Product Updates for December 2022
The Product Updates for December 2022 from BankPolicies.com feature the following revised policy template products:
The update to this product is in response to FinCEN Notice 2022-1 entitled “FBAR Filing Requirement for Certain Financial Professionals” dated 12/09/22 that announced a further extension of time for certain Report of Foreign Bank and Financial Accounts (FBAR) filings in light of the notice of proposed rulemaking (NPRM) FinCEN issued on March 16, 2016, which proposes to revise the regulations implementing the Bank Secrecy Act (BSA) regarding FBARs.
The update to this product is in response to the CFPB’s Complaint Bulletin entitled “An Analysis of Consumer Complaints Related to Crypto-Assets” dated 11/10/22 that analyzes complaints related to crypto-assets submitted to the CFPB. This report finds that fraud, theft, hacks, and scams are a significant problem in crypto-asset markets, as are transaction problems, including frozen accounts and inability to access assets.
The update to this product is in response to the Federal Reserve Press Release entitled “Federal Reserve Board Finalizes Clarifying and Technical Updates to its Policy on Governing the Provision of Intraday Credit to Healthy Depository Institutions with Accounts at the Federal Reserve Banks” dated 12/02/22. The updates expand access to collateralized intraday credit under the Policy on Payment System Risk (known as PSR policy) while providing greater clarity to institutions, streamlining administrative requirements, and supporting the launch of the FedNow℠ Service.
The final updates related to the deployment of the FedNow Service and the Overnight Overdrafts policy will become effective when Reserve Banks begin processing live transactions for the FedNow Service, which is targeted for launch in May-July 2023. The remaining updates are effective 60 days after publication in the Federal Register.
The update to this product is in response to the Federal Reserve’s final rule entitled “Regulation A: Extensions of Credit by Federal Reserve Bank” dated 11/17/22 that announced final amendments to its regulations to reflect the Federal Reserve Board’s approval of an increase in the rate for primary credit at each Federal Reserve Bank. The secondary credit rate at each Reserve Bank automatically increased by formula as a result of the Board’s primary credit rate action.
The amendments to part 201 (Regulation A) are effective November 17, 2022. The rate changes for primary and secondary credit were applicable on November 3, 2022.
The update to this product is in response to the CFPB’s final rule entitled “Home Mortgage Disclosure (Regulation C); Judicial Vacatur of Coverage Threshold for Closed-End Mortgage Loans” dated 12/13/22 that announced a technical amendment to Regulation C. In April 2020, the Consumer Financial Protection Bureau issued a final rule (2020 HMDA Rule) to amend Regulation C to increase the threshold for reporting data about closed-end mortgage loans. The 2020 HMDA Rule increased the closed-end mortgage loan reporting threshold from 25 loans to 100 loans in each of the two preceding calendar years, effective July 1, 2020. On September 23, 2022, the United States District Court for the District of Columbia vacated the 2020 HMDA Rule as to the increased loan-volume reporting threshold for closed-end mortgage loans. As a result of the September 23, 2022 order, the threshold for reporting data about closed-end mortgage loans is 25, the threshold established by the 2015 HMDA Rule. Accordingly, this technical amendment updates the Code of Federal Regulations to reflect the closed-end mortgage loan reporting threshold of 25 mortgage loans in each of the two preceding calendar years.
The update to this product is in response to the Federal Reserve’s Final Rule issued on 11/29/22 that announced technical details related to reserve requirements for depository institutions. The annual indexation and publication of these amounts are required by law and does not indicate a change in depository institutions’ reserve requirements, which will remain zero.
In addition, this product was updated in response to the Federal Reserve’s final rule entitled “Regulation D: Reserve Requirements of Financial Institutions” dated 11/17/22 that announced final amendments to its regulations to revise the rate of interest paid on balances (“IORB”) maintained at Federal Reserve Banks by or on behalf of eligible institutions. The final amendments specify that IORB is 3.90 percent, a 0.75 percentage point increase from its prior level. The amendment is intended to enhance the role of IORB in maintaining the federal funds rate in the target range established by the Federal Open Market Committee (“FOMC” or “Committee”).
The amendments to part 204 (Regulation D) are effective November 17, 2022. The IORB rate change was applicable on November 3, 2022.
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