{?xml version="1.0" encoding="utf-8" ?} Discussion Board Copyright (c) 2012 ExpressionEngine tag:cerfis.com,2012:02:09 FDIC: ALLL-Estimation Practices for Loans and Lines Secured by Junior Liens tag:cerfis.com,2012:index.php/forums/viewthread/.152 2012-02-09T14:00:40Z Jay Phillips FIL-4-2012
January 31, 2012

Summary: The federal financial institution regulatory agencies have jointly issued supervisory guidance on loan loss allowance estimation practices for loans and lines of credit secured by junior liens on 1-4 family residential properties (junior liens). The guidance discusses the responsibilities of institution management and examiners and builds on existing supervisory guidance for home equity lending and the allowance for loan and lease losses (ALLL).

Statement of Applicability to Institutions Under $1 Billion in Total Assets: This Financial Institution Letter applies to all FDIC-supervised banks and savings associations, particularly those with significant holdings of junior liens.

Complete Financial Institution Letter: http://www.fdic.gov/news/news/financial/2012/fil12004.html

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Office of the Comptroller of the Currency Moves Toward Paperless Delivery of News and Information tag:cerfis.com,2012:index.php/forums/viewthread/.151 2012-02-09T13:57:27Z Jay Phillips WASHINGTON—The Office of the Comptroller of the Currency today announced plans to end paper distribution of news and issuances by June 1, 2012.

“Moving toward paperless delivery of our news, alerts, bulletins, and other publications helps ensure this important information reaches the banks and savings associations we regulate in a more timely, efficient, and cost effective manner,” said acting Comptroller of the Currency John Walsh. “Going paperless is a good business decision that makes sense for our environment.”
The OCC notified national banks, federal savings associations, and employees of its decision to eliminate hardcopy distribution of most materials in a bulletin posted to its Web site today.
To make sure members of the financial services industry and examiners can continue to get the guidance and regulatory material they depend on to do their jobs, the OCC offers a number of electronic means for disseminating this information.
• OCC.gov—The OCC’s official Web site, occ.gov, provides all news releases, alerts, testimony and speeches, and OCC publications that are publicly available.
• E-mail—The OCC delivers news, alerts, bulletins, consumer advisories, and community affairs material and banker education material via e-mail by subscribing at http://www.occ.gov/tools-forms/subscribe/occ-email-list-service.html.
• News feeds—The OCC publishes news releases, bulletins, alerts, and consumer podcasts via RSS feeds at http://www.occ.gov/rss/index-rss.html.
• Social Media—The OCC publishes material on its Facebook page and Twitter feeds.
Discontinuing the printing and distribution of news, issuances, and publications is part of the OCC’s broader commitment to being “green.” OCC has emphasized sustainability and environmental stewardship in renewing leases on facilities throughout the country and is relocating headquarters staff in November 2012 to a new LEED Gold certified building in Washington, D.C. The new headquarters building uses 35 percent less energy than a typical building of its size and reduces water use. Throughout the agency, employees also take a personal stake in caring for the environment in going about their everyday duties by recycling, using energy efficient lighting and office equipment, limiting the use of paper, and using recycled materials when paper and plastic products are necessary.
Related Links
• OCC Bulletin 2012-7, “Electronic Dissemination of OCC Publications”
• OCC Publications
• OCC News and Issuances
• OCC E-Mail Services

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FDIC Teleconference: FDIC Seminar on Revocable Trust Accounts for Bankers tag:cerfis.com,2012:index.php/forums/viewthread/.150 2012-02-09T13:55:25Z Jay Phillips Deposit Insurance Coverage
Free Nationwide Telephone Seminars for Bank Officers and Employees FIL-5-2012
February 2, 2012

Summary: The FDIC will conduct 15 free telephone seminars on deposit insurance coverage for bank officers and employees between February 15, 2012 and December 6, 2012. Twelve sessions entitled “FDIC Comprehensive Seminar on Deposit Insurance Coverage for Bankers” (Comprehensive Seminar) will provide an overview of the rules for determining deposit insurance coverage for all account ownership categories. Three separate sessions entitled “FDIC Seminar on Revocable Trust Accounts for Bankers” (Revocable Trust Seminar) will focus solely on the rules and coverage for formal revocable trust accountholders whose trust deposits at one bank exceed $1,250,000.
Statement of Applicability to Institutions with Total Assets Less Than $1 Billion: This Financial Institution Letter applies to all FDIC-insured institutions, including those institutions with total assets under $1 billion.

Complete Financial Institution Letter: http://www.fdic.gov/news/news/financial/2012/fil12005.html

 

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OCC 2011-48 - Concentrations of Credit: Revised Booklet tag:cerfis.com,2011:index.php/forums/viewthread/.141 2011-12-14T15:48:27Z 2011-12-14T15:51:40Z Jay Phillips The Office of the Comptroller of the Currency (OCC) recently revised the electronic version of the “Concentrations of Credit” booklet of the Comptroller’s Handbook, which replaces a similarly titled booklet issued in March 1990. Concurrently, OCC Bulletin 95-7 (February 9, 1995), “Concentrations of Credit,” is rescinded. That bulletin directs that all reports of examination (ROE) include a page detailing all concentrations of credit. Guidance contained in this booklet directs examiners to include a page in each ROE that lists concentrations posing a challenge to management or presenting unusual or significant risk to banks or federal savings associations (collectively, banks). 
                http://occ.gov/publications/publications-by-type/comptrollers-handbook/Concentration-HB-Final.pdf

This booklet provides updated guidance and examination procedures used in the supervision of banks. The major revisions to this booklet include the following:
• Expanded framework for identifying potential credit concentrations.
• Enhanced definition of a credit concentration to encourage consideration of more than just the dollar amount of exposure.
• Renewed emphasis on stress testing as a tool to identify and quantify credit concentration risks.

In accordance with the OCC’s supervision-by-risk approach, examiners will exercise judgment when determining which of the procedures in this booklet are appropriate for a particular bank based on the risk profile and the quality of its risk management system. Examiners will supplement the procedures in this booklet, as needed, with expanded procedures found in other examination guidance or booklets of the Comptroller’s Handbook.

Any questions regarding this booklet should be directed to the Commercial Credit Policy Division at (202) 874-4564.

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Comptroller of the Currency Announces Fees for Year 2012 tag:cerfis.com,2011:index.php/forums/viewthread/.137 2011-12-05T13:29:07Z Jay Phillips Date: December 1, 2011

Description: Year 2012 Fee Structure

SUMMARY
The purpose of this issuance is to inform all national banks, federal savings associations, and federal branches and agencies of fees charged by the Office of the Comptroller of the Currency (OCC) for year 2012. This bulletin is effective January 1, 2012.

OCC 2011-46

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FDIC Consumer Newsletter Offers Strategies for Building a Better Financial Future tag:cerfis.com,2011:index.php/forums/viewthread/.136 2011-11-30T15:45:04Z Jay Phillips Consumers have important decisions to make when it comes to managing money and saving for their future, particularly in a tough economy when every dollar counts.  To help consumers make choices based on practical information from reliable sources, the Fall 2011 issue of FDIC Consumer News offers simple strategies in three areas: saving for retirement, improving credit scores, and buying vs. renting a home.  In addition, the issue offers new tips and information related to Internet banking.
 
The latest issue can be read or printed online at www.fdic.gov/consumers/consumer/news/cnfall11.

The FDIC encourages financial institutions, government agencies, consumer organizations, educators, the media and anyone else to help make the tips and information in FDIC Consumer News widely available. The publication may be reprinted in whole or in part without advance permission. Organizations also may link to or mention the FDIC Web site.  See the Web site above for more details.

The goal of FDIC Consumer News is to deliver timely, reliable and innovative tips and information about financial matters, free of charge. Current and past issues are online at www.fdic.gov/consumernews. 

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OCC Proposes Rule to Remove References to Credit Ratings and Guidance on Due Diligence Requirements in Determining Whether Investment Securities Are E tag:cerfis.com,2011:index.php/forums/viewthread/.133 2011-11-29T11:51:35Z Jay Phillips The Office of the Comptroller of the Currency (OCC) proposed a rule to remove references to credit ratings from various OCC regulations and related guidance today to assist national banks and federal savings associations in meeting due diligence requirements in assessing credit risk for portfolio investments.

The proposed rule and guidance was published in the Federal Register. Comments may be submitted through December 29, 2011.

Section 939A of the Dodd-Frank Wall Street Reform and Consumer Protection Act requires federal agencies to review regulations that require the use of an assessment of creditworthiness of a security or money market instrument and any references to, or requirements in, those regulations regarding credit ratings. Section 939A then requires the federal agencies to modify the regulations identified during the review to substitute any references to, or requirements of, reliance on credit ratings with such standards of creditworthiness that each agency determines to be appropriate.

The proposed OCC rule would remove references to credit ratings in the OCC’s non-capital regulations. In particular, the OCC proposes to amend the definition of “investment grade” in 12 CFR Part 1 to no longer reference credit ratings. In addition to following the standard under the proposed rule, national banks and federal savings associations would be expected to continue to maintain appropriate ongoing reviews of their investment portfolios to verify that they meet safety and soundness requirements appropriate for the institution’s risk profile and for the size and complexity of the portfolios.
The proposed guida
nce clarifies steps national banks should take to demonstrate they have properly verified their investments meet the newly established credit quality standards under 12 CFR Part 1 and steps national banks and federal savings associations should take to demonstrate they met due diligence requirements when purchasing investment securities and conducting ongoing reviews of their investment portfolios. Additionally, when purchasing corporate debt securities, federal savings associations will need to follow requirements to be established by the Federal Deposit Insurance Corporation pursuant to 12 U.S.C. 1831e(d) (as amended by section 939(a)(2) of the Dodd-Frank Act).

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Kristie Elmquist Named FDIC Regional Director tag:cerfis.com,2011:index.php/forums/viewthread/.132 2011-11-29T11:49:38Z Jay Phillips The FDIC last week named Kristie Elmquist as Regional Director for the Dallas Regional Office.

Kristie has been acting in this position since March of 2010.  Formerly, she served as Deputy Regional Director in Dallas for Risk Management in 2008.  Kristie holds commissions in both Risk Management and Compliance, has served the Corporation in Dallas, New York, Kansas City and in the Washington Office.  During her 22 year FDIC career, she has held several management positions, including Acting Associate Director for Compliance Examination Support, Assistant Regional Director, Corporate University Chair for Consumer Protection and Risk Management, and Field Supervisor. 

Congratulations!

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