Generally speaking, a custodian is appointed when a transfer to a minor is made. This can be as simple as opening a WUTMA account and designating a custodian.
Question: What is the definition of “minor?”
When it comes to minor accounts, WBA Legal generally recommends that banks consider the use of an account established under WUTMA as the Act provides rules under which a custodian is required to act and rights for the minor, such as when custodianship under WUTMA ends. This article, which is the first part of a two-part series, will answer the most frequently asked questions WBA Legal receives regarding WUTMA accounts. As such, the following Q&As will focus exclusively on deposit account relationships. Part two of this article series will address the topic of contracting with minors more globally, including the doctrine of incapacity and what banks should consider if lending to minors. The second article will run in next month’s WBA Compliance Journal
September
A WUTMA account would be one which is created pursuant to Chapter 54.
WUTMA relates to certain irrevocable transfers of property to a minor, which is held by a custodian. Chapter 54 provides certain requirements, procedures, and responsibilities, which must be followed by the custodian. When an account is opened under WUTMA, bank should refer to its contract, as well as Chapter 54, to understand which rules apply to the relationship between the minor, the adult custodian, and the bank.
Answer: For purposes of WUTMA, “minor” means an individual who has not attained the age of 21 years.
Questions and Answers Regarding Minors and WUTMA Accounts: Part 1
Answer: WUTMA stands for “Wisconsin Uniform Transfer to Minors Act” and can be found under Wisconsin Chapter 54 which can be accessed here: https://docs.legis.wisconsin.gov/statutes/statutes/54.pdf
Special Focus
WBA Legal frequently receives questions regarding contracting with minors. As a starting point, banks should understand that they may contract with minors. This includes both deposit accounts and loans. However, a minor can escape liability under the contract. Meaning, a minor could avoid liability from a bank seeking to hold a minor accountable for terms under the contract. Thus, banks are free to contract with minors, but must decide so as a matter of risk.
Question: What is WUTMA?
Answer: For purposes of WUTMA, a custodian is a person designated under Wis. Stat. section 54.870 or a successor or substitute custodian.
Compliance Journal 2022
Question: What is the definition of “custodian?”
Specifically, pursuant to Wis. Stat. section 54.892, the liability for release of funds to the minor rests with the custodian. Bank’s responsibility is to the terms of its contract, which is with the custodian. The custodian should take action when the minor turns 18 or 21, depending upon the type of custodial transfer.
WisconsinAssociationBankers
careful so as to not provide legal advice to customers, bank staff should also consider discussing with the custodian the significance of their duties and responsibilities under the bank’s WUTMA account contract terms and WUTMA generally. Frequently, WBA Legal receives questions predicated upon the custodian not understanding WUTMA, their duties, or procedures which must be followed. Such situations may be avoided by discussing the nature of WUTMA accounts and what they entail during the account opening process.
When an account is opened in such a manner, a transfer is made under Wis. Stat. section 54.870 and a custodian is appointed.
Answer: Bank should have procedures in place specific to WUTMA considerations. Generally, those procedures will be similar to other custodial or fiduciary account relationships bank offers. However, banks should be familiar with Chapter 54, bank’s contract, and procedures, regarding such accounts in order to understand the aspects which are specific to a WUTMA account. Many of those aspects are discussed in this
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.
Answer: Yes.
Cassandra Krause
September 2022 Volume 28, Number 4
Senior Writers
Often, there may be situations where the custodian does not know, or understand, the requirements of Chapter 54. There may also be situations where the custodian is knowingly in breach of their duties. A custodian may also simply forget. While there is no one-size-fits-all solution to these situations, banks should be confident to ask questions
Whilearticle.being
Copyright ©2022
Special Focus
4721 South Biltmore Lane, P.O. Box 8880, Madison, Wisconsin, 53708-8880
Such an account would be created as a matter of contract. There is no statute to guide such accounts. Bank should work with its legal counsel for any questions related to such accounts.
Scott Birrenkott Editor
Question: How should a WUTMA account be titled?
Question: Is it possible to create a non-WUTMA custodial account for minors?
Heather MacKinnon
Answer: [Minor’s name] by [Custodian’s name] as Custodian under WUTMA.
For example: Mary Minor by Andrew Adult as Custodian under WUTMA.
Question: When should the funds in a WUTMA account be released to the minor?
Question: How should bank handle a situation where it suspects the custodian is in breach of their duty?
Answer: There is no clear procedure for such a situation. Bank will need to consider such matters on a case-by-case basis, and determine what action is appropriate.
Question: What procedures should be followed when opening a WUTMA account?
Answer: It is the duty of the custodian to release the funds to the minor. Bank is not required under WUTMA to take any action on a WUTMA account when the minor turns 18, 21, or any age.
Katie Reiser Layout
Page 2 | September 2022
of the custodian and gather information where appropriate. Once better informed, bank will need to decide how best to proceed based upon what it knows of the situation, and its policies and procedures.
That said, it is generally the custodian’s duty to determine how the WUTMA account should be managed. Bank may want to consider having a discussion with the custodian as to whether this type of deposit is appropriate and determine whether bank will permit such a practice. At minimum, bank should not allow the minor to conduct split deposits or negotiate payroll checks against the WUTMA account for the reasons outlined in the Q&A directly above.
Answer: Yes.
custodian. Depending upon the situation, that procedure can change. Because the procedure can require the involvement of the courts, the easier solution is to have a successor custodian designated. For this reason, bank might consider asking a custodian whether they have a successor custodian when opening a WUTMA account. Bank should obtain the name and contact information of such a successor custodian.
Answer: It is generally inappropriate for a minor’s payroll funds to be deposited in a WUTMA account. The reason being, WUTMA accounts are established to hold funds transferred under Chapter 54. Those funds should not be mixed with non-WUTMA funds, such as payroll, or other. Payroll is generally not considered a WUTMA transfer, but is income.
This applies regardless of the age of the minor.
Answer: If the custodian dies, the procedure under Wis. Stat. 54.888 must be followed. That procedure can be found here: Generallyhttps://docs.legis.wisconsin.gov/statutes/statutes/54/vii/888speaking,thisprocedureinvolvestheappointmentofasuccessor
The following are examples for naming a minor as POD beneficiary:
For joint accounts: [Name of Minor], but if he/she is a minor on the date of death of the last surviving depositor, to [Name of Adult] as custodian for [Name of Minor] under WUTMA.
Answer: The custodian is the only proper party to act on a WUTMA account. This includes releasing funds or information.
Bank should consider that the minor has no contractual right to the account. Thus, any of the minor’s inquiries or demands regarding the account should be directed to the custodian. If the custodian is unreachable, but the minor believes they are entitled to act on the account, they should work with an attorney to advise them on how to proceed. If bank decides to pursue other options, it must do so based upon its own policies and procedures.
Question: What happens when the custodian of a WUTMA account dies?
Question: Can non-WUTMA funds, such as a minor’s payroll, be deposited into a WUTMA account?
When a minor is designated as a payable on death (POD) beneficiary, special considerations should be made. Wis. Stat. section 705.04(2)(f) requires that the funds in a POD account be paid to a minor in accordance with Chapter 54. Thus, if funds are to be paid out to a minor beneficiary, they must be made payable under WUTMA, which would require a Ascustodian.aresult, bank should indicate on its POD designation form that funds are payable to minors under WUTMA. Furthermore, bank should identify the custodian. Ideally, bank should also identify a successor custodian. Bank should also ensure it has a means to identify and contact the named custodian and successor custodian.
September 2022 | Page 3
For individual accounts: [Name of Minor], but if he/she is a minor on the date of my death, to [Name of Adult] as custodian for [Name of Minor] under WUTMA.
Question: Can a minor be a POD beneficiary?
Question: What if the minor makes inquiries or demands on a WUTMA account?
Special Focus
Question: Can a custodian appoint a POA to a WUTMA account?
This is a matter of contract between bank and customer. There is nothing prohibiting fees on a WUTMA account. It will ultimately be a business decision as to whether bank charges fees on such an account. As with all fees, terms, and conditions, and because of WUTMA’s general nature as a vehicle for savings, it is recommended that bank ensures disclosures are clear and known by the customer as to what fees may be charged.
PursuantYes.toWis.
Chapter 54 does not provide for exemptions from legal process. However, there could be other reasons legal process would not apply. As with all legal process, bank should confirm to whom and to which accounts the order applies. Based upon that, bank might consider following up with the plaintiff to explain that the funds are in a custodial account. Reason being, custodial funds, such as those transferred under WUTMA, release upon certain conditions, and it might be that they cannot yet be released. For example, if they’re in a time deposit such as a CD, there are special rules regarding garnishment of a CD prior to maturity. A court order might be necessary stipulating when the funds are to be released. It might also be that the plaintiff simply releases those funds and seeks recovery elsewhere.
Answer: Yes.
Whether an agent of a custodian can act on the WUTMA account, refer to the custodian’s POA agreement to determine whether the agent has authority to act on a WUTMA account.
Wis. Stat. section 54.884 provides for exemptions of third persons from liability. A bank may, without court order, act on the instructions of the custodian. Bank must be acting in good faith, and without knowledge to the contrary of the custodian’s authority.
Answer:
While it is possible for a minor to be designated as a POD beneficiary, a WUTMA account cannot have a POD beneficiary designation made to the account for reasons outlined in the last Q&A below.
See Wis. Stat. section 54.872.
Answer: Yes, assuming the minor is the party named in the legal process item.
Special Focus
Answer: Yes.
Stats. section 54.884, banks are permitted to follow the instructions of the custodian if the bank is acting in good faith and without knowledge and not in violation of a court order. This means that bank may generally permit the custodian to appoint an agent on the WUTMA account if the custodian so requests such appointment and so long as the appointment is not in violation of a court order.
Answer: No.
Question: Can a WUTMA account have multiple custodians?
See Wis. Stat. section 54.872.
Question: Can a WUTMA account have multiple minors?
Page 4 | September 2022
Answer: No.
Question: Do protections exist for banks under Chapter 54?
Question: Can WUTMA accounts have fees?
Question: Is a WUTMA account subject to legal process, such as a levy?
Conclusion
September 2022 | Page 5
the above Q&As, WBA Legal has created a WUTMA reference chart which follows this article. WBA Legal is also in the process of creating consumer-facing resources for banks to utilize in assisting their customers in understanding WUTMA accounts. The consumer-facing resources will be available by month’s end and will be found on the consumer resources page of the WBA website, https://www.wisbank.com/resources/consumer-resources/
WBA Legal Call Program wbalegal@wisbank.com | 608-441-1200 | wisbank.com/resources/compliance
See Wis. Stats. section 54.892(3).
Are you a WBA member with a legal question?
Answer: When a minor dies, the funds in a WUTMA account belong to the minor’s estate. Bank should look to work with whomever has authority to act on behalf of the minor’s estate to manage the funds. This may be the custodian, or another individual. Note that the custodian does not automatically have authority to act on behalf of the minor’s estate. Thus, bank should follow its typical procedures upon a depositor’s death in this situation.
Special Focus
This WBA member-exclusive program provides information in response to compliance questions.
These Q&As, which is the first part of a two-part series, encompass the most frequently asked questions WBA Legal receives regarding WUTMA accounts through the legal call program. While it was designed to be as comprehensive as possible, it does not cover all potential situations. As a result, banks should consider this article as a reference for a starting point. All situations should be evaluated as appropriate to the circumstances and bank’s own policies and
Contact the
Inprocedures.additionto
Question: What happens if the minor of a WUTMA account dies?
Part two of this article series will address the topic of contracting with minors more globally, including the doctrine of incapacity and what banks should consider if lending to minors. The second article will run in next month’s WBA Compliance Journal
If you have any questions regarding these Q&As, or other scenarios, don’t hesitate to contact WBA Legal at 608-441-1200 or by email at wbalegal@wisbank.com
An “adult” is an individual who has attained 21 yrs of age; A “minor” is an individual who has not yet attained 21 yrs of age
SelectCustodialDefinitions:property
WUTMA Account Title Examples:
Use of Custodial Property:
(§§54.870,account54.872, 54.888(3), 54.892, Wis. Stats.)
If minor has no conservator or the conservator declines to act, an adult member of the minor’s family or any other interested person may petition the court to designate a successor custodian
Third Party Reliance on Custodian:
AssociationWUTMA
Minor obtaining age of 21 for property transferred under §§54.860 or 54.862;
Third party (such as bank), is allowed to follow instruction of custodian if third party is acting in good faith, without knowledge and not in violation of a court
[Name of Adult] as custodian under WUTMA for [Name of Minor]
(§54.888(4), Wis. Stats.)
Transfer means a transaction that creates custodial property under §54.870 (§54.854, Wis. Stats.)
Custodian may deliver or pay to the minor or expend for the minor’s benefit so much of the custodial property as custodian considers advisable for the use and benefit of the minor
(§54.892, Wis. Stats.)
(§54.870, Wis. Stats.)
(§§54.870, 54.876(4) Wis. Stats.)
(WUTMA)Reminders:Stands for Wisconsin Uniform Transfers to Minors Act, replaced Wisconsin Unform Gifts to Minors Act (WUGMA)
A custodian at any time may designate another adult or trust company as successor custodian
(§54.880, Wis. Stats.)
Minor’s Custodiandeathisparty responsible for terminating custodianship in accordance with WUTMA
Minor obtaining age of 18 for property transferred under §§54.864 or 54.866; or
To appoint successor, custodian need execute and date an instrument of designation before a subscribing witness other than the successor
Custodianorder may appoint an agent for WUTMA account unless such appt is in violation of court order
If custodian is ineligible, dies, or becomes incapacitated without having effectively designated a successor custodian, and minor is at least 14 yrs old, minor may designate a successor custodian. If minor is not yet 14 yrs old, or fails to act within 60 days of ineligibility, death, or incapacitation of custodian, conservator of minor becomes successor (§54.888(4),custodian
Legal Process in Name of Custodian:
WUTMA: Found in statute sections 54.854 through 54.898: https://docs.legis.wisconsin.gov/statutes/statutes/54.pdf
This reference chart is not a complete description of applicable law and is accurate as of September 1, 2022. Refer to the Wisconsin statute sections listed within for further information, particularly as changes may occur in the law.
Copyright©2022 Wisconsin Bankers
As property transferred to a minor under WUTMA is owned solely by the minor, a legal process item received in name of custodian does not attach to WUTMA account
Considerations of a WUTMA Account Successor Custodian
Reference Chart
Termination of Custodianship:
SingleWUTMACustodianship:accountcan only be established with one custodian and one minorCustodian may resign at any time
[Name of Minor] by [Name of Adult] as custodian under WUTMA
(i.e., state or federal levy, garnishment)
Page 6 | September 2022
If custodial property remains at time of death of minor, the property is paid to minor’s estate. No payable on death (POD) beneficiary designation for WUTMA
No Conservator for Minor:
Wis. Stats.)
means any interest in property transferred to custodian under WUTMA, the income from, and proceeds of that interest in property
(§54.884, Wis. Stats.)
A custodian is required to transfer custodial property to minor or minor’s estate upon the earlier of:
CFPB Extends Comment Period for Request of Information Regarding Employer-Driven Debt.
CFPB Seeks Comment Regarding Information Collections.
CFPB seeks comment regarding revisions to an information collection titled, Report of Terms of Credit Card Plans and Consumer and College Credit Card Agreements. CFPB intakes different forms of credit card data from credit card issuers, as required by the Truth in Lending Act and implementing regulations. The data collection enables CFPB to provide Congress and the public with a centralized and searchable repository for consumer and college credit card agreements and information regarding the arrangements between financial institutions and institutions of higher education. Comments are due 10/17/2022. The notice may be viewed at: https://www.govinfo.gov/content/pkg/FR-2022-08-18/ pdf/2022-17807.pdf Federal Register, Vol. 87, No. 159, 08/18/2022, 50851-50852.
CFPB Issues Interpretive Rule Regarding “Time or Space” Exception with Respect to Digital Marketing Providers.
Regulatory Spotlight
CFPB seeks comment regarding the extension of an information collection titled, Generic Information Collection Plan to Conduct Cognitive and Pilot Testing of Research Methods, Instruments, and Forms. Under the Dodd-Frank Act, CFPB is charged with researching, analyzing, and reporting on topics relating to CFPB’s mission, including developments in markets for consumer financial products and services, consumer awareness, and consumer behavior. In order to improve its understanding of how consumers engage with financial markets, CFPB seeks to obtain approval for a generic information collection plan to conduct research to improve the quality of data collection by examining the effectiveness of data-collection procedures and processes, including potential psychological and cognitive issues. Comments are due 11/07/2022. The notice may be viewed at: https://www.govinfo.gov/content/pkg/FR-2022-09-08/pdf/2022-19332.pdf Federal Register, Vol. 87, No. 173, 09/08/2022, 54982.
CFPB Issues Circular Regarding Insufficient Data Protection for Consumer Information.
September 2022 | Page 7
CFPB published in the Federal Register its Consumer Financial Protection Circular 2022-04 titled, Insufficient Data Protection or Security for Sensitive Consumer Information. In the circular, CFPB responds to the question: Can entities violate the prohibition on unfair acts or practices in the Consumer Financial Protection Act (CFPA) when they have insufficient data protection or information security? CFPB released the circular on its website 08/11/2022. The circular may be viewed at: https://www.govinfo. gov/content/pkg/FR-2022-09-06/pdf/2022-19075.pdf Federal Register, Vol. 87, No. 171, 09/06/2022, 54346-54349.
CFPB announced the extension of the comment period for a request of information regarding employer-driven debt. On 06/09/2022, CFPB issued a request for information seeking input on debt obligations incurred by consumers in the context of an employment or independent contractor arrangement. The request for information was published in the Federal Register on 06/17/2022, and provided for a comment period that was set to expire 09/07/2022. CFPB has determined that an extension of the comment period was appropriate. Comments are now due 09/23/2022. The notice may be viewed at: https://www.govinfo.gov/content/pkg/FR-2022-09-02/pdf/2022-19016.pdf Federal Register, Vol. 87, No. 170, 09/02/2022, 54201-54202.
The Bureau of Consumer Financial Protection (CFPB) issued an interpretive rule regarding the limited applicability of the Consumer Financial Protection Act’s (CFPA’s) “time or space” exception with respect to digital marketing providers. Section 1002 of CFPA defines the term “service provider” and sets forth two exceptions to that definition. Under one of those exceptions, a person is not a service provider solely by virtue of such person offering or providing to a covered person time or space for an advertisement for a consumer financial product or service through print, newspaper, or electronic media. CFPB issued the interpretive rule to address digital marketing providers that commingle the targeting and delivery of advertisements to consumers, such as by using algorithmic models or other analytics, with the provision of advertising “time or space.” Digital marketing providers that are materially involved in the development of content strategy would not fall within the “time or space” exception as interpreted by CFPB. Accordingly, digital marketing providers that are involved in the identification or selection of prospective customers or the selection or placement of content to affect consumer engagement, including purchase or adoption behavior, are typically service providers under the CFPA. The interpretive letter is effective 08/17/2022. The interpretive letter may be viewed at: https://www.govinfo. gov/content/pkg/FR-2022-08-17/pdf/2022-17699.pdf. Federal Register, Vol. 87, No. 158, 08/17/2022, 50556-50560.
Federal Register, Vol. 87, No. 174, 09/09/2022, 55412-55413.
FRB Issues Delegation of Authority Final Rule.
The Board of Governors of the Federal Reserve System (FRB) issued a final rule to adopt revisions to rules regarding delegation of authority. The final rule codifies and revises delegations of authority previously approved by FRB, makes technical changes, and rescinds moot or superseded delegations. Table 1 in the final rule lists the delegations, identifies the delegatee, and notes where within the delegation rules the delegations will be incorporated. The final rule is effective 09/01/2022. The final rule may be viewed at: https://www.govinfo.gov/content/pkg/FR-2022-09-01/pdf/2022-18203. pdf Federal Register, Vol. 87, No. 169, 09/01/2022, 53988-54026.
Page 8 | September 2022
FRB Announces Final Approval of Revision of Holding Company Financial Statement Information Collection.
FRB announced the final approval of revisions to an information collection titled, Financial Statements for Holding Companies. The collection includes several forms as further described in the notice. FRB requires holding companies to provide standardized financial statements to fulfill FRB’s statutory obligation to supervise these organizations. Financial data from the reporting forms are used to detect emerging financial problems to review performance and conduct preinspection analysis, to monitor and evaluate capital adequacy, to evaluate holding company mergers and acquisitions, and to analyze a holding company’s overall financial condition to ensure the safety and soundness of its operations. The information collection continues to be the primary source of financial data on holding companies that examiners rely on in the intervals between on-site inspections. The notice may be viewed at: https://www.govinfo.gov/content/pkg/FR-202209-08/pdf/2022-19324.pdf Federal Register, Vol. 87, No. 173, 09/08/2022, 55005-55007.
FRB announced final approval of the renewal, with revision, of an information collection titled, The Capital Assessments and Stress Testing Reports. The collections of information are applicable to bank holding companies, U.S. intermediate holding companies, and covered savings and loan holding companies with $100 billion or more in total consolidated assets. The data collected provide FRB with information needed to help ensure that large firms have strong, firm‐wide risk measurement and management processes supporting their internal assessments of capital adequacy and that their capital resources are sufficient, given their business focus, activities, and resulting risk exposures. The data within the reports are used to set stress capital buffer requirements. The notice may be viewed at: https://www.govinfo.gov/content/ pkg/FR-2022-08-26/pdf/2022-18396.pdf Federal Register, Vol. 87, No. 165, 08/26/2022, 52560-52568.
The Federal Deposit Insurance Corporation (FDIC), as Receiver for each of 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-2022-09-08/pdf/2022-19398.pdf Federal Register, Vol. 87, No. 173, 09/08/2022, 55002-55003.
Regulatory Spotlight
CFPB seeks comment regarding the extension of an information collection titled, Disclosure Requirements for Depository Institutions Lacking Federal Deposit Insurance, Regulation I. Regulation I, 12 CFR part 1009, applies to all depository institutions lacking federal deposit insurance. It requires the disclosure of certain insurance-related information in periodic statements, account records, locations where deposits are normally received, and advertising. Such depository institutions are also required to obtain a written acknowledgment from depositors regarding the institution’s lack of federal deposit insurance. The information collection pertains to the requirement under Regulation I. Comments are due 11/08/2022. The notice may be viewed at: https://www.govinfo.gov/content/pkg/FR-2022-09-09/pdf/2022-19460.pdf.
FDIC Issues Notice of Termination of Receiverships.
FRB Announces Final Approval of Capital Assessments and Stress Testing Reports Information Collection.
FDIC Seeks Comment Regarding New Information Collection for Misuse of FDIC Name, Logo, or Insured Status.
Regulatory
FDIC Seeks Comment Regarding Information Collections Related to Transfer Agent Registration, Branch Application, Consent to Reduce Capital, and Appraisals for HPMLs.
September 2022 | Page 9
FDIC seeks comment regarding four unrelated information collections: (a) Transfer Agent Registration and Amendment Form; (b) Application for a Bank to Establish a Branch or Move its Main Office or Branch; (c) Application for Consent to Reduce or Retire Capital; and (d) Appraisals for Higher-Priced Mortgage Loans (HPMLs). The use of the data collected from the information collections is outlined in the notice. Comments are due 10/21/2022. The notice may be viewed at: https://www.govinfo.gov/content/pkg/FR-2022-08-22/pdf/2022-17948.pdf. Federal Register, Vol. 87, No. 161, 08/22/2022, 51415-51418.
FDIC Issues Notice to Correct Name of Consumer Response Center.
FDIC, as Receiver for the institutions listed in the notices, announced it intends to terminate its receiverships for the institutions. The liquidation of the assets for the receiverships has been completed. To the extent permitted by available funds and in accordance with law, the Receiver will be making a final dividend payment to proven creditors. Based upon the foregoing, the Receiver has determined that the continued existence of the receiverships will serve no useful purpose. Consequently, notice is given that the receiverships shall be terminated, to be effective no sooner than thirty days after the date of the notices. If any person wishes to comment concerning the termination of the receiverships, such comment must be made in writing, identify the receivership to which the comment pertains, and sent within thirty days of the date of the notice to: Federal Deposit Insurance Corporation, Division of Resolutions and Receiverships, Attention: Receivership Oversight Department 34.6, 1601 Bryan Street, Dallas, TX 75201. No comments concerning the termination of the receivership will be considered which are not sent within this time frame. The notices may be viewed at: https://www.govinfo.gov/content/pkg/FR-2022-08-11/pdf/2022-17203.pdf Federal Register, Vol. 87, No. 154, 08/11/2022, 49592-49593; and https://www.govinfo.gov/content/pkg/FR-2022-09-06/pdf/2022-19188.pdf Federal Register, Vol. 87, No. 171, 09/06/2022, 54504.
FDIC Seeks Comment Regarding New System of Records for E-Rulemakings.
. Federal Register, Vol. 87, No. 170, 09/02/2022, 54214-54216.
FDIC issued a correction to a notice published in the Federal Register on 08/08/2022, which made technical changes to the name of its Consumer Response Center. The previous notice corrected two regulations, the Fair Housing Rule and the Consumer Protection in Sales of Insurance Rule, to reflect a reorganization and change in the name of its former Consumer Response Center to the National Center for Consumer and Depositor Assistance. The document incorrectly listed the name of the National Center for Consumer and Depositor Assistance. The notice incorrectly listed “Deposit” instead of “Depositor” in reference to the center. The correction is effective 08/12/2022. The correction may be viewed at: https://www.govinfo.gov/content/pkg/FR-2022-08-12/pdf/2022-17370.pdf Federal Register, Vol. 87, No. 155, 08/12/2022, 49767.
FDIC seeks comment on a new system of records titled, FDIC-039, E-Rulemaking System of Records. FDIC’s E-Rulemaking system allows the public to search, review, download, and comment on FDIC rulemaking and notice documents via FDIC’s website. The system of records notice covers the records maintained by FDIC relating to comments and other written input submitted to FDIC in response to proposed FDIC rulemakings, notices, or other requests for comments. The action is effective 09/02/2022. The routine uses in the action will become effective 10/03/2022, unless FDIC makes changes based on comments received. Written comments are due 10/03/2022. The notice may be viewed at: https://www.govinfo.gov/content/pkg/FR-2022-09-02/pdf/2022-19042.pdf
FDIC seeks comment regarding a new information collection titled, False Advertising, Misrepresentation of Insured Status, and Misuse of FDIC’s Name or Logo. FDIC recently issued a final rule with the same title which established the Spotlight
FDIC Announces Intent to Terminate Receiverships.
The Office of the Comptroller of the Currency (OCC) seeks comment regarding an information collection titled, Assessment of Fees. OCC is authorized by the National Bank Act and the Home Owners Loan Act to collect assessments, fees, and other charges as necessary or appropriate to carry out the responsibilities of OCC. OCC requires independent credit card national banks and independent credit card federal savings associations (collectively, independent credit card institutions) to pay an additional assessment based on receivables attributable to accounts owned by the national bank or federal savings association. Independent credit card institutions are national banks or federal savings associations that engage primarily in credit card operations and are not affiliated with a full-service national bank or full-service federal savings association. Under 12 CFR 8.2(c)(2), OCC also has the authority to assess an independent credit card institution that is affiliated with a full-service national bank or full-service federal savings association if OCC concludes that the affiliation is intended to evade the requirements of 12 CFR part 8. OCC requires independent credit card institutions to report receivables attributable data to OCC semiannually or at a time specified by OCC. OCC uses the information to calculate the assessment for each national bank and federal savings association and adjust the assessment rate for independent credit card institutions over time. Comments are due 10/11/2022. The notice may be viewed at: https:// www.govinfo.gov/content/pkg/FR-2022-08-11/pdf/2022-17276.pdf. Federal Register, Vol. 87, No. 154, 08/11/2022,
OCC Seeks Comment Regarding Information Collections.
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Regulatory Spotlight
process by which FDIC will identify and investigate conduct that may violate section 18(a)(4) of the Federal Deposit Insurance Act, the standards under which such conduct will be evaluated, and the procedures which FDIC will follow when formally and informally enforcing the provisions of section 18(a)(4) of the Federal Deposit Insurance Act. The new information collection will be used in connection with the new FDIC rule. Comments are due 11/07/2022. The notice may be viewed at: https://www.govinfo.gov/content/pkg/FR-2022-09-08/pdf/2022-19356.pdf Federal Register, Vol. 87, No. 173, 09/08/2022, 55003-55005.
OCC49651-49652.seekscomment
OCC seeks comment regarding renewal of an information collection titled, Joint Standards for Assessing the Diversity Policies and Practices of Entities Regulated by the Agencies and Diversity Self-Assessment Template for OCC-Regulated Entities. The information collection covers standards, pursuant to which OCC-regulated entities voluntarily self-assess their diversity policies and practices. OCC may use the information submitted to monitor progress and trends in the financial services industry regarding diversity and inclusion in employment and contracting activities and to identify and highlight diversity and inclusion policies and practices that have been successful. Comments are due 11/07/2022. The notice may be viewed at: https://www.govinfo.gov/content/pkg/FR-2022-09-08/pdf/2022-19374.pdf Federal Register, Vol. 87, No. 173, 09/08/2022, 55082-55083.
regarding an information collection titled, Financial Management-Interest Rate Risk. The information collection covers the recordkeeping burden for federal savings associations to maintain data in accordance with OCC’s regulation on interest rate risk procedures, 12 CFR 163.176. To comply with the reporting requirement, institutions need to maintain sufficient records to document how their interest rate risk exposure is monitored and managed internally. Comments are due 10/11/2022. The notice may be viewed at: https://www.govinfo.gov/content/pkg/FR-2022-08-12/ pdf/2022-17323.pdf Federal Register, Vol. 87, No. 155, 08/12/2022, 49925-49926.
OCC seeks comment regarding renewal of an information collection titled, Extensions of Credit to Insiders and Transactions with Affiliates. National banks and federal savings associations must comply with rules of the Board of Governors of the Federal Reserve System (FRB) regarding extensions of credit to insiders (Regulation O) and transactions with affiliates (Regulation W), which implement section 22 and sections 23A and 23B, respectively, of the Federal Reserve Act. 12 CFR part 31 addresses these transactions for national banks and federal savings associations. The information collection pertains to the requirements within the Regulations and Part 31. Comments are due 10/21/2022 The notice may be viewed at: https://www.govinfo.gov/content/pkg/FR-2022-08-22/pdf/2022-18004.pdf. Federal Register, Vol. 87, No. 161, 08/22/2022, 51487-51488.
OCC seeks comment regarding revision of an information collection titled, Bank Secrecy Act/Money Laundering Risk Assessment. The information collection is also known as the Money Laundering Risk (MLR) System. The MLR System risk assessment is an important tool for OCC’s Bank Secrecy Act/Anti-Money Laundering (BSA/AML) efforts and OFAC supervision activities because it allows OCC to better identify those institutions, and business activities within institutions,
The Department of Housing and Urban Development (HUD) seeks comment on a series of information collections used under the Federal Housing Administration (FHA) lender program titled, Comprehensive Listing of Transactional Documents for Mortgagors, Mortgagees, and Contractors. The collection includes documents comprising the application for FHA mortgage insurance of residential care facilities, and for servicing of the mortgages. The information is submitted from HUDapproved mortgagees, sponsors, mortgagors and contractors. The documents are necessary for the application, review, commitment, initial/final endorsement, administration, servicing, technical oversight and audit of the Office of Residential Care Facilities projects pursuant to FHA Programs 232, 241, 223(f), 223(a)(7), 223(d) and 232(i) as authorized by the National Housing Act. Comments are due 09/26/2022. The notice may be viewed at: https://www.govinfo.gov/content/pkg/ FR-2022-08-26/pdf/2022-18414.pdf. Federal Register, Vol. 87, No. 165, 08/26/2022, 52591-52592.
OCC seeks comment regarding the renewal of an information collection titled, Appraisals for Higher-Priced Mortgage Loans. The information collection relates to section 1471 of the Dodd-Frank Act, which added a new section 129H to the Truth in Lending Act establishing special appraisal requirements for “higher-risk mortgages.” The information collection requirements are found in 12 CFR 34.203(c)(1), (c)(2), (d), (e) and (f). Comments are due 11/07/2022. The notice may be viewed at: https://www.govinfo.gov/content/pkg/FR-2022-09-08/pdf/2022-19373.pdf. Federal Register, Vol. 87, No. 173, 09/08/2022, 55086-55087.
The Federal Emergency Management Agency (FEMA) issued a notice which identifies communities in the state of Indiana, 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 01/26/2023, has been established for the FIRM and, where applicable, the supporting FIS report showing the new or modified flood hazard information for each community. The notice may be viewed at: https://www.govinfo.gov/content/pkg/FR-2022-08-30/pdf/2022-18712.pdf Federal Register, Vol. 87, No. 167, 08/30/2022, 52982-52983.
September 2022 | Page 11
HUD seeks comment on revision of an information collection titled, FHA Lender Approval, Annual Renewal, Periodic Updates, and Required Reports by FHA-Approved Lenders. The revision incorporates the requirements of 2 CFR 25 and 2 CFR 170, which require all entities currently conducting or seeking to do business with the federal government to have a Unique Entity Identifier (UEI) registered in the General Services Administration’s System of Award Management. Comments are due 10/28/2022. The notice may be viewed at: https://www.govinfo.gov/content/pkg/FR-2022-08-29/ pdf/2022-18573.pdf Federal Register, Vol. 87, No. 166, 08/29/2022, 52804-52805.
that may pose heightened risk and then allocate examination resources accordingly. The information collection also provides OCC with information regarding products or customers that may be experiencing difficulties or challenges maintaining banking services. MLR data assists banks’ management of BSA/AML programs and provides a starting point for banks to develop their risk assessments. Comments are due 10/11/2022. The notice may be viewed at: https://www.govinfo.gov/ content/pkg/FR-2022-09-08/pdf/2022-19375.pdf Federal Register, Vol. 87, No. 173, 09/08/2022, 55083-55085.
FEMA Issues Final Flood Hazard Determinations.
HUD Seeks Comment Regarding Information Collections Used With FHA Lender Programs.
FEMA Issues Notice of Changes in Flood Hazard Determinations.
Regulatory Spotlight
FEMA issued a notice which lists communities in the state of 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
FEMA Issues Proposed Flood Hazard Determinations.
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FEMA seeks comment regarding proposed flood hazard determinations, which may include additions or modifications of any Base Flood Elevation (BFE), base flood depth, Special Flood Hazard Area (SFHA) boundary or zone designation, or regulatory floodway on the Flood Insurance Rate Maps (FIRMs), and where applicable, in the supporting Flood Insurance Study (FIS) reports for communities in the state of Ohio, as listed in the table in the notice. The FIRM and FIS report are the basis of the floodplain management measures that the community is required either to adopt or to show evidence of having in effect in order to qualify or remain qualified for participation in the National Flood Insurance Program (NFIP). Comments are due 11/21/2022. The notice may be viewed at: https://www.govinfo.gov/content/pkg/FR-2022-08-23/ pdf/2022-18127.pdf. Federal Register, Vol. 87, No. 162, 08/23/2022, 51692-51693.
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 states of Ohio and 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 11/30/2022. The notice may be viewed at: https://www.govinfo.gov/content/pkg/FR2022-09-01/pdf/2022-18930.pdf. Federal Register, Vol. 87, No. 169, 09/01/222, 53759-53760.
Regulatory Spotlight
(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-2022-08-30/pdf/2022-18713.pdf. Federal Register, Vol. 87, No. 167, 08/30/2022, 52984-52987.
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 11/21/2022. The notice may be viewed at: https://www.govinfo.gov/content/pkg/FR-2022-08-23/ pdf/2022-18126.pdf Federal Register, Vol. 87, No. 162, 08/23/2022, 51690-51691.
FHFA to Establish Federal Advisory Committee on Affordable, Equitable, and Sustainable Housing.
FHFA Issues Multifamily Enterprise Housing Goals.
The Federal Housing Finance Agency (FHFA) announced its intent to establish a Federal Advisory Committee on Affordable, Equitable, and Sustainable Housing (Committee). The purpose of the Committee is to advise FHFA in the exercise of its oversight functions regarding affordable, equitable, and sustainable housing, including but not limited to: affordable, equitable, and sustainable housing needs; barriers to access; barriers to long-term sustainability; and any regulatory, guidance, or policy changes that may be necessary or beneficial to expand such housing. The Committee will focus on FHFA’s regulated entities Fannie Mae, Freddie Mac, and the Federal Home Loan Banks. A charter has been prepared and will be filed at least 15 days following the date of publication of the announcement in the Federal Register The notice may be viewed at: https://www.govinfo.gov/content/pkg/FR-2022-08-26/pdf/2022-18434.pdf Federal Register, Vol. 87, No. 165, 08/26/2022, 52556-52557.
FHFA issued a proposed rule regarding the multifamily housing goals for Fannie Mae and Freddie Mac (the Enterprises) for 2023 and 2024. The Federal Housing Enterprises Financial Safety and Soundness Act requires FHFA to establish annual housing goals for mortgages purchased by the Enterprises. Under FHFA’s existing housing goals regulation,
The Internal Revenue Service (IRS) seeks comment regarding an information collection titled, Golden Parachute Payments. The Golden Parachute Payment regulations deny a deduction for excess parachute payments. A parachute payment is payment compensation to a disqualified individual that is contingent on a change in ownership or control of a corporation. Certain payments, including payments from a small corporation, are exempt from the definition of parachute payment if certain requirements are met (such as shareholder approval and disclosure requirements). The information collection is used in connection with the regulation bearing its similar name. Comments are due 11/07/2022. The notice may be viewed at: https://www.govinfo.gov/content/pkg/FR-2022-09-08/pdf/2022-19336.pdf Federal Register, Vol. 87, No. 173, 09/08/2022, 55087-55088.
OFAC Issues Revised Cyber-Related Sanctions Regulations.
SBA Changes Secondary Market Loan Pooling Program.
Regulatory Spotlight
The Small Business Administration (SBA) announced a change to its Secondary Market Loan Pooling Program. SBA has decreased the minimum maturity ratio for both SBA Standard Pools and Weighted-Average Coupon (WAC) Pools by 100 basis points, to 92.0%. The change described in the notice has been made to cover the estimated cost of the timely payment guaranty for newly formed SBA 7(a) loan pools. The change will be incorporated, as needed, into the SBA Secondary Market Program Guide and all other appropriate SBA Secondary Market documents. The change will apply to
September 2022 | Page 13
FHFA Seeks Comment Regarding Information Collection for Community Support Requirements.
The Office of Foreign Assets Control (OFAC) issued a final rule to amend the Cyber-Related Sanctions Regulations, to reissue the regulations in their entirety to further implement a 2015 cyber-related executive order, as amended, as well as certain provisions of the Countering America’s Adversaries Through Sanctions Act. The final rule replaces the regulations that were published in abbreviated form in 2015, and includes additional interpretive guidance and definitions, general licenses, and other regulatory provisions that will provide further guidance. Due to the number of regulatory sections that have been updated or added, OFAC has reissued the Cyber-Related Sanctions Regulations in their entirety. The final rule is effective 09/06/2022. The final rule may be viewed at: https://www.govinfo.gov/content/pkg/FR-2022-09-06/ pdf/2022-19138.pdf Federal Register, Vol. 87, No. 171, 09/06/2022, 54373-54385.
the multifamily housing goals for the Enterprises include benchmark levels through the end of 2022 based on the total number of affordable units in multifamily properties financed by mortgage loans purchased by the Enterprise each year. The proposed rule would amend the regulation to establish benchmark levels for the multifamily housing goals for 2023 and 2024 based on a new methodology, the percentage of affordable units in multifamily properties financed by mortgages purchased by the Enterprise each year. Comments are due 10/17/2022. The proposed rule may be viewed at: https://www.govinfo.gov/content/pkg/FR-2022-08-18/pdf/2022-17868.pdf Federal Register, Vol. 87, No. 159, 08/18/2022, 50794-50803.
FHFA seeks comment regarding an information collection titled, Community Support Requirements. The Federal Home Loan Bank System (System) consists of eleven regional Federal Home Loan Banks (Banks) and the Office of Finance, a joint office of the Banks that issues and services their debt securities. The Banks are wholesale financial institutions, organized under authority of the Federal Home Loan Bank Act (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 eligible non-member “housing associates.” Each Bank is structured as a regional cooperative that is owned and controlled by member financial institutions located within its district, which are also its primary customers. Section 10(g)(1) of the Bank Act requires the Director of FHFA to promulgate regulations establishing standards of community investment or service that Bank member institutions must meet in order to maintain access to long-term advances. FHFA uses the information collection to determine whether Bank members satisfy the statutory and regulatory community support requirements, and to ensure that, as required by statute and regulation, only Bank members that meet those requirements maintain continued access to long-term Bank advances and to the Bank programs. Comments are due 10/18/2022. The notice may be viewed at: https://www.govinfo.gov/content/pkg/FR-2022-08-19/pdf/202217938.pdf Federal Register, Vol. 87, No. 160, 08/19/2022, 51095-51098.
IRS Seeks Comment Regarding Golden Parachute Payment Information Collection.
Regulatory Spotlight
SBA announced increased licensing and examination fees charged to Small Business Investment Companies (SBICs) due to the annual inflation adjustment required under SBIC program regulations. The changes to the SBIC program licensing and examination fees identified in the notice are effective 10/01/2022. The notice may be viewed at: https://www.govinfo.gov/ content/pkg/FR-2022-08-24/pdf/2022-18167.pdf. Federal Register, Vol. 87, No. 163, 08/24/2022, 52101-52102.
SBA Proposes Changes to Ownership and Control Requirements for 8(a) Business Development Program.
FSA Seeks Comment Regarding Direct Loan Making Information Collection.
The Farm Service Agency (FSA) seeks comment regarding the revision and extension of an information collection titled, Farm Loan Programs, Direct Loan Making. FSA’s Farm Loan Programs provide loans to family farmers to purchase real estate and equipment, and to finance agricultural production. Direct Loan Making and Direct Farm Ownership Microloan regulations in 7 CFR part 764 provide the requirements and process for determining an applicant’s eligibility for a direct loan. Revisions were made to the information collection burden. Comments are due 10/31/2022. The notice may be viewed at: https://www.govinfo.gov/content/pkg/FR-2022-08-31/pdf/2022-18869.pdf. Federal Register, Vol. 87, No. 168, 08/31/2022, 53441.
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FCIC Corrects Crop Insurance Reporting Rule.
The Federal Crop Insurance Corporation (FCIC) issued corrections to a final rule published in the Federal Register on 06/30/2022, which revised the Area Risk Protection Insurance Regulations, Common Crop Insurance Policy Basic Provisions, and 20 Crop Provisions. That final rule contained incorrect references, missing words, grammatical and spelling errors, repetitive parenthetical titles, and inadvertently removed text in the amendatory instructions. FCIC has issued corrections to the final rule. The corrections are effective 08/30/2022. The corrections may be viewed at: https:// www.govinfo.gov/content/pkg/FR-2022-08-30/pdf/2022-18595.pdf Federal Register, Vol. 87, No. 167, 08/30/2022, 52852-52854.
The Rural Business-Cooperative Service (RBC) issued a notice of solicitation of applications (NOSA) for loans and grants under the Rural Economic Development Loan and Grant Programs for fiscal year (FY) 2023, subject to the availability of funding. The NOSA has been issued prior to the passage of an FY 23 Appropriations Act, which may or may not provide funding for the program, to allow applicants sufficient time to leverage financing, prepare and submit applications, and give RBC time to process applications within FY 2023. Successful applications will be selected by RBC for funding and
SBA 7(a) loan pools with an issue date on or after 10/01/2022. The notice may be viewed at: https://www.govinfo.gov/ content/pkg/FR-2022-08-22/pdf/2022-17958.pdf Federal Register, Vol. 87, No. 161, 08/22/2022, 51473-51474.
SBA Adjusts SBIC Licensing and Examination Fees.
SBA issued a proposed rule that would make several changes to the ownership and control requirements for the 8(a) Business Development (BD) program, including recognizing a process for allowing a change of ownership for a former participant that is still performing one or more 8(a) contracts and permitting an individual to own an applicant or participant where the individual can demonstrate that financial obligations have been settled and discharged by the federal government. The rule also proposes to make several changes relating to 8(a) contracts, including to clarify that a contracting officer cannot limit an 8(a) competition to participants having more than one certification and to clarify the rules pertaining to issuing sole source 8(a) orders under an 8(a) multiple award contract. The proposed rule would also make revisions to incorporate changes to SBA’s other government contracting programs, including changes to implement a statutory amendment from the National Defense Authorization Act for Fiscal Year 2022, include blanket purchase agreements in the list of contracting vehicles that are covered by the definitions of consolidation and bundling, and more clearly specify the requirements relating to waivers of the nonmanufacturer rule. Comments are due 11/08/2022. The proposed rule may be viewed at: https://www.govinfo.gov/content/pkg/FR-2022-09-09/pdf/2022-18068.pdf Federal Register, Vol. 87, No. 174, 09/09/2022, 55642-55678.
RBC Seeks Applications for Lending Programs.
September 2022 | Page 15
RBC issued a notice of solicitation of applications (NOSA) for loans and grants under the Rural Microentrepreneur Assistance Program for fiscal year (FY) 2023, subject to the availability of funding. The NOSA has been issued prior to the passage of an FY 23 Appropriations Act, which may or may not provide funding for the program, in order to allow applicants sufficient time to leverage financing, prepare and submit applications, and give RBC time to process applications within FY 2023. Successful applications will be selected by RBC for funding and subsequently awarded to the extent that funding may ultimately be made available through appropriations. See the NOSA for application details and deadlines. The NOSA may be viewed at: https://www.govinfo.gov/content/pkg/FR-2022-08-31/pdf/2022-18779.pdf Federal Register, Vol. 87, No. 168, 08/31/2022, 53448-53452.
RHS Revises Single Family Housing Guaranteed Loan Program.
subsequently awarded to the extent that funding may ultimately be made available through appropriations. See the NOSA for application details and deadlines. The NOSA may be viewed at: https://www.govinfo.gov/content/pkg/FR2022-08-31/pdf/2022-18773.pdf Federal Register, Vol. 87, No. 168, 08/31/2022, 53443-53448.
RBC issued a notice of solicitation of applications (NOSA) under the Intermediary Relending Program for fiscal year (FY) 2023, subject to availability of funding. The notice is issued prior to passage of an FY 2023 Appropriations Act in order to allow applicants enough time to leverage financing, prepare and submit applications, and give RBC time to process program applications within FY 2023. Successful applications will be selected by RBC for funding and subsequently awarded to the extent that funding may ultimately be made available through appropriations. See the NOSA for application details and deadlines. The NOSA may be viewed at: https://www.govinfo.gov/content/pkg/FR-2022-08-31/ pdf/2022-18783.pdf Federal Register, Vol. 87, No. 168, 08/31/2022, 53452-53455.
The Rural Housing Service (RHS) issued a final rule to implement changes to the Single-Family Housing Guaranteed Loan Program (SFHGLP) to update the requirements for: federally-supervised lenders; minimum net worth and experience for non-supervised lenders; approved lender participation; handling of applicants with delinquent child support payments; and builder credit. The changes are meant to reinforce oversight and management of a growing SFHGLP portfolio. The final rule is effective 11/29/2022. The final rule may be viewed at: https://www.govinfo.gov/content/pkg/FR-2022-08-31/ pdf/2022-18626.pdf Federal Register, Vol. 87, No. 168, 08/31/2022, 53369-53372.
RHS announced a change in the Lease-Up Reserve calculation for Section 538 Guaranteed Rural Rental Housing Program (GRRHP). The purpose of GRRHP is to increase the supply of affordable rural rental housing, using loan guarantees that encourage partnerships between RHS, private lenders, and public agencies. As a condition to making the loan, RHS Section 538 GRRHP may require borrowers to establish a lease-up reserve account to help pay operating costs and debt service costs at the initiation of operations while units are being leased to their initial occupants. It is an additional amount (cash deposit), over and above the required initial operating and maintenance contribution. The rationale for the new calculation, and the new calculation itself may be viewed in the notice. The new calculation is effective 09/06/2022. The notice may be viewed at: https://www.govinfo.gov/content/pkg/FR-2022-09-06/pdf/202219019.pdf Federal Register, Vol. 87, No. 171, 09/06/2022, 54452.
Agencies Propose to Amend Reporting Requirements under Form PF.
RHS Announces New Lease-Up Reserve Calculation.
Regulatory Spotlight
The Commodity Futures Trading Commission (CFTC) and Securities and Exchange Commission (SEC) (collectively, the agencies) propose to amend Form PF, the confidential reporting form for certain SEC-registered investment advisers to private funds, including those that also are registered with CFTC as a commodity pool operator or commodity trading adviser. The amendments are designed to enhance the Financial Stability Oversight Council’s (FSOC’s) ability to monitor systemic risk as well as bolster SEC’s regulatory oversight of private fund advisers and investor protection efforts. In connection with the amendments to Form PF, SEC has proposed to amend a rule under the Investment Advisers Act to revise instructions for requesting a temporary hardship exemption. The agencies also seek comment on a number of alternatives, including whether certain possible changes to the proposal should apply to Form ADV. The agencies also issued a correction to the proposed rule; page 53900, second column, amendatory instruction 4 has been corrected.
The Securities and Exchange Commission (SEC) adopted amendments to rules which implement the whistleblower program. Section 21F of the Securities Exchange Act and SEC’s implementing rules provide that SEC shall pay an award to eligible whistleblowers who voluntarily provide SEC with original information about a violation of the federal securities laws that lead to the successful enforcement of a covered judicial or administrative action or a non-SEC related action. The amendments: expand the scope of related actions eligible for an award under SEC’s whistleblower program; clarify that SEC may use its statutory authority under Section 21F to consider the dollar amount of a potential award to increase an award but provide that SEC will not use any statutory authority it might have to decrease the amount of an award; and make several conforming changes and technical corrections. The final rule is effective 10/03/2022. The final rule may be viewed at: https://www.govinfo.gov/content/pkg/FR-2022-09-02/pdf/2022-18842.pdf
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SEC Issues Final Pay Versus Performance Rule.
Regulatory Spotlight
Comments are due 10/11/2022. The proposed rule may be viewed at: https://www.govinfo.gov/content/pkg/FR-202209-01/pdf/2022-17724.pdf Federal Register, Vol. 87, No. 169, 09/01/2022, 53832-53985. The correction may be viewed at: https://www.govinfo.gov/content/pkg/FR-2022-09-07/pdf/C1-2022-17724.pdf. Federal Register, Vol. 87, No. 172, 09/07/2022, 54641.
. Federal Register, Vol. 87, No. 170, 09/02/2022, 54140-54152.
SEC Issues Final Whistleblower Program Rule.
The Commodity Futures Trading Commission (CFTC) issued a final rule to modify existing interest rate swap clearing requirement regulations under applicable provisions of the Commodity Exchange Act (CEA) due to the global transition from reliance on certain interbank offered rates (IBORs) (e.g., the London Interbank Offered Rate (LIBOR)) that have been, or will be, discontinued as benchmark reference rates to alternative reference rates, which are predominantly overnight, nearly risk-free reference rates (RFRs). The amendments update the set of interest rate swaps that are required to be submitted for clearing pursuant to CEA and CFTC’s regulations to a derivatives clearing organization (DCO) that is registered under CEA or a DCO that has been exempted from registration under CEA to reflect the market shift away from swaps that reference IBORs to swaps that reference RFRs. The final rule is effective 09/23/2022, except for amendatory instructions 3 and 5, which are effective 07/01/2023. The final rule may be viewed at: https://www.govinfo. gov/content/pkg/FR-2022-08-24/pdf/2022-17736.pdf Federal Register, Vol. 87, No. 163, 08/24/2022, 52182-52221.
CFTC proposed amendments to require derivatives clearing organizations (DCOs) to establish and consult with one or more risk management committees (RMCs) comprised of clearing members and customers of clearing members on matters that could materially affect the risk profile of the DCO. In addition, CFTC proposed to establish minimum requirements for RMC composition and rotation and requiring DCOs to establish and enforce fitness standards for RMC members. CFTC also proposed requiring DCOs to maintain written policies and procedures governing the RMC consultation process and the role of RMC members. Finally, CFTC proposed to require DCOs to establish one or more market participant risk advisory working groups (RWGs) that must convene at least quarterly, and adopt written policies and procedures related to the formation and role of the RWG. Comments are due 10/11/2022. The proposed rule may be viewed at: https://www.govinfo.gov/content/pkg/FR-2022-08-11/pdf/2022-16683.pdf. Federal Register, Vol. 87, No. 154, 08/11/2022, 49559-49568.
SEC issued a final rule to adopt amendments to implement Section 14(i) of the Securities Exchange Act, as added by Section 953(a) of the Dodd-Frank Act. Section 14(i) directs SEC to adopt rules requiring registrants to provide disclosure of pay versus performance. The disclosure is required in proxy or information statements in which executive compensation disclosure is required. The disclosure requirements do not apply to emerging growth companies, registered investment companies, or foreign private issuers. The final rule is effective 10/11/2022. Companies (other than emerging growth companies, registered investment companies, or foreign private issuers) must begin to comply with the disclosure requirements in proxy and information statements that are required to include Item 402 of Regulation S-K (as defined in the
CFTC Proposes Governance Requirements for DCOs.
CFTC Issues Final Rule on Clearing Requirement Determination to Account for Transition from LIBOR.
SEC Issues Order that FINRA May Access Certain Security-Based Swap Data.
SEC Issues Orders FY 2023 Annual Adjustments to Registration Fee Rates.
SEC seeks comment on its draft 2022-2026 Strategic Plan. The strategic plan includes a draft of the SEC’s mission, vision, values, strategic goals, and planned initiatives. Comments are due 09/29/2022. The draft strategic plan may be viewed at: https://www.govinfo.gov/content/pkg/FR-2022-08-30/pdf/2022-18582.pdf Federal Register, Vol. 87, No. 167, 08/30/2022, 53040.
SEC issued an order to make fiscal year (FY) 2023 annual adjustments to registration fee rates. SEC collects fees under various provisions of the securities laws. Section 6(b) of the Securities Act requires SEC to collect fees from issuers on the registration of securities. Section 13(e) of the Securities Exchange Act requires SEC to collect fees on specified repurchases of securities. Section 14(g) of the Exchange Act requires SEC to collect fees on specified proxy solicitations and statements in corporate control transactions. These provisions require SEC to make annual adjustments to the applicable fee rates. See the order for the specific fees. The FY 2023 annual adjustments to the fee rates are effective 10/01/2022. The order may be viewed at: https://www.govinfo.gov/content/pkg/FR-2022-08-30/pdf/2022-18668.pdf Federal Register, Vol. 87, No. 167, 08/30/2022, 53030-53038.
SEC Proposes to Exempt Certain Exchange Members.
final rule) disclosure for fiscal years ending on or after 12/16/2022. The final rule may be viewed at: https://www.govinfo. gov/content/pkg/FR-2022-09-08/pdf/2022-18771.pdf Federal Register, Vol. 87, No. 173, 09/08/2022, 55134-55197.
SEC issued a proposed rule to amend a rule under the Securities Exchange Act that exempts certain registered brokers or dealers from membership in a registered national securities association (Association). The proposed amendments would replace the rule’s de minimis allowance, including the exclusion therefrom for proprietary trading, with narrower exemptions from Association membership for any registered broker or dealer that is a member of a national securities exchange, carries no customer accounts, and effects transactions in securities otherwise than on a national securities exchange of which it is a member. The proposed amendments would create exemptions for such a registered broker or dealer that effects transactions off an exchange of which it is a member that result solely from orders that are routed by a national securities exchange of which it is a member to comply with order protection regulatory requirements, or are solely for the purpose of executing the stock leg of a stock-option order. Comments are due 09/27/2022. The proposed rule may be viewed at: https://www.govinfo.gov/content/pkg/FR-2022-08-12/pdf/2022-16711.pdf Federal Register, Vol. 87, No. 155, 08/12/2022, 49930-49973.
The Federal Trade Commission (FTC) issued a final rule to update the fees charged to entities accessing the National DoNot-Call Registry (the Registry) as required by the Do-Not-Call Registry Fee Extension Act (Act). To comply with the Act, SEC has updated the fees entities are charged for accessing the Registry as follows: the revised rule increases the annual fee for access to the Registry for each area code of data from $69 to $75 per area code; and increases the maximum
SEC issued an order pursuant to section 13(n)(5)(G)(v) of the Securities Exchange Act and rule 13n-4(b)(9)(x) determining that it would be appropriate to require security-based swap data repositories to make security-based swap data available to Financial Industry Regulatory Authority (FINRA). As a result of the order, FINRA may access securitybased swap data obtained by security-based swap data repositories. Such access is conditioned on there being in effect an arrangement between SEC and FINRA to address the confidentiality of the security-based swap information made available to FINRA. Such access further is conditioned on FINRA developing and implementing special handling guidelines as described in the order, following consultation with SEC staff, to promote the confidentiality afforded to the security-based swap data, prior to FINRA accessing the data. The order is effective 09/16/2022. The order may be viewed at: https://www.govinfo.gov/content/pkg/FR-2022-08-17/pdf/2022-17641.pdf Federal Register, Vol. 87, No. 158, 08/17/2022, 50655-50657.
FTC Updates Do-Not-Call Registry Fees.
SEC Issues Draft 2022-2026 Strategic Plan.
Regulatory Spotlight
September 2022 | Page 17
VA seeks comment regarding an information collection titled, Loan Service Report, VA Form 26-6808. The collection is used when servicing delinquent guaranteed and insured loans and loans sold under 38 CFR 36.4600. With respect to the servicing of guaranteed and insured home loans and loans sold under 38 CFR 36.4600, the holder has the primary servicing responsibility. The information is necessary for VA to determine whether a loan default is insoluble or whether the obligor has reasonable prospects for curing the default and maintaining the mortgage obligation in the future. Comments are due within thirty days of publication of the notice to: www.reginfo.gov/public/do/PRAMain. The notice may be viewed at: https://www.govinfo.gov/content/pkg/FR-2022-09-06/pdf/2022-19100.pdf Federal Register, Vol. 87, No. 171, 09/06/2022, 54599.
FTC seeks comment regarding an advanced notice of proposed rulemaking (ANPR) to address the prevalence of commercial surveillance and data security practices that harm consumers. Specifically, FTC seeks comment on whether FTC should implement new trade regulation rules or other regulatory alternatives concerning the ways in which companies collect, aggregate, protect, use, analyze, and retain consumer data, as well as transfer, share, sell, or otherwise monetize that data in ways that are unfair or deceptive. Comments are due 10/21/2022. The ANPR may be viewed at: https://www.govinfo.gov/content/pkg/FR-2022-08-22/pdf/2022-17752.pdf Federal Register, Vol. 87, No. 161, 08/22/2022, 51273-51299.
Regulatory Spotlight
The Department of Veteran Affairs (VA) seeks comment regarding an information collection titled, Request for Determination of Loan Guaranty Eligibility-Unmarried Surviving Spouses, VA Form 26-1817. The information collection is used by VA to determine an unmarried surviving spouse’s eligibility for loan guaranty benefits, and the amount of entitlement available. The form is also used in restoration of entitlement cases. Comments are due within thirty days of publication of the notice to: www.reginfo.gov/public/do/PRAMain. The notice may be viewed at: https://www.govinfo.gov/ content/pkg/FR-2022-08-16/pdf/2022-17565.pdf Federal Register, Vol. 87, No. 157, 08/16/2022, 50394.
VA Seeks Comment Regarding Information Collections.
FTC Issues ANPR on Commercial Surveillance and Data Security.
Page 18 | September 2022
FCC Issues Call Authentication Trust Anchor Proposal.
amount that will be charged to any single entity for accessing area codes of data from $19,017 to $20,740. Entities may add area codes during the second six months of the annual subscription period and the fee for those additional area codes increases from $35 to $38. The final rule is effective 10/01/2022. The final rule may be viewed at: https://www.govinfo.gov/ content/pkg/FR-2022-08-31/pdf/2022-18772.pdf. Federal Register, Vol. 87, No. 168, 08/31/2022, 53372-53373.
The Federal Communication Commission’s (FCC’s) Wireline Competition Bureau (Bureau) issued a proposed rule to address two recurring statutory obligations under the TRACED Act relating to FCC’s caller ID authentication rules. First, Bureau seeks comment for its annual reevaluation of the STIR/SHAKEN implementation extensions granted by FCC for implementation of the STIR/SHAKEN call authentication framework. Second, Bureau seeks comment for its first triennial assessment of the efficacy of STIR/SHAKEN call authentication framework as a tool in FCC’s work combating illegal robocalls. Comments are due 10/03/2022. The proposed rule may be viewed at: https://www.govinfo.gov/content/pkg/ FR-2022-09-01/pdf/2022-18380.pdf Federal Register, Vol. 87, No. 169, 09/01/2022, 53705-53708.
VA seeks comment regarding an information collection titled, Request for a Certification of Eligibility for VA Home Loan Benefit, VA Form 26-1880. The collection is used by VA to determine an applicant’s eligibility for loan guaranty benefits, and the amount of entitlement available. Each completed form is normally accompanied by proof of military service and is submitted by the applicant to the appropriate VA office. If eligible, VA will issue the applicant a Certificate of Eligibility to be used in applying for loan guaranty benefits. Comments are due within thirty days of publication of the notice to: www. reginfo.gov/public/do/PRAMain. The notice may be viewed at: https://www.govinfo.gov/content/pkg/FR-2022-09-06/ pdf/2022-19090.pdf Federal Register, Vol. 87, No. 171, 09/06/2022, 54598-54599.
The National Labor Relations Board (NLRB) issued a proposed rule to rescind and replace the final rule titled, Joint Employer Status Under the National Labor Relations Act, which was published on 02/26/2020, and took effect 04/27/2020. The proposed rule would revise the standard for determining whether two employers, as defined in section 2(2) of the National Labor Relations Act, are joint employers of particular employees within the meaning of section 2(3) of the Act. The proposed changes are designed to explicitly ground the joint-employer standard in established common-law NLRB principles and provide relevant 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. Comments are due 11/07/2022. The proposed rule may be viewed at: https://www.govinfo.gov/content/pkg/FR-2022-09-07/pdf/2022-19181.pdf Federal Register, Vol. 87, No. 172, 09/07/2022, 54641-54663.
NCUA seeks comment on the extension of two information collections. The first collection identified in the notice is titled, Borrowed Funds from Natural Persons. Section 701.38 of NCUA regulations grants federal credit unions the authority to borrow funds from a natural person as long as they maintain a signed promissory note which includes the terms and conditions of maturity, repayment, interest rate, method of computation and method of payment; and the promissory note and any advertisements for borrowing have clearly visible language stating that the note represents money borrowed by the credit union and does not represent shares and is not insured by the National Credit Union Insurance Fund (NCUSIF). The information collected is used to ensure a credit union’s natural person borrowings are in compliance and address
The National Credit Union Administration (NCUA) seeks comment on an information collection titled, Bank Conversions and Mergers. Part 708a of NCUA’s Rules and Regulations covers the conversion of federally-insured credit unions (credit unions) to mutual savings banks (MSBs) and mergers of credit unions into both mutual and stock banks (banks). Part 708a requires credit unions that intend to convert to MSBs or merge into banks to provide notice and disclosure of their intent to convert or merge to their members and NCUA, and to conduct a membership vote. In addition, Subpart C requires credit unions that intend to merge into banks to determine the merger value of the credit union. The information collection allows NCUA to ensure compliance with statutory and regulatory requirements for conversions and mergers and ensures that members of credit unions have sufficient and accurate information to exercise an informed vote concerning a proposed conversion or merger. Comments are due 10/31/2022. The notice may be viewed at: https://www. govinfo.gov/content/pkg/FR-2022-08-30/pdf/2022-18629.pdf Federal Register, Vol. 87, No. 167, 08/30/2022, 53022.
NCUA Seeks Comment Regarding Borrowed Funds from Natural Persons and Corporate Credit Unions Information Collections.
Regulatory Spotlight
September 2022 | Page 19
EBSA Issues Interpretive Bulletin Related to Independence of Employee Benefit Plan Accountants.
The Employee Benefits Security Administration (EBSA) issued a final rule which contains an Interpretive Bulletin (IB) which sets forth guidelines for determining when a qualified public accountant is independent for purposes of auditing and rendering an opinion on the financial statements required to be included in the annual report filed with the Department of Labor (DOL) under the Employee Retirement Income Security Act, as amended (ERISA). Under ERISA, a plan administrator is generally required to retain, on behalf of all plan participants, an “independent qualified public accountant” to conduct an annual examination of the plan’s financial statements and to render an opinion as to whether the financial statements are presented fairly in conformity with generally accepted accounting principles (GAAP) and whether the schedules required to be included in the plan’s annual report present fairly, and in all material respects the information contained therein when considered in conjunction with the financial statements taken as a whole. The purpose of the final rule is to revise and restate an interpretive bulletin DOL issued in 1975 on accountant independence in order to remove certain outdated and unnecessarily restrictive provisions and reorganize its provisions for clarity while continuing to ensure that DOL’s interpretations foster proper auditor independence and access of employee benefit plan to highly qualified auditors and audit firms. The final rule is effective 09/06/2022. The final rule may be viewed at: https:// www.govinfo.gov/content/pkg/FR-2022-09-06/pdf/2022-18898.pdf Federal Register, Vol. 87, No. 171, 09/06/2022, 54368-54373.
NCUA Seeks Comment Regarding Bank Conversions and Mergers Information Collection.
NLRB Issues Proposed Standard for Determining Joint-Employer Status.
A question often heard on the phone from bankers calling the WBA Legal Call Program is: “Where do I find the rule in Wisconsin that requires. . . ?”
Page 20 | September 2022
all regulatory and safety and soundness requirements. The second information collection is titled, Corporate Credit Union. Part 704 of NCUA’s regulations established the regulatory framework for corporate credit unions. The collection of information is necessary to ensure that corporate credit unions operate in a safe and sound manner by limiting risk to their natural person credit union members and NCUSIF. Comments are due 09/29/2022. The notice may be viewed at: https://www.govinfo.gov/content/pkg/FR-2022-08-30/pdf/2022-18633.pdf Federal Register, Vol. 87, No. 167, 08/30/2022, 53022-53023.
and Code for Bankers 2022 Edition
WBA Legal has released an updated WBA Safe deposit Box Manual to address recent changes in law impacting the safe deposit area. The manual includes sections which address general lease procedure, natural person lease, fiduciary lease, organization or partnership lease, agency (a/k/a POA), routine access, notice of death and access for will search and inventory, access to remove property after death, access to remove property after death pre-1992, special death problems, termination and surrender, recordkeeping and forms, found keys, bank opening and safekeeping, and miscellaneous.
This and other resources are available at: https://wba-storefront.myshopify.com/collections/all
Regulatory Spotlight
2022 WBA Wisconsin Law Book A Collection of Statutes and Code for Bankers
This and other resources are available at: https://wba-storefront.myshopify.com/collections/all
To assist in answering such questions, WBA Legal has released its 2022 WBA Wisconsin Law Book to help bankers locate the statute and code sections applicable to the topic being researched. The new resource includes Wisconsin statute and administrative code sections for over 125 topics, including law related to deposit accounts, legal process, data matching requirements of banks, the Wisconsin Consumer Act, and the Marital Property Act. The book is available in PDF format to assist with searching for a word or phrase.
WBA Safe Deposit Box Manual Newly Updated in 2022
ALawWisconsinWBABookCollectionofStatutes
FDIC and OCC identified the institutions scheduled for CRA examination during the 4Q 2022 and 1Q 2023. The FDIC lists may be viewed at: www.fdic.gov/resources/bankers/community-reinvestment-act/examination-schedule/ q4cra22.html and www.fdic.gov/resources/bankers/community-reinvestment-act/examination-schedule/q1cra23.html; and the OCC list may be viewed at: www.occ.gov/static/cra/exam-schedule/craq422.pdf
FRB released Letter SR 22-6/CA-6 titled, Engagement in Crypto-Asset-Related Activities by FRB-Supervised Banking Organizations, to remind banks of the potential risks such activity may pose to safety and soundness, consumer protection, and overall bank financial stability. FRB further stated it will closely monitor related developments and banking organizations’ participation in crypto-asset-related activities. The letter further provides that a FRB-supervised banking organization engaging or seeking to engage in crypto-asset-related activities should notify its lead supervisory point of contact at the Federal Reserve. As explained in the letter, prior to engaging in any crypto-asset-related activity, a supervised banking organization must ensure such activity is legally permissible and determine whether any filings are required under applicable federal or state laws. A supervised banking organization should, prior to engaging in these activities, have in place adequate systems, risk management, and controls to conduct such activities in a safe and sound manner and consistent with all applicable laws, including applicable consumer protection statutes and regulations. FRB Letter SR 22-6/CA-6 may be viewed at: www.federalreserve.gov/supervisionreg/srletters/SR2206.htm
FDIC has also updated to its Consumer Compliance Examination Manual. Updates were made to Chapter VIII, Privacy and Consumer Information, Section VIII-5.1 regarding the Telephone Consumer Protection Act. The updated manual may be viewed at:IRSwww.fdic.gov/resources/supervision-and-examinations/consumer-compliance-examination-manual/index.htmlreleasedinitialinformationontheelectronicvehicletaxcreditunderthenewlyenactedInflationReduction
FDIC updated its Risk Management Manual of Examination Policies (RMS Manual). Section 21.1 of the manual regarding examination planning has been updated to enhance examiner instructions to include the identification of exam activities that are appropriate for off-site review and those that are better suited for on-site review. FDIC has also incorporated best practices for requesting examination information from banks into the manual.
Compliance Notes
FDIC also updated Section 2.1 regarding Capital to include a new capital planning section and to revise instructions to help accommodate banks that have adopted the CECL methodology or the CBLR capital framework. The updated manual may be viewed at: www.fdic.gov/regulations/safety/manual/index.html
WDFI also released its state-chartered bank report, projecting a strong mid-year financial performance by Wisconsin’s 132 state-chartered banks. WDFI’s release may be viewed at: https://wdfi.org/newsroom/press/2022/20220913_
NewsRelease_Q2BankData_vFINAL.pdfFHFAandGinnieMae(GNMA)issued
Act. IRS also released an FAQ for further guidance. Both resources may be viewed from the following links, respectively: www.irs.gov/credits-deductions/individuals/plug-in-electric-drive-vehicle-credit-section-30d and https://home.treasury.
Profile which revealed that reports from 4,771 commercial banks and savings institutions insured by FDIC reflect an aggregate net income of $64.4 billion in second quarter 2022, a decline of $6.0 billion (8.5 percent) from a year ago. An increase in provision expense drove the annual reduction in net income. The profile may be viewed at: https://www.fdic.gov/news/press-releases/2022/pr22064.html
a joint announcement of updated minimum financial eligibility requirements for seller/servicers and issuers. Prompted by the changing nature of the U.S. housing finance system, the enhanced eligibility requirements reflect GNMA’s and FHFA’s shared goals to promote confidence in approved issuers and seller/ servicers and improve the safety and soundness of the U.S. mortgage-backed securities ecosystem through all economic cycles. The majority of the requirements are effective 09/30/2023. More information, including a fact sheet, FAQs, and a FHFA/GNMA side-by-side comparison may be viewed at: Mae-Announce-Updated-Min-Financial-Eligibility-Reqs-for-Enterprise-Seller-Servicers-and-Ginnie-Mae-Issuers.aspxwww.fhfa.gov//Media/PublicAffairs/Pages/FHFA-and-Ginnie-
gov/system/files/136/EV-Tax-Credit-FAQs.pdfFDICreleasedthelatestQuarterlyBanking
September 2022 | Page 21
bcreg20220909a.htmOCCreleased
FTC announced the first meeting of the Scams Against Older Adults Advisory Group. The group, led by FTC, will tackle four topics: (a) expanding consumer education efforts; (b) improving industry training on scam prevention; (c) identifying innovative or high-tech methods to detect and stop scams; and (d) developing research on consumer or employee engagement to reduce fraud. The announcement, including a listing of the agencies involved as part of the advisory group, may be viewed at: statedscams-against-older-adults-advisory-group-sept-29www.ftc.gov/news-events/news/press-releases/2022/09/ftc-convene-first-meeting-FRB,FDIC,andOCCissuedajointstatementreaffirmingthecommitmenttoBaselIIIstandards.TheagenciesthattheimplementationoftheBaselIIIstandardsforlargebankingorganizationswouldstrengthentheresilience of the domestic banking system. The statement may be viewed at: www.federalreserve.gov/newsevents/pressreleases/
FRB provided updated information about the timing of the FedNow Service launch mid-year 2023, specifically targeting a production rollout of the service in the May to July timeframe. The information further defines the previously communicated 2023 launch window for the anticipated instant payments service and comes as the FedNow Pilot Program prepares to enter technical testing for the service starting in September. The announcement and resources regarding the new program may be viewed at the FedNow website: https://explore.fednow.org/
Compliance Notes
IRS issued Notice 2022-36, which provides penalty relief to most people and businesses who file certain 2019 or 2020 returns late. IRS has also taken an additional step to help those who paid penalties already. Nearly 1.6 million taxpayers will automatically receive more than $1.2 billion in refunds or credits. Many of the payments will be completed by the end of September. The action is designed to allow IRS to focus its resources on processing backlogged tax returns and taxpayer correspondence to help return to normal operations for the 2023 filing season. The release may be viewed at: relateddue-to-the-pandemic-1-point-2-billion-in-penalties-being-refunded-to-1-point-6-million-taxpayerswww.irs.gov/newsroom/covid-tax-relief-irs-provides-broad-based-penalty-relief-for-certain-2019-and-2020-returns-OCCannouncedChiefClimateRiskOfficer,Dr.Yue(Nina)Chen.Dr.ChenwillleadOCC’sclimateriskeffortstosupervision,policy,andexternalengagement.ShewilloverseetheactivitiesofOCC’sOfficeofClimateRisk and report directly to the Acting Comptroller of the Currency. Under Dr. Chen’s leadership, OCC will continue to focus on the development and implementation of climate risk management frameworks for the federal banking system. The announcement may be viewed at: https://occ.gov/news-issuances/news-releases/2022/nr-occ-2022-110.html
Page 22 | September 2022
CFPB issued a warning that scammers are using CFPB employees’ names and imagery to try and steal consumers’ money, particularly older adults, who were defrauded of thousands of dollars from scammers pretending to be with the CFPB. CFPB reminds the public that they will never call confirming a lottery, sweepstakes, class-action lawsuit, or about any other fees or taxes. The warning may be viewed at: https://www.consumerfinance.gov/about-us/ blog/beware-of-scammers-pretending-to-be-from-the-cfpb/
Bulletin 2022-21 regarding information security and its expectations for protecting non-public OCC information on institution- or other non-OCC-owned or managed video teleconferencing services. OCC issued the bulletin to explain its expectations for protecting non-public OCC information, as defined in 12 CFR 4.32(b)(1), shared on video teleconferencing services that are operated or managed by an institution or any other party. Video teleconferencing (VTC) services provide collaboration capabilities that allow communication via internet-enabled text, voice, and video and can allow the sharing of files and other content. VTC services are a key enabler for OCC supervisory activities. The bulletin describes the security provisions designed to protect non-public OCC information from disclosure that need to be in place for OCC personnel to join meetings hosted on institution- or other non-OCC-operated or managed VTC services in which such information is expected to be communicated. Bulletin 2022-21 may be viewed at: https://occ.gov/newsissuances/bulletins/2022/bulletin-2022-21.htmlOCCreleaseditsstrategicplanforfiscalyears (FY) 2023-2027. The strategic plan outlines OCC’s approach to achieve three strategic goals and fulfill its mission to ensure that national banks and federal savings associations operate in a safe and sound manner, provide fair access to financial services, treat customers fairly, and comply with applicable laws and regulations. The plan may be viewed at: www.occ.gov/news-issuances/news-releases/2022/nr-occ-2022-105.html
2
•Commercial Lending School 14 Madison; $895/attendee
for Compliance (CBC) – Session I 24 25 Virtual half days; membership (pricing options vary)
• Bank Executives Conference 8 10 Wisconsin Dells • Compliance Forum: Session 3 14
• Midwest Trust & Wealth Management Conference 14 Plymouth, Mich. (multiple options available)
•
7
• FIPCO Software & Compliance Forum: 20 Loan & Mortgage; Madison or virtual
• LEAD360 Conference 17 Wisconsin Dells; $350/attendee
• WBA Hosted Webinars Two hour webinars instructed with a particular focus on Wisconsin state law and rules. Other Events
9
•Real
DECEMBER 2022
20
26
•Supervisor Boot Camp 19 Madison; $535/attendee
• Family-owned and Closely Held Bank Strategic Retreat
•Loan Compliance School 17 Madison; $1,295/attendee Estate Compliance School 17 Madison; $795/attendee
Dells; annual membership (pricing varies)
• FDIC Bank Directors College Wisconsin Dells; $225/attendee Madison; $225/attendee
• Branch Manager Boot Camp: Session 3 4 part series; virtual half days; $800/attendee
OCTOBER 2022
19
•Personal Banker School 3 Madison; $495/attendee
26
5
• Compliance Forum: Session 2 Wisconsin Dells; annual membership (pricing varies)
15
• Security Officer Workshops Wisconsin Dells or virtual; $245/attendee
• Branch Manager Boot Camp: Session 4 4 part series; 2023 Community Bankers
15
18
12
•Introduction to Commercial Lending School 22 Madison; $895/attendee
16
KEY: Color Coded Event Descriptions…
APRIL 2023
TBD
26
25
• Principles of Banking Course 6 Mineral Point; $550/attendee
27
• Principles of Banking Course 27 Eau Claire; $550/attendee
20
October 2022 WISCONSIN BANKERS ASSOCIATION | 4721 SOUTH BILTMORE LANE | MADISON, WI 53718 | 608-441-1200 | www.wisbank.com
• Community Bankers for Compliance (CBC) Session IV Stevens Point; membership (pricing options vary) Madison; membership (pricing options vary)
• BOLT Winter Leadership Summit Wisconsin Dells; $150/attendee
FEBRUARY 2023 Wisconsin
MARCH 2023 Advanced IRA Workshops Madison or virtual; $245/attendee
13
15
NOVEMBER 2022
virtual half days; $800/attendee JANUARY
• Call Report Review & Update Workshop
10
12
• SchoolsI Boot Camps Focused on a particular area of banking, allowing for a deep dive into that focused area over the course of two to six days. WorkshopsI Seminars One day programs, sometimes in multiple locations, focused on a specific topic or area of banking.
• Midwest Economic Forecast Luncheon TBD Virtual •
TBD Virtual half days; $245/attendee
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•
•Residential Mortgage Lending School 14 Madison; $1,045/attendee
13 14 Madison; $245/banker attendee
• Branch Manager Boot Camp: Session 2 4 part series; virtual half days; $800/attendee
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• ConferencesI Summits One or more days, based on hot topics, industry news and best practices; scheduled time for peer networking.