Capitol Comments
April 2012
Recent News.....................................................................................................................1
Dodd-Frank agency actions ............................................................................................12
Publications, reports, studies, testimony & speeches .................................................13
Selected upcoming federal compliance dates ..............................................................14
Selected federal compliance dates from the past 12 months ......................................15
How to submit comments to your federal regulators ...................................................16
When there is a deadline associated with an item, you will see this graphic:
Recent News
CFPB Bulletin: Mortgage loan originator compensation
CFPB Bulletin 2012-02 was issued on April 2, 2012, in response to several inquiries the
Consumer Financial Protection Bureau (“CFPB”) has received regarding the payment of
compensation to loan originators under Regulation Z, 12 C.F.R. § 1026.36
(“Compensation Rules”). The CFPB anticipates issuing a proposed rule for public
comment in the near future on the loan origination provisions in the Dodd-Frank Act.
Comment: To provide clarity at this juncture, the CFPB’s view is that the Compensation
Rules permit employers to contribute to Qualified Plans out of a profit pool derived from
loan originations. That is, financial institutions may make contributions to Qualified
Plans for loan originators out of a pool of profits derived from loans originated by
employees under the Compensation Rules.
FDIC guidelines on confidentiality of financial institution information
In a Financial Institution Letter (FIL-14-20121), FDIC stated that it has observed a
limited number of instances in which directors and officers of troubled or failing
institutions have made copies of financial institution and supervisory records, and
removed those copies from the institution in anticipation of litigation or enforcement
activity against them personally.
The FDIC issued guidelines2 as a reminder to directors and officers that this activity is a
breach of their fiduciary duty to the institution and an unsafe and unsound banking
practice, which may also violate applicable laws and regulations and contravene the
financial institution's information security program. Attorneys who represent an
insured depository institution are also reminded that their fiduciary duty, both legally
and ethically, obligates them to act in the best interests of the institution. The FDIC said
that it will investigate any matter that appears to violate confidentiality and pursue
enforcement actions, as appropriate.
Comment: While the editor recognizes the importance of an insured depository
institution’s directors, officers, and attorneys not breaching their fiduciary duties to the
institution, the FDIC has not truly considered the needs of directors and officers. The
FDIC closed its guidelines with this statement:
“Former directors and officers may have a legitimate need to access certain
limited confidential financial institution records in order to prepare for, or defend
against, litigation that may arise following the placement of a financial institution
into receivership. The FDIC is willing to address this need, but any such access
must be arranged formally, after the financial institution is taken into
receivership, and subject to a suitable confidentiality agreement with the FDIC as
receiver, or other acceptable assurance of confidentiality such as a protective
order.”
Considering the fact that the FDIC is often the plaintiff in lawsuits against directors and
officers of failed institutions, this statement is cold comfort to potential defendants. The
editor believes he speaks for everyone who has been involved in litigation in saying that
no one wants to depend on the opposing party to address their need for access to
information necessary to mounting a proper defense. The FDIC needs to provide a clear
and adequate method for directors, officers, and their attorneys to obtain access to the
documents needed to mount defenses to lawsuits relating to failed institutions without
depending on the plaintiff to provide the documents after the financial institution is taken
into receivership.
CFPB: Student loan cost comparison tool
The CFPB is asking for input to develop a new interactive cost comparison tool3 to help
navigate financial aid offers and student loans. CFPB put together a prototype. In their
beta version, students can enter the financial aid information they’ve received from
colleges, adjust their family’s contributions, input scholarships and military benefits,
and much more. The beta version can give a rough estimate of the monthly payment
after graduation, as well as a sense of overall debt burden in relationship to the average
starting salary of a college graduate. A student can also see school-specific indicators
like graduation rates.
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The CFPB is asking students and families to tell them what is helpful and what is
confusing. For the experts out there, they want to know how to think about some of the
technical assumptions, like interest rates and salary data.
They’re also challenging the app developer community to make their own apps and web
tools to help students make more informed decisions.
CFPB: Student debt hits a trillion dollars
In a CFPB blog4 on the private and federal student loan market, the CFPB states that
private and federal student debt has hit $1 trillion and that students borrowed $117
billion in federal loans last year.
Comment: According to the Federal Reserve, the nation’s credit card debt is $800 billion.
(Consumer Credit – G.19, February 20125) That means the student loan debt is actually
greater. In September, the U.S. Department of Education released FY 2009 student loan6
numbers showing that the default rate had increased from 7.0% in FY 2009 to 8.8%. At $1
trillion, a mass default on student debt could plunge the country into another recession.
NMLS resources for info on federal registrations
On April 2, 2012 all information regarding federal registration was moved out of the
current NMLS Resource Center to a new site that is specific to the NMLS Federal
Registry. This includes all Quick Guides, instructions and reference materials that
pertain to Federal Registration. The NMLS Federal Registry Resource Center is
available at: http://fedregistry.nationwidelicensingsystem.org.
Establishment of Financial Research Advisory Committee and solicitation of
committee membership
The U.S. Department of Treasury’s Office of Financial Research (OFR) announced plans
to create the Financial Research Advisory Committee (“the Committee”). The
Committee will provide advice, recommendations, analysis, and information to the
OFR.
The OFR was launched after enactment of the Dodd-Frank Act to serve the Financial
Stability Oversight Council, its member agencies, and the public by improving the
quality, transparency, and accessibility of financial data and information, by conducting
and sponsoring research related to financial stability, and by promoting best practices in
risk management. Members of the Financial Research Advisory Committee will include
academics, researchers, industry leaders, government officials, and experts in the fields
of data and technology.
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Committee members will be selected based on their expertise in economics, financial
institutions and markets, statistical analysis, financial markets analysis, econometrics,
applied sciences, risk management, data information standards, technology, or other
areas related to OFR’s duties and authorities. Subcommittees will be formed to address
research issues and data and technology issues, two distinct, but related areas.
A Notice of Establishment of the Financial Research Advisory Committee was delivered
to the Federal Register7. The Notice sought applications for membership on the
Committee. The application period was open through April 16, 2012.
Comment: Unfortunately, the application period is now closed, but we wanted to make
you aware of the establishment of this committee.
CFBP announces “Ask CFPB” interactive online tool
Ask CFPB8 is a new interactive online tool from the CFPB. Ask CFPB contains three
general categories of questions and answers:
1. Definitions: It defines the financial jargon.
2. Explanations: It provides general information and explanations of terms and features of
financial products.
3. Situations: It gives information and tips on various situations.
Comment: The CFPB is doing a great job of creating information for consumers. The
editor hopes that soon it will begin to develop significant and useful guidance for lenders.
Federal Reserve report to Congress on Office of Minority and Women Inclusion
Section 342 of the Dodd-Frank Act requires all of the federal financial regulatory
agencies to assess the diversity policies and practices of the entities the agencies
regulate. The Fed recently issued a Report to Congress on the OMWI9. Though much of
the report had to do with the internal employment and contracting practices of the
agencies, there was a section on the diversity policies and practices of entities regulated
by the federal agencies. In that section, the Fed said that they have met regularly with
the staff of other financial regulatory agencies to establish a common framework for
compliance with this provision of section 342 of the Dodd-Frank Act. The Fed stated
that the regulatory community believes that a uniform approach is important to ensure
that all entities are subject to similar standards regardless of regulator. The agencies are
exploring ways to have maximum impact while limiting regulatory burden and
remaining within the constraints of the statutory authorization.
Comment: The financial regulators will establish a schedule of roundtable discussions
with financial institutions and other regulated entities to further develop standards for
the diversity policies and practices of regulated entities. Our concern is that with no
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federal requirement for businesses to have diversity policies or practices, what are the
regulators going to assess? Businesses with 50 employees or more must have affirmative
action plans, but not diversity policies or practices. Is this a backdoor method to require
businesses with fewer than 50 employees to have an affirmative action plan? We wonder
what a regulator is going to do the first time a bank with fewer than 50 employees tells
them that their diversity plan and practice is to hire the best people they can. On the
other hand, this is probably a good time for small banks to reassess their hiring and
contracting procedures and policies to assure that they do not discriminate against
minorities or women either in writing or in practice.
SAFE Act: New Federal Registry Resource Center Opens
The new online Federal Registry Resource Center10 went online on April 2nd. All
information regarding federal SAFE Act registration has been moved out of the current
NMLS Resource Center into this site. This includes all Quick Guides, instructions and
reference materials that pertain to Federal Registration. Start by choosing either
Institutions or Loan Originators from the menu at the top of the home page to see what
resources are available.
CFPB files amicus brief supporting borrowers in right of rescission case
The CFPB filed an amicus brief11 in the Rosenfield v. HSBC Bank case in the United
States Court of Appeals for the Tenth Circuit in Denver, Colo., arguing that certain
borrowers who did not receive rescission disclosures mandated by the Truth in Lending
Act may cancel their loans so long as they notify the lender of their intent to cancel
within three years, but they do not need to file a lawsuit within three years for the
rescission to be valid.
Comment: The CFPB said that filing amicus briefs in litigation involving federal
consumer financial protection laws would be a regular part of its work.
FinCEN Advisory on tax refund fraud
FinCEN issued an Advisory (FIN-2012-A00512) to assist financial institutions with
identifying tax refund fraud and reporting the activity through the filing of SARs. To
assist financial institutions with identifying potential tax fraud, FinCEN has, in
consultation with the IRS and law enforcement, identified eight red flags:
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Multiple direct deposit tax refund payments, directed to different individuals,
from the United States Department of the Treasury (Treasury) or state or local
revenue offices are made to a demand deposit or prepaid access account held in
the name of a single accountholder.
Suspicious or authorized account opening at a depository institution, on behalf of
individuals who are not present, with the fraudulent actor being named as having
signatory authority. The subsequent source of funds is limited to the direct
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deposit of tax refunds. This activity often occurs when exploiting returns for the
elderly, minors, prisoners, the disabled, or recently deceased.
Opening multiple prepaid card accounts by one individual in different names
using valid TINs for each of the supplied names, and subsequent mailing of the
prepaid cards to the same address. Shortly after card activation, Automated
Clearing House (ACH) credit(s) from Treasury or state or local revenue offices
representing tax refunds occur. This is followed quickly by ATM cash withdrawals
and/or point-of-sale purchases.
Business accountholders processing third-party tax refund checks in a manner
inconsistent with their stated business model or at a volume inconsistent with
expected activity. Similarly, individuals processing third-party tax refund checks
through a personal account with no business or apparent lawful purpose.
Business accountholders processing third-party tax refund checks and
conducting transactions inconsistent with normal business practices, which may
include:
Large volume of Treasury refund checks or bank checks being deposited in
contrast to few other checks being deposited, such as payroll checks;
Large volume of refund checks bearing addresses of customers out of state;
Multiple refund checks are for the same dollar amount or a few dollars off;
Treasury refund checks or bank checks, representing electronic refunds, are
sequentially numbered or within a few numbers of each other;
The dollar amount of checks being deposited is not commensurate with the
amount of currency being withdrawn to cover the cashing of these refund checks.
Multiple prepaid cards that are associated with 1) the same physical address
[fraudulent actors may also contact their customer service department requesting
to change their address for their Permanent Prepaid Card shortly after opening
their Temporary Prepaid Card on-line]; 2) the same telephone number; 3) the
same e-mail address; or 4) the same Internet Protocol (IP) address, which receive
tax refunds as the primary or sole source of funds.
The opening of a business account for a check cashing business at a financial
institution, with a subsequent high volume of tax refund checks issued to
individuals from across the United States.
A sudden increase in volume moving through the account of an existing check
cashing service, involving tax refund checks issued to individuals from across the
United States.
Comment: The Advisory instructs financial institutions to use the term “tax refund fraud”
in the narrative section of the SAR and provide a detailed description of the activity.
FinCEN guide on filing new reports
FinCEN issued Guidance13 on filing their new reports. The new CTR and SAR form do
not create any new obligations or otherwise change existing statutory and regulatory
expectations of financial institutions. FinCEN is now accepting the new CTR and SAR
filings through the BSA E-Filing System. The BSA E-Filing System will continue to
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accept submissions of the legacy reports until March 31, 2013. Accordingly, until such
time, financial institutions may choose to electronically file either the legacy or new
reports, or any combination thereof.
Comment: FinCEN has mandated electronic filing of most reports through the BSA EFiling System, beginning July 1, 2012. Financial institutions may continue to file, via
paper, the most currently available versions of the legacy reports before July 1, 2012.
However, financial institutions are strongly encouraged to begin filing electronically
before the mandate takes effect. The new CTR and SAR reports may only be submitted
electronically.
Photo evidence of affixed notice sinks consumer ATM lawsuit
Gerald Rivello, Jr., used a Pennsylvania State Employees Credit Union ATM that was allegedly
missing the required physical fee disclosure notice. The credit union introduced affidavits and
photographic evidence reflecting the presence of the notice and the prompt replacement of the
notice when it went missing.
Comment: This credit union implemented an effective process for routine inspection of its
ATMs. When the responsible employee noticed the notice was missing on the ATM, it was
replaced and pictures were taken of the machine—particularly of the adhesive residue
where the notice had been. The credit union’s success in this law suit reiterates the need
for every financial institution to implement procedures for routine inspections of their
ATMs. Checking and photographing ATMs when filling with cash is likely the least
disruptive process. If a notice is missing, the bank’s “inspector” should take a “date
stamped” photograph of the machine without the notice, replace the notice, then take
another “date stamped” photograph of the ATM with the new notice in place. The bank
should keep a log of inspected machines including notes regarding missing notices that
are replaced. The “inspector” should always record the dates and times of inspections. It
may be possible to implement an electronic inspection system on a Smartphone or tablet
device so that when the inspector returns to the bank, further documentation is
unnecessary.
HUD delays new guidance
In order to allow Mortgagees additional time to adapt their procedures to implement
portions of the new guidance found in Mortgagee Letter 2012-03 (See page 3 of the
letter), FHA is delaying the effective date of the following topics from ML 2012-03:

Handling of Disputed Accounts, Public Records FHA Total User Guide Chapter 2,
and
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Handbook 4155.1 4.C.2.e, Paying off Collections and Judgments.
The guidance provides that a borrower with the total outstanding balance of all disputed
collection accounts equal to or greater than $1,000, must resolve the accounts (e.g.
enter into payment arrangements with minimum three months verified payments—paid
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as agreed) or be paid in full at the time of, or prior to closing to be eligible for FHA
insurance endorsement. Mortgagees must document the case binder showing each
account was resolved or paid in full.
Comment: FHA postponed the rule until July 1, and will take public comment from
lenders, builders and others in the industry until then to clarify the guidance.
Curry takes office as Comptroller of Currency
On April 9, 2012, Thomas J. Curry was sworn in as the as the 30th Comptroller of the
Currency, following confirmation by the U.S. Senate on March 29, 2012.
President Barack Obama nominated Mr. Curry in July 2011.
Mr. Curry has served as a Director of the FDIC since January 2004, where he served as
Chairman of the FDIC's Assessment Appeals Committee and Case Review Committee
and Chairman of the NeighborWorks® America Board of Directors.
Prior to joining the FDIC’s Board of Directors, Mr. Curry served five Massachusetts
Governors as the Commonwealth's Commissioner of Banks from 1990 to 1991 and from
1995 to 2003. He served as Acting Commissioner from February 1994 to June 1995. He
previously served as First Deputy Commissioner and Assistant General Counsel within
the Massachusetts Division of Banks.
Mr. Curry served as the Chairman of the Conference of State Bank Supervisors from
2000 to 2001, and served two terms on the State Liaison Committee of the FFIEC,
including a term as Committee chairman.
Comment: According to the Wall Street Journal (New Regulators May Be Less Friendly to
Banks14), Curry isn’t likely to be as much of an advocate for banks as former acting
director John Walsh.
OCC “troubled debt restructuring” accounting/reporting bulletin
The OCC issued a bulletin15 to national banks and federal savings associations
(collectively, banks) to address many inquiries received from bankers and examiners on
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the accounting and reporting requirements for troubled debt restructurings (a TDR),
especially related to loan renewals and extensions of substandard commercial loans.
Interagency SAFE Act examination procedures
On April 16th, the OCC announced its adoption of the interagency examination16
procedures for the Secure and Fair Enforcement for Mortgage Licensing Act of 2008
(SAFE Act).
CFPB bulletin on service providers
The CFPB issued Bulletin 2012-0317 reminding the financial institutions that it regulates
that, depending on the circumstances, legal responsibility for service providers may lie
with the supervised financial institution.
Comment: Although CFPB regulates only large depository institutions ($10 billion or
more) and their affiliates, the following recommendations set out by the CFPB to limit the
potential for statutory or regulatory violations and consumer harm are instructive:
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Conducting thorough due diligence to verify that the service provider understands
and is capable of complying with Federal consumer financial law;
Requesting and reviewing the service provider’s policies, procedures, internal
controls, and training materials to ensure that the service provider conducts
appropriate training and oversight of employees or agents that have consumer
contact or compliance responsibilities;
Including in the contract with the service provider clear expectations about
compliance,, as well as appropriate enforceable consequences for violating any
compliance-related responsibilities, including engaging in unfair, deceptive, or
abusive acts or practices;
Establishing internal controls and on-going monitoring to determine whether the
service provider is complying what Federal consumer financial law; and
Taking prompt action to address fully any problems identified through the
monitoring process, including terminating the relationship where appropriate.
Call Reports for 1st quarter 2012
The FDIC, OCC, and Fed have provided materials18 pertaining to the Call Report for the
March 31, 2012, report date. Please plan to complete the preparation, editing, and
review of your institution’s Call Report data and the submission of these data to the
agencies’ Central Data Repository (CDR) as early as possible. Instructions for accessing
the CDR are available at https://cdr.ffiec.gov/CDR/.
Completed Call Reports must be received by Monday, April 30, 2012, in accordance with
the filing requirements discussed below. No extensions of time for submitting Call
Report data are granted. (FDIC FIL-19-201219)
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Comment: Beginning March 31, 2012, all savings associations must file the Call Report
instead of the Thrift Financial Report (TFR), which has been eliminated. Additional
information20 to assist savings associations in converting to the Call Report is available.
Fed: Rental of OREO
The Fed issued a policy statement21 on renting other real estate owned to third party
tenants.
Comment: The general policy of the Fed is that banks should make good-faith efforts to
dispose of OREO at the earliest practical date. However, in light of current market
conditions, banks may rent OREO properties—without demonstrating continuous active
marketing of the property— provided suitable policies and procedures are followed. This
does place the bank in the middle of two conflicting goals, as the original purpose of the
OREO laws and regs was to cause banks to dispose of OREA as soon as possible.
Fed amends Regs D and J to simplify reserve administration
The Board amended Regulation D22, Reserve Requirements of Depository Institutions,
to simplify the administration of reserve requirements. The final rule creates a common
two week maintenance period for all depository institutions, creates a penalty-free band
around reserve balance requirements in place of carryover and routine penalty waivers,
discontinues as-of adjustments related to deposit report revisions, replaces all other asof adjustments with direct compensation, and eliminates the contractual clearing
balance program. The amendments are designed to reduce the administrative and
operational costs associated with reserve requirements for depository institutions, the
Board, and Federal Reserve Banks.
The Board amended Regulation J23 (Collection of Checks and Other Items by Federal
Reserve Banks and Funds Transfers through Fedwire). The final rule eliminates
references to ‘‘as-of adjustments’’ consistent with the Board’s final amendments to
Regulation D to simplify reserves administration; clarifies that an institution’s
Administrative Reserve Bank is deemed to have accepted deposit of a check or other
item even if the institution sends the item directly to another Federal Reserve Bank;
further clarifies that Regulation J continues to apply to a Fedwire funds transfer even if
the funds transfer also meets the definition of ‘‘remittance transfer’’ under the
Electronic Fund Transfer Act; and makes other conforming revisions.
CFPB: Mortgage servicing rules
The CFPB outlined rules24 it is considering regarding mortgage servicers. The CFPB
plans to formally propose rules this summer and finalize them in January 2013. The
proposed rules currently under consideration aim to protect consumers from surprises
by directing servicers to provide:
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Clear monthly mortgage statements that explicitly break down principal, interest,
fees, escrow, and due dates
Warnings before adjusting interest rates on certain adjustable rate mortgages
(ARMs) that explain how the new rate was determined, when it will take effect,
dates of future adjustments, and a list of alternatives for consumers to consider
Options for avoiding expensive “forced-placed” insurance, which is insurance
charged to borrowers by servicers when their existing insurance appears to have
lapsed
Early outreach to struggling borrowers that informs them of potential options to
avoid foreclosure
CFPB also wants to address the issue of consumers getting the “run-around” when
dealing with servicers. To accomplish this, CFPB is considering proposals that would
require:
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Payments to be credited to consumer accounts the day payment is received
Implementing new policies and procedures so that records are kept up-to-date
and accessible
Quickly addressing and correcting errors
Giving homeowners direct and ongoing access to servicer staff members who
have access to the homeowners’ records and can actually help address their
issue(s)
A factsheet on the mortgage servicing rules under consideration is available here25.
Comment: The editor applauds the CFPB for tackling a tough problem, but the other half
of this equation also needs to be adequately addressed. Consumers need the CFPB to not
merely collect consumer complaints, take enforcement actions, and create additional and
improved consumer disclosures, but to also encourage and teach consumers how to be
responsible mortgage borrowers. Although the large banks played a huge role in the
mortgage meltdown, the prevailing thought in some quarters that it was strictly a lender
created problem is false. Public recognition by the CFPB of the role borrowers played in
the meltdown followed by appropriate education on responsible mortgage borrowing
would likely go a long way in preventing another crisis. Additionally, as the CFPB moves
forward with rulemaking, it needs to recognize that community banks didn’t cause the
mortgage meltdown. Fair and equitable rules that recognize this are imperative to rural
and small town homeownership.
Changes to redeemed savings bond processing
As announced February 15, 201226, redeemed paper savings bonds processing will
transition from EZ Clear to image-based processing, beginning April 16, 2012. At that
time, the EZ Clear Program will be decommissioned, and the Federal Reserve Banks will
begin accepting image-eligible savings bonds in FedForward® image cash letters
(ICLs). Image-based savings bond processing is strongly preferred, but paper savings
bond deposits will continue to be accepted. The EZ Clear to Image-enabled Savings
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Bond Processing Quick Reference Guide outlines the major operational changes that
could affect your institution.
Atlanta Fed blog on vulnerabilities of online and mobile banking
Portals and Rails is a blog sponsored by the Retail Payments Risk Forum of the Federal
Reserve Bank of Atlanta. The April 16th edition, entitled Online and mobile banking
create many front doors27, sets out business practices to secure all Internet and mobile
banking security openings.
Comment: The five sound business practices listed in the blog can help your bank assure
safe electronic banking. Listed by title, they are: Customer awareness and education,
Layered security programs, Effectiveness of authentication techniques, Customer
authentication for high-risk transactions, and Risk assessments.
Dodd-Frank Act (DFA) agency actions
Note to the Reader: This section is devoted to matters relating directly to the Dodd-
Frank Act. In this section, we will report on both proposed and final rulemaking. We
don’t usually report on proposed rulemaking because readers can confuse the proposals
with final rules; however, an exception will be made with respect to selected rules
proposed in response to the Dodd-Frank Act. Please be aware that rules listed as
proposed have not been adopted by the regulators. We encourage you to comment on
proposals.
Recent DFA final rules adopted:
There are no relevant Dodd-Frank final rules to report this month.
Proposed DFA rules with open comment periods:
Fed amends proposed rulemaking on Regulation Y
The Federal Reserve Board, on April 2, requested comment28 on a proposed amendment
to the Board's Notice of Proposed Rulemaking (NPR) issued February 11, 2011, to
establish requirements for determining whether a company is "predominantly engaged
in financial activities."
Under Title 1 of the Dodd-Frank Wall Street Reform and Consumer Protection Act, a
company generally can be designated for Board supervision by the Financial Stability
Oversight Council only if 85 percent or more of the company's revenues or assets are
related to activities that are financial in nature under the Bank Holding Company Act.
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Some commenters to the February 2011 NPR asked whether conditions imposed on the
conduct of financial activities by the Bank Holding Company Act and the Board's
regulations should be considered in defining financial activities for purposes of Title I.
The Board is therefore proposing to amend the NPR to clarify the activities that are
financial for purposes of Title I.
Comment: Comments must be received on or before May 25, 2012.
Publications, reports, studies, testimony &
speeches

Fed International Finance Discussion Paper on community bank contraction after
2008
In September 2008, the government-sponsored enterprises (GSEs) Fannie Mae and
Freddie Mac were placed into conservatorship and dividend payments on common and
preferred shares were suspended. As a result, share prices fell to nearly zero and many
banks across the country lost the value of their investments in the preferred shares. The
Fed’s International Finance Discussion Paper discusses the effect this had on
community banks.
Comment: The paper documents the losses incurred by community banks of the decision
to take the GSEs into conservatorship. It examines the relationship between bank health
and lending while the banking sector was under severe stress. Finally, the paper
discusses how results of the study are applied more broadly to developments in bank
conditions and their effect on lending.
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Federal Reserve Bank—Dallas, Annual Report
The Federal Reserve Bank—Dallas issued its 2011 Annual Report.
Comment: The report contains a must read article entitled: Choosing the Road to
Prosperity: Why We Must End Too Big to Fail--Now.
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Federal Reserve Banks’ FedFocus
The Federal Reserve Banks issued their monthly news periodical, FedFocus,29 for April,
including articles on FedTransaction Analyzer, FedEDI Plus, and “Ready, Save, Grow.”
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FNMA National Housing Survey
Fannie Mae's latest quarterly National Housing Survey30 finds that despite the recent housing
crisis, most Americans continue to believe that owning their home is preferable to renting it. The
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data also indicate that while financial constraints and employment concerns may be keeping
potential homebuyers on the sidelines in the near term, future improvements in employment and
personal finances, a pickup in interest rates in response to stronger economic growth, and
stabilizing home prices may move Americans to act on their aspirations in coming years.
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Fed Beige Book
This Beige Book31 was prepared by the Federal Reserve Bank of Cleveland based on
information collected on or before April 2, 2012. Reports from the twelve Federal
Reserve Districts indicated that the economy continued to expand at a modest to
moderate pace from mid-February through late March. Activity in the Boston, Atlanta,
Chicago, Dallas, and San Francisco Districts grew at a moderate pace, while Cleveland
and St. Louis cited modest growth. New York reported that economic growth picked up
somewhat. Philadelphia and Richmond cited improving business conditions. The
economy in Minneapolis grew at a solid pace and Kansas City's economy expanded at a
faster pace.
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FDIC: 4th Quarter State Profiles
The FDIC issued the 4th Quarter state profiles32.
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Federal Reserve Banks’ FedFlash
Click here33 to see the latest FedFlash. Monthly, FedFlash provides the latest operational
news from the Federal Reserve Banks.
Selected upcoming federal compliance dates:
04.30.2012
National Labor Relations Board’s final rule34 requiring employers to post workplaces notices
regarding employee rights regarding unions and collective bargaining. Notices will be available at
NLRB regional offices or on the NLRB website35 by October 1. Private sector employers subject to
National Labor Relations Act must post the notice. The notice was originally required on 11.14.2011,
but was delayed to allow for further education and outreach.
07.01.2012
FinCEN adopted a requirement36 that all financial institutions subject to BSA reporting use
electronic filing for certain reports. Hardship exemptions are available.
12.31.2012
Housing and Economic Recovery Act by The Helping Heroes Keep Their Homes Act of 2010 – The
provision for an extended time period (extended from 90 days to nine months) for protections
affecting foreclosure, sale, or seizure of servicemembers’ real or personal property expires.
07.12.2012
Reg D amendment37 simplifying the administration of reserve requirements. (See April 2012
Capitol Comments)
Reg J amendment38 (See April 2012 Capitol Comments)
07.12.2012
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02.07.2013
This final rule39 amending Reg. E provides new protections, including disclosures and error
resolution and cancellation rights, to consumers who send remittance transfers to other consumers
or businesses in a foreign country. The amendments implement statutory requirements set forth in
Section 1073 of the Dodd-Frank Act.
03.31.2013
SAR/CTR batch filers must update their systems to the new specifications40. (Extended from June
30, 2012 to March 31, 201341) All institutions that batch file the current CTR, CTR-C, SAR-DI, SARSF, SAR-MSB, or SAR-C will have to convert their systems to file the new CTR and SAR. FinCEN
will make other filing technical specifications available in the near future.
Comment: Distribute this calendar to your CEO, CFO, Compliance Officer, and Operations
Officer.
Selected federal compliance dates from the past
12 months:
Our list of past final rule effective dates is limited to 12 months. To see the document
“Selected Past Final Federal Rules,” containing final rules with effective dates more than
12 months old, click here.
03.15.2012
ATMs must comply with the communication requirements of the ADA and ABA Accessibility
Guidelines for Buildings and Facilities42.
01.01.2012
The FFIEC member agencies directed examiners to formally assess financial institutions under the
enhanced expectations outlined in the supplemental guidance on Internet banking authentication43
beginning in January 2012.
12.31.2011
Treasury ends over-the-counter sales of paper savings bonds, including sales through financial
institutions and applications directly to the Fed.
10.01.2011
Final rule44 establishing standards (Regulation II) for debit card interchange fees and prohibiting
network exclusivity arrangements and routing restrictions.
10.01.2011
Interim final rule45 that allows for an upward adjustment of no more than 1 cent to an issuer's debit
card interchange fee if the issuer develops and implements policies and procedures reasonably
designed to achieve the fraud-prevention standards.
10.01.2011
Clarification of Reg Z46 Credit Card Act and official staff commentary.
08.15.2011
The Board amended model notices47 in Regulation B to include the disclosure of credit scores and
related information if a credit score is used in taking adverse action.
08.15.2011
The final rules48 amending Regulation V generally require a creditor to provide a risk-based pricing
notice to a consumer when the creditor uses a consumer report to grant or extend credit to the
consumer on material terms that are materially less favorable than the most favorable terms
available to a substantial proportion of consumers from or through that creditor
07.21.2011
The FDIC final rule49 repeals Reg. Q, the prohibition against the payment of interest on demand
deposit accounts.
07.21.2011
This is the transfer date when the CFPB will be vested with the consumer protection authorities
currently held by the existing federal financial regulators, such as the Federal Reserve and the
FDIC.
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07.21.2011
The final rules amend Reg. Z50 and Reg. M51 (Consumer Leasing) to implement a provision of the
Dodd-Frank Act, which requires Truth in Lending Act and the Consumer Leasing Act apply to
consumer credit transactions and consumer leases up to $50,000, compared with $25,000
currently. This amount will be adjusted annually to reflect any increase in the consumer price
index.
07.22.2011
Effective date of the repeal of Reg. Q’s prohibition on payment of interest on commercial checking
accounts. A rule has been proposed52 to implement this.
07.01.2011
FDIC Overdraft Payment Supervisory Guidance.53 The FDIC expects that any additional efforts to
mitigate risk would be in place by July 1, 2011.
05.01.2011
Interim final rule54 to implement statutory restrictions on the garnishment of Federal benefit
payments and establish procedures that financial institutions must follow when they receive a
garnishment order against an account holder who receives certain types of Federal benefit
payments by direct deposit.
04.01.2011
Final rule55 amending Reg. Z increases from 1.5 to 2.5 percentage points the APR threshold for
determining whether a jumbo mortgage secured by a first lien on a consumer’s principal dwelling is
a HPML for which an escrow account must be established.
04.01.2011
Reg. Z56 – Amendment to protect consumers in the mortgage market from unfair or abusive lending
practices that can arise from certain loan originator compensation practices.
04.01.2011
Fed’s final rule57 to implement the conformance period during which banking entities and nonbank
financial companies supervised by the Board must bring their activities and investments into
compliance with the prohibitions and restrictions on proprietary trading and relationships with
hedge funds and private equity funds imposed by the ‘‘Volcker Rule.
04.01.2011
FDIC final rule58 on Assessments, Dividends, Assessment Base, and Large Bank Pricing. This new
large bank pricing system will result in higher assessment rates for banks with high-risk
concentrations, less stable balance sheet liquidity, or potentially higher loss severity in the event of
failure. Except as specifically provided, the final rule will take effect for the quarter beginning April
1, 2011, and will be reflected in the June 30, 2011 fund balance and the invoices for assessments due
September 30, 2011.
03.28.2011
FinCEN final rule59 to amend BSA regulations regarding reports of foreign financial accounts.
03.15.2011
Nondiscrimination on the Basis of Disability Final Rules60 – Effective dates of new ADA
requirements for ATMs.61
How to submit comments to your federal
regulators:
Office of the Comptroller of the Currency: Because paper mail in the Washington, DC area and at the OCC is
subject to delay, commenters are encouraged to submit comments by the Federal eRulemaking Portal or e-mail, if
possible. Please use the title in the Federal Register publication of the proposal. You may submit comments by any of
the following methods:

Federal eRulemaking Portal—Regulations.gov: Go to

http://www.regulations.gov . Select “Document Type” of “Proposed Rule”, and in “Enter Keyword or ID Box”,
enter the docket number found in the Federal Register publication of the proposed rule and click “Search.” On “View
By Relevance” tab at bottom of screen, in the “Agency” column, locate the proposed rule for OCC, in the “Action”
column, click on “Submit a Comment” or “Open Docket Folder” to submit or view public comments and to view
supporting and related materials for this proposed rule.
CAPITOL
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APRIL 2012
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
Click on the “Help” tab on the Regulations.gov home page to get information on using Regulations.gov, including
instructions for submitting or viewing public comments, viewing other supporting and related materials, and viewing
the docket after the close of the comment period.

E-mail: regs.comments@occ.treas.gov

Mail: Office of the Comptroller of the Currency, 250 E Street, SW., Mail Stop 2-3, Washington, DC 20219.

Fax: (202) 874-5274.

Hand Delivery/Courier: 250 E Street, SW., Mail Stop 2-3, Washington, DC 20219.
Instructions: You must include “OCC” as the agency name and the docket number in your comment. In general, OCC
will enter all comments received into the docket and publish them on the Regulations.gov Web site without change,
including any business or personal information that you provide such as name and address information, e-mail
addresses, or phone numbers. Comments received, including attachments and other supporting materials, are part of
the public record and subject to public disclosure.
Do not enclose any information in your comment or supporting materials that you consider confidential or
inappropriate for public disclosure.
Board of Governors of the Federal Reserve System: You may submit comments, identified by the docket
number and the RIN number found in the Federal Register publication of the rule proposal, by any of the following
methods:

Agency Web Site: http://www.federalreserve.gov. Follow the instructions for submitting comments at
http://www.federalreserve.gov/generalinfo/foia/ProposedRegs.cfm.

Federal eRulemaking Portal: http://www.regulations.gov. Follow the instructions for submitting comments.

E-mail: regs.comments@federalreserve.gov. Include the docket number and RIN number in the subject line of
the message.

Fax: (202) 452-3819 or (202) 452-3102.

Mail: Address to Jennifer J. Johnson, Secretary, Board of Governors of the Federal Reserve System, 20th Street
and Constitution Avenue, NW., Washington, DC 20551.
Federal Deposit Insurance Corporation: You may submit comments, identified by RIN number, by any of the
following methods:

Agency Web Site: http://www.FDIC.gov/regulations/laws/federal/propose.html. Follow instructions for
submitting comments on the Agency Web Site.

E-mail: Comments@FDIC.gov. Include the RIN number on the subject line of the message.

Mail: Robert E. Feldman, Executive Secretary, Attention: Comments, Federal Deposit Insurance Corporation,
550 17th Street, NW, Washington, DC 20429.

Hand Delivery: Comments may be hand delivered to the guard station at the rear of the 550 17th Street Building
(located on F Street) on business days between 7:00 a.m. and 5:00 p.m.
Instructions: All comments received must include the agency name and RIN for this rulemaking and will be posted
without change to
http://www.fdic.gov/regulations/laws/ federal/propose.html, including any personal information provided.
Consumer Financial Protection Bureau: You may submit comments, identified by docket number, by any of the
following methods:


Electronic: http://www.regulations.gov. Follow the instructions for submitting comments.
Mail: Monica Jackson, Office of the Executive Secretary, Consumer Financial Protection Bureau, 1500
Pennsylvania Ave. NW., (Attn: 1801 L Street), Washington, DC 20220.
 Hand Delivery/Courier in Lieu of Mail: Monica Jackson, Office of the Executive Secretary, Consumer
Financial Protection Bureau, 1700 G Street NW., Washington, DC 20006.
Instructions: The CFPB encourages the early submission of comments. All submissions must include the
document title and docket number. Please note the number of the question to which you are responding at the
top of each response (respondents need not answer each question). In general, all comments received will be
posted without change to http://www.regulations.gov. In addition, comments will be available for public
CAPITOL
COMMENTS
APRIL 2012
Page 17
inspection and copying at 1700 G Street NW., Washington, DC 20006, on official business days between the
hours of 10 a.m. and 5 p.m. Eastern Time. You can make an appointment to inspect the documents by
telephoning (202) 435-7275. All comments, including attachments and other supporting materials, will become
part of the public record and subject to public disclosure. Sensitive personal information such as account
numbers or Social Security numbers should not be included. Comments will not be edited to remove any
identifying or contact information.
This publication is designed to provide accurate and authoritative information in regard to the subject matter covered. It is
provided with the understanding that the publisher is not engaged in the rendering of legal, accounting or other professional
advice - from a Declaration of Principles adopted by the American Bar Association and a Committee of Publishers and
Associations; All rights reserved; Shannon Phillips Jr., Editor; Oklahoma Edition, copyrighted by Craig Buford, CBAO
President and CEO.
Capitol Comments
April 2012
Craig Buford, CAE
President and CEO
Community Bankers Association of Oklahoma
440 W. Main
Yukon, OK 73099
Office: 405-524-4122
Cell: 405-833-9499
Fax: 405-524-0443
cbuford@cba-ok.org
www.cba-ok.org
1
http://www.fdic.gov/news/news/financial/2012/fil12014.pdf
2
http://www.fdic.gov/news/news/financial/2012/fil12014a.html
3
http://www.consumerfinance.gov/payingforcollege/costcomparison/
4
http://www.consumerfinance.gov/blog/too-big-to-fail-student-debt-hits-a-trillion/
5
http://www.federalreserve.gov/releases/g19/current/
6
http://www.ed.gov/news/press-releases/default-rates-rise-federal-student-loans
7
https://www.federalregister.gov/articles/2012/03/22/2012-6941/financial-research-advisory-committee#p-3
8
http://www.consumerfinance.gov/askcfpb/
9
http://www.federalreserve.gov/publications/other-reports/files/omwi-report-20120402.pdf
10
http://fedregistry.nationwidelicensingsystem.org/Pages/default.aspx
11
http://files.consumerfinance.gov/f/201203_cfpb_Rosenfield_vs_HSBC_Amicus.pdf
12
http://www.fincen.gov/statutes_regs/guidance/pdf/FIN-2012-A005.pdf
13
http://www.fincen.gov/statutes_regs/guidance/pdf/FIN-2012-G002.pdf
14
http://blogs.wsj.com/deals/2012/03/30/new-regulators-may-be-less-friendly-to-banks/
15
http://www.occ.gov/news-issuances/bulletins/2012/bulletin-2012-10.html
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16
http://www.occ.gov/publications/publications-by-type/comptrollers-handbook/safe-act-examinationprocedures.pdf
17
http://files.consumerfinance.gov/f/201204_cfpb_bulletin_service-providers.pdf
18
http://www.fdic.gov/news/news/financial/2012/fil12018a.pdf
19
http://www.fdic.gov/news/news/financial/2012/fil12019.html
20
http://www.fdic.gov/regulations/resources/call/filers.html
21
http://www.federalreserve.gov/newsevents/press/bcreg/bcreg20120405a1.pdf
22
http://www.gpo.gov/fdsys/pkg/FR-2012-04-12/pdf/2012-8562.pdf
23
http://www.gpo.gov/fdsys/pkg/FR-2012-04-12/pdf/2012-8563.pdf
24
http://www.consumerfinance.gov/blog/what-the-proposed-mortgage-servicing-rules-could-mean-for-you/
25
http://files.consumerfinance.gov/f/201204_cfpb_factsheet_putting-service-back-in-mortgage-servicing.pdf
26
http://www.frbservices.org/files/communications/pdf/treasury/021512_savings_bonds.pdf
27
http://portalsandrails.frbatlanta.org/2012/04/online-and-mobile-banking-create-many-frontdoors.html?utm_source=feedburner&utm_medium=email&utm_campaign=Feed%3A+PortalsAndRails+%28Portals
+and+Rails%29
28
http://www.federalreserve.gov/newsevents/press/bcreg/bcreg20120402a1.pdf
29
http://www.frbservices.org/fedfocus/index.html
30
http://www.fanniemae.com/portal/research-and-analysis/housing-quarterly.html
31
http://www.federalreserve.gov/monetarypolicy/beigebook/beigebook201204.htm
32
http://www.fdic.gov/bank/analytical/stateprofile/index.html
33
http://www.frbservices.org/fedflash/index.html
34
http://www.federalregister.gov/articles/2011/08/30/2011-21724/notification-of-employee-rights-under-thenational-labor-relations-act
35
http://www.nlrb.gov/
36
http://www.gpo.gov/fdsys/pkg/FR-2012-02-29/html/2012-4756.htm
37
http://www.gpo.gov/fdsys/pkg/FR-2012-04-12/html/2012-8562.htm
38
http://www.gpo.gov/fdsys/pkg/FR-2012-04-12/html/2012-8563.htm
39
http://www.gpo.gov/fdsys/search/pagedetails.action?granuleId=2012-1728&packageId=FR-2012-0207&acCode=FR
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40
http://www.fincen.gov/news_room/nr/html/20110902.html
41
http://www.fincen.gov/whatsnew/pdf/20111220.pdf
42
http://www.access-board.gov/ada-aba/final.cfm#communication
43
http://www.ffiec.gov/pdf/Auth-ITS-Final%206-22-11%20%28FFIEC%20Formated%29.pdf
44
http://www.federalreserve.gov/newsevents/press/bcreg/bcreg20110629b1.pdf
45
http://www.federalreserve.gov/newsevents/press/bcreg/bcreg20110629a1.pdf
46
http://edocket.access.gpo.gov/2011/pdf/2011-8843.pdf
47
http://www.gpo.gov/fdsys/pkg/FR-2011-07-15/pdf/2011-17585.pdf
48
http://www.gpo.gov/fdsys/pkg/FR-2011-07-15/pdf/2011-17649.pdf
49
http://www.gpo.gov/fdsys/pkg/FR-2011-07-14/pdf/2011-17686.pdf
50
http://edocket.access.gpo.gov/2011/pdf/2011-7376.pdf
51
52
53
http://edocket.access.gpo.gov/2011/pdf/2011-7377.pdf
http://www.gpo.gov/fdsys/pkg/FR-2011-04-14/html/2011-9002.htm
http://www.fdic.gov/news/news/financial/2010/fil10081.html
54
http://www.federalregister.gov/articles/2011/02/23/2011-3782/garnishment-of-accounts-containing-federalbenefit-payments
55
http://edocket.access.gpo.gov/2011/pdf/2011-4384.pdf
56
http://www.federalreserve.gov/newsevents/press/bcreg/bcreg20100816d1.pdf
57
http://edocket.access.gpo.gov/2011/pdf/2011-3199.pdf
58
http://www.fdic.gov/news/board/2011rule1.pdf
59
http://www.gpo.gov/fdsys/pkg/FR-2011-02-24/pdf/2011-4048.pdf
60
http://edocket.access.gpo.gov/2010/pdf/2010-21821.pdf
61
http://www.access-board.gov/ada-aba/final.cfm#a707
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