All in Regulatory Update

HUD Requests Information on Disaster Recovery Funds Allocation

Adam Witmer
Regulatory Update

On December 20, 2022, the HUD released two new Requests for Information (RFIs) on how to simplify, modernize, and more equitably distribute critical disaster recovery funds: Community Development Block Grant Disaster Recovery (CDBG-DR) and Mitigation (CDBG-MIT). The requests for public feedback is part of HUD’s Climate Action Plan, which emphasizes both equity and resilience in disaster recovery, as well as the Biden-Harris Administration’s commitment to strengthening low- and moderate-income communities.

Agencies Extend Their Statement Regarding Extensions of Credit to Certain Investment Funds

Adam Witmer
Regulatory Update, Regulation O

On December 22, 2022, the OCC, FRB, and FDIC issued a revised interagency statement to extend the “Extension of the Revised Statement Regarding Status of Certain Investment Funds and their Portfolio Investments for Purposes of Regulation O and Reporting Requirements under Part 363 of FDIC Regulations.” The prior interagency statement, which was issued on December 17, 2021, was set to expire on January 1, 2023.

CFPB Issues Annual Reg Z Threshold Adjustments for 2023

Adam Witmer
Regulatory Update, Regulation Z

On December 23, 2022, the CFPB published a final rule to implement the annual adjustment requirements of Regulation Z. Specifically, the CFPB is required to calculate annually the dollar amounts for several provisions in Regulation Z, and the final rule revises, as applicable, the dollar amounts for provisions implementing TILA and amendments to TILA, including under the Credit Card Accountability Responsibility and Disclosure Act of 2009 (CARD Act), the Home Ownership and Equity Protection Act of 1994 (HOEPA), and the Dodd-Frank Wall Street Reform and Consumer Protection Act (Dodd-Frank Act). The CFPB is adjusting these amounts, where appropriate, based on the annual percentage change reflected in the Consumer Price Index (CPI) in effect on June 1, 2022.

CFPB Discusses Mortgage Financing Alternatives

Adam Witmer
Regulatory Update

On December 21, 2022, the CFPB published an article describing how interest rates have risen over the past two years. Data from Freddie Mac Primary Mortgage Market Survey shows that interest rates for 30-year fixed-rate mortgages increased to as high as 7% in 2022 from a historical low of 2.90 in 2020. According to recent CFPB analysis of quarterly HMDA data, these higher rates have already led to increased monthly payments and higher debt-to-income ratios for mortgage borrowers.

CFPB Charges Wells Fargo for Multiple Violations

Adam Witmer
Regulatory Update

On December 20, 2022, the CFPB ordered Wells Fargo Bank to pay more than $2 billion in redress to consumers and a $1.7 billion civil penalty for legal violations across several of its largest product lines. According to the CFPB’s release, Wells Fargo engaged in illegal activities that led to billions of dollars in financial harm to its customers and, for thousands of customers, the loss of their vehicles and homes.

Agencies Release CRA Asset-Size Thresholds for 2023

Adam Witmer
Regulatory Update, CRA

On December 19, 2022, the Federal Reserve Board and the FDIC issued the 2023 updated asset-size thresholds used to define "small bank" and "intermediate small bank" under their Community Reinvestment Act (CRA) regulations. On December 29, 2022, the OCC released a similar notice of asset-size threshold adjustments. Annual adjustments to these asset-size thresholds are based on the average change in the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W), which is a measure of inflation.

FRB Issues Final Rule for LIBOR Act

Adam Witmer
Regulatory Update

On December 16, 2022, the Federal Reserve Board adopted a final rule that implements the Adjustable Interest Rate (LIBOR) Act by identifying benchmark rates based on SOFR (Secured Overnight Financing Rate) that will replace LIBOR in certain financial contracts after June 30, 2023. The final rule is substantially similar to the proposal with certain clarifying changes made in response to comments.

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