Washington Report 360 | May 17, 2019
Washington Report 360 | May 17, 2019
Insight

Washington Report 360 | May 17, 2019

The Federal Reserve released its second Supervision and Regulation Report; FinCEN issued guidance on a framework for convertible virtual currencies.

 Key Highlights

  • The Federal Reserve released its second Supervision and Regulation Report highlighting efforts to tailor supervision and regulation as well as upcoming supervisory priorities.
  • FinCEN issued guidance on a framework for convertible virtual currencies along with an advisory for identifying and reporting related suspicious activity.

Financial services legislative and regulatory news

The Federal Reserve released its second Supervision and Regulation Report; the report is focused on developments related to tailoring supervision and regulation and highlights horizontal priorities for large banking organizations and large federal banking organizations.

FinCEN issued:

  • Interpretive guidance on the application of its rules to convertible virtual currencies (CVCs).
  • An advisory on identifying and reporting suspicious activity related to CVCs.

The CFPB:

  • Issued a notice of review and comment for its Overdraft Rule, seeking input on the impact on small businesses and consistency with the applicable statutes; this is the first CFPB review under the Regulatory Flexibility Act.
  • Indicated that policies of the Department of Education inhibit student loan servicers from sharing information necessary for the Bureau’s supervisory oversight. (NPR).
  • Has been named as a defendant in a suit claiming the CFPB did not collect data on women- and minority-owned small businesses as required. (Westlaw)

FINRA announced a multi-year initiative to “simplify and integrate” brokerage firms’ digital interactions with FINRA.

The Senate Banking Committee and the House Financial Services Committee each conducted hearings with the federal banking regulators; key discussions covered risk related to climate change, implementation of S.2155, leveraged lending, impacts from CECL (current expected credit loss), and Community Reinvestment Act reform.

The House Financial Services Committee passed four bills, including a bill that would extend authorization of the National Flood Insurance Program to September 30.

The FHA:

  • Proposed new lender certification requirements.
  • Offered incentives for investors in opportunity zones.

The New York Department of Financial Services announced it will require companies servicing student loans held by New Yorkers to obtain a state license and meet standards consistent with the laws and regulations governing other significant lending products, such as mortgages, in FY2020.

Financial services policy news

GAO released a report on federal regulators’ policies and procedures for examining depository institutions management activities (including corporate governance and internal controls) and communicating supervisory concerns.