but later post to a customer’s account when their balance is negative. In this scenario, a customer’s account has a sufficient available balance to cover a debit card transaction when the transaction is authorized but, due to one or more intervening transactions, has an insufficient balance to cover the transaction at the time it settles.

In addition to assessing an overdraft fee on the APSN transaction, some financial institutions also assess overdraft fees on intervening transactions that exceed the customer’s account balance. In this scenario, for example, the institution reduces a customer’s balance to account for the initial authorized debit card transaction, and subsequently, an intervening transaction further reduces the customer’s available balance so that the account no longer has a sufficient balance. The financial institution charges an overdraft fee on both the intervening transaction and the initial APSN transaction when posted to the customer’s account.

Examination Findings and FDIC Determinations

During consumer compliance examinations, FDIC determined that certain overdraft practices related to APSN transactions were unfair. As a result of its determination, FDIC has taken the position that the failure of a financial institution to take steps to avoid assessing overdraft-related fees when transactions are authorized on positive balances but settle on negative balances results in heightened risks of violations of Dodd-Frank UDAAP and FTC UDAP.

Unanticipated and unavoidable overdraft fees can cause substantial injury to consumers. A consumer is likely to suffer injury when charged more overdraft fees than may have been anticipated based on the consumer’s actual spending. While not all overdraft fees may be attributable to APSN transactions, the likely presence of intervening transactions may cause additional injury. The consumer cannot reasonably avoid the injury because the consumer does not have the ability to effectively control payment systems and overdraft processing systems practices. Due to the complicated nature of overdraft processing systems and payment system complexities outside the consumer’s control, consumers may be unable to avoid injury.

Additionally, in some cases, the institutions’ methodology for assessing overdraft fees on APSN transactions resulted in unanticipated and unavoidable overdraft fees that were not outweighed by a countervailing benefit to consumers or competition. Dodd-Frank UDAAP and FTC UDAP risks exist in both available balance and ledger balance methods of assessing overdraft fees, but may be more pronounced in situations where institutions use available balance methods. For example, the use of available balance to assess overdraft fees may exacerbate the injury, as temporary holds may lead to consumers being assessed multiple overdraft fees when they may have reasonably expected only one. FDIC encourages institutions to review their practices regarding the charging of overdraft fees on APSN transactions to ensure customers are not charged overdraft fees for transactions consumers may not anticipate or avoid.

FDIC also determined that third parties often play significant roles in processing transactions, identifying and tracking balances at the time of authorization, and providing systems that determine when overdraft fees are assessed. Institutions should ensure

May 2023

Volume 28, Number 12

Wisconsin Bankers Association 4721 South Biltmore Lane, P.O. Box 8880, Madison, Wisconsin, 53708-8880

Senior Writers

Heather MacKinnon

Scott Birrenkott

Editor Katie Reiser

Layout Sonja Vike

Copyright ©2023

Wisconsin Bankers Association. All rights reserved. Reproduction by any means of the entire contents or any portion of this publication without prior written permission is strictly prohibited. This publication is intended to provide accurate information in regard to the subject matter covered as of the date of publication; however, the information does not constitute legal advice. If legal advice or other expert assistance is required, the services of a competent and professional person should be sought.

overdraft programs provided by third parties are compliant with all applicable laws and regulations. FDIC emphasized that third-party arrangements may present risks if not properly managed by financial institution management. Institutions are encouraged to review third-party arrangements, as institutions are expected to maintain adequate oversight of third-party activities and appropriate quality control over products and services provided through third-party arrangements.

FDIC also encouraged financial institutions to review and understand the risks presented from third-party system settings for overdraft-related fees, as well as understand the capabilities of their core processing system(s), such as identifying and tracking transactions authorized on a positive balance but settled on a negative balance and maintaining data on such transactions. Some third parties offer data processing system enhancements aimed at preventing overdraft-related fees from being charged for a transaction when a debit hold authorizes against a positive balance. Note that some third parties may offer these enhancements as optional or require client financial institutions to take action in order to implement them.

Lastly, FDIC also generally encourages financial institutions to review disclosures and account agreements to ensure the institution’s practices for charging any fees on deposit accounts are communicated accurately, clearly, and consistently. However, FDIC cautioned that disclosures generally do not fully address Dodd-Frank UDAAP and FTC UDAP risks associated with APSN transactions and related overdraft fees.

Consumer Financial Protection Circular 2023-02: Reopening Deposit Accounts that Consumers Previously Closed

On May 10, 2023, the Bureau of Consumer Financial Protection (CFPB) released guidance which provides that if a financial institution unilaterally reopens a deposit account a consumer has closed to process a debit or deposit (i.e., withdrawal, ACH transaction, check), that action can constitute an unfair act or practice under the Consumer Financial Protection Act (CFPA). CFPB believes such action may impose substantial injury on consumers that they cannot reasonably avoid and that is not outweighed by countervailing benefits to consumers or competition.

Background

As compliance officers know, consumers may elect to close a deposit account for a variety of reasons. The process of closing a deposit account often takes time and effort. For example, closing an account involves taking steps to bring the account balance to zero at closure. Typically, the financial institution returns any funds remaining in the account to the consumer at closure and the consumer typically must pay any negative balance at closure.

Some institutions require customers to provide a certain period of notice (e.g., a week) prior to closing the account to provide time for the financial institution to process any pending debits or deposits. Deposit account agreements typically indicate that the financial institution may return any debits or deposits to the account that the financial institution receives after closures and faces no liability for failing to honor any debits or deposits received after closure.

Examination Findings and CFPB Determinations

CFPB found that sometimes after a consumer completes all of the steps that the financial institution requires to initiate the process of closing a deposit account and the financial institution completes the request, the financial institution unilaterally reopens the closed account if it receives a debit or deposit to the closed account. CFPB found that some financial institutions may reopen an account even if doing so would overdraw the account, causing the financial institution to impose overdraft or non-sufficient funds (NSF) fees. Financial institutions may also charge account maintenance fees upon reopening, even if the consumers were not required to pay such fees prior to account closure (e.g., because the account previously qualified to have the fees waived).

Compliance officers should be aware that CFPB has brought an enforcement action regarding the practice of account reopening under CFPA’s prohibition against UDAP. CFPB found that a financial institution engaged in an unfair practice by reopening deposit accounts consumers had previously closed without seeking prior authorization or providing timely notice. The practice of reopening closed deposit accounts caused some account balances to become negative and potentially subjected consumers to various fees, including overdraft and NSF fees. In addition, when the financial institution reopened an account to process a deposit, creditors had the opportunity to initiate debits to the accounts and draw down the funds, possibly resulting in a negative balance and the accumulation of fees.

In the guidance, CFPB provided its analysis of how the unilateral reopening of deposit accounts previously closed by consumers can constitute a violation of CFPA’s prohibition on unfair acts or practices.

After a consumer has closed a deposit account, a financial institution’s act of unilaterally reopening that account upon receiving a debit or deposit may cause monetary harm to the consumer. The charge may be in the form of an account activity charge, overdraft or NSF fee, or for not maintaining a minimum balance. Other substantial injury could include reporting negative information to a consumer reporting agency if the reopened account becomes overdrawn as a result of the processing of a debit after account closure.

In its analysis, CFPB found that consumers often cannot reasonably avoid the risk of substantial injury caused by financial institutions’ practice of unilaterally reopening accounts that consumers previously closed because they cannot control one or more of the following circumstances: a third party’s attempt to debit or deposit money, the process and timing of account closure, or the terms of the deposit account agreements.

To the extent financial institutions are concerned about controlling their own costs to remain competitive, CFPB believes institutions have alternatives to reopening a closed account upon receiving a debit or deposit that could minimize their expenses and liability. For example, the financial institution could decline any transactions that they receive for accounts consumers previously closed. In addition to minimizing the institution’s costs, not reopening the accounts may protect the financial institution against the use of closed accounts to commit fraud.

CFPB has instructed in its guidance that government enforcers (e.g., banking regulators) should consider whether a financial institution has violated the prohibition against unfair acts or practices in CFPA if it is discovered that a financial institution has unilaterally reopened accounts that consumers previously closed.

OCC Bulletin 2023-12: Overdraft Protection Programs Risk Management Practices

On April 26, 2023, the Office of the Comptroller of the Currency (OCC) issued Bulletin 2023-12 Overdraft Protection Programs: Risk Management Practices to address the risks associated with bank overdraft protection programs. The guidance provides background information on overdraft protection programs and identifies certain practices that may result in heightened risk exposure. The practices include assessing overdraft fees on “authorize positive, settle negative” transactions (APSN) as identified in CFPB’s guidance outlined directly above and assessing a fee each time an item is presented for payment after it was returned for non-sufficient funds (representment fees). The guidance also describes several practices that may help banks control risks associated with overdraft protection programs, as well as compliance with FTC UDAP.

OCC’s guidance also identified that high limits or lack of daily limits on the number of fees assessed to an account can heighten risks to financial institutions of UDAP. OCC stated that in its supervisory experience, charging overdraft or NSF fees with a high limit (or without limit) for multiple transactions in a single day has contributed to determinations that bank’s overdraft protection programs as a whole were unfair for purposes of FTC UDAP because the lack of limits resulted in high costs for consumers and the difficulty in bringing accounts positive.

Additionally, OCC identified that sustained overdraft fees can heighten UDAP risks. OCC has identified that charging a fixed, periodic fee for the failure to cure a previous overdrawn balance has contributed to findings of unfairness and deception under FTC UDAP when the bank does not accurately disclose the circumstances under which the consumer could incur sustained overdraft fees. The fees make it more difficult for customers facing liquidity challenges to reasonably avoid the fees by bringing the account balance positive.

OCC outlines several mitigation steps including that financial institutions should have processes in place to manage the risks associated with offering new, modified, or expanded products or services, including new overdraft protection programs or changes to existing programs. Financial institutions’ processes and control systems should align with established policies and incorporate appropriate procedures and practices for managing risks associated with overdraft programs.

Conclusion

Through recent releases, FDIC, CFPB, and OCC identified activities each believe violate Dodd-Frank UDAAP and FTC UDAP having concluded the acts are unfair because the acts caused or are likely to cause substantial injury to consumers, cannot be reasonably avoided by consumers, and are not outweighed by countervailing benefits to consumers or to competition..

Given the instructions within each guidance, compliance officers should review their respective practices to determine whether activities discussed within the guidance are practices the institution permits.

Compliance officers should also work with their core processors and other third-party vendors to know how systems functionality can best be used to prevent the identified activity from occurring. For example, compliance officers and deposit operations should work with their core processor to ensure that once an account is closed by the consumer that the account cannot be reopened by a posting of a transaction to the closed account. Often financial institutions monitor account activity when an account is closed due to a consumer reporting fraud occurring on an account to ensure items do not post to the account. Deposit operations should ensure a similar level of monitoring occurs when an account is closed at the request of a consumer in a non-fraud related situation to protect against the closed account being reopened. Also, to work with core processors and other third-party vendors to identify which transactions were approved when the consumer had a positive balance to ensure that if the balance is negative when the previously approved transaction posts to the account, the account is not charged an overdraft or NSF fee.

Compliance officers should expect compliance examiners to question how the financial institution monitors or prevents the activities identified in the guidance, as applicable.

The FDIC Supervisory Guidance may be viewed at: www.fdic.gov/news/financial-institution-letters/2023/fil23019a.pdf

The CFPB Compliance Circular 2023-02 may be viewed at: www.consumerfinance.gov/compliance/circulars/consumerfinancial-protection-circular-2023-02-reopening-deposit-accounts-that-consumers-previously-closed/

The OCC Bulletin 2023-12 may be viewed at: https://www.occ.gov/news-issuances/news-releases/2023/nrocc-2023-41.html

Joint Agency Statement and Interim Final Rule to Facilitate Transition from US LIBOR

As financial institutions continue to move towards completing steps to transition away from the use of U.S. dollar (USD) London Inter-Bank Offered Rate (LIBOR) in contracts, state and federal banking regulators remind institutions of the importance to complete such steps by the end of June. The agencies released an interagency statement and an interim final rule to further facilitate the efforts. Both items are summarized below.

Interagency Statement on Completing the LIBOR Transition

The Board of Governors of the Federal Reserve System (FRB), Federal Deposit Insurance Corporation (FDIC), Office of the Comptroller of the Currency (OCC), National Credit Union Administration (NCUA), and Bureau of Consumer Financial Protection (CFPB), in conjunction with the state bank and state credit union regulators (collectively, agencies) issued a joint statement to remind supervised institutions that USD LIBOR panels will end on 06/30/2023. The agencies also reiterated their expectations that institutions with USD LIBOR exposure should complete their transition of remaining LIBOR contracts as soon as practicable. As noted in prior interagency statements, failure to adequately prepare for LIBOR’s discontinuance could undermine financial stability and financial institutions’ safety and soundness and create litigation, operational, and consumer protection risks.

The agencies stated each expect institutions to have taken all necessary steps to prepare for an orderly transition away from LIBOR by the end of June. The agencies also stated that while financial institutions have reported significant

progress in their LIBOR transition efforts, work remains for financial institutions to prepare for the end of the USD LIBOR panels. The agencies encourage institutions to ensure that replacement alternative rates are negotiated where needed and in place in advance of June 30th, for all LIBOR-referencing financial contracts including investments, derivatives, and loans. The agencies also encourage institutions to work expeditiously with their customers and coordinate with other institutions as needed in these efforts.

The interagency statement may be viewed at: www.fdic.gov/news/financial-institution-letters/2023/fil23020.html

Interim Final Rule: Facilitating the LIBOR Transition Consistent with the LIBOR Act (Regulation Z)

The Bureau of Consumer Financial Protection (CFPB) issued an interim final rule to amend Regulation Z, which implements the Truth in Lending Act (TILA), to reflect the enactment of the Adjustable Interest Rate (LIBOR) Act (the LIBOR Act) and its implementing regulation promulgated by the Board of Governors of the Federal Reserve System (FRB).

The interim final rule further addresses the planned cessation of most USD LIBOR tenors after 06/30/2023, by incorporating the FRB-selected benchmark replacement for consumer loans into Regulation Z. The interim final rule conforms the terminology from the LIBOR Act and FRB’s implementing regulation into relevant Regulation Z open-end and closed-end credit provisions and also addresses treatment of the 12-month USD LIBOR index and its replacement index, including permitting creditors to use alternative language in change-in-terms notice content requirements for situations where the 12-month tenor of the LIBOR index is being replaced consistent with the LIBOR Act. The interim final rule is effective 05/15/2023

As there have been several rules regarding the sunset of USD LIBOR, the following is a recap of past actions to help explain the rationale for the issuance of the latest interim final rule.

Background

Introduced in the 1980s, LIBOR was intended to measure the average rate at which a financial institution could obtain unsecured funding in the London interbank market for a given period, in a given currency. In the United States, financial institutions have used LIBOR as a common benchmark rate for a variety of adjustable-rate consumer financial products, including mortgages, credit cards, home equity lines of credit (HELOCs), reverse mortgages, and student loans.

Typically, the consumer pays an interest rate that is calculated as the sum of a benchmark index and a margin. For example, a consumer may pay an interest rate equal to the 12-month USD LIBOR plus two percentage points. LIBOR is set to expire on 06/30/2023

Financial institutions have been developing plans and procedures to transition from the use of LIBOR indices to replacement indices for products that are being newly issued and existing accounts that were originally benchmarked to a LIBOR index. In some markets, such as for HELOCs and credit cards, the vast majority of newly originated lines of credit are already based on indices other than a LIBOR index.

On 12/08/2021, CFPB issued the 2021 LIBOR Transition Final Rule generally to address the expected discontinuance of most USD tenors of LIBOR in June 2023. The 2021 LIBOR Transition Final Rule, among other things, amended open-end and closed-end provisions of Regulation Z to provide examples of replacement indices to USD LIBOR tenors that meet certain Regulation Z standards. For each of the open-end and closed-end provisions, while CFPB generally provided examples of certain indices, including Secured Overnight Financing Rate (SOFR)-based replacement indices for 1-month, 3- month, and 6-month tenors of USD LIBOR, CFPB reserved judgment about whether to include a SOFR-based replacement index for the 1-year (now being referred to as 12-month in the interim final rule) USD LIBOR index until it obtained additional information.

CFPB stated that once it knew which SOFR-based index the Alternative Reference Rate Committee (ARRC) would recommend to replace the 12-month USD LIBOR index for consumer products, CFPB would consider determining whether the replacement index and replacement margin met the appropriate standards in Regulation Z and would then consider whether to codify that determination in a supplemental final rule, or otherwise announce that determination. Most provisions of the 2021 LIBOR Transition Final Rule were effective on 04/01/2022.

On 03/15/2022, Congress enacted the LIBOR Act. Among other things, the LIBOR Act provides that FRB may identify a replacement index based on SOFR published by the Federal Reserve Bank of New York (or a successor administrator), including tenor spread adjustments, to replace the 1-month, 3-month, 6-month, and 12-month tenors of USD LIBOR for any LIBOR contracts that do not otherwise specify a replacement rate fallback provision or method for selecting a fallback rate.

The LIBOR Act (and FRB’s subsequent final rule, discussed below) identify the replacement indices as the “FRBselected benchmark replacement” index. The LIBOR Act provides certain safe harbors for use of an FRB-selected benchmark replacement for consumer loans, including stating that the FRB-selected benchmark replacements constitute replacement indices that have historical fluctuations that are substantially similar to those of LIBOR for purposes of TILA and regulations promulgated under that statute.

FRB issued a final rule to implement the LIBOR Act on 12/16/2022, effective 02/27/2023 (FRB’s 2022 LIBOR Act Final Rule). Among other things, FRB’s final rule established benchmark replacements for contracts governed by U.S. law that reference certain tenors of USD LIBOR, including those of 1-month, 3-month, 6-month, 11 and 12-month tenors, that do not have terms that provide for the use of a clearly defined and practicable replacement benchmark rate following the cessation of LIBOR.

The LIBOR Act, and FRB’s implementing regulation, provide for certain adjustments in general for LIBOR contracts and more specifically for LIBOR contracts that are consumer loans. Consistent with LIBOR Act, the final rule identified each of those indices as a “FRB-selected benchmark replacement” for consumer loans, thereby meeting the safe harbor criteria in the LIBOR Act. The final rule provided that the FRB-selected benchmark replacements for LIBOR contracts that are consumer loans using 1-month, 3-month, 6-month, or 12-month tenors of USD LIBOR during the one-year period beginning on the LIBOR replacement date shall be the corresponding 1-month, 3-month, 6-month, or 12-month CME Term SOFR plus an amount that transitions linearly for each business day during that period from the difference between the relevant CME Term SOFR and the relevant LIBOR tenor determined as of the day immediately before the LIBOR replacement date to the applicable tenor spread adjustment identified in the final rule. After expiration of that first-year period, the rule provided that the FRB-selected benchmark replacements shall be the corresponding 1-month, 3-month, 6-month, or 12-month CME Term SOFR plus the applicable tenor spread adjustment identified in the final rule. Effectively, the FRB-selected benchmark replacements for LIBOR contracts that are consumer loans as set forth in the FRB’s final rule are the indices based on SOFR recommended by the ARRC for consumer products for the 1-month, 3-month, 6-month and 12-month USD LIBOR tenors.

Rationale for Interim Final Rule

CFPB issued the interim final rule to amend Regulation Z for both open-end and closed-end credit to make changes consistent with the LIBOR Act and its implementing regulation issued by FRB and further address the planned cessation of LIBOR. The changes amend and update CFPB’s Facilitating the LIBOR Transition (Regulation Z) final rule published in the Federal Register on 12/08/2021 (2021 LIBOR Transition Final Rule).

In general, the interim final rule makes several conforming terminology changes to align with the LIBOR Act and FRB’s implementing regulation. As mentioned above, in the 2021 LIBOR Transition Final Rule, CFPB generally had provided examples of certain indices, including spread-adjusted SOFR-based indices, that may meet the applicable Regulation Z standards (referred to hereafter as SOFR-based replacement indices) for the 1-month, 3-month, and 6-month tenors of USD LIBOR, but it reserved judgment about whether to include references to a 1-year (or 12-month) USD LIBOR index and its SOFR based replacement index.

CFPB is now also conforming Regulation Z with the LIBOR Act and FRB’s implementing regulation by adding such references with respect to the SOFR-based replacement for the 12-month tenor of LIBOR. The interim final rule does not alter or modify FRB’s determination in the 2021 LIBOR Transition Final Rule in relation to the prime rate as a replacement index.

Open-End Credit

CFPB amended several open-end credit provisions in Regulation Z. First, CFPB has changed the terminology used in the 2021 LIBOR Transition Final Rule to make it consistent with terminology in the LIBOR Act and FRB’s implementing regulation. Specifically, CFPB has replaced all references to the “index based on SOFR recommended by the Alternative

Special Focus

Reference Rates Committee for consumer products” with “the FRB-selected benchmark replacement for consumer loans” and adding a new definition for that term in §1026.2(a)(28). For the new definition and throughout the interim final rule, CFPB uses the term 12-month tenor instead of the 1-year tenor with respect to the USD LIBOR index to align with the terminology used in the LIBOR Act and FRB’s implementing regulation. The changes are set forth in §1026.40(f)(3)(ii) and related comments for HELOCs and in §1026.55(b)(7) and related comments for credit card accounts.

Second, CFPB revised Regulation Z interpretations to incorporate the FRB-selected benchmark replacement for consumer loans to replace the 12-month LIBOR index, as prescribed by the LIBOR Act and FRB’s implementing regulation, as an index that has historical fluctuations that are substantially similar to those of the 12-month USD LIBOR index it is intended to replace. Consistent with the LIBOR Act and FRB’s implementing regulation, CFPB’s prior determination of the spread-adjusted indices based on SOFR recommended by ARRC is obsolete given that “the FRBselected benchmark replacement for consumer loans” to replace 1-month, 3-month, and 6-month USD LIBOR indices is the same as the corresponding spread-adjusted index based on SOFR recommended by the ARRC for consumer products. The changes are set forth in §1026.40(f)(3)(ii) and related comments for HELOCs and in §1026.55(b)(7) and related comments for credit card accounts.

Third, CFPB added the FRB-selected benchmark replacement for consumer loans that would replace the 12-month USD LIBOR index to the list of indices where a creditor is allowed to use an alternative method to disclose information about the periodic rate and annual percentage rate (APR) in change-in-terms notices for HELOCs and credit card accounts as a result of the replacement of the LIBOR index in certain circumstances. The changes are set forth in comment 9(c)(1)-4 for HELOCs and in comment 9(c)(2)(iv)-2.ii for credit card accounts.

Fourth, CFPB added the FRB-selected benchmark replacement for consumer loans that would replace the 12-month USD LIBOR index to the list of indices where a card issuer is allowed to use an alternative method for determining whether the card issuer can terminate its obligation under the credit card account rate reevaluation requirements where the rate applicable immediately prior to a rate increase was a variable rate calculated using a LIBOR index. CFPB also deleted its prior determination in Regulation Z interpretations given that “the FRB-selected benchmark replacement for consumer loans” to replace 1-month, 3-month, and 6-month USD LIBOR indices is the same as the corresponding spread-adjusted index based on SOFR recommended by the ARRC for consumer products. The changes are set forth in §1026.59(f)(3) and comment 59(f)-4.B.

Closed-End Credit

CFPB also amended the closed-end credit provisions in Regulation Z. First, CFPB changed the terminology used in its 2021 LIBOR Transition Final Rule to make it consistent with terminology in the LIBOR Act. Specifically, CFPB replaced the reference to the “index based on SOFR recommended by the Alternative Reference Rates Committee for consumer products” with a reference to “the FRB-selected benchmark replacement for consumer loans.”

Second, CFPB revised an illustrative example in Regulation Z official interpretations to incorporate the FRB-selected benchmark replacement for consumer loans to replace the 12-month LIBOR index, as prescribed by the LIBOR Act, as an index that is comparable to the 12-month USD LIBOR index it is intended to replace for purposes of the closed-end refinancing provisions. The changes are set forth in comment 20(a)(3)-ii.B.

As stated above, CFPB’s interim final rule is effective 05/15/2023. Comments regarding the interim final rule are due 6/12/2023 CFPB has also created a summary of the interim final rule and has updated its LIBOR Transition FAQs.

The interim final rule may be viewed at: https://files.consumerfinance.gov/f/documents/cfpb_facilitating-libor-transitionlibor-act-regulation-z_2023-04.pdf

The rule summary may be viewed at: https://files.consumerfinance.gov/f/documents/cfpb_fast-facts_libor-transitioninterim-final-rule.pdf

CFPB’s LIBOR Transition FAQs may be viewed at: https://www.consumerfinance.gov/compliance/compliance-resources/ other-applicable-requirements/libor-index-transition/libor-transition-faqs/

Agencies Revise Interagency Policy Statement on Allowances for Credit Losses.

The Board of Governors of the Federal Reserve System (FRB), Federal Deposit Insurance Corporation (FDIC), Office of the Comptroller of the Currency (OCC), and National Credit Union Administration (NCUA) (collectively, the agencies) issued a revised interagency policy statement on allowances for credit losses. The agencies issued the revised statement in response to changes to U.S. generally accepted accounting principles (GAAP) as promulgated by the Financial Accounting Standards Board (FASB) in Accounting Standards Update 2022-02, Financial Instruments-Credit Losses (Topic 326): Troubled Debt Restructurings and Vintage Disclosures issued in March 2022. The revised policy statement is applicable 04/27/2023. The revised policy statement may be viewed at: https://www.govinfo.gov/content/pkg/FR2023-04-27/pdf/2023-08876.pdf. Federal Register, Vol. 88, No. 81, 04/27/2023, 25479-25488.

CFPB Issues Policy Statement Regarding Abusive Acts or Practices.

The Bureau of Consumer Financial Protection (CFPB) issued a Statement of Policy Regarding Prohibition on Abusive Acts or Practices (Policy Statement). The Consumer Financial Protection Act (CFPA) prohibits any “covered person” or “service provider” from “engag[ing] in any unfair, deceptive, or abusive act or practice” and defines abusive conduct. An abusive act or practice materially interferes with the ability of a consumer to understand a term or condition of a consumer financial product or service, or takes unreasonable advantage of a lack of understanding on the part of the consumer of the material risks, costs, or conditions of the product or service, the inability of the consumer to protect the interests of the consumer in selecting or using a consumer financial product or service, or the reasonable reliance by the consumer on a covered person to act in the interests of the consumer. Since the enactment of CFPA, government enforcers and supervisory agencies have taken dozens of actions to condemn prohibited abusive conduct. The Policy Statement summarizes actions and explains how CFPB analyzes the elements of abusiveness through relevant examples. CFPB seeks comment regarding the Policy Statement, and may make revisions as appropriate after reviewing feedback received. Comments are due 07/03/2023. The Policy Statement is applicable 04/12/2023. The Policy Statement may be viewed at: https://www.govinfo.gov/content/pkg/FR-2023-04-12/pdf/2023-07233.pdf Federal Register, Vol. 88, No. 70, 04/12/2023, 21883-21890.

CFPB Issues Advisory Opinion on Time-Barred Debt.

CFPB issued an advisory opinion to affirm that the Fair Debt Collection Practices Act (FDCPA) and its implementing Regulation F prohibit a debt collector, as that term is defined in the statute and regulation, from suing or threatening to sue to collect a time-barred debt. Accordingly, an FDCPA debt collector who brings or threatens to bring a state court foreclosure action to collect a time-barred mortgage debt may violate FDCPA and Regulation F. The advisory opinion is effective 05/01/2023. The advisory opinion may be viewed at: https://www.govinfo.gov/content/pkg/FR-2023-05-01/ pdf/2023-09171.pdf. Federal Register, Vol. 88, No. 83, 05/01/2023, 26475-26477.

CFPB Issues Revised Methodology for Determining APORs.

CFPB announced the availability of a revised version of its Methodology for Determining Average Prime Offer Rates, which describes the data and methodology used to calculate the average prime offer rate (APOR) for purposes of Regulation C and Regulation Z. The methodology statement has been revised to address the imminent unavailability of certain data CFPB previously relied on to calculate APORs, as a result of a recent decision by Freddie Mac to make changes to its Primary Mortgage Market Survey. CFPB has identified a suitable temporary alternative source of the relevant data and began relying on those data to calculate APORs on or after 04/21/2023. The notice may be viewed at: https://www.govinfo.gov/content/pkg/FR-2023-04-20/pdf/2023-08310.pdf Federal Register, Vol. 88, No. 76, 04/20/2023, 24393-24394.

CFPB Seeks Comment on Junk Fees Timing Study.

CFPB seeks comment regarding an information collection titled, Junk Fees Timing Study. CFPB will investigate whether product information provided at the beginning of a product search leads to better choices than information that is revealed gradually during the search process and why. The investigation will be a part of a series of online lab experiments testing differences in consumer choices across different information presentations. Comments are due

05/18/2023. The notice may be viewed at: https://www.govinfo.gov/content/pkg/FR-2023-04-18/pdf/2023-08171.pdf Federal Register, Vol. 88, No. 74, 04/18/2023, 23646.

CFPB Seeks Comment on Student Loan Survey.

CFPB seeks comment regarding an information collection titled, Student Loan Survey. CFPB seeks to obtain approval for a new survey of student loan borrowers to understand their borrowing decisions, their experience managing their loans, and their expectations for the future. The survey will be sent to a random sample selected from individuals in CFPB’s new Consumer Credit Information Panel. Comments are due 06/26/2023. The notice may be viewed at: https://www.govinfo.gov/content/pkg/FR-2023-04-27/pdf/2023-08822.pdf. Federal Register, Vol. 88, No. 81, 04/27/2023, 25624-25625.

FDIC Updates Listing of Financial Institutions in Liquidation.

The Federal Deposit Insurance Corporation (FDIC) provided notice it has been appointed the sole receiver for the financial institution listed in the notice effective as of the date closed as indicated in the listing. The list (as updated from time to time in the Federal Register) may be relied upon as “of record” notice that FDIC has been appointed receiver for purposes of the statement of policy published in the 07/02/1992, issue of the Federal Register. For further information concerning the identification of any institutions which have been placed in liquidation, please visit the FDIC website or contact the Chief, Receivership Oversight at the addresses provided within the notice. The notice may be viewed at: https://www.govinfo.gov/content/pkg/FR-2023-05-04/pdf/2023-09528.pdf Federal Register, Vol. 88, No. 86, 05/04/2023, 28551.

FDIC Issues Technical Correction Affecting Equal Housing Lending Poster.

FDIC made a technical correction to its Fair Housing Rule to reinsert a previous instruction regarding the Equal Housing Lending Poster. The Fair Housing Rule was last amended in August 2022 through a technical correction to reflect a reorganization and change in the name of FDIC’s former Consumer Response Center to the National Center for Consumer and Depositor Assistance (Center) and to add web addresses. In February 2021, FDIC amended part 338 to make it applicable to state savings associations, and revised §338.4 by removing the mailing address for the former Consumer Response Center and replacing it with a bracketed instruction to insert on the Equal Housing Lending Poster the address for the former Consumer Response Center as stated on FDIC’s website. Historically, the required language

Regulatory Spotlight

for the Equal Housing Lending Poster included only the mailing address for the former Consumer Response Center. When updating part 338 in August 2022, the bracketed instruction to include the mailing address was inadvertently removed. Therefore, FDIC has made a further technical correction to part 338 to reinsert the bracketed instruction for FDIC-supervised institutions to insert on their Equal Housing Lending Posters the mailing address for the Center as stated on FDIC’s website. Including the instruction for FDIC-supervised banks to insert the mailing address, rather than listing the Center’s current mailing address, helps ensure that posters contain the Center’s up-to-date mailing address. The correction is effective 06/23/2023. The correction may be viewed at: https://www.govinfo.gov/content/pkg/FR-202304-24/pdf/2023-08609.pdf Federal Register, Vol. 88, No. 78, 04/24/2023, 24677-24678.

FDIC Seeks Comment on Yet-to-Be Determined Service Surveys.

FDIC seeks comment regarding an information collection titled, Fast-Track Generic Qualitative Surveys. The information collection establishes ongoing authority for FDIC to conduct yet-to-be-determined occasional quality-of-service surveys. Through the information collection, FDIC will be able to obtain expedited approval of individual surveys by following a special submission process that does not require the publication of Federal Register notices for each individual survey. Comments are due 06/23/2023. The notice may be viewed at: https://www.govinfo.gov/content/pkg/FR-2023-04-24/ pdf/2023-08552.pdf. Federal Register, Vol. 88, No. 78, 04/24/2023, 24796-24797.

OCC Seeks Comment on Information Collection Regarding Securities Offering Disclosure Rules.

The Office of the Comptroller of the Currency (OCC) seeks comment regarding an information collection titled, Securities Offering Disclosure Rules. Twelve CFR part 16 governs the offer and sale of securities by national banks and federal savings associations. The requirements in part 16 enable OCC to perform its responsibility to ensure that the investing public has information about the condition of the institution, the reasons for raising new capital, and the terms of the offering. Part 16 requires that securities offering disclosures of national banks and federal savings associations be generally consistent with similar SEC disclosure requirements. The information collection is used in connection with the requirement under Part 16. Comments are due 05/22/2023. The notice may be viewed at: https://www.govinfo.gov/ content/pkg/FR-2023-04-20/pdf/2023-08299.pdf Federal Register, Vol. 88, No. 76, 04/20/2023, 24467-24468.

HUD Announces Reduction in Upfront and Annual Loan Guarantee Fees.

The Department of Housing and Urban Development (HUD) announced a reduction in upfront and annual loan guarantee fees for the Section 184 Indian Housing Loan Guarantee (Section 184 Program). The Section Program is a home mortgage program specifically designed for American Indian and Alaska Native families, Alaska villages, Tribes, or Tribally Designated Housing Entities. Based on the program’s strong performance and low default rate, HUD has determined that the fees charged to the borrower can be reduced without risk to the overall performance of the program. HUD has exercised its authority to decrease the upfront loan guarantee fee from 1.50 to 1.00 percent and the annual loan guarantee fee from 0.25 to 0.00 percent for all new or updated Section 184 Firm Commitments as of the effective date of this notice, including refinances. The notice is applicable 07/01/2023. The notice may be viewed at: https://www. govinfo.gov/content/pkg/FR-2023-05-04/pdf/2023-09479.pdf Federal Register, Vol. 88, No. 86, 05/04/2023, 28598.

HUD Issues ANPR to Update Section 504 Regulations.

HUD issued an advanced notice of proposed rulemaking (ANPR) to seek comment on changes that HUD is considering to its implementing regulations for Section 504 of the Rehabilitation Act (Section 504) for federally-assisted and HUDconducted programs and activities. Section 504 prohibits discrimination on the basis of disability in all programs and activities receiving federal financial assistance and in programs and activities conducted by executive agencies. HUD intends to draft a proposed rule that would recommend the adoption of an updated federal accessibility standard for purposes of compliance with Section 504 regulations. In addition, HUD intends to propose revisions to Section 504 regulations to clarify recipients’ obligations, including how to account for advances in accessible design, information and communication technology, and assistive technologies that have become available since Section 504 regulations were originally published. Comments are due 07/24/2023. The ANPR may be viewed at: https://www.govinfo.gov/content/ pkg/FR-2023-04-25/pdf/2023-08464.pdf Federal Register, Vol. 88, No. 79, 04/25/2023, 24938-24944.

Regulatory Spotlight

FEMA Issues Final Flood Hazard Determinations.

The Federal Emergency Management Agency (FEMA) issued a notice which identifies communities in the state of Minnesota, where flood hazard determinations, which may include additions or modifications of Base Flood Elevations (BFEs), base flood depths, Special Flood Hazard Area (SFHA) boundaries or zone designations, or regulatory floodways on the Flood Insurance Rate Maps (FIRMs) and where applicable, in the supporting Flood Insurance Study (FIS) reports have been made final. The FIRM and FIS report are the basis of the floodplain management measures that a community is required either to adopt or to show evidence of having in effect in order to qualify or remain qualified for participation in FEMA’s National Flood Insurance Program (NFIP). The date of 09/07/2023, has been established for the FIRM and, where applicable, the supporting FIS report showing the new or modified flood hazard information for each community. The notice may be viewed at: https://www.govinfo.gov/content/pkg/FR-2023-04-12/pdf/2023-07679.pdf Federal Register, Vol. 88, No. 70, 04/12/2023, 22054-22056.

FEMA issued a notice which identifies communities in the states of Michigan and Wisconsin, where flood hazard determinations, which may include additions or modifications of Base Flood Elevations (BFEs), base flood depths, Special Flood Hazard Area (SFHA) boundaries or zone designations, or regulatory floodways on the Flood Insurance Rate Maps (FIRMs) and where applicable, in the supporting Flood Insurance Study (FIS) reports have been made final. The FIRM and FIS report are the basis of the floodplain management measures that a community is required either to adopt or to show evidence of having in effect in order to qualify or remain qualified for participation in FEMA’s National Flood Insurance Program (NFIP). The date of 08/15/2023, has been established for the FIRM and, where applicable, the supporting FIS report showing the new or modified flood hazard information for each community. The notice may be viewed at: https://www.govinfo.gov/content/pkg/FR-2023-04-12/pdf/2023-07678.pdf

Federal Register, Vol. 88, No. 70, 04/12/2023, 22057-22059.

FEMA issued a notice which identifies communities in the states of Iowa, Minnesota, and Ohio, where flood hazard determinations, which may include additions or modifications of Base Flood Elevations (BFEs), base flood depths, Special Flood Hazard Area (SFHA) boundaries or zone designations, or regulatory floodways on the Flood Insurance Rate Maps (FIRMs) and where applicable, in the supporting Flood Insurance Study (FIS) reports have been made final. The FIRM and FIS report are the basis of the floodplain management measures that a community is required either to adopt or to show evidence of having in effect in order to qualify or remain qualified for participation in FEMA’s National Flood Insurance Program (NFIP). The date of 09/21/2023, has been established for the FIRM and, where applicable, the supporting FIS report showing the new or modified flood hazard information for each community. The notice may be viewed at: https://www.govinfo.gov/content/pkg/FR-2023-05-09/pdf/2023-09790.pdf. Federal Register, Vol. 88, No. 89, 05/09/2023, 29926-29927.

FEMA Issues Notices of Changes in Flood Hazard Determinations.

FEMA issued a notice which lists communities in the states of Illinois, Iowa, Michigan, and Ohio, where the addition or modification of Base Flood Elevations (BFEs), base flood depths, Special Flood Hazard Area (SFHA) boundaries or zone designations, or the regulatory floodway (hereinafter referred to as flood hazard determinations), as shown on the Flood Insurance Rate Maps (FIRMs), and where applicable, in the supporting Flood Insurance Study (FIS) reports, prepared by FEMA for each community, is appropriate because of new scientific or technical data. The FIRM, and where applicable, portions of the FIS report, have been revised to reflect the flood hazard determinations through issuance of a Letter of Map Revision (LOMR), in accordance with federal regulations. The flood hazard determinations will be finalized on the dates listed in the table in the notice and revise the FIRM panels and FIS report in effect prior to the determination for the listed communities. From the date of the second publication of notification of the changes in a newspaper of local circulation, any person has 90 days in which to request through the community that the Deputy Associate Administrator for Insurance and Mitigation reconsider the changes. The flood hazard determination information may be changed during the 90-day period. The notice may be viewed at: https://www.govinfo.gov/content/pkg/FR-2023-05-09/pdf/2023-09789. pdf Federal Register, Vol. 88, No. 89, 05/09/2023, 29927-29931.

Regulatory Spotlight

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 Michigan, 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 08/07/2023. The notice may be viewed at: https://www.govinfo.gov/content/pkg/FR2023-05-09/pdf/2023-09784.pdf Federal Register, Vol. 88, No. 89, 05/09/2023, 29925-29926.

FinCEN Seeks Comment on Registration of MSBs Information Collection.

The Financial Crimes Enforcement Network (FinCEN) seeks comment regarding an information collection titled, Registration of Money Services Business, Form 107. Under FinCEN regulations, money services businesses (MSBs) must register with FinCEN using Form 107. MSBs are also required to renew their registration every two years and maintain a list of their agents. Comments are due 06/12/2023. The notice may be viewed at: https://www.govinfo.gov/content/pkg/ FR-2023-04-11/pdf/2023-07540.pdf Federal Register, Vol. 88, No. 69, 04/11/2023, 21746-21747.

IRS Issues Proposed Rule on Micro-Captive Listed Transactions and Transactions of Interest.

The Internal Revenue Service (IRS) issued a proposed rule that identifies transactions that are the same as, or substantially similar to, certain micro-captive transactions as listed transactions, a type of reportable transaction, and certain other micro-captive transactions as transactions of interest, another type of reportable transaction. Material advisors and certain participants in the listed transactions and transactions of interest are required to file disclosures with IRS and are subject to penalties for failure to disclose. Comments are due 06/12/2023. The proposed rule may be viewed at: https://www.govinfo.gov/content/pkg/FR-2023-04-11/pdf/2023-07315.pdf Federal Register, Vol. 88, No. 69, 04/11/2023, 21547-21564.

IRS Issues Proposed Rule on Supervisory Approval of Penalties.

IRS issued a proposed rule regarding supervisory approval of certain penalties assessed by IRS. The proposed rule is necessary to address uncertainty regarding various aspects of supervisory approval of penalties that have arisen due to recent judicial decisions. Comments are due 07/10/2023. The proposed rule may be viewed at: https://www.govinfo.gov/ content/pkg/FR-2023-04-11/pdf/2023-07232.pdf. Federal Register, Vol. 88, No. 69, 04/11/2023, 21564-21572.

IRS Issues Proposed Rule on Repatriations of Intangible Property.

IRS issued a proposed rule that, in certain cases, would terminate the continued application of certain tax provisions arising from a previous transfer of intangible property to a foreign corporation when the intangible property is repatriated to certain United States persons. The proposed rule would affect certain United States persons that previously transferred intangible property to a foreign corporation. Comments are due 07/03/2023. The proposed rule may be viewed at: https://www.govinfo.gov/content/pkg/FR-2023-05-03/pdf/2023-08843.pdf Federal Register, Vol. 88, No. 85, 05/03/2023, 27819-27832.

IRS Issues Proposed Rule on Valuable Consideration Rules for Exchanges of Life Insurance and Other Life Insurance Contract Transactions.

IRS issued a proposed rule to provide guidance on the application of the transfer for valuable consideration rules and associated information reporting requirements for reportable policy sales of interests in life insurance contracts to exchanges of life insurance contracts qualifying for nonrecognition of gain or loss, as well as to certain acquisitions of interests in life insurance contracts in transactions that qualify as corporate reorganizations. The proposed rule affects parties involved in life insurance contract transactions, including with respect to payments of reportable death benefits. Comments are due 07/10/2023. The proposed rule may be viewed at: https://www.govinfo.gov/content/pkg/FR-202305-10/pdf/2023-09637.pdf. Federal Register, Vol. 88, No. 90, 05/10/2023, 30058-30068.

Regulatory Spotlight

FHFA Issues Proposed Rule on Fair Lending and Fair Housing.

The Federal Housing Finance Agency (FHFA) seeks comment on a proposed rule meant to address barriers to sustainable housing opportunities for underserved communities by codifying existing FHFA practices in regulation and adding new requirements related to fair lending, fair housing, and Equitable Housing Finance Plans. The proposed rule would improve FHFA’s fulfillment of its statutory purposes and its oversight of the Federal National Mortgage Association (Fannie Mae), Federal Home Loan Mortgage Corporation (Freddie Mac), and Federal Home Loan Banks, and their fulfillment of their statutory purposes. Comments are due 06/26/2023. The proposed rule may be viewed at: https://www.govinfo.gov/content/pkg/FR-2023-04-26/pdf/2023-08602.pdf Federal Register, Vol. 88, No. 80, 04/26/2023, 25293-25309.

FHFA Issues Proposed Rule on Prudential Management and Operations Standards.

FHFA seeks comment on a proposed rule to amend its prudential management and operations standards Rule (Rule) to clarify that FHFA may establish prudential management and operations standards (Standards) as regulations as well as guidelines. The proposed amendments to the Rule would also revise definitions and make other conforming changes. FHFA has not proposed to establish new Standards or to revise Standards already established. However, FHFA has proposed that the Rule and some of the existing Standards in the appendix to the Rule be made applicable to the Office of Finance of the Federal Home Loan Bank System. Comments are due 07/03/2023. The proposed rule may be viewed at: https://www.govinfo.gov/content/pkg/FR-2023-05-04/pdf/2023-09320.pdf. Federal Register, Vol. 88, No. 86, 05/04/2023, 28433-28440.

FHFA Announces Regulatory Review.

FHFA announced a regulatory review to be conducted in accordance with the process set forth in its Regulatory Review Plan. Under its plan, FHFA reviews its regulations at least every five years, except for regulations that were adopted or substantially amended within the two years prior to announcement of a regulatory review and rules of agency organization, procedure, or practice. Regulations administered by FHFA are published in chapter XII of title 12 of the Code of Federal Regulations, except for two regulations of predecessor agencies which FHFA has not yet moved. FHFA hereby requests comment on its regulations for purposes of improving effectiveness and reducing burden. Comments are due 06/13/2023. The notice may be viewed at: https://www.govinfo.gov/content/pkg/FR-2023-04-14/ pdf/2023-07928.pdf. Federal Register, Vol. 88, No. 72, 04/14/2023, 22919-22920.

FHFA Seeks Comment on National Survey of Mortgage Originations Information Collection.

FHFA seeks comment regarding an information collection titled, National Survey of Mortgage Originations. The survey is a recurring quarterly survey of individuals who have recently obtained a loan secured by a first mortgage on single-family residential property. The survey questionnaire is sent to a representative sample of approximately 6,000 recent mortgage borrowers each calendar quarter and typically consists of about 96 multiple choice and short answer questions designed to obtain information about borrowers’ experiences in choosing and in taking out a mortgage. Comments are due 05/15/2023. The notice may be viewed at: https://www.govinfo.gov/content/pkg/FR-2023-04-14/ pdf/2023-07863.pdf Federal Register, Vol. 88, No. 72, 04/14/2023, 23032-23045.

SBA Rescinds SBLC Moratorium and Loan Authorization Requirement.

The Small Business Administration (SBA) issued a final rule which amends the business loan program regulations to lift the moratorium on licensing new Small Business Lending Companies (SBLCs). The final rule also adds a new type of lending entity called a Community Advantage SBLC. SBA also removed the requirement for a Loan Authorization in the 7(a) and 504 Loan Programs. The final rule is effective 05/12/2023. The final rule may be viewed at: https://www.govinfo.gov/content/pkg/FR-2023-04-12/pdf/2023-07181.pdf Federal Register, Vol. 88, No. 70, 04/12/2023, 21890-21900.

SBA Amends Disaster Assistance Loan Program.

SBA issued a direct final rule to amend the disaster assistance regulations to reflect changes made to the Small Business Act by several recent statutes. The changes provide two new types of disaster declaration authority and revise eligibility for the Military Reservist Economic Injury Disaster Loan (MREIDL) program. The direct final rule conforms the regulations to the Act by adopting the new statutory requirements without change. The final rule is effective 06/05/2023, unless significant adverse comment is received by 05/19/2023. If significant adverse comment is received, SBA will publish a timely withdrawal of the rule in the Federal Register. The final rule may be viewed at: https://www.govinfo.gov/ content/pkg/FR-2023-04-19/pdf/2023-08010.pdf Federal Register, Vol. 88, No. 75, 04/19/2023, 24107-24110.

SBA Revises 8(a) Business Development Program.

SBA issued a final rule to amend the ownership and control requirements for the 8(a) Business Development program, including recognizing a process for allowing a change of ownership for a former participant that is still performing one or more 8(a) contracts and permitting an individual to own an applicant or participant where the individual can demonstrate that financial obligations have been settled and discharged. The final rule also made several changes relating to 8(a) contracts, including clarifying that a contracting officer cannot limit an 8(a) competition to participants having more than one certification and clarifying the rules pertaining to issuing sole source 8(a) orders under an 8(a) multiple award contract. The final rule also made revisions to incorporate changes to SBA’s other government contracting programs, including changes to implement a statutory amendment from the National Defense Authorization Act, to include blanket purchase agreements in the list of contracting vehicles that are covered by the definitions of consolidation and bundling, and to more clearly specify the requirements relating to waivers of the nonmanufacturer rule. The final rule is effective 05/30/2023. The final rule may be viewed at: https://www.govinfo.gov/content/pkg/FR2023-04-27/pdf/2023-07855.pdf Federal Register, Vol. 88, No. 81, 04/27/2023, 26164-26217.

SBA Issues Correction to Affiliation and Lending Criteria for the SBA Business Loan Programs.

SBA issued a correction to a final rule that appeared in the Federal Register on 04/10/2023, which amended various regulations governing SBA’s 7(a) Loan Program and 504 Loan Program, including regulations on use of proceeds for partial changes of ownership, lending criteria, loan conditions, reconsiderations, and affiliation standards, to expand access to capital to small businesses and drive economic recovery. On page 21085, in the right column, instruction 5 is corrected to read as indicated in the correction. The correction is effective 05/11/2023. The correction may be viewed at: https://www.govinfo.gov/content/pkg/FR-2023-04-21/pdf/2023-08396.pdf. Federal Register, Vol. 88, No. 77, 04/21/2023, 24474.

Agencies Issue NOFAs for Several Programs.

The Rural Housing Service (RHS) issued a notice of funding availability (NOFA) under the Housing Preservation Grant (HPG) program for fiscal year 2023. The NOFA makes available grant funds to sponsoring organizations for the repair or rehabilitation of housing owned or occupied by low- and very-low-income rural citizens under the HPG Program. See the NOFA for details and deadlines. The NOFA may be viewed at: https://www.govinfo.gov/content/pkg/FR-2023-04-19/ pdf/2023-08211.pdf Federal Register, Vol. 88, No. 75, 04/19/2023, 24148-24154.

The Rural Utilities Service (RUS) issued a notice of funding availability (NOFA) for Broadband Technical Assistance (BTA) for fiscal year 2023. BTA provides competitive cooperative agreement funding to eligible entities to receive or deliver broadband technical assistance and training that promotes the expansion of broadband into rural areas. See the NOFA for details and deadlines. The NOFA may be viewed at: https://www.govinfo.gov/content/pkg/FR-2023-04-19/pdf/202308233.pdf Federal Register, Vol. 88, No. 75, 04/19/2023, 24154-24159.

The Rural Housing Service (RHS) issued a notice of funding availability (NOFA) under the Community Facilities Technical Assistance and Training (TAT) Grant Program for fiscal year 2023. The purpose of the TAT Grant Program is to provide technical assistance and training with respect to essential community facilities programs. The technical assistance and/ or training will assist communities, Indian tribes, and nonprofit corporations to identify and plan for community facility

needs that exist in their area. RHS also issued a correction to the NOFA. See the NOFA for details regarding the program and the correction for updated deadlines. The NOFA may be viewed at: https://www.govinfo.gov/content/pkg/FR-202304-21/pdf/2023-08447.pdf. Federal Register, Vol. 88, No. 77, 04/21/2023, 24544-24548. The correction may be viewed at: https://www.govinfo.gov/content/pkg/FR-2023-05-04/pdf/2023-09459.pdf. Federal Register, Vol. 88, No. 86, 05/04/2023, 28483.

The Rural Business-Cooperative Service (RBC) issued a notice of funding availability (NOFA) under the Rural Cooperative Development Grant (RCDG) program for fiscal year 2023. The primary objective of the RCDG program is to improve the economic condition of rural areas by helping individuals and businesses start, expand or improve rural cooperatives and other mutually owned businesses through Cooperative Development Centers. See the NOFA for details and deadlines. The NOFA may be viewed at: https://www.govinfo.gov/content/pkg/FR-2023-04-26/pdf/202308761.pdf Federal Register, Vol. 88, No. 80, 04/26/2023, 25369-25377.

The Federal Crop Insurance Corporation (FCIC) issued a notice of funding availability (NOFA) under the Additional Payment (ADD PAY) Program. The ADD PAY Program is a one-time additional payment to approved insurance providers administering eligible crop insurance contracts for 2021 reinsurance year specialty crops. See the NOFA for details and deadlines. The NOFA may be viewed at: https://www.govinfo.gov/content/pkg/FR-2023-05-02/pdf/2023-09203.pdf. Federal Register, Vol. 88, No. 84, 05/02/2023, 27433-27434.

The Rural Housing Service (RHS) issued a notice of funding availability (NOFA) for Multifamily Housing Nonprofit Transfer Technical Assistance (MFH NP TA) Grants and Off-Farm Labor Housing Technical Assistance (Off-FLH TA) Grants. The MFH NP TA Grants are intended to provide technical assistance to multifamily housing borrowers and applications to facilitate the acquisition of section 515 properties by nonprofit organizations and public housing authorities. The Off-FLH TA Grants are intended to provide technical assistance to qualified section 514 loans and section 516 grant applicants to encourage the development of domestic and migrant Off-FLH projects. See the NOFA for details and deadlines. The NOFA may be viewed at: https://www.govinfo.gov/content/pkg/FR-2023-05-04/pdf/202309460.pdf Federal Register, Vol. 88, No. 86, 05/04/2023, 28469-28483.

The Rural Housing Service (RHS) issued a notice of funding availability (NOFA) to announce the acceptance of applications under the Rural Community Development Initiative (RCDI) program for fiscal year 2023. The grants will be made to qualified intermediary organizations that will provide financial and technical assistance to recipients to develop their capacity and ability to undertake projects related to housing, community facilities, or community and economic development that will support the community. See the NOFA for details and deadlines. The NOFA may be viewed at: https://www.govinfo.gov/content/pkg/FR-2023-05-04/pdf/2023-09520.pdf Federal Register, Vol. 88, No. 86, 05/04/2023, 28459-28469.

The Farm Service Agency (FSA) issued a notice of funding availability (NOFA) for the Rice Production Program (RPP) to provide financial assistance to rice producers affected by higher production costs during the 2022 crop year. RPP will provide a one-time payment to assist rice producers with additional expenses associated with the 2022 crop year costs for rice. See the NOFA for details and deadlines. The NOFA may be viewed at: https://www.govinfo.gov/content/pkg/FR2023-05-10/pdf/2023-09945.pdf Federal Register, Vol 88, No. 90, 05/10/2023, 30070-30073.

FSA Seeks Comment on Power of Attorney Information Collection.

The Farm Service Agency (FSA) seeks comment regarding an information collection titled, Power of Attorney. Individuals or entities that want to appoint another to act as an attorney-in-fact in connection with certain FSA programs and related actions must complete a power of attorney form, Form FSA-211. The form is used by a grantor to appoint another to act on the individual’s or entity’s behalf for certain FSA programs or other specific actions, giving the appointee legal authority to enter into certain programs, agreements, or contracts, or other specific actions on the grantor’s behalf. The form also provides FSA a source to verify an individual’s authority to sign and act for another in the event of errors or fraud. Comments are due 07/03/2023. The notice may be viewed at: https://www.govinfo.gov/content/pkg/FR-2023-0502/pdf/2023-09213.pdf Federal Register, Vol. 88, No. 84, 05/02/2023, 27432.

RHS Updates Section 538 Guaranteed Rural Rental Housing Program.

The Rural Housing Service (RHS) issued a final rule to update the process for competitive lender submissions regarding proposed projects for the Section 538 Guaranteed Rural Rental Housing Program (GRRHP). The purpose of Section 538 GRRHP is to increase the supply of affordable rural rental housing, using loan guarantees that encourage partnerships between RHS, private lenders, and public agencies. The process updates are effective 04/28/2023. The final rule may be viewed at: https://www.govinfo.gov/content/pkg/FR-2023-04-28/pdf/2023-08952.pdf. Federal Register, Vol. 88, No. 82, 04/28/2023, 26221-26228.

CCC Increases Sugar Marketing Allotments and Processor Allocations.

The Commodity Credit Corporation (CCC) announced an increase to the fiscal year 2023 overall sugar marketing allotment quantity, increase in beet and State cane sugar allotments, revised company allocations to sugar beet and sugar cane processors, and reassigned beet and cane sugar marketing allocations to raw cane sugar imports already anticipated. The adjustments apply to all domestic beet and cane sugar marketed for human consumption in the United States from 10/01/2022, through 09/30/2023. See the notice for the specific allotments and allocations. The notice may be viewed at: https://www.govinfo.gov/content/pkg/FR-2023-04-11/pdf/2023-07509.pdf Federal Register, Vol. 88, No. 69, 04/11/2023, 21604-21606.

CFTC Issues Proposed Rule on DCO Risk Management Regulations for Treatment of Separate Accounts.

The Commodity Futures Trading Commission (CFTC) issued a proposed rule to amend its derivatives clearing organization (DCO) risk management regulations adopted under the Commodity Exchange Act to permit futures commission merchants that are clearing members 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 a DCO may permit such separate account treatment. Comments are due 06/13/2023. The proposed rule may be viewed at: https://www.govinfo.gov/content/pkg/FR-2023-04-14/pdf/2023-06248.pdf Federal Register, Vol. 88, No. 72, 04/14/2023, 22934-22955.

SEC Adopts Updated EDGAR Filer Manual.

The Securities and Exchange Commission (SEC) issued a final rule to adopt amendments to Volume II of the Electronic Data Gathering, Analysis, and Retrieval system (EDGAR) Filer Manual (Filer Manual) and related rules and forms. The Filer Manual contains information needed for filers to make submissions on EDGAR. Filers must comply with the applicable provisions of the Filer Manual in order to assure the timely acceptance and processing of filings made in electronic format. Filers must consult the Filer Manual in conjunction with SEC rules governing mandated electronic filings when preparing documents for electronic submission. The final rule is effective 04/20/2023. The final rule may be viewed at: https://www.govinfo.gov/content/pkg/FR-2023-04-20/pdf/2023-08216.pdf. Federal Register, Vol. 88, No. 76, 04/20/2023, 24329-24330.

SEC Issues Proposed Rule to Amend Regulation Systems Compliance and Integrity.

SEC issued a proposed rule to amend Regulation Systems Compliance and Integrity (Regulation SCI) under the Securities Exchange Act. The proposed amendments would expand the definition of “SCI entity” to include a broader range of key market participants in the U.S. securities market infrastructure and update certain provisions of Regulation SCI to take account of developments in the technology landscape of the markets since the adoption of Regulation SCI. The proposed expansion would broaden the definition of “SCI entity.” The proposed updates would amend provisions of Regulation SCI relating to systems classification and lifecycle management, third party/vendor management, cybersecurity, SCI review, role of current SCI industry standards, and recordkeeping and related matters. Further, SEC seeks comment on whether significant-volume alternative trading systems and/or broker-dealers using electronic or automated systems for trading of corporate debt securities or municipal securities should be subject to Regulation SCI. Comments are due 06/13/2023. The proposed rule may be viewed at: https://www.govinfo.gov/content/pkg/FR-202304-14/pdf/2023-05775.pdf Federal Register, Vol. 88, No. 72, 04/14/2023, 23146-23274.

Regulatory Spotlight

SEC Issues Proposed Rule Regarding Electronic Filings.

SEC issued a proposed rule requiring electronic filing or submission of certain forms and other filings or submissions that are required to be filed with or submitted to SEC under the Securities Exchange Act and the rules and regulations under the Exchange Act. The proposal requires the electronic filing or submission on SEC’s Electronic Data Gathering, Analysis, and Retrieval (EDGAR) system, using structured data where appropriate, for certain forms filed or submitted by self-regulatory organizations (SROs). The proposal would require the information currently contained in Form 19b-4(e) to be publicly posted on the SRO’s website and remove the manual signature requirements for SRO proposed rule change filings. SEC has also proposed that a clearing agency post supplemental material to its website. In addition, the proposal would amend rules under the Exchange Act and the Securities Act to require the electronic filing or submission on EDGAR, using structured data where appropriate, of certain forms, reports and notices provided by broker-dealers, security-based swap dealers and major security-based swap participants. The proposed amendments also would require withdrawal in certain circumstances of notices filed in connection with an exception to counting certain dealing transactions toward determining whether a person is a security-based swap dealer. Finally, SEC has proposed to allow electronic signatures in certain broker-dealer filings, and has proposed amendments regarding the Financial and Operational Combined Uniform Single Report to harmonize with other rules, make technical corrections, and provide clarifications. Comments are due 05/22/2023. The proposed rule may be viewed at: https://www.govinfo.gov/content/ pkg/FR-2023-04-18/pdf/2023-06330.pdf. Federal Register, Vol. 88, No. 74, 04/18/2023, 23920-24055.

SEC Reopens Comment Periods for Proposed Rules.

SEC issued a proposed rule to reopen the comment period for a previously published proposed rule meant to modernize beneficiary ownership reporting. In the previously published proposed rule, SEC proposed to amend certain rules that govern beneficial ownership reporting to modernize the filing deadlines for initial and amended beneficial ownership reports filed on Schedules 13D and 13G. The proposed rule also would deem holders of certain cash-settled derivative securities as beneficial owners of the reference equity securities and clarify the disclosure requirements of Schedule 13D with respect to derivative securities. In addition, the proposal would clarify and affirm the operation of the beneficial ownership reporting rules as applied to two or more persons that form a group under the Securities Exchange Act, and provide new exemptions to permit such persons to communicate and consult with each other, jointly engage issuers, and execute certain transactions without being subject to regulation as a group. Finally, the proposed rule would require that Schedules 13D and 13G be filed using a structured, machine-readable data language. SEC has reopened the comment period to allow comments on the additional analysis and data contained in a staff memorandum that was added to the comment file on 04/28/2023. Comments are now due 06/27/2023. The proposed rule may be viewed at: https://www.govinfo.gov/content/pkg/FR-2023-05-04/pdf/2023-09454.pdf Federal Register, Vol. 88, No. 86, 05/04/2023, 28440-28442.

SEC issued a proposed rule to reopen the comment period for a previously published proposal meant to amend the rule under the Securities Exchange Act that defines certain terms used in the statutory definition of “exchange.” The reopening provides supplemental information and economic analysis regarding trading systems that trade crypto asset securities that would be newly included in the definition of “exchange” under the proposed rule. The comment period for the proposed amendments published 03/18/2022, at 87 FR 29059, is reopened. Comments are now due 06/13/2023 The proposed rule may be viewed at: https://www.govinfo.gov/content/pkg/FR-2023-05-05/pdf/2023-08544.pdf Federal Register, Vol. 88, No. 87, 05/05/2023, 29448-29493.

FTC Seeks Comment on Negative Option Rule.

The Federal Trade Commission (FTC) seeks comment on proposed amendments to its Negative Option Rule to combat unfair or deceptive practices that include recurring charges for products or services consumers do not want and cannot cancel without undue difficulty. Negative option offers come in a variety of forms, but all share a central feature: each contain a term or condition that allows a seller to interpret a customer’s silence, or failure to take an affirmative action, as acceptance of an offer. Comments are due 06/23/2023. The proposed rule may be viewed at: https://www.govinfo.gov/ content/pkg/FR-2023-04-24/pdf/2023-07035.pdf. Federal Register, Vol. 88, No. 78, 04/24/2023, 24716-24739.

Regulatory Spotlight

FCC Issues Final Rule Targeting and Eliminating Unlawful Text Messages.

The Federal Communications Commission (FCC) issued a final rule which requires mobile wireless providers to block texts, at the network level, on a reasonable Do-Not-Originate list, which include numbers that purport to be from invalid, unallocated, or unused North American Numbering Plan (NANP) numbers, and NANP numbers for which the subscriber to the number has requested that texts purporting to originate from that number be blocked. In addition, FCC requires mobile wireless providers and other entities to maintain a point of contact for texters to report erroneously blocked texts. The final rule sets forth restrictions on telemarketing, telephone solicitations, and facsimile advertising. The final rule is effective 05/11/2023. The final rule may be viewed at: https://www.govinfo.gov/content/pkg/FR-2023-04-11/pdf/202307405.pdf Federal Register, Vol. 88, No. 69, 04/11/2023, 21497-21500.

FCC Seeks Comment on Call Authentication Proposed Rule.

FCC seeks comment on additional measures to strengthen its caller ID authentication framework and further stem the tide of illegally spoofed calls. Specifically, FCC seeks comment on the use of third-party caller ID authentication solutions, including whether any changes should be made to FCC’s rules to permit, prohibit, or limit their use. FCC also seeks comment on whether to eliminate the STIR/SHAKEN implementation extension for providers that cannot obtain Service Provider Code tokens, which are necessary to participate in the STIR/SHAKEN caller ID authentication framework. Comments are due 06/05/2023. The proposed rule may be viewed at: https://www.govinfo.gov/content/pkg/ FR-2023-05-05/pdf/2023-09543.pdf. Federal Register, Vol. 88, No. 87, 05/05/2023, 29035-29043.

VA Seeks Comment on Credit Underwriter Information Collection.

The Department of Veterans Affairs (VA) seeks comment regarding an information collection titled, Non-Supervised Lender’s Nomination and Recommendation of Credit Underwriter. Section 3702(d) allows for certain lenders to make automatically guaranteed housing loans. Automatic lending privileges eliminate the requirement for submission of loans to VA for prior approval. Lending institutions with automatic loan privileges may process and disburse such loans and subsequently report the loan to VA for issuance of guaranty. The information collection addresses the underwriter requirements for unsupervised lenders as found in 38 CFR 36.4352(b)(2) and (3). Comments are due within 30 days of publication. The notice may be viewed at: https://www.govinfo.gov/content/pkg/FR-2023-04-17/pdf/2023-08018.pdf Federal Register, Vol. 88, No. 73, 04/17/2023, 23502-23503.

VA Seeks Comment on Native American Direct Loan Information Collection.

VA seeks comment regarding an information collection titled, Native American Direct Loan Processing (NADL). The information collected assists Native American Veterans in obtaining the VA home loan benefit to purchase, construct, or improve dwellings on trust lands, or to refinance their existing NADLs to a lower interest rate. Comments are due within 30 days of publication. The notice may be viewed at: https://www.govinfo.gov/content/pkg/FR-2023-05-03/pdf/202309352.pdf. Federal Register, Vol. 88, No. 85, 05/03/2023, 27956-27957.

FSOC Seeks Comment on Proposed Interpretive Guidance on Supervision of Certain Non-Bank Financial Companies.

The Financial Stability Oversight Council (FSOC) seeks comment regarding a proposed interpretive guidance which would replace FSOC’s existing interpretive guidance on non-bank financial company determinations. The proposed guidance describes the process FSOC intends to take in determining whether to subject a non-bank financial company to supervision and prudential standards by the Board of Governors of the Federal Reserve System. Comments are due 06/27/2023. The proposed interpretive guidance may be viewed at: https://www.govinfo.gov/content/pkg/FR-2023-0428/pdf/2023-08964.pdf Federal Register, Vol. 88, No. 82, 04/28/2023, 26234-26244.

Regulatory Spotlight

FSOC Seeks Comment on Analytic Framework for Financial Stability Risk Identification, Assessment, and Response.

FSOC seeks comment on a proposal to adopt an analytic framework that describes the approach FSOC expects to take in identifying, assessing, and responding to certain potential risks to U.S. financial stability. Dodd Frank Act Section 112 sets forth the duties and purposes of FSOC, which includes identifying risks to U.S. financial stability and responding to emerging threats to the stability of the U.S. financial system. Comments are due 06/27/2023. The notice may be viewed at: https://www.govinfo.gov/content/pkg/FR-2023-04-28/pdf/2023-08969.pdf Federal Register, Vol. 88, No. 82, 04/28/2023, 26305-26311.

CDFI Announces NOGA for Bond Guarantee Program.

The Community Development Financial Institutions (CDFI) Fund issued a notice of guarantee availability (NOGA) for the Bond Guarantee Program. The purpose of the CDFI Bond Guarantee Program is to support CDFI lending by providing guarantees for bonds issued for eligible community or economic development purposes. See the NOGA for details and deadlines. The NOGA may be viewed at: https://www.govinfo.gov/content/pkg/FR-2023-04-26/pdf/2023-08749.pdf Federal Register, Vol. 88, No. 80, 04/26/2023, 25454-25470.

SSA Announces Fee Increase to Social Security Number Verification Service.

The Social Security Administration (SSA) announced a change in the subscription tier structure and associated fees for the electronic Consent Based Social Security Number (SSN) Verification (eCBSV) service. In accordance with statutory requirements, a permitted entity (PE) is required to provide payment to reimburse SSA for the development and support of the eCBSV system. Section 215 of the Economic Growth, Regulatory Relief, and Consumer Protection Act (the Banking Bill) directs SSA to modify or develop a database for accepting and comparing fraud protection data provided electronically by a PE. In response to the statutory directive, SSA created eCBSV, a fee-based SSN verification service. The eCBSV allows PEs to submit, based on the number holder’s consent, the SSN, name, and date of birth of the number holder in connection with a credit transaction or a circumstance described in section 604 of the Fair Credit Reporting Act to SSA for verification via an application programming interface. Each PE must submit a certification statement that the PE is in compliance with the Banking Bill as part of their application to SSA. The notice provides a reviewed eCBSV Tier Fee Schedule. The revised fees will go into effect for subscription payments made on or after 07/10/2023. The notice may be viewed at: https://www.govinfo.gov/content/pkg/FR-2023-05-09/pdf/2023-09753.pdf. Federal Register, Vol. 88, No. 89, 05/09/2023, 29959-26660.

NCUA Seeks Comment on Climate-Related Financial Risk.

The National Credit Union Administration (NCUA) seeks comment on current and future climate and natural disaster risks to federally-insured credit unions (FICUs), related entities, their members, and the National Credit Union Share Insurance Fund. NCUA also seeks input of any interested parties on the development of potential future guidance, regulation, reporting requirements, and/or supervisory approaches for FICUs’ management of climate-related financial risks. Comments are due 06/26/2023. The notice may be viewed at: https://www.govinfo.gov/content/pkg/FR-2023-0425/pdf/2023-08715.pdf Federal Register, Vol. 88, No. 79, 04/25/2023, 25028-25031.

Compliance Notes

FHFA has rescinded the upfront fees based on borrowers’ DTI ratios for loans acquired by Fannie Mae and Freddie Mac (collectively, the Enterprises). FHFA had previously announced it would delay implementation in order to engage with industry stakeholders and better understand industry concerns. Additionally, FHFA seeks comment on the process for setting the single-family upfront guarantee fees for the Enterprises. Guarantee fees are intended to cover the Enterprises’ administrative costs, expected credit losses, and cost of capital associated with guaranteeing securities backed by single-family mortgage loans. The announcements may be viewed at: www.fhfa.gov//Media/PublicAffairs/ Pages/FHFA-Announces-Rescission-of-Enterprise-Upfront-Fees-Based-on-Debt-To-Income-Ratio.aspx and www.fhfa. gov//Media/PublicAffairs/Pages/FHFA-Requests-Input-on-the-Enterprises-Single-Family-Pricing-Framework.aspx

CFPB released a Small Entity Compliance Guide for its Section 1071 final rule. The guide may be viewed at: https://files.consumerfinance.gov/f/documents/cfpb_small-business-lending-rule_small-entity-compliance-guide.pdf

Freddie Mac announced that effective 06/29/2023, its Loan Collateral Advisor will include new feedback messages to alert users when certain prohibited, subjective, or potentially biased words or phrases are included in appraisal reports submitted to Freddie Mac through the UCDP. The messaging is intended to help users identify potential issues and to assist in compliance with Freddie Mac Single-Family Seller/Servicer Guide requirements. The announcement may be viewed at: https://sf.freddiemac.com/articles/news/loan-collateral-advisor-startingjune-29-new-messages-alert-users-certain

FDIC updated the Consumer Compliance Exam Manual. The manual incorporates examination policies, procedures, and guidance and is a resource for FDIC staff and bankers. Section V-17.1, Small-Dollar Lending, which provides a framework for examiners when reviewing small-dollar loan programs has been added to the manual. The updated manual may be viewed at: www.fdic.gov/resources/supervision-and-examinations/consumer-complianceexamination-manual/index.html

CFPB commented on the removal of medical collections from credit reports. The three nationwide consumer reporting companies announced the removal of medical collections under $500 from consumer credit reports on 04/11/2023. CFPB estimates the reporting change removed at least one medical collection from the credit reports of 22.8 million people and removed all medical collections from the credit reports of approximately 15.6 million people. The report may be viewed at: www.consumerfinance.gov/data-research/research-reports/consumer-credit-and-theremoval-of-medical-collections-from-credit-reports/

FRB and FDIC analyzed the recent bank failures of Silicon Valley Bank (SVB) and Signature Bank (Signature). FRB announced the results from the review of the supervision and regulation of SVB, led by Vice Chair for Supervision Barr. FDIC shared its analysis of the review of the supervision of Signature. The reviews may be viewed at the following links, respectively: www.federalreserve.gov/newsevents/pressreleases/bcreg20230428a.htm and www.fdic.gov/news/ press-releases/2023/pr23033a.pdf

FinCEN issued its Year in Review for FY 2022. The Review is intended to help stakeholders gain insight into both FinCEN’s efforts to support law enforcement and national security agencies, and how financial information (filed pursuant to BSA requirements) is used. The review may be viewed at: www.fincen.gov/news/news-releases/ fincen-fiscal-year-2022-review

FRB released the April 2023 Senior Loan Officer Opinion Survey on Bank Lending Practices (SLOOS) which addressed changes in the standards and terms on, and demand for, bank loans to businesses and households over the past three months, which generally correspond to the first quarter of 2023. The survey may be viewed at: www.federalreserve.gov/data/sloos/sloos-202304.htm

JUNE 2023

• BOLT Summer Leadership Summit

15–16 Wisconsin Dells; $250/attendee

• Compliance Forum: Session 1

20 Stevens Point; annual membership (pricing varies)

• Branch Manager Boot Camp: Session 2

21 4-part series; virtual half-days; $800/attendee

JULY 2023

• Branch Manager Boot Camp: Session 3

19 4-part series; virtual half-days; $800/attendee

• Community Bankers for Compliance

(CBC) – Session III

25–26 Virtual half-days; membership (pricing options vary)

AUGUST 2023

• Bankers Fintech Council Meeting

15 Milwaukee

•Agricultural Lending School

22–24 Madison; $895/attendee (an optional pre-school Workshop will be available on August 21)

• Branch Manager Boot Camp: Session 4

23 4-part series; virtual half-days; $800/attendee

•Deposit Compliance School

29–31 Madison or virtual; $795/attendee

SEPTEMBER 2023

•Auditing Real Estate Loans Boot Camp

5–7 Madison or virtual; $795/attendee

• Secur-I.T. Conference

12–13 Wisconsin Dells

• Management Conference

20–21 Madison

• Principles of Banking Course

26–27 Union Grove; $550/attendee

 For more information or to register, visit www.wisbank.com/ education, email WBA Education at wbaeducation@ wisbank.com, or call 608-441-1252.

OCTOBER 2023

•Consumer Lending Boot Camp

5–7 Madison or virtual; $550/attendee

• Directors Summit

11 Stevens Point; $225/attendee

• FIPCO Software & Compliance Forum: Loan & Mortgage

11 Location TBD

• Family-owned and Closely Held Bank Strategic Retreat

12–13 Madison

•Supervisor Boot Camp

16–17 Madison; $535/attendee

•Commercial Lending School

18–20 Madison; $895/attendee

• Community Bankers for Compliance (CBC) – Session IV

25 Wisconsin Dells or virtual; membership (pricing options vary)

• BSA/AML Workshop

26 Wisconsin Dells or virtual; $245/attendee

• Principles of Banking Course

TBD West-central Wisconsin area; $550/attendee

NOVEMBER 2023

• IRA Essentials Workshop

1 Madison or virtual; $245/attendee

• Advanced IRA Workshop

2 Madison or virtual; $245/attendee

• Compliance Forum: Session 2

7 Wisconsin Dells; annual membership (pricing varies)

KEY: Color-Coded Event Descriptions…

• ConferencesI Summits – One or more days, based on hot topics, industry news and best practices; scheduled time for peer networking.

• SchoolsI 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.

• WorkshopsI 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