Federal and State of New York Regulatory Update

Federal and State of New York Regulatory Update

On February 25, 2014, the Federal Deposit Insurance Corporation (“FDIC”) issued the Interagency Consumer Compliance Examination Procedures for Mortgage Rules Pursuant to the Dodd-Frank Wall Street Reform and Consumer Protection Act.  The New York Department of Financial Services (“DFS”) recently extended Emergency Regulations.


FDIC Financial Institution Letter FIL-9-2014


In their initial examinations for compliance with the new Consumer Financial Protection Bureau (“CFPB”) regulations, FDIC examiners will expect banks to be familiar with the mortgage rule requirements.  In addition, they will expect banks to be operating under a plan with clear timeframes and benchmarks to implement necessary changes to their compliance management program and relevant systems.


If mortgages are part of the scope of an examination, FDIC examiners will consider the overall compliance efforts of an institution, including the specific steps taken to comply with the regulations in light of the institution’s particular circumstances.  For example, examiners may ask about an institution’s compliance plan and actions taken by the institution to train its staff and adjust its systems, processes, policies, and procedures to ensure compliance with the CFPB’s mortgage rules.  As examiners make conclusions at the end of an examination, they will take into account progress the institution has made in implementing its plan to ensure its compliance management system appropriately addresses the CFPB’s mortgage rule requirements.



NEW YORK EMERGENCY RULES PART 420 and SUPERVISORY PROCEDURES MB 107 AND MB 108 (effective February 13, 2014)


Our January 25, 2010, March 22, 2010, August 10, 2010, December 16, 2010, March 24, 2011, June 30, 2011, September 29, 2011, March 23, 2012, June 6, 2012, December 27, 2012, April 1, 2013, June 20, 2013, and December 11, 2013 Compliance Memorandums discussed Emergency Regulations issued by the DFS addressing mortgage loan originator licensing and application requirements.  The DFS recently extended the Emergency Regulations through May 10, 2014.