Exercises, FDIC and Lending - Community Banking Brief

Another Maryland threat to bank partner model lending

CFPB Monitor

MAY 6, 2021

The OCFR claims that the Bank’s failure to hold the required lending licenses makes the loans unenforceable and prohibits Atlanticus/Fortiva from collecting any amounts on the loans. In addition, legal challenges to the OCC and FDIC “ Madden -fix” rules and the OCC’s “true lender” rule continue to create uncertainty for participants.

Maryland

Maryland Lending Missouri FDIC

FDIC advises banks to exercise caution with agricultural loans

American Banker

JANUARY 28, 2020

To guard against headwinds in the agricultural sector, the Federal Deposit Insurance Corp. recommended that institutions consider the “overall financial status” of farm loan borrowers.

Exercises

Exercises FDIC Risk Management Industry

How to Choose a Hedge Provider as a Bank

South State Correspondent

AUGUST 21, 2022

Lending Discipline: Hedging programs make loan pricing more transparent and force bankers to exercise sensible pricing methodologies. Second, community banks should use FDIC-insured institutions as hedge providers, and the hedges must be structured as qualified financial contracts (QFC).

How To

How To Community Bank Community FDIC

Webinars

Back to Basics with Reconciliations

MORE WEBINARS

Food for Thought: A Policy on Credit Exceptions

Abrigo

SEPTEMBER 5, 2023

unsecured lending is bad rather than unsecured lending should only be extended to high pass risk rated credit). As the FDIC said recently: Exceptions to policy should be few in number and properly justified, approved, and tracked. Get details in "A guide to implementing credit policy."

Policies

Policies Lending Risk Management Examples

The Risk Your Asset/Liability Management Process Might Be Missing

Abrigo

NOVEMBER 11, 2019

ALM | 4 minute read Key Takeaways Many financial institutions view asset/liability management as a "check-the-box" regulatory exercise. FDIC FIL-46-2013 October 8, 2013. However, back when the FDIC sent that 2013 letter mentioned above to financial institutions, the effective federal funds rate was 0.09%. Asset/Liability.

Management

Management FDIC Community Risk Management

OCC adopts final rule to resolve uncertainty created by Madden

CFPB Monitor

JUNE 1, 2020

In its analysis accompanying the final rule, the OCC observed that, while Section 85 clearly establishes a national bank’s authority to make and transfer loans, it does not expressly address how the exercise of that authority affects the interest term. The FDIC has not yet acted on its proposal.

FDIC

FDIC National Lending Analysis

OCC issues proposed “true lender” rule

CFPB Monitor

JULY 22, 2020

24, 1464(c), and 371, respectively) that allow national banks and federal savings associations to extend credit do not indicate how to determine when a bank has exercised such authority and, rather than its relationship partner, has made a loan. Presumably, we will soon see a proposed “true lender” rule from the FDIC.

National

National Lending Exercises FDIC

How the 2022 Stress Test Scenarios Can Help Small Banks & Credit Unions

Abrigo

MARCH 17, 2022

The Federal Reserve Board, OCC, and FDIC provided two hypothetical scenarios: baseline and severely adverse. With most institutions being tied directly to either 1-4 family lending or commercial real estate lending, the scenarios outlined here would result in dire circumstances for many community financial institutions.

Capital

Capital Regulation Risk Management Community

California court rejects OppFi’s attempt to block DFPI’s “true lender” challenge to loans made through bank partnership

CFPB Monitor

OCTOBER 6, 2022

Unless it settles, it creates a risk to the viability of bank model online lending that is structured like OppFi’s Program. It would be helpful if the FDIC were to submit an amicus brief supporting OppFi’s position regarding federal preemption of California usury law under Section 27(a) of the FDI Act.

California

California FDIC Analysis Utah

Consumer Banking Predictions 2019: Four Trends to Watch

FICO

DECEMBER 20, 2018

The annual exercise of staring into our crystal balls and making predictions for the coming year has begun. In our current rising rate environment, any bank that can’t grow (or at least sustain) its deposits base will face shrinking net interest margins and a competitive disadvantage in their consumer lending businesses.

Trends

Trends Lending Fraud Exercises

Dear Mr./Ms. Bank Regulator

Jeff For Banks

AUGUST 2, 2014

Aside from the clear lack of analytic rigor you exercised to come to this conclusion, it is important to remind you that estimating future negative events that impact our capital is guesswork. bank regulation credit union regulation FDIC financial institution regulation Jeff Marsico Kafafian Group OCC regulation Schmidlap'

Regulation

Regulation DC FDIC Analytics

Consumer Lending Compliance: Hot-Button Issues to Monitor

Abrigo

NOVEMBER 22, 2021

Consumer Lending Laws & Compliance Financial institutions offering consumer loans need to know about these major consumer lending laws and recent compliance issues. You might also like this webinar, "Consumer Lending 101.". Consumer lending compliance spotlight. Pandemic Issues.

Compliance

Compliance Lending Risk Management Regulation

NY federal district court deals blow to OCC fintech charter

CFPB Monitor

MAY 6, 2019

. § 520(e)(1), which contains a sentence that directly justifies the SPNB charter: “A special purpose bank that conducts activities other than fiduciary activities must conduct at least one of the following three core banking functions: Receiving deposits; paying checks; or lending money.” Supreme Court’s 1984 decision Chevron U.S.A.

Fintech

Fintech New York National Regulation

DoD issues MLA interpretive rule; Ballard to hold Sept. 20 webinar

CFPB Monitor

SEPTEMBER 8, 2016

The Department of Defense (DoD) has issued an interpretive rule to assist the industry in complying with its July 2015 final rule amending the Military Lending Act’s implementing regulation. Several of those suggestions are noted below. Highlights of the interpretive rule include the following: Scope of purchase money exception.

Compliance

Compliance FDIC Security Regulation

FDIC hires counsel to investigate now defunct Operation Choke Point

CFPB Monitor

DECEMBER 3, 2018

On November 15, 2018, in response to a November 7, 2018 letter from Republican Senators , FDIC Chairman Jelena McWilliams announced that the FDIC has engaged outside counsel to investigate the Obama-era Operation Choke Point, under which the FDIC and other government agencies pressured banks not to do business with payday lenders.

FDIC

FDIC Operations Exercises Policies

OCC issues final “true lender” rule

CFPB Monitor

OCTOBER 29, 2020

24, 371 and 1464(c), respectively) that allow national banks and federal savings associations to engage in lending, by clarifying when a bank has exercised its lending authority. We continue to hope for a substantially similar “true lender” rule from the FDIC.

National

National Lending Exercises FDIC

Potential regulatory and legislative implications of blue wave on consumer financial services highlighted in Ballard Spahr webinar

CFPB Monitor

OCTOBER 19, 2020

Key takeaways regarding the implications of a blue wave scenario include the following: Chris Willis commented that the CFPB’s approach to the exercise of its authorities is likely to reflect criticism by Democrats that the CFPB has been lax in its approach to industry under Director Kraninger’s leadership. (In

Leadership

Leadership FDIC Exercises Lending

State AGs file opposition to OCC’s summary judgment motion

CFPB Monitor

FEBRUARY 19, 2021

(Similar uncertainty exists as to the OCC’s “true lender” rule and the FDIC’s Madden -fix rule which are also the subject of pending litigation. The OCC also failed to consider the Rule’s impact on facilitating predatory lending arrangements between national banks and non-banks. We will report ensuing developments.

FDIC

FDIC National Illinois Exercises

Community Banking Brief

Another Maryland threat to bank partner model lending

FDIC advises banks to exercise caution with agricultural loans

Webinars

Trending Sources

How to Choose a Hedge Provider as a Bank

Webinars

Food for Thought: A Policy on Credit Exceptions

The Risk Your Asset/Liability Management Process Might Be Missing

OCC adopts final rule to resolve uncertainty created by Madden

OCC issues proposed “true lender” rule

How the 2022 Stress Test Scenarios Can Help Small Banks & Credit Unions

California court rejects OppFi’s attempt to block DFPI’s “true lender” challenge to loans made through bank partnership

Consumer Banking Predictions 2019: Four Trends to Watch

Dear Mr./Ms. Bank Regulator

Consumer Lending Compliance: Hot-Button Issues to Monitor

NY federal district court deals blow to OCC fintech charter

DoD issues MLA interpretive rule; Ballard to hold Sept. 20 webinar

FDIC hires counsel to investigate now defunct Operation Choke Point

OCC issues final “true lender” rule

Potential regulatory and legislative implications of blue wave on consumer financial services highlighted in Ballard Spahr webinar

State AGs file opposition to OCC’s summary judgment motion

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