Product Updates for January 2021
The Product Updates for January 2021 from BankPolicies.com feature the following new form template and revised policy template products:
The update to these products is in response to the FDIC’s FIL-113-2020 entitled “Combined Final Rule on Brokered Deposits and Interest Rate Restrictions” dated 12/15/20 that announced a final rule that revises its regulations relating to the brokered deposits and interest rate restrictions that apply to less than well-capitalized insured depository institutions (IDIs). For brokered deposits, the final rule establishes a new framework for analyzing certain provisions of the “deposit broker” definition, including “placing deposits,” “facilitating the placement of deposits,” and “primary purpose.” For the interest rate restrictions, the FDIC amended its methodology for calculating the national rate, the national rate cap, and the local market rate cap. Further, the FDIC explained when non-maturity deposits are accepted and when non-maturity deposits are solicited for purposes of applying the brokered deposits and interest rate restrictions. The final rule will become effective April 1, 2021, and full compliance with the revised brokered deposit regulation is extended to January 1, 2022.
The update to these products is in response to the OCC Bulletin 2020-111 entitled “Activities and Operations of National Banks and Federal Savings Associations: Final Rule” dated 12/23/20 that announced a final rule to amend its regulations in 12 CFR 7, “Activities and Operations.” Specifically, the final rule updates or eliminates outdated regulatory requirements that no longer reflect the modern financial system, clarifies and codifies recent OCC interpretations, integrates certain regulations for national banks and federal savings associations (FSA), and makes other technical and conforming changes. The amendments are effective April 1, 2021.
The update to these products is in response to FinCEN’s FIN-2020-NTC4 entitled “FinCEN Asks Financial Institutions to Stay Alert to COVID-19 Vaccine-Related Scams and Cyberattacks” dated 12/28/20 to alert financial institutions about the potential for fraud, ransomware attacks, or similar types of criminal activity related to COVID-19 vaccines and their distribution.
In addition, the update to the Bank Secrecy Act Policy Template – Comprehensive Version is in response to FinCEN Notice 2020-1 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 10, 2016, which proposes to revise the regulations implementing the Bank Secrecy Act (BSA) regarding FBARs. As such, FinCEN is further extending the filing due date to April 15, 2021, for individuals whose filing due date for reporting signature authority was previously extended by Notice 2019-1.
The update to these products is in response to the following final rules issued by the SBA dated 01/06/21:
In addition to revisions to the Paycheck Protection Program (PPP), these products were revised in response to minor amendments to Economic Injury Disaster Loans (EIDL) and SBA Debt Relief loans made by the SBA.
As a reminder, the complete contents of the Small Business Administration Loan Policy Template are included as Topic 19 within the Commercial Loan Policy Template.
The update to this product is in response to the Joint Release entitled “Agencies Release Annual CRA Asset-Size Threshold Adjustments for Small and Intermediate Small Institutions” dated 12/17/20 that announced the annual adjustment to the asset-size thresholds used to define small bank and intermediate small bank under the Community Reinvestment Act (CRA) regulations for the FDIC and Federal Reserve. These asset-size threshold adjustments are effective January 1, 2021.
The update to this product is in response to the CFPB’s Press Release entitled “Debt Collection Practices (Regulation F)” dated 12/18/20 that announced a final rule that amends Regulation F, 12 CFR part 1006, which implements the Fair Debt Collection Practices Act (FDCPA), to prescribe federal rules governing certain activities of debt collectors, as that term is defined in the FDCPA. The final rule, among other things, clarifies the information that a debt collector must provide to a consumer at the outset of debt collection communications and provides a model notice containing such information, prohibits debt collectors from bringing or threatening to bring a legal action against a consumer to collect a time-barred debt, and requires debt collectors to take certain actions before furnishing information about a consumer’s debt to a consumer reporting agency. This rule is effective November 30, 2021.
Please note that the Fair Debt Collection Practices Act Model Forms Template is included in the purchase price of the Fair Debt Collection Practices Act Policy Template.
The update to this product is in response to the “COVID-Related Tax Relief Act of 2020” (CTRA) which extended the tax credit portion of the “Families First Coronavirus Response Act” (FFCRA) for employers that voluntarily offer paid sick or paid family leave through March 31, 2021.
The update to this product is in response to the following final rules issued by the CFPB:
The “Qualified Mortgage under the Truth in Lending Act (Regulation Z): General QM Loan Definition” final rule dated 12/10/20 amends the General QM loan definition in Regulation Z. Among other things, the final rule removes the General QM loan definition’s 43 percent DTI limit and replaces it with price-based thresholds. The final rule is effective 60 days after date of publication in the Federal Register. However, the mandatory compliance date is July 1, 2021.
The “Qualified Mortgage Definition under the Truth in Lending Act (Regulation Z): Seasoned Loan QM Definition” final rule dated 12/10/20 creates a new category of QMs (Seasoned QMs) for first-lien, fixed-rate covered transactions that have met certain performance requirements, are held in portfolio by the originating creditor or first purchaser for a 36-month period, comply with general restrictions on product features and points and fees, and meet certain underwriting requirements. The CFPB’s primary objective with this final rule is to ensure access to responsible, affordable mortgage credit by adding a Seasoned QM definition to the existing QM definitions. The final rule is effective 60 days after date of publication in the Federal Register.
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