On July 5 and 6, 2018, the U.S. Board of Governors of the Federal Reserve System, Office of the Comptroller of the Currency and Federal Deposit Insurance Corporation released statements regarding the implementation and impact of the passage of the Economic Growth, Regulatory Relief, and Consumer Protection Act. The agencies released a joint statement on July 6, 2018, which discusses rules that are jointly administered by the agencies and immediately affected by the EGRRCPA. These include regulations, such as company-run stress testing, resolution plans, the Volcker Rule, high volatility commercial real estate exposures, examination cycles, municipal obligations as high-quality liquid assets and appraisals for certain rural transactions. Certain changes to these rules and regulations are immediately effective, while other changes will require further rulemaking from the agencies. The statement also explains that while certain formal requirements are being relaxed under the EGRRCPA, the agencies will continue to supervise the banks under their jurisdiction and will, for example, continue to review the risk management and capital planning practices of these institutions through the regular supervisory process.
On July 6, 2018, the Federal Reserve Board released a separate statement on certain Federal Reserve Board-specific rules and regulations affected by the EGRRCPA. In addition to further guidance regarding high volatility commercial real estate exposures, the Federal Reserve Board statement discusses changes to assessments, enhanced prudential standards and other requirements, such as certain reporting, disclosure and recordkeeping requirements. Regarding assessments, the Federal Reserve Board noted that while it will collect assessments from bank holding companies and savings and loan holding companies with $50 billion or more in total consolidated assets for the year 2017, it will not collect assessments from bank holding companies and savings and loan holding companies with less than $100 billion in total consolidated assets going forward. With respect to enhanced prudential standards, the Federal Reserve Board noted that it will not take any action to require bank holding companies with less than $100 billion in total consolidated assets to comply with certain existing regulatory requirements, including the enhanced prudential standards under Regulation YY, the liquidity coverage ratio requirements under Regulation WW and the capital planning requirements under Regulation Y. A detailed list of affected regulatory requirements is provided as an attachment to the Federal Reserve Board statement.
On July 5, 2018, the OCC and FDIC each released statements with respect to the EGRRCPA's effect on the Home Mortgage Disclosure Act. These statements noted that the EGRRCPA provides two separate partial exemptions from HMDA reporting requirements, which are generally available for certain financial institutions that originated fewer than 500 closed-end mortgage loans or those that originated fewer than 500 open-end lines of credit in each of the two preceding calendar years. With respect to these transactions, financial institutions that qualify for a partial exemption are exempt from the collection, recording and reporting requirements for certain data points specified in Regulation C. The statements also provide guidance with respect to the submission and formatting of Loan/Application Registers, and note that the U.S. Consumer Financial Protection Bureau will be issuing guidance later this summer regarding the applicability of the EGRRCPA to HMDA data collected in 2018.
The Joint agency statement is available at: https://www.occ.treas.gov/news-issuances/news-releases/2018/nr-ia-2018-69a.pdf; the OCC statement regarding the HMDA is available at: https://www.occ.treas.gov/news-issuances/bulletins/2018/bulletin-2018-19.html, the FDIC statement on the HMDA is available at: https://www.fdic.gov/news/news/financial/2018/fil18036a.pdf and the Federal Reserve Board statement is available at: https://www.federalreserve.gov/newsevents/pressreleases/files/bcreg20180706b1.pdf.
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