FDIC COMPLIANCE GUIDANCE

Posted on by jholzknecht

The Federal Deposit Insurance Corporation (FDIC) has recently published several pieces of compliance guidance.

  • Effective March 31, 2022, the FDIC has updated seven sections of its Consumer Compliance Examination Manual. The updated sections include:
    • II-14.1 — SOURCE Violation Codes
    • V-1.1 — Truth in Lending Act
    • V-7.1 — Equal Credit Opportunity Act (ECOA) Regulation
    • V-10.1 — Consumer Leasing
    • VI-1.1 — Expedited Funds Availability Act
    • XI-1.1 — Community Reinvestment Act
    • XI-5.1 — Wholesale/Limited Purpose Institution

Editor’s Note: On March 9, 2021 the Consumer Financial Protection Bureau (CFPB) published an interpretative rule entitled Equal Credit Opportunity (Regulation B); Discrimination on the Bases of Sexual Orientation and Gender Identity.

    • The interpretative rule clarifies that, with respect to any aspect of a credit transaction, the prohibition against sex discrimination in the Equal Credit Opportunity Act (ECOA) and Regulation B, which implements ECOA, encompasses sexual orientation discrimination and gender identity discrimination, including discrimination based on actual or perceived nonconformity with sex-based or gender-based stereotypes and discrimination based on an applicant’s associations.
    • The Interpretative Rule was effective on March 16, 2021.
    • The updated examination manual has revised the ECOA procedures, but does not address this major regulatory clarification. To date, none of the federal financial institution regulatory agencies have provided guidance to its examiners or to the banking industry on how to comply with the Rule.

 

  • The FDIC has published its Consumer Compliance Supervisory Highlights dated March 2022. This issue of the Highlights covers:
    • Summary of Overall Consumer Compliance Performance in 2021;
    • Most Frequently Cited Violations;
    • Consumer Compliance Examination Observations;
    • Regulatory and Other Developments;
    • Resources for Financial Institutions; and
    • An Overview of Consumer Complaint Trends.
  • The Chicago Region of the FDIC’s Division of Depositor and Consumer Protection published its Quarterly Newsletter dated March 31, 2022. The March issues covers:
    • Overdraft Programs;
    • Economic Inclusion; and
    • Community Development Activities in Designated Disaster Areas.
  • The Dallas Region of the FDIC’s Division of Depositor and Consumer Protection published its Quarterly Newsletter for the first quarter of 2022. The first issues covers:
    • Overdraft Programs;
    • Community Development Activities in Designated Disaster Areas;
    • Unauthorized Electronic Fund Transfers;
    • SCRA Benefits for Members of the Military Reserves and National Guard; and
    • Economic Inclusion.