November 2023 WBA Compliance Journal

Compliance Journal November 2023

Special Focus Recent Fraud Trends as Reported by WBA Financial Crimes Committee Data released by the Federal Trade Commission earlier this year shows that consumers reported losing nearly $8.8 billion to fraud in 2022, an increase of more than 30 percent over the previous year. Those are sobering numbers, and WBA’s Financial Crimes Committee would be quick to point out that figure only includes fraud that was reported. The WBA Financial Crimes Committee is comprised of fraud officers, risk managers, and security specialists. The Committee serves to inform and educate the Wisconsin banking industry, law enforcement, and the general public on the changing security and criminal threats to the financial sector and develops solutions to those threats. In that role, the group has put together this article to report on the most common fraud trends seen in Wisconsin. While this article will discuss three of the most common fraud schemes shared by the Committee, the group also shared that there are some general fraud trends to be aware of as well. Primarily, fraudsters are becoming increasingly adaptive in their behavior. As technology, methods of business, and commerce continue to develop, fraudsters are continually developing their methods to become more and more convincing. In this way, the group stresses the importance of monitoring those tactics through the tools available such as through Financial Crimes Enforcement Network (FinCEN) alerts, news sources, and information sharing. Felony Lane Gang The “felony lane gang” is a term used to refer to a group of organized criminals and gets its name from their methods. While this group is not new, they have been active again in Wisconsin recently. The group travels across the country and recruits individuals for smash-and-grab petty thefts which are then developed into larger schemes. They will steal cash, checks, and personal identifying cards such as driver’s licenses, credit cards, and debit cards. They then impersonate those individuals to conduct fraudulent transactions. This group gets their name from their common strategy of targeting banks through use of the far drive-up lane to make positive identification more difficult. This scheme can often be difficult for both law enforcement and banks to identify. The actors will typically use late model vehicles, often rented, with stolen Wisconsin license plates. They will dress the part, often wearing wigs and costumes to resemble the individual whose identity they have stolen. Being aware of typical security questions, they will have two forms of identification available. Individuals may often appear anxious or rushed if confronted, or if the individual cannot accurately answer security questions. They also typically only visit branch locations out of the area of the customer’s address or typical activity to avoid being spotted. Also look out for their second form of identification, which may have been previously closed or hot-carded (e.g., a debit or credit card previously issued). The Committee recommends encouraging customers to report loss of access devices, account information, or other identifying information. Then, a system notification or warning to a relationship profile can be added to flag any potential felony lane gang activity. Staff should be encouraged to compare the likeness of the person conducting the transaction to the identification presented. Often, the actors will wear covering garments, such as sunglasses, hats, cowls, and coats to make this more difficult. Depending on branch locations and overall risk tolerance, a bank might also consider establishing additional identification procedures, perhaps for transactions that exceed a certain dollar amount. WBA’s Financial Crimes Committee has reported that while it’s most common to see actors use drive-up lanes to commit fraud, they have been known to enter a branch lobby as well. The Committee encourages banks to follow their procedures on suspicious transaction activity to minimize losses.

Special Focus Tech Scams Tech scams refer to a specific type of imposter scams. While not new, imposter scams continue to be a one of the most frequent types of fraud the Committee sees occurring. These can be romance, military, or family for example, where an imposter talks a customer into feeling sorry for them and sending them money. Tech scams have recently become one of the most frequent types of imposter scams, being a type of fraud perpetrated through phone, email, and text messages. Fraudsters pose as tech support representatives, government agencies, international organizations, or charities. The fraud is conducted through pop-up scams and phishing. While scammers frequently target businesses, they target individual consumers as well. The most basic scheme involves a scammer who contacts their target under the false pretense of representing a legitimate organization. Once this contact is made, and the target is convinced, the scammer has many options. They can simply coerce the target into providing funds, but will often gather information in order to take the scam further. Recently, the Committee has seen this tactic deployed through the use of fictitious popup messages, appearing to originate from a bank or other financial institution, or software or technology company, such as Microsoft. The messages appear on a computer screen or login page and warn of a security issue, or unusual account activity or access. It provides a contact method to receive help, through which scammers will ask for payment or information. For example, a customer might search for the bank’s website and click on a phishing link inside a pop-up message that instructs them to call a phone number to resolve a security issue with their bank account. If the customer calls that number, a fraudster will pose as a bank fraud representative, and request the customer’s credentials to gain access to their computer or account to resolve the issue. After gaining access, the fraudsters will initiate unauthorized transactions. The Committee reports that the worst cases often result in wire fraud. The scammer uses the methods above to get access to a business customer’s email account, sends an email to their wire approval team, and fraudulently charges the account. A recent case shared by the Committee involved fraudulent transactions amounting to over $600,000. The Committee members all agree that one of the best ways to protect against tech scams is financial literacy. For example, combatting wire fraud can be done by ensuring that business customers understand and follow all details or set up templates for wires. Both business and consumer customers alike should be educated to understand that banks will never ask for account information, and know how to spot these types of scams to prevent them from occurring is the best defense. Customers should also be encouraged to notify the bank as soon as possible if they believe they have fallen victim to a scam. ATM Skimmers Criminals continue to target automated teller machines (ATMs) using skimmers, devices which attach to the machines to record keystrokes, capture PINs, and credit or debit card account numbers. In addition to ATMs, criminals have been known to add similar devices to credit or debit card readers at checkout registers, especially at gas stations, convenience stores, or other merchants. Lately, criminals have begun utilizing devices that can even capture data from Europay, Mastercard, and Visa (EMV) chips. These devices are deployed in various forms, such as card-reader overlays. Such devices are made of plastic and fit over the card slot. When a card is inserted, the device reads Page 2 | November 2023

November 2023 Volume 29, Number 6 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 Cassandra Krause

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.

Special Focus the data and stores it. These readers can be spotted by looking for signs of tampering or alteration with the machine, such as scratch marks, damage, or adhesives. Criminals may also use hidden cameras. Mini-cameras might be placed near the screen, keypad, or in other areas such as a brochure holder. Customers should be advised to keep an eye out for tiny holes in the ATM’s housing or something else that might look like it has been stuck near the cover. Criminals have been known to attach dummy keypads over an ATM’s real keypad to record and capture PIN numbers as they are entered. The keypad might be fake if it looks too thick or otherwise irregular. Some thieves go as far as placing a fake ATM cover that could contain card-reader overlays, hidden cameras, and PIN-capture overlays over some or all of a real, fully operating machine. The best way to detect such alterations is to look for flaws like loose wires, seams that are not flush, and slots or keypads that look out of place. Customers should be advised to avoid using an ATM or a credit or debit card reader if anything looks suspicious, such as loose or extra parts, and encouraged to notify the bank, law enforcement, or owner of the machine immediately. They should avoid ATMs in remote places, especially if the area is not well lit or not visible to security cameras and the general public. A good tip to avoid hidden cameras is to shield the keypad when entering a PIN at the ATM or a retailer’s checkout area. And, of course, customers should be encouraged to regularly check their bank and credit card accounts for unauthorized transactions, no matter how small. WBA would like to thank the Financial Crimes Committee for sharing the information within this article.

Treasury Creates New Procedures for Payment of Treasury Checks On November 1, 2023, the Treasury Department’s Bureau of Fiscal Service (Fiscal Service) issued a final rule which amends the regulations that govern the payment of checks drawn on the United States Treasury (Treasury Checks), 31 CFR Part 240. The amendments coincide with the development of Fiscal Service’s enhanced check post payment processing system, which will provide Treasury Check return information to financial institutions through existing communication channels with the Federal Reserve Banks (FRBs), generally prior to the expiration of the time periods in which financial institutions must make Treasury Check deposits available for withdrawal as prescribed by Regulation CC, Availability of Funds and Collection of Checks. The following is information about the changes and steps to consider. Unfortunately, Treasury did not give much advance notice of the change as the final rule is effective December 1, 2023. Background Overall, the final rule is intended to reduce the number of Treasury Checks being processed despite Fiscal Service placing a stop payment on the check. Currently, when either Fiscal Service or a payment certifying agency puts a “stop payment” (also known as a “check stop”) on a Treasury Check to cancel it, there is a possibility that the canceled check may still be paid. Fiscal Service or an agency may put a “stop payment” on a check payment because the payee submitted a check claim (i.e., claimed that the check was either lost or stolen), because the certifying agency realized the payment was incorrect, or because it was otherwise improper. When a canceled or “stopped” check is subsequently paid, this leads to what Fiscal Service refers to as a payment over cancellation (POC). POCs are improper payments. As mentioned above, Fiscal Service has developed enhancements to its post payment processing system that will result in Treasury Check return information being made available to financial institutions sooner than is the case today. Through the system enhancements, Fiscal Service is to provide check return information to financial institutions through existing channels within the time periods prescribed by Regulation CC, Availability of Funds and Collection of Checks (12 CFR part 229), for when a financial institution must make funds deposited by Treasury Check available for withdrawal.

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Special Focus Revised and New Definitions to Part 240 To implement the change in procedure, Fiscal Service revised the definition of “reasonable efforts” within part 240 and added several new definitions, including “validity” or “valid check,” and “stop payment.” The definition of reasonable efforts is important as the steps within the definition are actions financial institutions need take to avoid liability for a POC. Under the current regulation, a financial institution generally is not liable for a POC if the institution has taken “reasonable efforts” to ensure the check is authentic. The definition has been revised to include a requirement that financial institutions wait for check return information within the time periods set out by Regulation CC to help verify that a Treasury Check is valid and authentic. More specifically, under the final rule, “reasonable effort” means, at a minimum: 1.

Confirming the validity of a check by obtaining the check return information prior to making the funds from the check available for withdrawal (except when the check return information has not been provided within the applicable timeframe prescribed by Regulation CC, and making funds available for withdrawal is necessary to comply with Regulation CC; however, this exception does not apply if the presenting bank is otherwise subject to liability due to the presentment guarantees found in §240.4); and

2.

Confirming the authenticity of the check such as by verifying the existence of the Treasury watermark on an original check.

Acceptance of a check by electronic image or other non-physical means does not impact reasonable efforts requirements. Based upon the facts at hand, including whether a check is an original check, a substitute check, or an electronic check, reasonable efforts may require the verification of other security features. Where a financial institution has taken reasonable efforts but check return information for a POC on a properly presented check is not transmitted to the financial institution prior to the funds availability timeframe specified in Regulation CC, the financial institution would not be liable for releasing the funds associated with the Treasury Check. As indicated in item 1. above, financial institutions need remember that the presentment guarantees under section 240.4 of the regulation is a separate component from the revisions made to the reasonable efforts definition. Part 240.4 is an existing requirement under the Fiscal Service regulation. Compliance with funds availability under Regulation CC and the protections under the final rule regarding compliance with Regulation CC does not affect the presentment guarantees of the regulation. As is currently the case, if Fiscal Service declines a check due to improper presentment and reverses the provisional credit, the presenting financial institution may still be liable for payment on the check if a presentment guarantee has not been met. More information regarding part 240.4 is provided below. The final rule also made conforming changes to the regulation to require that financial institutions ensure a Treasury Check has not been canceled before making the funds associated with that check available for withdrawal. Use of Fiscal Service’s Treasury Check Verification System (TCVS) In addition to receiving check return information through existing FRB channels, a financial institution may choose to obtain early notice regarding the validity and authenticity of Treasury Checks by using the Fiscal Service’s Treasury Check Verification System (TCVS). While the final rule does not require financial institutions to use TCVS, the use of TCVS may allow financial institutions to catch canceled, duplicate, or other problematic checks at the time of presentment, as opposed to after presentment but before the financial institution makes deposited funds available for withdrawal. The TCVS, in conjunction with the enhanced post payment system, is intended to help financial institutions avoid accepting duplicate presentations, thus avoiding the associated liability. The TCVS will similarly be of assistance to financial institutions in identifying Treasury Checks where the payment amount has been altered, as well as for counterfeit instruments purporting to be Treasury Checks.

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Special Focus Presentment Guarantees, 31 Part 240.4 Part 240.4 currently includes presentment guarantees which are made by the guarantor of a Treasury Check presented to Fiscal Service for payment. Under the rule, the “guarantor” is defined as a financial institution that presents a check for payment and any prior indorser(s) of a check. Under part 240.4, the guarantors of a Treasury Check presented to Fiscal Service for payment are deemed to guarantee that all prior indorsements are genuine, whether or not an express guarantee is placed on the check, that the check has not been materially altered, that the guarantors have no knowledge that the signature of the drawer is forged or unauthorized, and that the guarantors have made all reasonable efforts to ensure that the check is an authentic Treasury Check, not a counterfeit check. The final rule has revised paragraph (d) within part 240.4 to state that the guarantors have made all reasonable efforts to ensure that a check is both an authentic Treasury Check (i.e., it is not a counterfeit check) and a valid Treasury Check (i.e., it has not been previously negotiated or canceled). Impact on the Final Rule As a result of the final rule, financial institutions should consider current check cashing procedures involving Treasury Checks. At a minimum, financial institutions need be aware of the potential risk to the institution should it release funds related to the negotiation of a Treasury Check before information may be shared by Fiscal Service with the financial institution regarding the check. Under the final rule, Fiscal Services is to make check return information available through existing FRB changes in time for the financial institution to meet its funds availability requirements for Treasury Checks under Regulation CC. Pursuant to Regulation CC section 229.10(c)(i), a check drawn on the Treasury of the United States and deposited in an account held by the payee of the check receives next day availability. Thus, Fiscal Service would be required to share information regarding a Treasury Check deposited into the payee’s account before funds must be made available the day after deposit. Some financial institutions in Wisconsin allow same day availability such that if a Treasury Check were presented for cash, the institution is willing to negotiate the check for cash rather than accept it for deposit into the payee’s account and make the funds available next day. In such circumstance, the financial institution may not escape liability for a POC as it would have made funds available before the institution received check return information regarding the Treasury Check from Fiscal Service through the existing FRB communication channels. Perhaps the financial institution is willing to accept such risk as it knows its customers who seek to cash a Treasury Check and the institution believes the chances of such items being determined POC is limited, but it is a risk the institution should at least consider. Perhaps in such circumstances the institution will consider the use of the TCVS before cashing the Treasury Check. Perhaps the payee can be encouraged to instead have their Treasury Checks directly deposited into the payee’s account rather than negotiate paper checks. Financial institutions may also want to reach out to those business customers who cash Treasury Checks at their separate establishments, such as at local grocery stores, bars, and others who cash checks to make the business customers aware of the risks they are taking regarding check cashing. When those business customers then deposit previously negotiated Treasury Checks as part of their own check deposit, if the financial institution were then to receive notice from the Fiscal Service that a negotiated Treasury Check were a POC, the financial institution would look to reclaim any such loss from the business customers when possible. Summary Effective December 1, 2023, Fiscal Service will bear the responsibility to provide Treasury Check return information to financial institutions through existing communication channels with the FRBs, generally prior to the expiration of the time periods in which financial institutions must make Treasury Check deposits available for withdrawal as prescribed by Regulation CC.

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Special Focus Under the final rule, financial institutions in negotiating Treasury Checks will be liable if it pays a POC without waiting to receive the return information that would enable the financial institution to know the check has been canceled. Separately, institutions remain responsible for presentment warranties involving Treasury Checks. The final rule may be viewed at: www.govinfo.gov/content/pkg/FR-2023-11-01/pdf/2023-24039.pdf.

Regulatory Spotlight Agencies Publish Statement on Noncitizen Borrowers Under ECOA. The Bureau of Consumer Financial Protection (CFPB) and the Department of Justice (DOJ) (collectively, the agencies) released a joint statement on fair lending and credit opportunities for noncitizen borrowers under the Equal Credit Opportunity Act (ECOA). ECOA does not expressly prohibit consideration of immigration status, and as explained further in the statement, a creditor may consider an applicant’s immigration status when necessary to ascertain the creditor’s rights regarding repayment. However, the agencies state that creditors should be aware that unnecessary or overbroad reliance on immigration status in the credit decisioning process, including when that reliance is based on bias, may run afoul of ECOA’s antidiscrimination provisions, and could also violate other laws. The joint statement may be viewed at: https://www.govinfo.gov/content/pkg/FR-2023-10-18/pdf/2023-22968.pdf. Federal Register, Vol. 88, No. 200, 10/18/2023, 71845-71847.

Agencies Issue Final Guidance on Climate-Related Financial Risk Management for Large Financial Institutions. The Board of Governors of the Federal Reserve System (FRB), Federal Deposit Insurance Corporation (FDIC), and Office of the Comptroller of the Currency (OCC) (collectively, the agencies) jointly issued principles providing a high-level framework for the safe and sound management of exposures to climate-related financial risks (principles). The principles are intended for the largest financial institutions, those with over $100 billion in total consolidated assets. The principles are intended to support efforts by large financial institutions to focus on key aspects of climate-related financial risk management. The guidance may be viewed at: https://www.govinfo.gov/content/pkg/FR-2023-10-30/pdf/2023-23844. pdf. Federal Register, Vol. 88, No. 208, 10/30/2023, 74183-74189.

Agencies Extend Comment Period for Proposed Revised Capital Rule for Large Banking Organizations. The Board of Governors of the Federal Reserve System (FRB), Federal Deposit Insurance Corporation (FDIC), and Office of the Comptroller of the Currency (OCC), (collective, the agencies) have extended the comment period for the proposed rule which would revise the capital rule for large banking organizations. On 09/18/2023, the agencies published in the Federal Register a proposal to substantially revise the capital requirements applicable to large banking organizations and to banking organizations with significant trading activity. The agencies have determined that an extension of the comment period until 01/16/2024, is appropriate. The proposed rule may be viewed at: https://www.govinfo.gov/content/ pkg/FR-2023-10-27/pdf/2023-23671.pdf. Federal Register, Vol. 88, No. 207, 10/27/2023, 73770-73772.

CFPB Publishes Advisory Opinion Regarding Consumer Information Requests to Large Banks and Credit Unions. The Bureau of Consumer Financial Protection (CFPB) published an advisory opinion regarding section 1034(c) of the Consumer Financial Protection Act, which requires large banks and credit unions to comply in a timely manner with consumer requests for information concerning their accounts for consumer financial products and services, subject to limited exceptions. Section 1034(c) applies to insured depository institutions and credit unions that offer or provide consumer financial products or services and that have total assets of more than $10 billion, as well as their affiliates. The advisory opinion is applicable as of 10/16/2023. The advisory opinion may be viewed at: https://www.govinfo.gov/ content/pkg/FR-2023-10-16/pdf/2023-22774.pdf. Federal Register, Vol. 88, No. 198, 10/16/2023, 71279-71283. Page 6 | November 2023

Regulatory Spotlight CFPB Publishes Supervisory Highlights. CFPB published its thirty-first edition of Supervisory Highlights in the Federal Register. The special edition provides an update on CFPB’s recent supervisory work regarding junk fees. The findings included in the report cover examinations in the areas of deposits, auto servicing, and remittances that generally were completed between February 2023 and August 2023. The report also describes risks identified in connection with payment platforms that parents, guardians, and students use to pay for school lunches. The notice may be viewed at: https://www.govinfo.gov/content/pkg/FR-2023-1017/pdf/2023-22869.pdf. Federal Register, Vol. 88, No. 199, 10/17/2023, 71534-71539.

CFPB Releases Consumer Credit Card Market Report to Congress. CFPB released its sixth biennial Consumer Credit Card Market Report to Congress. The report reviews developments in the consumer market since CFPB’s most recent biennial report on the same subject in 2021. CFPB released the report on its website on 10/25/2023. The notice may be viewed at: https://www.govinfo.gov/content/pkg/FR-2023-11-02/ pdf/2023-24132.pdf. Federal Register, Vol. 88, No. 211, 11/02/2023, 75277-75279.

CFPB Issues Proposed Rule Regarding Personal Financial Data Rights. CFPB issued a proposed rule to implement personal financial data rights under the Consumer Financial Protection Act. The proposed rule requires depository and nondepository entities to make available to consumers and authorized third parties certain data relating to consumers’ transactions and accounts, establish obligations for third parties accessing a consumer’s data, including important privacy protections for that data, provide basic standards for data access, and promote fair, open, and inclusive industry standards. Comments are due 12/29/2023. The proposed rule may be viewed at: https://www.govinfo.gov/content/pkg/FR-2023-10-31/pdf/2023-23576.pdf. Federal Register, Vol. 88, No. 209, 10/31/2023, 74796-74875.

FRB Extends Comment Period for Proposal on Risk-Based Capital Surcharges for Global Systemically Important Bank Holding Companies. The Board of Governors of the Federal Reserve System (FRB) extended the comment period for its proposed rule published in the Federal Register on 09/01/2023, which would amend FRB’s rule that identifies and establishes riskbased capital surcharges for global systemically important bank holding companies. FRB has determined that an extension of the comment period until 01/16/2024, is appropriate. The proposed rule may be viewed at: https://www. govinfo.gov/content/pkg/FR-2023-10-27/pdf/2023-23672.pdf. Federal Register, Vol. 88, No. 207, 10/27/2023, 73772.

FDIC Announces Termination of Receiverships. The Federal Deposit Insurance Corporation (FDIC), as Receiver, for the insured depository institutions listed in the notice, was charged with the duty of winding up the affairs of the former institutions and liquidating all related assets. The Receiver has fulfilled its obligations and made all dividend distributions required by law. The Receiver has further irrevocably authorized and appointed FDIC-Corporate as its attorney-in-fact to execute and file any and all documents that may be required to be executed by the Receiver which FDIC-Corporate, in its sole discretion, deems necessary, including but not limited to releases, discharges, satisfactions, endorsements, assignments, and deeds. Effective on the termination dates listed in the notice, the Receiverships have been terminated, the Receiver has been discharged, and the Receiverships have ceased to exist as legal entities. The notice may be viewed at: https://www.govinfo.gov/content/pkg/ FR-2023-11-06/pdf/2023-24453.pdf. Federal Register, Vol. 88, No. 213, 11/06/2023, 76216.

FDIC Seeks Comment on Interagency Bank Merger Application. FDIC seeks comment regarding an information collection titled, Interagency Bank Merger Application. Section 18(c) of the Federal Deposit Insurance Act (FDI Act) requires an insured depository institution (IDI) that wishes to merge or consolidate with any other IDI or, either directly or indirectly, acquire the assets of, or assume liability to pay any deposits made in, any other IDI, to apply for the prior written approval of the responsible agency (FDIC, Board of Governors of the Federal Reserve System (FRB), or Office of the Comptroller of the Currency (OCC) (collectively, the agencies). Section November 2023 | Page 7

Regulatory Spotlight 18(c) further requires FDIC approval in connection with any merger transaction involving an IDI and a non-insured entity. The agencies use the information collection in connection with the requirements under the FDI Act regarding bank mergers. Comments are due 01/02/2024. The notice may be viewed at: https://www.govinfo.gov/content/pkg/FR-202311-02/pdf/2023-24252.pdf. Federal Register, Vol. 88, No. 211, 11/02/2023, 75283-75284.

HUD Implements Section 202 Direct Loan Technical Amendments. The Department of Housing and Urban Development (HUD) issued a final rule to implement technical amendments to program regulations governing Section 202 Direct Loans for Housing for the Elderly and Persons with Disabilities, including Section 202 Projects for the Elderly or Handicapped-Section 8 Assistance and Section 202 Assistance for Nonelderly Handicapped Families and Individuals-Section 162 Assistance programs. The amendments are necessary to conform the program regulations with HUD’s final rule that implements sections 102, 103, and 104 of the Housing Opportunity Through Modernization Act. The final rule also corrects outdated cross references in the program regulations and updates the list of protected classes applicable to affirmative marketing requirements for the programs. The final rule is effective 01/01/2024. The final rule may be viewed at: https://www.govinfo.gov/content/pkg/FR-2023-11-02/ pdf/2023-24236.pdf. Federal Register, Vol. 88, No. 211, 11/02/2023, 75230-75234.

HUD Publishes Regulatory Waiver Requests Granted. HUD published lists of regulatory waiver requests granted for first (Q1) and second (Q2) quarters of calendar year 2023. Section 106 of the Department of Housing and Urban Development Reform Act requires HUD to publish quarterly Federal Register notices of all regulatory waivers that HUD has approved. Each notice covers the quarterly period since the previous Federal Register notice. The first notice contains a list of regulatory waivers granted by HUD during the period beginning on 01/01/2023, and ending on 03/31/2023, Q1. The second notice contains a list of regulatory waivers granted by HUD during the period beginning on 04/01/2023, and ending on 06/30/2023, Q2. The notices may be viewed at: https://www.govinfo.gov/content/pkg/FR-2023-10-16/pdf/2023-22603.pdf. Federal Register, Vol. 88, No. 198, 10/16/2023, 71432-71458; and https://www.govinfo.gov/content/pkg/FR-2023-10-16/pdf/2023-22602.pdf. Federal Register, Vol. 88, No. 198, 10/16/2023, 71402-71430.

HUD Announces 2024 Section 108 Loan Guarantee Program Fee. HUD announced the fee HUD will collect from borrowers of loans guaranteed under its Section 108 Loan Guarantee Program to offset the credit subsidy costs of the guaranteed loans pursuant to commitments awarded in Fiscal Year 2024 in the event HUD is required or authorized by statute to do so, notwithstanding subsection (m) of section 108 of the Housing and Community Development Act. Section 108 guaranteed loans are broken down into two categories: (1) loans that finance public infrastructure and activities to support subsidized housing (other than financing new construction); and (2) other development projects (e.g., retail, commercial, industrial). The Fiscal Year 2024 amount is set as 1.64 percent of the principal amount of the loan. The fee will be applied only at time of loan disbursement. The notice is applicable 10/01/2023. The notice may be viewed at: https://www.govinfo.gov/content/pkg/FR-2023-10-26/pdf/202323665.pdf. Federal Register, Vol. 88, No. 206, 10/26/2023, 73532-73534.

HUD Proposes to Modernize Delivery of Housing Counseling Services. HUD issued a proposed rule to update regulations that require participating agencies to provide in-person counseling to clients that prefer this format to reflect advances in technology, align with client engagement preferences, and preserve consumer protections. The proposed rule would amend HUD’s regulations to allow housing counseling agencies to use alternative communication methods, including virtual meeting tools, in lieu of providing in-person services. Participating agencies that choose not to provide in-person services would be required to refer clients to local providers that provide such services, when requested. Comments are due 12/26/2023. The proposed rule may be viewed at: https://www. govinfo.gov/content/pkg/FR-2023-10-25/pdf/2023-23332.pdf. Federal Register, Vol. 88, No. 205, 10/25/2023, 7329873300.

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Regulatory Spotlight HUD Seeks Changes to FHA HECM for Purchase Program. HUD seeks changes to the Federal Housing Administration’s (FHA’s) Home Equity Conversion Mortgage (HECM) for Purchase Program to expand the list of acceptable funding sources used to satisfy the borrower’s monetary investment requirement and will permit additional interested party contributions. The notice also announced that FHA will remove existing restrictions that prohibit the borrower from accepting cash from a seller or another person or entity that financially benefits from the HECM for Purchase transaction. HUD intends for future updates to its Single Family Housing Policy Handbook to reflect the changes. Comments are due 11/24/2023. The notice may be viewed at: https://www.govinfo.gov/ content/pkg/FR-2023-10-24/pdf/2023-23429.pdf. Federal Register, Vol. 88, No. 204, 10/24/2023, 73040-73042.

HUD Seeks Comment on Title I Property Improvement and Manufactured Home Loan Programs Information Collection. HUD seeks comment regarding an information collection titled, Title I Property Improvement and Manufactured Home Loan Programs. Title I loans are made by private sector lenders and insured by HUD against loss from default. HUD uses information about Title I loan borrowers to evaluate individual loans on their overall program performance. The information collected is used to determine insurance eligibility and claim eligibility. HUD has proposed to adopt the Uniform Residential Loan Application (URLA) and amend forms 56001 and 56001-MH to capture Title I Loan program specific information which will simplify the form, avoid unnecessary duplication, and reduce burden. The information is necessary for HUD to capture information effective in determining overall program performance, insurance and claim eligibility, and risk management. Comments are due 11/16/2023. The notice may be viewed at: https://www.govinfo.gov/ content/pkg/FR-2023-10-17/pdf/2023-22845.pdf. Federal Register, Vol. 88, No. 199, 10/17/2023, 71593-71594.

FEMA Adjusts Countywide and Statewide Per Capita Impact Indicators. The Federal Emergency Management Agency (FEMA) announced that the countywide per capita impact indicator under the Public Assistance Program for disasters declared on or after 10/01/2023, will increase to $4.60, for all disasters declared on or after 10/01/2023. In assessing damages for area designations under 44 CFR 206.40(b), FEMA uses a countywide per capita indicator to evaluate the impact of the disaster at the county level. FEMA adjusted the countywide per capita impact indicator under the Public Assistance Program to reflect annual changes in the Consumer Price Index for All Urban Consumers published by the Department of Labor. The notice may be viewed at: https://www.govinfo.gov/ content/pkg/FR-2023-10-20/pdf/2023-23166.pdf. Federal Register, Vol. 88, No. 202, 10/20/2022, 72541. FEMA announced that the statewide per capita impact indicator under the Public Assistance Program for disasters declared on or after 10/01/2023, will increase to $1.84 for all disasters declared on or after 10/01/2023. FEMA adjusted the statewide per capita impact indicator under the Public Assistance Program to reflect changes in the Consumer Price Index for All Urban Consumers published by the Department of Labor. The notice may be viewed at: https://www.govinfo. gov/content/pkg/FR-2023-10-20/pdf/2023-23167.pdf. Federal Register, Vol. 88, No. 202, 10/20/2022, 72524.

FEMA Adjusts Disaster Grant Amount. FEMA announced the adjusted threshold for Small Project subgrants made to State, Tribal, and local governments and private nonprofit facilities for disasters declared on or after 10/01/2023, is $1,037,000. FEMA based the adjustment on an increase in the Consumer Price Index for All Urban Consumers of 3.7 percent for the 12-month period that ended in August 2023. The notice may be viewed at: https://www.govinfo.gov/content/pkg/FR-2023-10-20/pdf/2023-23165.pdf. Federal Register, Vol. 88, No. 202, 10/20/2023, 72524.

FEMA Adjusts Minimum Project Worksheet Amount. FEMA announced the minimum Project Worksheet Amount under the Public Assistance Program for disasters and emergencies declared on or after 10/01/2023, will be increased to $3,900. FEMA annually adjusts the minimum Project Worksheet amount under the Public Assistance Program to reflect changes in the Consumer Price Index for All Urban Consumers published by the Department of Labor. The notice may be viewed at: https://www.govinfo.gov/content/pkg/ FR-2023-10-20/pdf/2023-23163.pdf. Federal Register, Vol. 88, No. 202, 10/20/2023, 72512. November 2023 | Page 9

Regulatory Spotlight FEMA Adjusts Maximum Amount of Assistance Under the Individuals and Households Program. FEMA announced the maximum amount for assistance under the Individuals and Households Program for emergencies and major disasters declared on or after 10/01/2023, with respect to any single emergency or major disaster is $42,500 for housing assistance and $42,500 for other needs assistance. In addition, in accordance with 44 CFR 61.17(c), the adjustment increases the maximum amount of available coverage under any Group Flood Insurance Policy issued. The notice may be viewed at: https://www.govinfo.gov/content/pkg/FR-2023-10-20/pdf/2023-23168.pdf. Federal Register, Vol. 88, No. 202, 10/20/2023, 72520.

FEMA Issues Final Flood Hazard Determinations. 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 02/22/2024, 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-2023-10-19/pdf/2023-23113.pdf. Federal Register, Vol. 88, No. 201, 10/19/2023, 72091-72092. FEMA issued a notice which identifies communities in the states of Iowa, Minnesota, 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 03/13/2024, 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-2023-11-03/pdf/2023-24333.pdf. Federal Register, Vol. 88, No. 212, 11/03/2023, 75617-75619. 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 03/27/2024, 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-2023-11-09/pdf/2023-24794.pdf. Federal Register, Vol. 88, No. 216, 11/09/2023, 77327-77329.

FEMA Issues Final Changes in Flood Hazard Determinations. FEMA announced new or modified Base (1-percent annual chance) Flood Elevations (BFEs), base flood depths, Special Flood Hazard Area (SFHA) boundaries or zone designations, and/or regulatory floodways (hereinafter referred to as flood hazard determinations) as shown on the indicated Letter of Map Revision (LOMR) have been made final for communities in the states of Illinois, Indiana, Michigan, Minnesota, Ohio, and Wisconsin, as listed in the table in the notice. Each LOMR revises the Flood Insurance Rate Maps (FIRMs), and in some cases the Flood Insurance Study (FIS) reports, currently in effect for the listed communities. Each LOMR was finalized as indicated in the table in the notice. The final notice may be viewed at: https://www.govinfo.gov/content/pkg/FR-2023-11-09/pdf/2023-24798.pdf. Federal Register, Vol. 88, No. 216, 11/09/2023, 77332-77339.

Page 10 | November 2023

Regulatory Spotlight FEMA Issues Notices of Changes in Flood Hazard Determinations. FEMA issued a notice which lists communities in the states of Minnesota 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-2023-11-03/pdf/2023-24334.pdf. Federal Register, Vol. 88, No. 212, 11/03/2023, 75608-75611.

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 Wisconsin, 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 02/01/2024. The notice may be viewed at: https://www.govinfo.gov/content/pkg/FR-2023-11-03/ pdf/2023-24336.pdf. Federal Register, Vol. 88, No. 212, 11/03/2023, 75611-75612. 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 Minnesota, 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 02/07/2024. The notice may be viewed at: https://www.govinfo.gov/content/pkg/FR-2023-11-09/ pdf/2023-24797.pdf. Federal Register, Vol. 88, No. 216, 11/09/2023, 77340-77342.

FEMA Seeks Comment on Revisions to LOMR and CLOMR Collections. FEMA seeks comment regarding an information collection titled, Revision to National Flood Insurance Program Maps: Application Forms for LOMRs and CLOMRs. The forms in the information collection are used to determine if the collected data will result in the modification of Base Flood Elevations (BFEs), Special Flood Hazard Area (SFHA), or floodway. Once the information is collected, it is submitted to FEMA for review and is subsequently included on the National Flood Insurance Program (NFIP) maps. The maps will be used for flood insurance determinations and for floodplain management purposes. Comments are due 12/26/2023. The notice may be viewed at: https://www.govinfo.gov/content/ pkg/FR-2023-10-26/pdf/2023-23667.pdf. Federal Register, Vol. 88, No. 206, 10/26/2023, 73604-73605.

FinCEN Issues Final Rule on Use of Identifiers for Reporting Beneficial Ownership Information. The Financial Crimes Enforcement Network (FinCEN) issued a final rule specifying when and how entities required to report beneficial ownership information (BOI) to FinCEN may use a FinCEN identifier to report BOI of certain related entities. The final rule amends FinCEN’s Beneficial Ownership Information Reporting Requirements Rule, which implements Section 6403 of the Corporate Transparency Act. The final rule is effective 01/01/2024. The final rule may be viewed at: https://www.govinfo.gov/content/pkg/FR-2023-11-08/pdf/2023-24559.pdf. Federal Register, Vol. 88, No. 215, 11/08/2023, 76995-76997. November 2023 | Page 11

Regulatory Spotlight FinCEN Proposes Recordkeeping and Reporting of Transactions Involving Convertible Virtual Currency Mixing. FinCEN seeks comment regarding a proposal that would require domestic financial institutions and domestic financial agencies to implement certain recordkeeping and reporting requirements relating to transactions involving convertible virtual currency (CVC) mixing. FinCEN finds that reasonable grounds exist for concluding that transactions involving CVC mixing within or involving a jurisdiction outside the United States are a class of transactions that is of primary money laundering concern. CVC is a type of virtual currency that either has an equivalent value as currency or acts as a substitute for currency and is therefore a type of “value that substitutes for currency.” The label applies to any particular type of CVC, such as digital currency, cryptocurrency, cryptoasset, and digital asset. Comments are due 01/22/2024. The proposed rule may be viewed at: https://www.govinfo.gov/content/pkg/FR-2023-10-23/pdf/2023-23449.pdf. Federal Register, Vol. 88, No. 203, 10/23/2023, 72701-72723.

Fiscal Service Amends Indorsement and Payment Rules of Treasury Checks. The Bureau of Fiscal Service (Fiscal Service) of the Department of the Treasury (Treasury) issued a final rule to amend its regulations that govern the payment of checks drawn on the United States Treasury (Treasury checks). The amendments coincide with the development of Fiscal Service’s enhanced check post payment processing system, which will provide Treasury check return information to financial institutions more quickly. Financial institutions will receive the information through their existing communication channels with the Federal Reserve Banks, generally prior to the expiration of the time periods in which financial institutions must make Treasury check deposits available for withdrawal as prescribed by Regulation CC, Availability of Funds and Collection of Checks. Accordingly, Fiscal Service has amended its regulations so that, with certain exceptions, a financial institution will be liable if it pays a canceled Treasury check, also known as a payment over cancellation, without waiting to receive the return information that would enable the financial institution to know the check has been canceled. The final rule is effective 12/01/2023. The final rule may be viewed at: https://www.govinfo.gov/content/pkg/FR2023-11-01/pdf/2023-24039.pdf. Federal Register, Vol. 88, No. 210, 11/01/2023, 74884-74890.

IRS Issues Rules Regarding Mortality Tables. The Internal Revenue Service (IRS) issued a final rule which prescribes the mortality tables to be used for most defined benefit pension plans. The tables specify the probability of survival year-by-year for an individual based on age, gender, and other factors. The tables are used (together with other actuarial assumptions) to calculate the present value of a stream of expected future benefit payments for purposes of determining the minimum funding requirements for the plan. The mortality tables are also relevant for determining the minimum required amount of a lump-sum distribution from such a plan. The final rule is effective 10/20/2023. The final rule applies to valuation dates occurring on or after 01/01/2024. The final rule may be viewed at: https://www.govinfo.gov/content/pkg/FR-2023-10-20/pdf/2023-23267.pdf. Federal Register, Vol. 88, No. 202, 10/20/2023, 72357-72366. IRS issued a proposed rule to update the requirements that a plan sponsor of a single-employer defined benefit plan must meet to obtain IRS approval to use mortality tables specific to the plan in calculating present value for minimum funding purposes, as a substitute for the generally applicable mortality tables. Comments are due 12/19/2023. The proposed rule may be viewed at: https://www.govinfo.gov/content/pkg/FR-2023-10-20/pdf/2023-23268.pdf. Federal Register, Vol. 88, No. 202, 10/20/2023, 72409-72411.

IRS Seeks Comment on Sale of Residence from Qualified Personal Residence Trust Information Collection. IRS seeks comment regarding an information collection titled, Sale of Residence from Qualified Personal Residence Trust. Internal Revenue Code section 2702(a)(3) provides special favorable valuation rules for valuing the gift of a personal residence trust. Regulation section 25.2702-5(a)(2) provides that if the trust fails to comply with the requirements contained in the regulations, the trust will be treated as complying if a statement is attached to the gift tax return reporting the gift stating that a proceeding has been commenced to reform the instrument to comply with the requirements of the regulations. Comments are due 12/11/2023. The notice may be viewed at: https://www.govinfo.gov/ content/pkg/FR-2023-10-12/pdf/2023-22483.pdf. Federal Register, Vol. 88, No. 196, 10/12/2023, 70697. Page 12 | November 2023

Regulatory Spotlight FHFA Seeks Comment on FHLB Capital Stock Information Collection. The Federal Housing Finance Agency (FHFA) seeks comment regarding an information collection titled, Federal Home Loan Bank Capital Stock. The FHFA system consists of eleven regional Federal Home Loan Banks (FHLBs) and the Office of Finance (a joint office that issues and services FHLBs’ debt securities). FHLBs are wholesale financial institutions, organized under authority of the Federal Home Loan Bank Act to serve the public interest by enhancing the availability of residential housing finance and community lending credit through their member institutions and, to a limited extent, through certain eligible nonmembers. Each FHLB is structured as a regional cooperative that is owned and controlled by member institutions located within its district, which are also its primary customers. An institution that is eligible for membership in a particular FHLB must purchase and hold a prescribed minimum amount of FHLB’s capital stock in order to become and remain a member of that FHLB. The information collection is used in connection with the requirements under FHFA’s regulations on Bank Capital Requirements, Capital Stock, and Capital Plans under 12 CFR part 1277. Comments are due 11/20/2023. The notice may be viewed at: https://www.govinfo.gov/content/pkg/FR-2023-10-19/ pdf/2023-23067.pdf. Federal Register, Vol. 88, No. 201, 10/19/2023, 72078-72080.

SBA Issues Final Rule on 504 Loan Program Debt Refinancing. The Small Business Administration (SBA) issued a final rule to adopt, with changes, the interim final rule published in the Federal Register on 07/29/2021. The interim final rule implemented section 328 of the Economic Aid to Hard-Hit Small Businesses, Nonprofits, and Venues Act, which modified the requirements for refinancing debt in the 504 Loan Program. The modifications increase the amount of existing indebtedness that may be refinanced for 504 debt refinancing involving expansions. For 504 debt refinancing not involving expansions, the modifications remove two limitations on the program, reinstate an alternate job retention standard for the refinancing project, revise the definition of “qualified debt,” and remove the prohibition against Certified Development Companies participating in the Premier Certified Lenders Program using their delegated authority to make the loans. The final rule is effective 11/13/2023. The final rule may be viewed at: https://www.govinfo.gov/content/pkg/FR-2023-10-12/pdf/2023-22169.pdf. Federal Register, Vol. 88, No. 196, 10/12/2023, 70580-70586.

SBA Updates Small Business Development Centers Program. SBA issued a final rule to update its regulations for the Small Business Development Centers Program. The final rule updates and clarifies the regulations, making them more efficient, effective, transparent, and comprehensive, and puts them in alignment with current SBA policy and guidance. The final rule also includes policy and procedural changes identified by SBA as necessary to preserve the integrity and legislative intent of the program. Finally, the final rule incorporates updates to conform with administrative requirements, cost principles, and audit requirements for federal awards. The final rule is effective 12/07/2023. The final rule may be viewed at: https://www.govinfo.gov/content/pkg/FR2023-11-07/pdf/2023-22164.pdf. Federal Register, Vol. 88, No. 214, 11/07/2023, 76625-76652.

FSA Issued NOFA on Emergency Relief Program 2022. The Farm Service Agency (FSA) issued a notice of funding availability (NOFA) for Emergency Relief Program (ERP) 2022, which will provide payments to eligible crop producers for losses due to qualifying disaster events including wildfires, hurricanes, floods, derechos, excessive heat, tornadoes, winter storms, freeze (including a polar vortex), smoke exposure, excessive moisture, qualifying drought, and related conditions that occurred in calendar year 2022. ERP 2022 will be administered through 2 tracks. Track 1 will assist eligible crop producers who received indemnities for eligible crop or tree losses through certain federal crop insurance policies or payments for crop losses through the Noninsured Crop Disaster Assistance Program. Track 2 will assist eligible crop producers for other eligible crop and tree losses through a revenuebased approach. See the NOFA for program information, application details, and deadlines. The NOFA may be viewed at: https://www.govinfo.gov/content/pkg/FR-2023-10-31/pdf/2023-24009.pdf. Federal Register, Vol. 88, No. 209, 10/31/2023, 74404-74419.

November 2023 | Page 13

Regulatory Spotlight FCIC Clarifies Cancellation of Crop Insurance Policy. The Federal Crop Insurance Corporation (FCIC) made a technical amendment to its regulations by clarifying that an Approved Insurance Provider (AIP) may only cancel a crop insurance policy with express written consent from FCIC. This requirement is already binding in the Standard Reinsurance Agreement, which establishes the terms under which FCIC provides reinsurance and subsidies on eligible crop insurance policies sold by AIPs. By adding the same conditions to the regulation as are in the policy between the AIP and the producer, the final rule provides greater transparency to producers about the existing rights in the policy. The final rule is effective 11/30/2023. See the final rule for dates of applicability. FCIC will consider comments and may conduct additional rulemaking in the future based on comments received. Comments are due 12/18/2023. The final rule may be viewed at: https://www.govinfo.gov/content/pkg/FR2023-10-18/pdf/2023-22964.pdf. Federal Register, Vol. 88, No. 200, 10/18/2023, 71731-71733.

Agencies Confirm Special Authority Enabling Funding of Broadband and Smart Utility Facilities Programs. The Rural Business-Cooperative Service (RBC), Rural Utilities Service (RUS), and Rural Housing Service (RHS) (collectively, the agencies) issued a final rule to confirm the special authority which enables funding of broadband and smart utility facilities across select rural development programs. The agencies published a final rule in the Federal Register on 09/15/2020, to establish the special authority authorized by Section 6210 of the Agriculture Improvement Act, which is meant to assist rural families and small businesses in gaining access to broadband service by permitting recipients of loans, grants, and loan guarantees from Rural Development to construct broadband infrastructure in areas not served by the minimum acceptable level of broadband service. The 2020 final rule described the procedures by which the agencies would consider projects eligible for special broadband authority. Through the final rule, the agencies have confirmed the 2020 final rule as it was published and provided responses to the comments received regarding the 2020 final rule. The final rule is effective 10/19/2023. The final rule may be viewed at: https://www.govinfo.gov/content/pkg/ FR-2023-10-19/pdf/2023-23070.pdf. Federal Register, Vol. 88, No. 201, 10/19/2023, 71987-71988.

RBC Seeks Comment on Rural Economic Development Loan Program Information Collection. The Rural Business-Cooperative Service (RBC) seeks comment regarding an information collection titled, Rural Economic Development Loan and Grant Program. Under the program, loans and grants are provided to electric and telecommunications utilities that have borrowed funds from RBC. The purpose of the program is to encourage electric and telecommunications utilities to promote rural economic development and job creation projects. The utilities use program loan funds to make a pass-through loan to an ultimate recipient. The information collected is used to evaluate applications for funding consideration, conduct an environmental review, prepare legal documents, receive loan payments, oversee the operation of a revolving loan fund, monitor the use of RBC funds, and enforce requirements such as compliance with civil rights regulations. Comments are due 12/26/2023. The notice may be viewed at: https://www. govinfo.gov/content/pkg/FR-2023-10-24/pdf/2023-23410.pdf. Federal Register, Vol. 88, No. 204, 10/24/2023, 7299272993.

RHS Proposes Changes to Insurance Requirements of Multi-Family Housing Direct Loan and Grant Programs. The Rural Housing Service (RHS) proposed to amend its regulation to implement changes related to insurance requirements under the Multi-Family Housing Direct Loan and Grant programs. RHS operates the programs by providing direct loans or grants to affordable multi-family rental housing for low income, elderly, disabled individuals and families, or domestic farm workers in eligible rural areas. As required by RHS under 7 CFR part 3560, borrowers are required to purchase and maintain property insurance on all buildings included as security for an RHS loan, to avoid a non-monetary loan default. The intent of the proposed rule is to align Rural Development insurance coverage types, amounts, and deductibles with affordable housing industry standards to simplify the coverage amounts, deductible limits, and improve the customer experience with updated and understandable insurance requirements. Comments are due 12/26/2023. The proposed rule may be viewed at: https://www.govinfo.gov/content/pkg/FR-2023-10-25/pdf/2023-23344.pdf. Federal Register, Vol. 88, No. 205, 10/25/2023, 73245-73249.

Page 14 | November 2023

Regulatory Spotlight CCC Revises FY 2023 State Cane Sugar Allotments. The Commodity Credit Corporation (CCC) issued a notice to revise fiscal year (FY) 2023 (crop year 2022) State cane sugar allotments and allocations to sugarcane processors, reassign FY 2023 cane sugar marketing allocations to raw cane sugar imports already anticipated, and announce the FY 2024 (crop year 2023) overall sugar marketing allotment quantity, State cane sugar allotments, and sugar beet and sugarcane processor allocations. The actions to revise and reassign apply to all domestic cane sugar marketed for human consumption in the United States from 10/01/2022, through 09/30/2023. The action to announce the allocations applies to all domestic beet and cane sugar marketed for human consumption in the United States from 10/01/2023, through 09/30/2024. The notice may be viewed at: https:// www.govinfo.gov/content/pkg/FR-2023-10-13/pdf/2023-22638.pdf. Federal Register, Vol. 88, No. 197, 10/13/2023, 70920-70922.

CFTC Sets Fees for Reviews of Rule Enforcement Programs. The Commodity Future Trading Commission (CFTC) released notification of the 2022 schedule of fees. CFTC charges fees to designated contract markets (DCMs) and registered futures associations to recover the costs incurred by CFTC in the operation of its program of oversight of self-regulatory organization rule enforcement programs, specifically the National Futures Association. The calculation of the fee amounts charged for 2022 is based upon an average of actual program costs incurred during fiscal years 2019, 2020, and 2021. Fees are due 12/29/2023. The final rule may be viewed at: https://www.govinfo.gov/content/pkg/FR-2023-10-30/pdf/2023-23821.pdf. Federal Register, Vol. 88, No. 208, 10/30/2023, 74025-74027.

CFTC Proposes to Amend Definitions and Disclosures Related to Certain Trading Programs. CFTC seeks comments on a proposed rule which would amend certain provisions of its regulations, including to: (a) update the portfolio requirement thresholds within the “Qualified Eligible Person” definition; (b) require commodity pool operators and commodity trading advisors operating pools and trading programs to provide certain minimum disclosures to prospective pool participants and advisory clients; (c) make revisions consistent with long-standing exemptive letters that address the timing of certain pools’ periodic financial reporting; and (d) make technical amendments related to the structure of the regulations subject of the proposal. Comments are due 12/11/2023. The proposed rule may be viewed at: https://www.govinfo.gov/content/pkg/FR-2023-10-12/pdf/2023-22324.pdf. Federal Register, Vol. 88, No. 196, 10/12/2023, 70852-70884.

SEC Issues Final Rule on Short Position and Short Activity Reporting. The Securities and Exchange Commission (SEC) adopted a new rule and new Form SHO pursuant to the Securities Exchange Act and the Dodd-Frank Act regarding short position and short activity reporting by institutional investment managers. The new rule and related form are designed to provide greater transparency through the publication of short sale-related data to investors and other market participants. Under the new rule, institutional investment managers that meet or exceed certain specified reporting thresholds are required to report, on a monthly basis using the related form, specified short position data and short activity data for equity securities. In addition, SEC has adopted an amendment to the national market system (NMS) plan governing the consolidated audit trail (CAT) created pursuant to the Exchange Act to require the reporting of reliance on the bona fide market making exception in SEC’s short sale rules. The final rule is effective 01/02/2024. See Part VI of the final rule for mandatory compliance dates. The final rule may be viewed at: https://www.govinfo.gov/content/pkg/FR-2023-11-01/pdf/2023-23050.pdf. Federal Register, Vol. 88, No. 210, 11/01/2023, 75100-75188.

SEC Issues Final Rule on Reporting of Securities Loans. SEC adopted a new rule under the Securities Exchange Act to increase the transparency and efficiency of the securities lending market by requiring certain persons to report information about securities loans to a registered national securities association (RNSA). The new rule also requires certain confidential information to be reported to an RNSA to enhance an RNSA’s oversight and enforcement functions. Further, the new rule requires that an RNSA make certain information it receives, along with daily information pertaining to the aggregate transaction activity and distribution of loan rates for November 2023 | Page 15

Regulatory Spotlight each reportable security, available to the public. The final rule is effective 01/02/2024. See section VIII of the final rule for mandatory compliance dates. The final rule may be viewed at: https://www.govinfo.gov/content/pkg/FR-2023-11-03/ pdf/2023-23052.pdf. Federal Register, Vol. 88, No. 212, 11/03/2023, 75644-75742.

SEC Issues Final Rule on Modernization of Beneficial Ownership Reporting. SEC adopted amendments to certain rules that govern beneficial ownership reporting. The amendments generally shorten the filing deadlines for initial and amended beneficial ownership reports filed on Schedules 13D and 13G. The amendments also clarify the disclosure requirements of Schedule 13D with respect to derivative securities. SEC has also expanded the timeframe within a given business day by which Schedules 13D and 13G must be filed, and separately requiring that Schedule 13D and 13G filings be made using a structured, machine-readable data language. Further, SEC discusses how, under the current rules, an investor’s use of a cash-settled derivative security may result in the person being treated as a beneficial owner of the class of the reference equity security. SEC has also provided guidance on the application of the current legal standard found in section 13(d)(3) and 13(g)(3) of the Securities Exchange Act to certain common types of shareholder engagement activities. Finally, SEC has also made certain technical revisions. The final rule is effective 02/05/2024. See section II.G of the final rule for mandatory compliance dates. The final rule may be viewed at: https://www.govinfo.gov/content/pkg/FR-2023-11-07/pdf/2023-22678.pdf. Federal Register, Vol. 88, No. 214, 11/07/2023, 76896-76984.

SEC Issues List of Rules Related to Regulatory Flexibility Act. SEC, as required by the Regulatory Flexibility Act (RFA) publishes in the Federal Register, each year, a list of rules that are to be reviewed in accordance with the RFA during the succeeding 12 months. Based upon its review of rules potentially subject to review under the RFA during the succeeding 12 months, SEC has determined that no such rules are required to be reviewed. Accordingly, SEC is not publishing a list of rules to be reviewed pursuant to the RFA during the succeeding 12 months. The notice may be viewed at: https://www.govinfo.gov/content/pkg/FR-2023-10-13/pdf/2023-22605.pdf. Federal Register, Vol. 88, No. 197, 10/13/2023, 70918.

SEC Issues Proposed Rule Regarding Volume-Based Exchanged Transaction Pricing. SEC issued a proposed rule under the Securities Exchange Act to prohibit national securities exchanges from offering volume-based transaction pricing in connection with the execution of SEC-related orders in certain stocks. If exchanges offer such pricing for their members’ proprietary orders, the proposal requires the exchanges to adopt rules and written policies and procedures related to compliance with the prohibition, as well as disclose, on a monthly basis, certain information including the total number of members that qualified for each volume tier during the month. Comments are due 01/05/2024. The proposed rule may be viewed at: https://www.govinfo.gov/content/pkg/FR-2023-11-06/pdf/202323398.pdf. Federal Register, Vol. 88, No. 213, 11/06/2023, 76282-76341.

SEC Issues Correction to Investment Company Names Rule. SEC issued a technical correction to the preamble accompanying amendments to the rule under the Investment Company Act that addresses certain broad categories of investment company names that are likely to mislead investors about an investment company’s investments and risks. The final rule was published in the Federal Register on 10/11/2023. The correction provides specific compliance dates for the final rule which were missing from the final rule when published. See the correction for specific compliance dates. The correction is effective 12/11/2023. The correction may be viewed at: https://www.govinfo.gov/content/pkg/FR-2023-10-27/pdf/2023-23778.pdf. Federal Register, Vol. 88, No. 207, 10/27/2023, 73755.

FTC Issues Proposed Rule on Unfair or Deceptive Fees. The Federal Trade Commission (FTC) commenced a rulemaking to promulgate a trade regulation rule titled, Rule on Unfair or Deceptive Fees, which would prohibit unfair or deceptive practices relating to fees for goods or services, specifically, misrepresenting the total costs of goods and services by omitting mandatory fees from advertised prices and misrepresenting the nature and purpose of fees. FTC stated it finds the unfair or deceptive practices relating to fees Page 16 | November 2023

Regulatory Spotlight to be prevalent based on prior enforcement, the comments it received in response to an advance notice of proposed rulemaking, and other information discussed in the proposed rule. FTC seeks comment, data, and arguments concerning the utility and scope of the trade regulation rule proposed to prevent the identified unfair or deceptive practices. Comments are due 01/08/2024. The proposed rule may be viewed at: https://www.govinfo.gov/content/pkg/FR-202311-09/pdf/2023-24234.pdf. Federal Register, Vol. 88, No. 216, 11/09/2023, 77420-77485.

VA Seeks Comment on Records Collection. The Department of Veteran Affairs (VA) seeks comment regarding an information collection titled, Maintenance of Records Under 38 CFR 36.4333. The information collected under §36.4333 is used by VA to ensure lenders and servicers who participate in VA’s Loan Guaranty program follow statutory and regulatory requirements. Such requirements include those relating to credit information, loan processing requirements, underwriting standards, servicing requirements, and other applicable laws, regulations and policies. VA also uses data collected to provide annual feedback to lenders, through the Lender Scorecard, on certain loan characteristics such as interest rate, fees and charges, audit results, etc., as compared to the national average of all VA lenders. Comments are due 12/26/2023. The notice may be viewed at: https:// www.govinfo.gov/content/pkg/FR-2023-10-25/pdf/2023-23496.pdf. Federal Register, Vol. 88, No. 205, 10/25/2023, 73421.

SSA Announces 2023 Cost-of-Living Increase and Other Determinations. The Social Security Administration (SSA) announced a 3.2 percent cost-of-living increase in Social Security benefits effective December 2023. In addition, the national average wage index for 2022 is $63,795.13. Computation of the cost-of-living increase is based on an increase in a Consumer Price Index produced by the Bureau of Labor Statistics. The cost-of-living increase and national average wage index affect other program parameters as further described in the notice. The notice may be viewed at: https://www.govinfo.gov/content/pkg/FR-2023-10-23/pdf/2023-23317.pdf. Federal Register, Vol. 88, No. 203, 10/23/2023, 72803-72808.

NLRB Issues Standards for Determining Joint Employer Status. The National Labor Relations Board (NLRB) issued a final rule to establish a new standard for determining whether two employers, as defined in the National Labor Relations Act (Act), are joint employers of particular employees within the meaning of the Act. NLRB believes that the final rule more explicitly grounds the joint-employer standard in established common-law NLRB principles and provides guidance to parties covered by the Act regarding their rights and responsibilities when more than one statutory employer possesses the authority to control or exercises the power to control particular employees’ essential terms and conditions of employment. Under the final rule, an entity may be considered a joint employer of another employer’s employees if the two share or codetermine the employees’ essential terms and conditions of employment. The final rule rescinds and replaces a final rule titled, Joint Employer Status Under the National Labor Relations Act, which was published on 02/26/2020, and took effect on 04/27/2020. The final rule is effective 12/26/2023. The final rule may be viewed at: https://www.govinfo.gov/content/pkg/FR-2023-10-27/pdf/202323573.pdf. Federal Register, Vol. 88, No. 207, 10/27/2023, 73946-74018.

NCUA Proposes to Simplify Share Insurance Rules. The National Credit Union Administration (NCUA) seeks comment regarding proposed amendments to its regulations governing share insurance coverage. The proposed rule would simplify the share insurance regulations by establishing a “trust accounts” category that would provide for coverage of funds of both revocable trusts and irrevocable trusts deposited at federally insured credit unions, provide consistent share insurance treatment for all mortgage servicing account balances held to satisfy principal and interest obligations to a lender, and provide more flexibility for NCUA to consider various records in determining share insurance coverage in liquidations. Comments are due 12/26/2023. The proposed rule may be viewed at: https://www.govinfo.gov/content/pkg/FR-2023-10-25/pdf/2023-23481.pdf. Federal Register, Vol. 88, No. 205, 10/25/2023, 73249-73265.

November 2023 | Page 17

Regulatory Spotlight NCUA Proposes Revisions to Fair Hiring in Banking Act Regulation. NCUA issued a proposed rule to incorporate its “Second Chance” Interpretive Ruling and Policy Statement 19-1 and the Fair Hiring in Banking Act (FHBA) into its regulations. The Federal Credit Union Act prohibits, except with NCUA’s prior written consent, any person who has been convicted of certain criminal offenses involving dishonesty or breach of trust (a covered offense), or who has entered into a pretrial diversion or similar program in connection with a prosecution for such offense (program entry), from participating in the conduct of the affairs of an insured credit union. The proposed rule would address, among other topics, the individuals and types of offenses covered by FHBA section 205(d), as well as the NCUA’s procedures for reviewing a consent application. The proposed rule would add new part 752 to Chapter VII of Title 12 of the Code of Federal Regulations. Comments are due 01/08/2024. The proposed rule may be viewed at: https:// www.govinfo.gov/content/pkg/FR-2023-11-07/pdf/2023-23509.pdf. Federal Register, Vol. 88, No. 214, 11/07/2023, 76702-76717.

NCUA Releases Staff Draft 2024-2025 Budget Justification. NCUA released its staff draft “detailed business-type budget” for review as required by federal statute. The proposed resources will finance NCUA’s annual operations and capital projects, both of which are necessary for NCUA to accomplish its mission of protecting the system of cooperative credit and its member-owners through effective chartering, supervision, regulation, and insurance. Comments are due 11/21/2023. The notice may be viewed at: https:// www.govinfo.gov/content/pkg/FR-2023-11-01/pdf/2023-24032.pdf. Federal Register, Vol. 88, No. 210, 11/01/2023, 75040-75076.

Compliance Notes In an order issued near the end of October, the U.S. District Court, Southern District of Texas, McAllen Division (Texas U.S. District Court) issued an order whereby CFPB is preliminarily enjoined from implementing and enforcing the Section 1071 Rule against all covered financial institutions pending the U.S. Supreme Court’s decision regarding the constitutionality of CFPB’s funding structure and until further order by the Texas U.S. District Court. CFPB was ordered to immediately cease all implementation or enforcement of the final rule against all covered financial institutions. The Texas U.S. District Court also ordered that all deadlines for compliance with the requirements of the Section 1071 Rule be stayed for all covered financial institutions until after the U.S. Supreme Court’s final decision. If the final decision were to favor CFPB, CFPB has been ordered to extend for all covered financial institutions the deadlines for compliance with the Section 1071 Rule to compensate for the period stayed. The Order may be viewed at: www. consumerfinancialserviceslawmonitor.com/wp-content/uploads/sites/880/2023/10/069-Order-Granting-NationwideRelief.pdf FinCEN issued an alert to financial institutions to counter financing to Hamas and its terrorist activities. FinCEN urges financial institutions to be vigilant in identifying suspicious activity relating to financing Hamas and report it to FinCEN. The alert contains red flags that FinCEN has identified to help detect, prevent, and report potential suspicious activity related to Hamas’ terrorist financing activity. The alert may be viewed at: www.fincen.gov/news/news-releases/ fincen-alert-financial-institutions-counter-financing-hamas-and-its-terrorist FinCEN also issued a joint notice with the Department of Commerce’s Bureau of Industry and Security (BIS) to highlight a new SAR key term “FIN-2023-GLOBALEXPORT” for banks to reference when reporting potential efforts by individual or entities seeking to evade U.S. export controls not related to Russia’s invasion of Ukraine. FinCEN and BIS previously issued two joint alerts in June 2022 and May 2022 urging banks to be vigilant against potential Russian export control evasion in response to Russia’s illegal invasion of Ukraine. Banks are encouraged to continue to use the key term “FIN2022-RUSSIABIS” when filing SARs related to suspected Russian export control evasion. FinCEN Notice FIN-2023NTC2 may be viewed at: www.fincen.gov/news/news-releases/fincen-and-bureau-industry-and-security-bis-issue-jointnotice-and-new-key-term FRB issued the second/third issue of Consumer Compliance Outlook for 2023. The latest edition covers top FRB compliance violations in 2022 with a focus on HMDA as HMDA was the top cited violation (59.4% of all Page 18 | November 2023

Compliance Notes compliance violations), information regarding compliance risk assessments, a repeat of FRB’s supervisory observations on representment fees from a release earlier in October, and a regulatory calendar. The latest edition may be viewed at: https://www.consumercomplianceoutlook.org/2023/ FTC released the National Do Not Call Registry Data Book for Fiscal Year 2023. The data book contains aggregate data about phone numbers on the registry, telemarketers and sellers accessing the registry, and Do Not Call complaints by complaint topic and type (i.e., robocall or live caller). This year, Do Not Call data are also available online in an interactive format, with updates provided quarterly. The data book and additional resources may be viewed at: www. ftc.gov/reports/national-do-not-call-registry-data-book-fiscal-year-2023 The agencies released revised examination procedures to reflect amendments to the TCPA that became effective in Oct 2021. The revised examination procedures address provisions governing how customers can revoke consent under TCPA, special exemptions from the consumer consent provisions of TCPA for banks using automated communications to notify customers of potential account fraud, and safe harbors for callers that check a reassigned number database maintained by FCC. The revised examination procedures may be viewed at: www.occ.gov/news-issuances/ bulletins/2023/bulletin-2023-35.html FDIC also updated its Risk Management Manual of Examination Policies. The October 2023 changes amend section 16.1 Report of Examination Instructions, updating and clarifying instructions on uninsured deposit and commercial real estate concentrations. The November 2023 revisions incorporate various technical edits to Section 14.1, Civil Money Penalties. The revised manual may be viewed at: www.fdic.gov/regulations/safety/manual/index.html OCC issued a bulletin to inform banks about policy guidance that applies to commercial loans to early-, expansion-, and late-stage companies. The bulletin refers to the loans as “venture loans.” In its bulletin, OCC stated there is heightened uncertainty and higher probability of failure associated with new business ventures and that OCC expects banks engaging in venture lending to do so in a safe and sound manner, in compliance with applicable laws and regulations, and with support from sound risk management systems. Examiners will ask banks to determine the impact that any weak venture loan underwriting standards may have on the assumptions used in calculating loan loss reserves. The bulletin applies to all OCC-regulated banks, including community banks, that engage in or are considering engaging in venture lending. The bulletin may be viewed at: www.occ.gov/news-issuances/bulletins/2023/bulletin-2023-34.html FHFA released its Report on 2022 Federal Home Loan Bank Targeted Mission Activities. FHLBanks targeted mission activities support low-income housing and community development. The FHLBanks support a range of these activities through various programs, including the: statutorily-mandated Affordable Housing Program (AHP), statutorilymandated Community Investment Program (CIP), and voluntary Community Investment Cash Advance Program (CICA). The report may be viewed at: www.fhfa.gov/AboutUs/Reports/ReportDocuments/2022-FHLBank-Targeted-MissionActivities-Report.pdf FHFA also announced the 2024 multi-family loan purchase caps for Fannie and Freddie will be $70 billion for each enterprise. To ensure a strong focus on affordable housing and underserved markets, FHFA will require that at least 50 percent of the enterprises’ multi-family businesses be mission-driven, affordable housing. In addition, for 2024, loans classified as supporting workforce housing properties in Appendix A of the Conservation Scorecard will be exempt from the volume cap. The announcement, a fact sheet, and the referenced Appendix A may be viewed at: www.fhfa.gov// Media/PublicAffairs/Pages/FHFA-Announces-2024-Multifamily-Loan-Purchase-Caps-for-Fannie-Mae-and-Freddie-Mac. aspx Lastly, FHFA released its report, FHLBank System at 100: Focusing on the Future. The report is FHFA’s comprehensive review of the FHLBank System in anticipation of the System’s centennial in 2032. The report may be viewed at: www. fhfa.gov//Media/PublicAffairs/Pages/FHFA-Releases-Report-on-FHLBank-System-at-100.aspx FTC is now providing the ability to report fraud, scams, and deceptive practices in multiple languages in addition to English and Spanish. The new language access enhancements allow people to file reports with FTC in their preferred language when calling FTC. Among the new languages available are Mandarin, Tagalog, Vietnamese, French, Arabic, Russian, Korean, Portuguese, and Polish. Consumers speaking English and Spanish can also continue to file reports directly online. FTC is also offering guidance online and in print to consumers and businesses in additional languages. The release may viewed at: www.ftc.gov/news-events/news/press-releases/2023/11/ftc-adds-support-consumers-multiplelanguages-fraud-id-theft-reporting-offers-multi-lingual

November 2023 | Page 19

Compliance Notes FRB released the October 2023 Senior Loan Officer Opinion Survey on Bank Lending Practices (SLOOS). The survey 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 third quarter of 2023. Regarding loans to businesses, survey respondents, on balance, reported tighter standards and weaker demand for commercial and industrial loans to firms of all sizes over the third quarter. Furthermore, banks reported tighter standards and weaker demand for all commercial real estate loan categories. The survey may be viewed at: www.federalreserve.gov/data/sloos/sloos-202310.htm FHA increased the allowable property inspection fee limits for property inspections of single-family homes associated with defaulted FHA-insured mortgages. Inspections are a crucial component of servicers’ preservation and protection of properties. Inspections also safeguard neighborhoods from blight arising from inadequately maintained unoccupied homes. FHA intends to evaluate allowable parameters for other property preservation expenses in the future. The new allowable inspection fees become effective immediately. The announcement may be viewed at: www.hud.gov/ press/press_releases_media_advisories/HUD_No_23_259 CFPB took action against Chime Inc., for deceiving consumers about the speed and cost of remittance transfers through its mobile app, Sendwave. CFPB also claims Chime illegally forced consumers to waive their legal rights, failed to provide consumers with legally required disclosures and receipts, and failed to properly investigate consumer disputes and errors. CFPB has ordered Chime to refund affected consumers nearly $1.5 million in fees and pay a $1.5 million penalty into CFPB’s victims relief fund. The announcement may be viewed at: www.consumerfinance.gov/about-us/ newsroom/cfpb-takes-action-against-operator-of-sendwave-app-for-illegally-cheating-people-on-international-moneytransfers/ FinCEN has renewed and expanded its Real Estate Geographic Targeting Orders (GTOs) which require U.S. title companies to identify the natural persons behind companies used in the non-financed purchase of residential real estate. The terms of the GTOs begin 10/22/2023, and end 04/18/2024. Counties within Chicago continue to be affected by the GTOs. The notice, which includes a listing of the affected counties, may be viewed at: www.fincen.gov/news/newsreleases/fincen-renews-and-expands-real-estate-geographic-targeting-orders-2 FTC and the State of Wisconsin took action against Wisconsin auto dealer group Rhinelander Auto Center, its current and former owners, and general manager claiming the center deceived consumers by tacking on additional fees to car prices and for discriminating against American Indian consumers by charging them higher financing costs and fees. The defendants have agreed to proposed court orders that would require the current owner and general manager to stop such practices and provide $1.1 million to be used for refunds to consumers. The announcement and complaint may be viewed at: www.ftc.gov/news-events/news/press-releases/2023/10/ftc-wisconsin-take-action-against-rhinelander-autocenter-illegally-discriminating-against-american CFPB recently reported credit card companies charged consumers $130 billion in interest and fees in 2022. Total outstanding credit card debt eclipsed $1 trillion for the first time since CFPB began collecting the data. The report highlights areas of concern, including more consumers carrying balances month to month. The report may be viewed at: www.consumerfinance.gov/about-us/newsroom/cfpb-report-finds-credit-card-companies-charged-consumers-recordhigh-130-billion-in-interest-and-fees-in-2022/ The Federal Reserve’s FedCash® Services announced broad availability of its new E-Manifest Service to all financial institution customers of the Federal Reserve Banks and their servicing armored carriers. The E-Manifest Service enables financial institutions and armored carriers that work directly with the Federal Reserve to electronically process currency deposits and orders at Federal Reserve docks. With the E-Manifest Service, armored carriers, on behalf of their financial institution customers, can share and receive electronic information in real-time. The service replaces the manual process of matching paper manifests for deposits and orders at Federal Reserve docks with technology that enables scanning and an electronic exchange of data. The release may be viewed at: www.frbservices.org/news/pressreleases/102623-federal-reserve-announces-broad-availability-of-e-manifest-service

Page 20 | November 2023

CLE Hours 2022 and 2023 List of 2022 and 2023 WBA Programs to Receive Continuing Legal Education Designation Wisconsin Bank Attorney: The Board of Bar Examiners of the Supreme Court of Wisconsin has approved the following completed WBA educational programs for use toward the Wisconsin mandatory Continuing Legal Education (CLE) requirement for attorneys. None of the activities listed below include Ethics and Professional Responsibility (EPR) hours or qualify for GAL education.

2022 WBA Compliance Forum, February 2022 3.0 CLE Hours February 22, 2022 – Wausau February 23, 2022 – Madison

WBA In-House Legal Counsel Series April 2022: Employment Law 2.0 CLE Hours – live webcast and on demand WBA Trust Conference, May 2022 5.0 CLE Hours May 25, 2022 – Madison

WBA In-House Legal Counsel Series March 2022: Survey and Title Review (with Endorsements) 2.0 CLE Hours – live webcast and on demand WBA In-House Legal Counsel Series March 2022: Court Case Update: Recent Federal and State Cases 2.0 CLE Hours – live webcast and on demand

WBA Compliance Forum, June 2022 3.0 CLE Hours June 28, 2022 – Wisconsin Dells WBA Compliance Forum, November 2022 3.5 CLE Hours November 15, 2022 – Wisconsin Dells

2023 WBA In-House Legal Counsel Series January 2023: Complex Issues When Dealing with Death of Customer 2.0 CLE Hours – live webcast and on demand WBA Compliance Forum, Februrary 2023 3.0 CLE Hours February 14, 2023 – Wisconsin Dells

WBA Compliance Forum, June 2023 3.5 CLE Hours June 20, 2023 – Stevens Point WBA Compliance Forum, November 2023 Pending November 7, 2023 – Wisconsin Dells

WBA Trust Conference, May 2023 4.0 CLE Hours May 25, 2023 – Madison Are you a WBA member with a legal question? Contact the

WBA Legal Call Program wbalegal@wisbank.com | 608-441-1200 | www.wisbank.com/resources/compliance This WBA member-exclusive program provides information in response to compliance questions. November 2023 | Page 21

November 2023 November 2023

NOVEMBER 2023 1 2 2 7 8 14-15

15-16

MARCH 2024 continued

•IRA Essentials Workshop

11-15

Madison or Virtual – $245/attendee

•Advanced IRA Workshop

13-15

Madison or Virtual – $245/attendee

•Internal Audit Workshop

14-15

Madison – $245/attendee

•Compliance Forum: Session 2

18-20

Wisconsin Dells – annual membership/pricing varies

•BOLT Winter Leadership Summit •Personal Banker School •FLEX Retail & Marketing Summit (formerly known as LEAD360) Wisconsin Dells - $350/attendee

JANUARY 2024 TBD

•2024 Community Bankers for Compliance (CBC) – Session I

16-18

FEBRUARY 2024 7-9 20 22

•Compliance Forum: Session 3

Wisconsin Dells – annual membership/pricing varies

23

•Capitol Day Madison

6

6-7

Madison – $1,045/attendee

•Agricultural Bankers Conference

Wisconsin Dells – $300/ag section member or $350/non-section member attendee

•Power of Community Week

www.wisbank.com/BanksPowerWI

•Introduction to Commercial Lending School Madison – $895/attendee

•School of Bank Management Madison – $1,395/attendee

•Community Bankers for Compliance (CBC) – Session II

Wisconsin Dells or Virtual – Membership/Pricing Options Vary

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

•Advanced IRA Workshop

Madison or Virtual – $245/attendee

•Health Savings Account Workshop Madison or Virtual – $245/attendee

•FIPCO Software & Compliance Forum: Deposits Virtual Half-Days - $250/attendee

WISCONSIN BANKERS ASSOCIATION

•Residential Mortgage Lending School

KEY: Color-Coded Event Descriptions…

MARCH 2024 5

Washington, DC

Wisconsin Dells or Virtual – team pricing available

22-26

Wisconsin Dells

•ABA Washington Conference

•Women in Banking Conference

17

•Bank Executives Conference

Virtual Half-Days – $245/attendee

Madison

15-20

23-24 Virtual Half-Days – Membership/Pricing Options Vary

•Call Report Workshop

•Wisconsin Economic Forecast Luncheon

11-12

Virtual

Madison or Virtual – $795/attendee

APRIL 2024 10

•Midwest Economic Forecast Forum

•Real Estate Compliance School

Wisconsin Dells or Virtual – $245/attendee

25-28

Madison – $495/attendee

Madison or Virtual – $1,295/attendee

•Security Officer Workshop

20

Wisconsin Dells – $150/attendee

•Loan Compliance School

|

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4721 SOUTH BILTMORE LANE | MADISON, WI 53718 | 608-441-1200 | www.wisbank.com