District Circular Letters

The Federal Reserve Bank of San Francisco uses circular letters to communicate new policies and announcements to institutions in the Twelfth Federal Reserve District.

2016

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Election of Directors

Posted September 8, 2016

In accordance with the provisions of Section 4 of the Federal Reserve Act and the announcement dated July 20, 2016, the Federal Reserve Bank of San Francisco is conducting an election of directors to succeed Ms. Nicole C. Taylor, a Class B director, elected by banks in Group One1, and Mr. Steven R. Gardner, a Class A director, elected by banks in Group Two, whose terms end on December 31, 2016. There are given herein the names of the candidates nominated and the names of the banks which made the nominations.

New Member Bank – Cornerstone Community Bank

Posted August 10, 2016

The Federal Reserve Bank of San Francisco, acting under delegated authority, has approved the application of Cornerstone Community Bank, Red Bluff, California, for membership in the Federal Reserve System.

Election of Directors Nomination Procedures

Posted July 20, 2016

The Federal Reserve Bank of San Francisco will conduct an election under the provisions of Section 4 of the Federal Reserve Act for the positions held by the directors of this Bank whose terms expire on December 31, 2016.

2015

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Rates of Interest on Advances and Discounts

Posted December 16, 2015

Attached is an amendment to the rates of interest on advances and discounts in the Twelfth Federal Reserve District. The attachment, which is effective December 17, 2015, reflects an increase from 0.75% to 1.00% in the basic discount rate that applies to our short-term primary credit advances.

Results of Director Elections

Posted November 16, 2015

This letter is in regard to the election of directors of this Bank to succeed Mr. Peter S. Ho, a Class A director, elected by banks in Group One, and Mr. Steven E. Bochner, a Class B director, elected by banks in Group Three, whose terms end on December 31, 2015, respectively. These elections have been duly held in accordance with the requirements of Section 4 of the Federal Reserve Act and the provisions of the circulars issued by this office dated September 2 and October 22, 2015.

Election of Directors

Posted October 22, 2015

In accordance with the provisions of Section 4 of the Federal Reserve Act and the announcement dated September 2, 2015, the Federal Reserve Bank of San Francisco is conducting an election of directors to succeed Mr. Peter S. Ho, a Class A director, elected by banks in Group One1, and Mr. Steven E. Bochner, a Class B director, elected by banks in Group Three, whose terms end on December 31, 2015. There are given herein the names of the candidates nominated and the names of the banks which made the nominations.

Election of Directors Nomination Procedures

Posted September 2, 2015

The Federal Reserve Bank of San Francisco will conduct an election under the provisions of Section 4 of the Federal Reserve Act to choose successors to the following directors of this Bank, whose terms expire on December 31, 2015.

Twelfth District Member Bank Reclassification

Posted August 14, 2015

Pursuant to section 265.11(e)(9) of the Rules Regarding Delegation of Authority of the Board of Governors of the Federal Reserve System, this Bank has changed the classification of member banks in the Twelfth Federal Reserve District for the purpose of nomination and election of Class A and Class B directors of the Federal Reserve Bank of San Francisco.

Agencies Release List of Distressed or Underserved Nonmetropolitan Middle-Income Geographies

Posted July 14, 2015

On July 8, 2015, the Board of Governors of the Federal Reserve System, the Office of the Comptroller of the Currency, and the Federal Deposit Insurance Corporation announced the availability of the 2015 list of distressed or underserved nonmetropolitan middle-income geographies, where revitalization or stabilization activities will receive Community Reinvestment Act (CRA) consideration as community development.

Agencies Issue Host State Loan-to-Deposit Ratios

Posted July 8, 2015

On June 29, 2015, the Board of Governors of the Federal Reserve System, the Federal Deposit Insurance Corporation, and the Office of the Comptroller of the Currency issued the host state loan-to-deposit ratios that they will use to determine compliance with section 109 of the Riegle-Neal Interstate Banking and Branching Efficiency Act of 1994.

CFPB Proposes to Delay the Effective Date of TILA-RESPA Integrated Disclosure Rule

Posted June 30, 2015

On June 24, 2015, the Consumer Financial Protection Bureau (CFPB) issued a proposed amendment to the TILA-RESPA Integrated Disclosure Rule, which would delay the rule’s effective date to October 3, 2015. The CFPB is issuing the proposal to correct an administrative error that would have delayed the effective date of the rule by at least two weeks.

Agencies Issue Flood Insurance Rule

Posted June 26, 2015

On June 22, 2015, five federal regulatory agencies, including the Board of Governors of the Federal Reserve System, announced the approval of a joint final rule that modifies regulations that apply to loans secured by properties located in special flood hazard areas.

CA 15-4 Expiration of the Protecting Tenants at Foreclosure Act

Posted June 19, 2015

The Protecting Tenants at Foreclosure Act of 2009 (PTFA), which originally became effective on May 20, 2009, expired on December 31, 2014. Accordingly, examiners in the Federal Reserve System will no longer evaluate institutions’ compliance with the PTFA.

CFPB Guidance on Section 8 Housing Choice Voucher (HCV) Homeownership Program

Posted June 8, 2015

On May 11, 2015, the Consumer Financial Protection (CFPB) issued CFPB Bulletin 2015-02 to help mortgage lenders avoid illegal discrimination against applicants whose income includes vouchers from the Section 8 HCV Homeownership Program, which was created to assist low-income, first-time homebuyers in purchasing homes.

New Member Bank – Mission Bank

Posted June 1, 2015

The Federal Reserve Bank of San Francisco, acting under delegated authority, has approved the application of Mission Bank, Bakersfield, California, for membership in the Federal Reserve System.

CFPB Issues Guidance on Housing Counselor Requirement

Posted May 18, 2015

On April 15, 2015, the Consumer Financial Protection Bureau (CFPB) issued a final interpretive rule that provides instructions for lenders to use in complying with the required provision of mortgage applicants with a list of local homeownership counseling organizations.

CFPB Releases New Mortgage Disclosure: “Your Home Loan Toolkit”

Posted May 7, 2015

On March 31, 2015, the Consumer Financial Protection Bureau (CFPB) released a new toolkit (“Your Home Loan Toolkit”), a consumer guide that is designed to replace the current Settlement Cost booklet when the TILA-RESPA Integrated Disclosures go into effect on August 1, 2015.

Interagency Frequently Asked Questions (FAQs) on the Regulatory Capital Rule

Posted April 17, 2015

On April 6, 2015, the Federal Reserve, together with the Office of the Comptroller of the Currency and the Federal Deposit Insurance Corporation (the agencies), issued the attached FAQs in response to questions from regulated institutions about the agencies’ regulatory capital rule. Unless otherwise noted, all FAQs are interpretations and serve to clarify expectations concerning the regulatory capital rules.

FFIEC Releases Two Statements on Compromised Credentials and Destructive Malware

Posted April 10, 2015

On March 30, 2015, the Federal Financial Institutions Examination Council (FFIEC), which includes the Board of Governors of the Federal Reserve System, released two statements about ways that financial institutions can identify and mitigate cyber attacks that compromise user credentials or use destructive software, known as malware. In addition, the FFIEC provided information on what institutions can do to prepare for and respond to these threats.

FFIEC Information Technology Examination Handbook

Posted March 11, 2015

On February 6, 2015, the Federal Financial Institutions Examination Council (FFIEC) issued updated guidance for examiners, financial institutions, and technology service providers (TSPs) to explain the components of an effective third-party management program that can identify, measure, monitor, and control the risks associated with outsourcing.

Guidance to Encourage Financial Institutions’ Youth Savings Programs and Address Related Frequently Asked Questions

Posted March 6, 2015

On February 24, 2015, the Federal Reserve, the Federal Deposit Insurance Corporation, the National Credit Union Administration, and the Office of the Comptroller of the Currency (as members of the Financial Literacy and Education Commission), and the U.S. Department of Treasury’s Financial Crimes Enforcement Network issued guidance regarding youth savings programs.

Guidance on Private Student Loans with Graduated Repayment Terms at Origination

Posted February 10, 2015

On January 29, 2015, the Federal Reserve, the Consumer Financial Protection Bureau, the Federal Deposit Insurance Corporation, the National Credit Union Administration, and the Office of the Comptroller of the Currency, in conjunction with the State Liaison Committee (SLC) of the Federal Financial Institutions Examination Council, issued guidance to provide principles that financial institutions should consider in their policies and procedures for originating private student loans with graduated repayment terms.

Amendments to the TILA-RESPA Integrated Mortgage Disclosures Rule

Posted February 2, 2015

On January 20, 2014, the Consumer Financial Protection (CFPB) finalized two minor modifications to the 2013 Truth in Lending Act (TILA)-Real Estate Settlement Procedures Act (RESPA) Integrated Disclosures Rule, which goes into effect on August 1, 2015.

New Member Bank: Western Alliance Bank

Posted January 30, 2015

The Federal Reserve Bank of San Francisco, acting under delegated authority, has approved the application of Western Alliance Bank, Phoenix, Arizona, for membership in the Federal Reserve System.

2014

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CFPB Guidance on Social Security Disability Income Verification

Posted December 19, 2014

On November 18, 2014, the Consumer Financial Protection (CFPB) issued CFPB Bulletin 2014-03 to remind creditors of: (1) their obligations under the Equal Credit Opportunity Act (ECOA) and its implementing regulation, Regulation B, with respect to consideration of public assistance income; and (2) relevant standards and guidelines regarding verification of Social Security Disability Insurance (SSDI) and Supplemental Social Security Income (SSI) (collectively, Social Security disability income) received by mortgage applicants.

Release of the 2014 FFIEC BSA/AML Examination Manual

Posted December 10, 2014

On December 2, 2014, the Board of Governors of the Federal Reserve System issued Supervision and Regulation letter 14-10, “Release of the 2014 Federal Financial Institutions Examination Council’s Bank Secrecy Act/Anti-Money Laundering Examination Manual.”

Results of Director Elections

Posted November 21, 2014

This letter is in regard to the election of directors of this Bank to succeed Ms. Megan F. Clubb, a Class A director, elected by banks in Group Three, and Mr. Richard A. Galanti, a Class B director, elected by banks in Group Two, whose terms end on December 31, 2014, respectively. These elections have been duly held in accordance with the requirements of Section 4 of the Federal Reserve Act and the provisions of the circulars issued by this office dated September 10 and October 29, 2014.

FFIEC Cybersecurity Assessment General Observations

Posted November 21, 2014

On November 3, 2014, the Federal Financial Institutions Examination Council (FFIEC), which includes the Board of Governors of the Federal Reserve System, released observations from a recent cybersecurity assessment at community banking institutions.

Cybersecurity Threat and Vulnerability Monitoring and Sharing Statement

Posted November 21, 2014

On November 3, 2014, the Federal Financial Institutions Examination Council (FFIEC), which includes the Board of Governors of the Federal Reserve System, issued guidance recommending that regulated financial institutions of all sizes participate in the Financial Services Information Sharing and Analysis Center (FS-ISAC) as part of their process to identify, respond to, and mitigate cybersecurity threats and vulnerabilities.

Agencies Announce EGRPRA Outreach Meetings

Posted November 12, 2014

On November 5, 2014, the Office of the Comptroller of the Currency, Federal Deposit Insurance Corporation, and Board of Governors of the Federal Reserve System (agencies) announced the first of a series of outreach meetings to review their regulations under the Economic Growth and Regulatory Paperwork Reduction Act of 1996 (EGRPRA).

CFPB Finalizes Minor Changes to the 2013 Mortgage Rules

Posted October 30, 2014

On October 22, 2014, the Consumer Financial Protection Bureau (CFPB) finalized minor adjustments to its mortgage rules, which were proposed in April 2014, incorporating changes that address concerns about origination and servicing issues, including those of nonprofit housing providers.

Agencies Request Comment on Proposed Flood Insurance Rule

Posted October 30, 2014

On October 24, 2014, five federal regulatory agencies announced the approval of a joint notice of proposed rulemaking to amend regulations pertaining to loans secured by property in special flood hazard areas.

Election of Directors

Posted October 29, 2014

In accordance with the provisions of Section 4 of the Federal Reserve Act and the announcement dated September 10, 2014, the Federal Reserve Bank of San Francisco is conducting an election of directors to succeed Ms. Megan F. Clubb, a Class A director, elected by banks in Group Three, and Mr. Richard A. Galanti, a Class B director, elected by banks in Group Two, whose terms end on December 31, 2014. There are given herein the names of the candidates nominated and the names of the banks which made the nominations.

Amendment to Annual Privacy Notice Requirement under Regulation P

Posted October 24, 2014

On October 20, 2014, the Consumer Financial Protection (CFPB) finalized an amendment to Regulation P, which requires, among other things, that financial institutions provide an annual disclosure of their privacy policies to their customers.

New Member Bank: Friendly Hills Bank

Posted September 29, 2014

The Federal Reserve Bank of San Francisco, acting under delegated authority, has approved the application of Friendly Hills Bank, Whittier, California, for membership in the Federal Reserve System.

Federal Banking Regulators Finalize Liquidity Coverage Ratio

Posted September 25, 2014

On September 3, 2014, the Federal Reserve Board, the Federal Deposit Insurance Corporation, and the Office of the Comptroller of the Currency finalized a rule to strengthen the liquidity positions of large financial institutions.

TILA-RESPA Integrated Disclosure Rule Resources

Posted September 17, 2014

On September 8, 2014, the Consumer Financial Protection Bureau (CFPB) updated their resources related to the Truth in Lending Act (TILA)-Real Estate Settlement Procedures Act (RESPA) Integrated Disclosure rule.

Election of Directors Nomination Procedures

Posted September 12, 2014

The Federal Reserve Bank of San Francisco will conduct an election under the provisions of Section 4 of the Federal Reserve Act to choose successors to the following directors of this Bank, whose terms expire on December 31, 2014.

New Member Bank: TomatoBank

Posted September 2, 2014

The Federal Reserve Bank of San Francisco, acting under delegated authority, has approved the application of TomatoBank, Alhambra, California, to retain its membership in the Federal Reserve System upon conversion from a national to a state bank charter.

CA 14-5 Interagency Guidance Regarding Unfair or Deceptive Credit Practices

Posted August 28, 2014

On August 22, 2014, the Federal Reserve Board (Board), the Consumer Financial Protection Bureau, the Federal Deposit Insurance Corporation, the National Credit Union Administration (NCUA), and the Office of the Comptroller of the Currency (OCC) (collectively, the Agencies) issued the attached interagency guidance regarding certain consumer credit practices.

Loan Coverage Requirements for Safety and Soundness Examinations of Community Banks

Posted August 14, 2014

On July 22, 2014, the Board of Governors of the Federal Reserve System released SR letter 14-7, Loan Coverage Requirements for Safety and Soundness Examinations of Community Banks. This letter applies to community state member banks with $10 billion or less in total consolidated assets that are supervised by the Federal Reserve.

Proposed Amendments to Regulation C (Home Mortgage Disclosure Act)

Posted July 31, 2014

On July 24, 2014, the Consumer Financial Protection (CFPB) issued a proposed rule to amend Regulation C to implement the amendments to the Home Mortgage Disclosure Act (HMDA) made by section 1094 of the Dodd-Frank Wall Street Reform and Consumer Protection Act (Dodd-Frank Act).

Application of Regulation Z’s Ability-to-Repay Rule to Certain Situations Involving Successors-in-Interest

Posted July 29, 2014

On July 11, 2014, the Consumer Financial Protection (CFPB) issued an interpretive rule to clarify that where a successor-in-interest (successor) who has previously acquired title to a dwelling agrees to be added as obligor or substituted for the existing obligor on a consumer credit transaction secured by that dwelling, the creditor’s written acknowledgement of the successor as obligor is not subject to the Ability-to-Repay Rule (ATR Rule).

Banking Agencies Issue Host State Loan-to-Deposit Ratios

Posted July 11, 2014

On July 2, 2014, the Board of Governors of the Federal Reserve System, the Federal Deposit Insurance Corporation, and the Office of the Comptroller of the Currency issued the host state loan-to-deposit ratios that banking agencies will use to determine compliance with section 109 of the Riegle-Neal Interstate Banking and Branching Efficiency Act of 1994. These ratios update data released on July 1, 2013.

New Member Bank – Territorial Savings Bank

Posted July 10, 2014

The Federal Reserve Bank of San Francisco, acting under delegated authority, has approved the application of Territorial Savings Bank, Honolulu, Hawaii, for membership in the Federal Reserve System.

Interagency Guidance on Home Equity Lines of Credit Nearing Their End-of-Draw Periods

Posted July 8, 2014

The Federal Reserve, along with the other federal financial institutions regulatory agencies and the Conference of State Bank Supervisors, issued the attached guidance to reiterate principles of sound risk management for home equity lines of credit (HELOCs) that have reached or will be reaching their end-of-draw periods.

New Member Bank – Seacoast Commerce Bank

Posted June 25, 2014

The Federal Reserve Bank of San Francisco, acting under delegated authority, has approved the application of Seacoast Commerce Bank, San Diego, California, for membership in the Federal Reserve System.

CA 14-3 Interagency Statement on Increased Maximum Flood Insurance Coverage for Other Residential Buildings

Posted June 13, 2014

On May 30, 2014, the Federal Reserve, the Federal Deposit Insurance Corporation, the Office of the Comptroller of the Currency, the National Credit Union Administration, and the Farm Credit Administration (Agencies) issued an interagency statement regarding the new National Flood Insurance Program (NFIP) maximum limit of flood insurance coverage for non-condominium residential building designed for use for five or more families, which are classified as “Other Residential Buildings” by the NFIP.

FFIEC: OpenSSL “Heartbleed” Vulnerability Alert

Posted April 17, 2014

On April 10, 2014, the Federal Financial Institutions Examination Council (FFIEC) members, which include the Board of Governors of the Federal Reserve System, issued an alert on OpenSSL “Heartbleed” Vulnerability.

SR 14-2 / CA 14-1 Enhancing Transparency in the Federal Reserve’s Application Process

Posted March 24, 2014

On February 24, 2014, the Federal Reserve issued SR letter 14-2/CA letter 14-1, Enhancing Transparency in the Federal Reserve’s Applications Process. This guidance provides financial institutions and the public with a better understanding of the Federal Reserve’s approach to filings that do not satisfy statutory requirements for approval of the proposed transaction or possibly raise supervisory or regulatory concerns.

Notice of Availability of Certain Revised Consumer Information Publications

Posted January 27, 2014

On January 10, 2014, the Consumer Financial Protection (CFPB) published the Notice of Availability of Certain Revised Consumer Information Publications (notice) in the Federal Register. The notice advises of the availability of three revised consumer publications, including a consumer information brochure and two booklets required under the Real Estate Settlement Procedures Act (RESPA), Regulation X, the Truth in Lending Act (TILA), and Regulation Z.

SR 13-23, Risk Transfer Considerations When Assessing Capital Adequacy – Supplemental Guidance on Consolidated Supervision Framework for Large Financial Institutions (SR letter 12-17/CA letter 12-14)

Posted January 24, 2014

On December 20, 2013, the Board of Governors of the Federal Reserve System issued SR letter 13-23, Risk Transfer Considerations When Assessing Capital Adequacy – Supplemental Guidance on Consolidated Supervision Framework for Large Financial Institutions. This letter provides guidance on how certain risk transfer transactions affect assessments of capital adequacy at large financial institutions (hereafter referred to as firms) covered by the Federal Reserve’s Consolidated Supervision Framework for Large Financial Institutions (SR letter 12-17/CA letter 12-14).

Agencies Approve Interim Final Rule Authorizing Retention of Interests in and Sponsorship of Collateralized Debt Obligations Backed Primarily by Bank-Issued Trust Preferred Securities

Posted January 21, 2014

On January 14, 2014, the Federal Reserve and four other federal agencies approved an interim final rule to permit banking entities to retain interests in certain collateralized debt obligations backed primarily by trust preferred securities (TruPS CDOs) from the investment prohibitions of section 619 of the Dodd-Frank Wall Street Reform and Consumer Protection Act, known as the Volcker rule.

CA 13-24 and CA 13-25 Revised Interagency Examination Procedures for Regulations X and Z

Posted January 15, 2014

On December 23, 2013, the Federal Reserve issued two CA letters to transmit the revised interagency examination procedures for Regulations X and Z. The procedures reflect amendments to the regulations issued by the Consumer Financial Protection Bureau (CFPB) to implement the Dodd-Frank Wall Street Reform and Consumer Protection Act.

Managing Foreign Exchange Settlement Risks for Physically Settled Transactions

Posted January 13, 2014

On December 23, 2013, the Federal Reserve issued SR letter 13-24, “Managing Foreign Exchange Settlement Risks for Physically Settled Transactions.” This letter transmits the Basel Committee on Banking Supervision (Committee) “Supervisory Guidance for Managing Risks Associated with the Settlement of Foreign Exchange Transactions” (guidance), issued in February 2013.

CA 13-26 Regulation X Homeownership Counseling List Requirement

Posted January 9, 2014

On December 23, 2013, the Federal Reserve Board issued CA Letter 13-26 to clarify the Board’s supervisory expectations in light of guidance issued by the Consumer Financial Protection Bureau (CFPB) on November 8, 2013, relating to one of its new mortgage rules under Regulation X, 12 CFR Part 1024.

2013

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Federal Reserve Board Seeks Comment on Proposed Amendments to Regulation A Regarding Emergency Lending Authority

Posted December 30, 2013

On Monday, December 23, 2013, the Federal Reserve Board invited public comment on proposed amendments to Regulation A (Extensions of Credit by Federal Reserve Banks) to implement section 1101 of the Dodd-Frank Wall Street Reform and Consumer Protection Act. Section 1101 amended the Federal Reserve’s emergency lending authority in section 13(3) of the Federal Reserve Act.

SR 13-20 / CA 13-23 Interagency Statement on Supervisory Approach for Qualified and Non-Qualified Mortgage Loans

Posted December 18, 2013

On Friday, December 13, 2013, the Federal Reserve issued SR 13-20 / CA 13-23, which transmits the attached interagency statement that clarifies safety-and-soundness expectations and Community Reinvestment Act (CRA) considerations for regulated institutions engaged in residential mortgage lending in light of the Consumer Financial Protection Bureau’s (Bureau) Ability-to-Repay and Qualified Mortgage Standards Rule (Ability-to-Repay Rule).

CA 13-22 Social Media: Consumer Compliance Risk Management Guidance

Posted December 17, 2013

On Wednesday, December 11, 2013, the Federal Reserve issued the attached interagency guidance, Social Media: Consumer Compliance Risk Management Guidance (Guidance) through CA 13-22, to address the applicability of federal consumer protection and compliance laws, regulations, and policies to activities conducted via social media by financial institutions.

Agencies Announce Increases in Dollar Thresholds in Regulations Z and M for Exempt Consumer Credit and Lease Transactions

Posted November 25, 2013

On November 20, 2013, the Federal Reserve Board and the Consumer Financial Protection Bureau (CFPB) announced they are increasing the dollar thresholds in Regulation Z (Truth in Lending) and Regulation M (Consumer Leasing) for exempt consumer credit and lease transactions. Transactions at or below the thresholds are subject to the protections of the regulations.

Implementation Guidance for Certain Mortgage Servicing Rules and Interim Final Rule

Posted November 19, 2013

On October 15, 2013, the Consumer Financial Protection Bureau (CFPB) issued CFPB Bulletin 2013-12 to provide guidance in implementing certain provisions of the 2013 Real Estate Settlement Procedures Act (RESPA) and Truth in Lending Act (TILA) Servicing Final Rules. The CFPB issued the 2013 RESPA and TILA Final Rules in January 2013, and they take effect on January 10, 2014.

Guidance on Providing List of Housing Counselor Agencies

Posted November 15, 2013

On November 8, 2013, the Consumer Financial Protection Bureau (CFPB) issued CFPB Bulletin 2013-13 to provide guidance to lenders regarding the homeownership counseling list requirement finalized in the High-Cost Mortgage and Homeownership Counseling Amendments to the Truth in Lending Act (Regulation Z) and Homeownership Counseling Amendments to the Real Estate Settlement Procedures Act (RESPA Homeownership Counseling Amendments) Final Rule, collectively referred to as the 2013 HOEPA Final Rule. The 2013 HOEPA Final Rule, originally issued in January 2013, is effective January 10, 2014.

Interagency Supervisory Guidance Addressing Certain Issues Related to Troubled Debt Restructurings

Posted October 30, 2013

The Federal Reserve, together with the Federal Deposit Insurance Corporation, the National Credit Union Administration, and the Office of the Comptroller of the Currency, (the agencies) has issued the attached guidance, which addresses certain issues related to the accounting treatment, and regulatory credit risk grade or classification of commercial and residential real estate loans that have undergone troubled debt restructurings (TDRs).

Federal Regulatory Agencies Request Comment on Proposed Flood Insurance Rule

Posted October 18, 2013

Five federal regulatory agencies are issuing a joint notice of proposed rulemaking to amend regulations pertaining to loans secured by properties located in special flood hazard areas. The proposed rule would implement certain provisions of the Biggert-Waters Flood Insurance Reform Act of 2012 (Biggert-Waters) with respect to private flood insurance, the escrow of flood insurance payments, and the forced-placement of flood insurance.

Results of Director Elections

Posted September 27, 2013

This letter is in regard to the election of directors of this Bank to succeed Ms. Betsy Lawer, a Class A director, elected by banks in Group Two, and Ms. Nicole C. Taylor, a Class B director, elected by banks in Group One, whose terms end on December 31, 2013, respectively. These elections have been duly held in accordance with the requirements of Section 4 of the Federal Reserve Act and the provisions of the circulars issued by this office dated July 17 and September 5, 2013.

CFPB Finalizes 2013 Mortgage Rule Modifications Initially Proposed in June 2013

Posted September 23, 2013

On September 13, 2013, the Consumer Financial Protection Bureau (CFPB) finalized a rule amending the 2013 Mortgage Rules under the Equal Credit Opportunity Act (Regulation B), Real Estate Settlement Procedures Act (Regulation X), and the Truth in Lending Act (Regulation Z). The rule, which in connection with a proposed rule issued on June 24, 2013, contains amendments to several topics.

Election of Directors

Posted September 5, 2013

In accordance with the provisions of Section 4 of the Federal Reserve Act and the announcement dated July 17, 2013, the Federal Reserve Bank of San Francisco is conducting an election of directors to succeed Ms. Betsy Lawer, a Class A director, elected by banks in Group Two, and Ms. Nicole C. Taylor, a Class B director, elected by banks in Group One, whose terms end on December 31, 2013. There are given herein the names of the candidates nominated and the names of the banks which made the nominations.

Agencies Revise Proposed Risk Retention Rule

Posted September 5, 2013

On Wednesday, August 28, 2013, six federal agencies, including the Board of Governors of the Federal Reserve System, issued a notice revising a proposed rule requiring sponsors of securitization transactions to retain risk in those transactions.

CFPB Updates Remittance Transfer Rule Resources

Posted August 14, 2013

On August 8, 2013, the Consumer Financial Protection Bureau (CFPB) released updates to their Remittance Transfer Rule resources. Specifically, the CFPB released an updated small entity compliance guide, which is designed to provide an easy-to-use summary of the Remittance Transfer Rule.

SR 13-15 / CA 13-11 Federal Reserve Resources for Minority Depository Institutions

Posted August 9, 2013

On August 5, 2013, the Federal Reserve issued SR 13-15/CA 13-11, Federal Reserve Resources for Minority Depository Institutions. The purpose of this letter is to reaffirm the Federal Reserve’s ongoing commitment to preserving the existence of minority depository institutions (MDIs), consistent with statutory mandates, and to highlight the Federal Reserve’s resources available to MDIs.

Changes to the Borrower-In-Custody of Collateral Program Policy

Posted August 1, 2013

In response to more depository institutions participating in the Borrower-in-Custody (BIC) program and feedback we have received from BIC program participants, the Federal Reserve Bank of San Francisco (FRBSF) is making several changes to our BIC program policy effective August 5, 2013.

Agencies Encourage Lenders to Work with Student Loan Borrowers

Posted July 29, 2013

On Thursday, July 25, 2013, the federal bank regulatory agencies issued a statement encouraging financial institutions to work constructively with private student loan borrowers experiencing financial difficulties. Prudent workout arrangements are consistent with safe and sound lending practices and are generally in the long-term best interest of both the financial institution and the borrower.

Election of Directors Nomination Procedures

Posted July 17, 2013

The Federal Reserve Bank of San Francisco will conduct an election under the provisions of Section 4 of the Federal Reserve Act to choose successors to the following directors of this Bank, whose terms expire on December 31, 2013.

SR 13-14 Timing Standards for the Completion of Safety-and-Soundness Examination and Inspection Reports for Community Banking Organizations

Posted July 16, 2013

On July 8, 2013, the Federal Reserve issued SR Letter 13-14, Timing Standards for the Completion of Safety-and-Soundness Examination and Inspection Reports for Community Banking Organizations. This letter sets forth standards for the timely completion of safety-and-soundness examination and inspection reports for community banking organizations.

Banking Agencies Issue Host State Loan-to-Deposit Ratios

Posted July 5, 2013

On Monday, July 1, 2013, the Board of Governors of the Federal Reserve System, the Federal Deposit Insurance Corporation, and the Office of the Comptroller of the Currency issued the host state loan-to-deposit ratios that the banking agencies will use to determine compliance with section 109 of the Riegle-Neal Interstate Banking and Branching Efficiency Act of 1994. These ratios update data released on June 29, 2012.

SR 13-13 / CA 13-10 Supervisory Considerations for the Communication of Supervisory Findings

Posted June 27, 2013

The purpose of this letter is to update and clarify existing examiner guidance concerning the communication of supervisory findings to banking organizations and institutions supervised by the Federal Reserve (collectively referred to as “banking organizations” or “organizations” in the guidance). The attached guidance discusses the Federal Reserve’s standard language for examination/inspection findings, which improves the consistency and clarity of written communications to banking organizations, and enhances the focus on matters requiring attention by an organization’s board of directors.

SR 13-12: Commodity Futures Trading Commission (CFTC) Swap Clearing Rules

Posted June 21, 2013

On Friday, June 7, 2013, the Federal Reserve Board published SR Letter 13-12 as a reminder to supervised institutions that they need to consider new swap clearing rules developed by the CFTC. Section 723 of the Dodd-Frank Wall Street Reform and Consumer Protection Act (Dodd-Frank Act) added section 2(h) to the Commodity Exchange Act (CEA), which establishes a clearing requirement for swaps.

CFPB Delays Effective Date of Prohibition on Financing Credit Insurance Premiums and Updates Rural and Underserved Counties List

Posted June 13, 2013

On May 29, 2013, the Consumer Financial Protection Bureau (CFPB) issued a final rule to delay the June 1, 2013, effective date of the provision that prohibits creditors from financing credit insurance premiums in connection with certain consumer credit transactions secured by a dwelling. The prohibition was adopted under the Loan Originator Compensation Requirements Rule, which was issued on January 20, 2013.

CFPB Finalizes Amendments to the Ability-to-Repay Rule

Posted June 6, 2013

On May 29, 2013, the Consumer Financial Protection Bureau (CFPB) issued a final rule to create specific exemptions and make modifications to its Ability-to-Repay rule for small creditors, community development lenders, and housing stabilization programs. The amendments also revise the rules on how to calculate loan origination compensation and circumstances under which they would be excluded from the points and fees limits applicable to qualified mortgages.

CA Letter 13-8: Guidance on the Use of 2010 Census Data in Fair Lending Examinations

Posted May 28, 2013

On May 16, 2013, the Board of Governors of the Federal Reserve System (Board) issued CA Letter 13-8 Guidance on the Use of 2010 Census Data in Fair Lending Examinations. The letter discusses the three changes related to the Census Bureau’s release of the 2010 decennial census data that affects fair lending examinations.

Exemption for Small Debit Card Issuers from Interchange Fee Standards Working as Intended

Posted May 28, 2013

On Thursday, May 23, 2013, the Federal Reserve Board reported that the exemption designed to protect small debit card issuers from interchange fee standards applied to large issuers is working as intended. Small depository institutions with consolidated assets of less than $10 billion, which are exempt from the interchange fee standard in Regulation II, received fee revenue of 43 cents per transaction in 2012.

Final Rule to Clarify 2013 Escrow Rule and Extend Protections for Higher-Priced Mortgage Loans (HPMLs)

Posted May 24, 2013

On May 16, 2013, the Consumer Financial Protection Bureau (CFPB) issued a final rule to clarify and make technical amendments to the Escrow Requirements under the Truth in Lending Act (Regulation Z) (Escrow Rule). The Escrow Rule, which goes into effect on June 1, 2013, lengthens the mandatory escrow account period for HPMLs from one to five years and establishes an exemption from the escrow requirements for certain creditors that operate predominately in “rural” and “underserved” areas.

CA 13-7 Statement on Deposit Advance Products

Posted May 3, 2013

On April 25, 2013, the Board of Governors of the Federal Reserve System (Board) issued CA Letter 13-7 Statement on Deposit Advance Products. The letter and guidance was issued to emphasize to state member banks the significant consumer risks associated with deposit advance products in light of the Consumer Financial Protection Bureau’s (CFPB) April 24, 2013, white paper entitled “Payday Loans and Deposit Advance Products: A White Paper of Initial Data Findings.

SR 13-9 / CA 13-6 Minimum Standards for Prioritization and Handling Borrower Files with Imminent Scheduled Foreclosure Sale

Posted April 26, 2013

The Federal Reserve is issuing this letter to set forth guidance on sound business practices for residential mortgage servicing that Federal Reserve supervised financial institutions are expected to address in their collections, loss mitigation, and foreclosure processing functions. The guidance confirms the minimum standards that all regulated institutions are expected to adopt in prioritizing and handling borrowers’ files with imminent risk of foreclosure.

SR 13-7 / CA 13-4 State Member Bank Branching Considerations

Posted April 19, 2013

On April 5, 2013, the Federal Reserve issued SR 13-7/CA 13-4, State Member Bank Branching Considerations. This letter clarifies the Federal Reserve’s policy concerning the application process for a state member bank in less-than-satisfactory condition for the establishment of a de novo branch.

Proposal to Clarify Escrow Rule and Extend Protections for Higher-Priced Mortgage Loans (HPMLs)

Posted April 19, 2013

On April 12, 2013, the Consumer Financial Protection Bureau (CFPB) issued a proposed rule to clarify and make technical amendments to the Escrow Requirements under the Truth in Lending Act (Regulation Z) (Escrow Rule). The Escrow Rule, which goes into effect on June 1, 2013, lengthens the mandatory escrow account period for HPMLs from one to five years and establishes an exemption from the escrow requirements for certain creditors that operate predominately in “rural” and “underserved” areas.

Federal Reserve Board Invites Comment on Proposal to Establish Annual Assessments

Posted April 18, 2013

On Monday, April 15, 2013, the Federal Reserve Board invited comment on a proposal to establish an annual assessment of bank holding companies and savings and loan holding companies with $50 billion or greater in total consolidated assets and for nonbank financial companies designated by the Financial Stability Oversight Council for supervision by the Federal Reserve.

Federal Reserve Board Approves Final Rule Establishing Requirements for Determining when a Company is “Predominantly Engaged in Financial Activities”

Posted April 8, 2013

On Wednesday, April 3, 2013, the Federal Reserve Board announced approval of a final rule that establishes the requirements for determining when a company is “predominantly engaged in financial activities.” The requirements will be used by the Financial Stability Oversight Council (FSOC) when it considers the potential designation of a nonbank financial company for consolidated supervision by the Federal Reserve.

CFPB Bulletin on Indirect Auto Lending and Compliance with the Equal Credit Opportunity Act

Posted April 5, 2013

On March 21, 2013, the Consumer Financial Protection Bureau (CFPB) issued CFPB Bulletin 2013-02 on indirect auto lending and compliance with the Equal Credit Opportunity Act (ECOA) and its implementing regulation, Regulation B. While the bulletin is directed at institutions under the CFPB’s jurisdiction, the guidance is consistent with the Federal Reserve’s existing position on the applicability of the ECOA to indirect lending programs.

CA Letter 13-2 Interagency Statement on the Impact of the Biggert-Waters Flood Insurance Reform Act of 2012 (Biggert-Waters Act) and Rescission of FEMA’s Mandatory Purchase of Flood Insurance Guidelines

Posted April 5, 2013

On July 6, 2012, Congress amended the Flood Disaster Protection Act of 1973 when it enacted the Biggert-Waters Act. Certain provisions of the Biggert-Waters Act impact regulations, as well as guidance that the federal financial institution supervisory agencies have provided to lenders to assist them in complying with federal flood insurance statutes.

SR 13-5 Revisions to the Required Data Fields for the Interagency Loan Data Request

Posted April 3, 2013

The Board of Governors of the Federal Reserve System, the Federal Deposit Insurance Corporation, and the Office of the Comptroller of the Currency (collectively, the agencies) and the Conference of State Bank Supervisors (CSBS) have increased the number of required loan data fields in the Interagency Loan Data Request (ILDR). In 2002, the agencies and the CSBS implemented a voluntary standardized request for 82 data fields of electronic loan information to be used in safety-and-soundness examinations.

Federal Reserve Survey Provides Information on Mobile Financial Services

Posted April 1, 2013

The Federal Reserve Board completed its first Survey of Consumers’ Use of Mobile Financial Services in December 2011, and released a summary report in March 2012. The Board conducted a second survey in late November 2012 to monitor trends in the use of mobile financial services, and to understand how the rapidly expanding use of this technology affects consumer decisionmaking and the overall economy.

SR 13-3 Interagency Guidance on Leveraged Lending

Posted March 25, 2013

The Board of Governors of the Federal Reserve System, together with the Federal Deposit Insurance Corporation and the Office of the Comptroller of the Currency, has issued the attached Interagency Guidance on Leveraged Lending (2013 leveraged lending guidance). This guidance outlines high-level principles related to safe–and–sound leveraged lending activities.

Agencies Issue Updated Leveraged Lending Guidance

Posted March 22, 2013

On Thursday, March 21, 2013, the Federal bank regulatory agencies released updated supervisory guidance on leveraged lending, which has been increasing since 2009 after declining during the financial crisis.

Federal Reserve Releases Summary Results of Bank Stress Tests

Posted March 11, 2013

On Thursday, March 7, 2013, the Federal Reserve announced the nation’s largest bank holding companies have continued to improve their ability to withstand an extremely adverse hypothetical economic scenario and are collectively in a much stronger capital position than before the financial crisis, according to the summary results of bank stress tests.

Federal Reserve Offers $3 Billion in 28-day Term Deposits Through its Term Deposit Facility

Posted March 7, 2013

On Monday, March 11, 2013, the Federal Reserve will offer $3 billion in 28-day term deposits through its Term Deposit Facility. As noted in the Federal Reserve Board’s September 8, 2010 release, this offering is part of ongoing small-value operations designed to provide eligible institutions with an opportunity to become familiar with term deposit operations.

Federal Reserve Board Publishes Report Containing Summary Information on Debit Card Transactions in 2011

Posted March 7, 2013

On Tuesday, March 05, 2013, the Federal Reserve Board published a report containing summary information on the volume and value, interchange fee revenue, certain debit card issuer costs, and fraud losses related to debit card transactions in 2011. The report is the second in a series to be published every two years pursuant to section 920 of the Electronic Fund Transfer Act (EFTA).

Federal Reserve Board Extends Comment Period on Proposed Rule to Implement Enhanced Prudential Standards and Early Remediation Requirements until April 30, 2013

Posted February 25, 2013

On February 22, 2013, the Federal Reserve Board announced the extension of the comment period to the proposed rule to implement the enhanced prudential standards and early remediation requirements established under sections 165 and 166 of the Dodd-Frank Wall Street Reform and Consumer Protection Act for foreign banking organizations and foreign nonbank financial companies supervised by the Board until April 30, 2013. The enhanced prudential standards include risk-based capital and leverage requirements, liquidity standards, risk management and risk committee requirements, single-counterparty credit limits, and stress test requirements.

CFPB Issues Guidance on Potential Risks Related to Mortgage Servicing Transfers

Posted February 22, 2013

On February 11, 2013, the Consumer Financial Protection Bureau (CFPB) issued CFPB Bulletin 2013-01 to advise mortgage servicers of the potential risk to consumers that may arise in connection with the transfer of mortgage servicing. As noted in its press release, the CFPB’s concern in this area is heightened due to the number and size of recent servicing transfers.

CFPB Communicates Implementation Plan for New Mortgage Rules

Posted February 22, 2013

On February 13, 2013, the Consumer Financial Protection Bureau (CFPB) communicated its plans to work with the mortgage industry and the other federal regulators to facilitate the implementation of its mortgage rules that go into effect in January 2014.

Recap of Recent Mortgage Rules

Posted February 8, 2013

Over the past few weeks, the federal agencies have finalized a number of mortgage-related rules. As they were issued through separate press releases, this letter is designed to bring the rules together to facilitate easy access to source documentation.

CFPB Launches Inquiry on Campus Financial Products

Posted February 8, 2013

On January 31, 2013, the Consumer Financial Protection Bureau (CFPB) launched an inquiry into the impact of financial products marketed to students through colleges and universities. According to their press release, the CFPB intends to use the information gathered to determine whether these arrangements are in the best interest of students.

CFPB Temporarily Delays Effective Date of its Remittance Transfer Rule

Posted February 2, 2013

On January 22, 2013, the Consumer Financial Protection Bureau (CFPB) issued a final rule to delay the February 7, 2013, effective date of the final remittance transfer rule, which was published by the CFPB on February 7, 2012, and August 20, 2012 (collectively, 2012 Final Rule). The rule amends Regulation E, which implements the Electronic Funds Transfer Act (EFTA).

Financial Regulators Propose Guidance on Social Media

Posted January 31, 2013

On January 22, 2013, the Federal Financial Institution Examination Council (FFIEC) released proposed guidance on the applicability of consumer protection and compliance laws, regulations, and policies to activities conducted via social media by banks, savings associations, and credit unions, as well as nonbank entities supervised by the Consumer Financial Protection Bureau and state regulators.

Federal Reserve Board Announces Release Dates for Results from Supervisory Stress Tests and from the Comprehensive Capital Analysis and Review (CCAR)

Posted January 29, 2013

On Monday, January 28, 2013, the Federal Reserve Board announced that results from the supervisory stress tests conducted as part of the Dodd-Frank Wall Street Reform and Consumer Protection Act will be released on Thursday, March 7, and the related results from the Comprehensive Capital Analysis and Review, or CCAR, will be released on Thursday, March 14. Results will be released for both exercises at 4:30 p.m. Eastern Time.

Federal Reserve Offers $3 Billion in 28-day Term Deposits Through its Term Deposit Facility

Posted January 10, 2013

On Monday, January 14th, 2013, the Federal Reserve will offer $3 billion in 28-day term deposits though its Term Deposit Facility. As noted in the Federal Reserve Board’s September 8, 2010 release, this offering is part of ongoing small-value operations designed to provide eligible institutions with an opportunity to become familiar with term deposit operations.

2012

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CFPB Proposes to Revise Remittance Transfer Rule Including Extending Implementation Period

Posted December 28, 2012

On December 21, 2012, the Consumer Financial Protection Bureau (CFPB) issued proposed revisions to their international remittance rule, including a proposal to extend the implementation period until 90 days after it issues a revised final rule. The proposal builds on a final rule on international money transfers that was published by the CFPB on February 7, 2012, and later supplemented on August 20, 2012.

SR 12-16 /CA 12-12 Interagency Statement on Restrictions on Conversions of Troubled Banks

Posted December 10, 2012

The Board of Governors of the Federal Reserve System, the Federal Deposit Insurance Corporation, and the Office of the Comptroller of the Currency (collectively, the agencies), in conjunction with the Conference of State Bank Supervisors, have issued the attached guidance to explain the procedures that the agencies will follow to implement section 612 of the Dodd-Frank Wall Street Reform and Consumer Protection Act (Dodd-Frank Act), concerning certain charter conversions.

New Member Bank – Silvergate Bank

Posted December 7, 2012

The Federal Reserve Bank of San Francisco, acting under delegated authority, has approved the application of Silvergate Bank, La Jolla, California, for membership in the Federal Reserve System.

SCA 12-13 Revised Interagency Examination Procedures for Regulation Z

Posted December 5, 2012

The Task Force on Consumer Compliance of the Federal Financial Institutions Examination Council recently approved the attached interagency examination procedures for Regulation Z – Truth in Lending. These revised examination procedures supersede the Regulation Z interagency examination procedures transmitted with CA Letter 11-8.

SR 12-15 Investing in Securities without Reliance on Nationally Recognized Statistical Rating Organization Ratings

Posted December 5, 2012

The Federal Reserve is issuing this letter to advise state member banks that effective January 1, 2013, they may no longer rely solely on credit ratings issued by nationally recognized statistical rating organizations (external credit ratings) to determine whether a particular security is an “investment security” that is permissible for investment by a state member bank. Under regulations of the Office of the Comptroller of the Currency (OCC), securities qualify for investment by national banks only if they are determined by the bank to be “investment grade” and not predominantly speculative in nature.

New Member Bank – CommerceWest Bank

Posted November 30, 2012

The Federal Reserve Bank of San Francisco, acting under delegated authority, has approved the application of CommerceWest Bank, Irvine, California, to retain its membership in the Federal Reserve System upon conversion from a national to a state bank charter.

Annual Increase in Dollar Thresholds in Regulation Z and M for Exempt Consumer Credit and Lease Transactions and Annual Update of HOEPA Fee Trigger

Posted November 29, 2012

On November 20, 2012, The Federal Reserve Board (Board) and the Consumer Financial Protection Bureau (CFPB) announced increases in the dollar thresholds in Regulation Z (Truth in Lending) and Regulation M (Consumer Leasing) for exempt consumer credit and lease transactions. These increases are consistent with the Dodd-Frank Wall Street Reform and Consumer Protection Act (Dodd-Frank Act) amendments to the Truth in Lending Act and the Consumer Leasing Act to adjust these thresholds annually by the annual percentage increase in the Consumer Price Index for Urban Wage Earners and Clerical Workers.

Agencies Provide Guidance on Regulatory Capital Rulemakings

Posted November 21, 2012

The United States federal banking agencies issued three notices of proposed rulemaking in June that would revise and replace the current regulatory capital rules. The proposals suggested an effective date of January 1, 2013.

Federal Reserve Board Launches 2013 Capital Planning and Stress Testing Program

Posted November 21, 2012

The Federal Reserve Board on November 9, 2012, launched the 2013 capital planning and stress testing program, issuing instructions to firms with timelines for submissions and general guidelines. The program includes the Comprehensive Capital Analysis and Review (CCAR) of 19 firms as well as the Capital Plan Review (CapPR) of an additional 11 bank holding companies with $50 billion or more of total consolidated assets.

Federal Reserve Board Releases Economic and Financial Market Scenarios That Will Be Used in Next Round of Stress Tests for Large Financial Institutions

Posted November 21, 2012

The Federal Reserve Board on November 15, 2012, released the economic and financial market scenarios that will be used in the next round of stress tests for large financial institutions. The scenarios include baseline, adverse, and severely adverse scenarios, as described in the Federal Reserve's final rules that implement stress test requirements of the Dodd-Frank Wall Street Reform and Consumer Protection Act.

Expiration of Unlimited Deposit Insurance for Noninterest-Bearing Transactions Accounts

Posted November 8, 2012

On November 5, 2012, the FDIC issued FIL-45-2012, Notice of Expiration: Temporary Unlimited Coverage for Noninterest-Bearing Transaction Accounts. As explained in the FIL, section 343 of the Dodd-Frank Wall Street Reform and Consumer Protection Act (Dodd-Frank Act) provides separate, unlimited deposit insurance coverage for noninterest-bearing transaction accounts (NIBTAs), including Interest on Lawyer Trust Accounts; however, the unlimited coverage is scheduled to expire on December 31, 2012.

Federal Reserve Offers $3 billion in 28-day Term Deposits Through its Term Deposit Facility

Posted November 1, 2012

On Monday, November 5, 2012, the Federal Reserve will offer $3 billion in 28-day term deposits through its Term Deposit Facility. As noted in the Federal Reserve Board's September 8, 2010 release, this offering is part of ongoing small-value operations designed to provide eligible institutions with an opportunity to become familiar with term deposit operations.

Election of Directors

Posted October 26, 2012

In accordance with the provisions of Section 4 of the Federal Reserve Act and the announcement dated September 6, 2012, the Federal Reserve Bank of San Francisco is conducting an election of directors to succeed Mr. Kenneth A.

SR 12-13FFIEC Statement on the Impact of Drought Conditions on Financial Institutions

Posted October 23, 2012

On October 16, 2012, The Federal Financial Institutions Examination Council1 (“FFIEC”) issued a statement to assist financial institutions and their customers (members, in the case of credit unions) affected by severe drought conditions across much of the Midwest and southern portions of the United States. As a result of the 2012 drought, crop yields have declined significantly and, in some areas, crops have failed completely.

CFPB Proposes to Remove Independent Ability to Repay Requirement for Credit Card Applicants Who Are 21 or Older

Posted October 22, 2012

On August 17, 2012, the Consumer Financial Protection Bureau (CFPB) issued a proposal to amend Regulation Z, which implements the Truth in Lending Act (TILA) and the official interpretation to the regulation, which interprets the requirements of Regulation Z. Regulation Z generally prohibits a card issuer from opening a credit card account for a consumer, or increasing the credit limit applicable to a credit card account, unless the card issuer considers the consumer’s ability to make required payments under the terms of such account.

Federal Reserve Board Publishes Two Final Rules with Stress Testing Requirements for Certain Bank Holding Companies, State Member Banks, and Savings and Loan Holding Companies

Posted October 12, 2012

The Federal Reserve Board on October 9, 2012, published two final rules with stress testing requirements for certain bank holding companies, state member banks, and savings and loan holding companies. The final rules implement sections 165(i)(1) and (i)(2) of the Dodd-Frank Wall Street Reform and Consumer Protection Act that require supervisory and company-run stress tests.

Recap of Recent Mortgage Proposals

Posted October 5, 2012

Over the past few months, the federal regulatory agencies have issued a number of mortgage loan proposals. As they were issued through separate press releases by the various agencies, this letter is designed to bring the proposals together to facilitate easy access to source documentation.

Agencies Reopen Comment Period on Swap Margin and Capital Proposed Rulemaking

Posted October 5, 2012

Five federal agencies on September 26, 2012, reopened the comment period on a proposed rule to establish margin and capital requirements for swap dealers, major swap participants, security-based swap dealers, and major security-based swap participants for which one of the agencies is the prudential regulator, as required by sections 731 and 764 of the Dodd-Frank Wall Street Reform and Consumer Protection Act. The comment period–which originally ended July 11, 2011–was reopened to November 26, 2012, to allow interested persons more time to analyze the issues and prepare their comments in light of the consultative document on margin requirements for noncentrally-cleared derivatives recently published for comment by the Basel Committee on Banking Supervision and the International Organization of Securities Commissions.

CFPB Provides Guidance and Plans Outreach on Complying with Remittance Rule

Posted October 5, 2012

On September 26, 2012, the Consumer Financial Protection Bureau (CFPB) posted information on its website regarding the rule to implement consumer protections created by the Dodd-Frank Act for certain electronic transfers for funds to other countries – the remittance rule – the rule goes into effect on February 7, 2013. Specifically, the CFPB is undertaking a number of efforts to help the industry understand and comply with the new requirements, including releasing a list of countries and other areas to which a particular exception to the rule’s disclosure requirements applies, hosting a webinar, answering specific questions, and releasing a small business guide.

Agencies Release a Regulatory Capital Estimation Tool to Assist in Assessing the Potential Effects of Recently Proposed Regulatory Capital Rules

Posted September 26, 2012

The federal banking regulatory agencies on September 4, 2012, announced the availability of a regulatory capital estimation tool to help community banking organizations and other interested parties evaluate recently published regulatory capital proposals. The tool will assist these organizations in estimating the potential effects on their capital ratios of the agencies' Basel III Notice of Proposed Rulemaking (NPR) and Standardized Approach NPR.

Federal Reserve offers $3 billion in 28-day term deposits through its Term Deposit Facility

Posted September 7, 2012

On Monday, September 10, 2012, the Federal Reserve will offer $3 billion in 28-day term deposits through its Term Deposit Facility. As noted in the Federal Reserve Board's September 8, 2010 release, this offering is part of ongoing small-value operations designed to provide eligible institutions with an opportunity to become familiar with term deposit operations.

Election of Directors Nomination Procedures

Posted September 6, 2012

The Federal Reserve Bank of San Francisco will conduct an election under the provisions of Section 4 of theFederal Reserve Act to choose successors to the following directors of this Bank, whose terms expire on December 31, 2012:

Consumer Financial Protection Bureau (CFPB) Proposes Rules to Improve Consumer Access to Appraisal Reports

Posted August 31, 2012

On August 15, 2012, the CFPB issued a proposal to amend Regulation B, which implements the Equal Credit Opportunity Act (ECOA), and the official interpretation to the regulation, which interprets the requirements of Regulation B. The proposed revisions would implement an ECOA amendment concerning appraisals that was enacted as part of the Dodd-Frank Wall Street Reform and Consumer Protection Act (Dodd-Frank Act).

Agencies Issue Proposed Rule on Appraisals for Higher-Risk Mortgages

Posted August 20, 2012

On Wednesday, August 15, 2012, six federal financial regulatory agencies issued a proposed rule to establish new appraisal requirements for "higher-risk mortgage loans." The proposed rule would implement amendments to the Truth in Lending Act enacted by the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010.

Federal Reserve Board Extends Comment Period on Three Proposed Capital Rules Rulemakings until October 22, 2012

Posted August 10, 2012

The Federal Reserve Board on August 8, 2012 announced the extension of the comment period until October 22, 2012, on three notices of proposed rulemaking that would revise and replace current capital rules. The proposals by the Federal Reserve, the Federal Deposit Insurance Corporation, and the Office of the Comptroller of the Currency would implement the Basel III regulatory capital reforms from the Basel Committee on Banking Supervision and certain aspects of the Dodd-Frank Wall Street Reform and Consumer Protection Act.

Federal Reserve Board Approves Final Rule Permitting Debit Card Issuers to Receive Fraud-Prevention Adjustment

Posted July 30, 2012

The Federal Reserve Board on July 27, 2012 announced the approval of a final rule that amends the provisions in Regulation II (Debit Card Interchange Fees and Routing) that permit a debit card issuer subject to the interchange fee standards to receive a fraud-prevention adjustment. The final rule revises provisions that are currently in effect as an interim final rule.

SR 12-11 / CA 12-10 Guidance on a Lender’s Decision to Discontinue Foreclosure Proceedings

Posted July 25, 2012

The Federal Reserve is issuing this guidance to emphasize the importance of appropriate risk management practices and controls in connection with a decision not to complete foreclosure proceedings after they have been initiated (a situation referred to in this guidance as an abandoned foreclosure). This guidance applies to state member banks, bank holding companies and savings and loan holding companies (collectively, banking organizations) with residential mortgage servicing operations.

CFPB Proposes New Mortgage Disclosures and High-Cost Mortgage Protections

Posted July 25, 2012

On July 9, 2012, the Consumer Financial Protection Bureau (CFPB) issued a proposal to amend Regulation X (Real Estate Settlement Procedures Act) and Regulation Z (Truth in Lending Act) to establish new disclosure requirements and forms in Regulation Z for most closed-end consumer credit transactions secured by real property. In addition to combining the existing disclosure requirements and implementing new requirements in the Dodd-Frank Wall Street Reform and Consumer Protection Act (Dodd-Frank Act), the proposed rule provides extensive guidance regarding compliance with those requirements.

Federal Reserve Offers $3 Billion in 28-day Term Deposits Through Its Term Deposit Facility

Posted July 13, 2012

On Monday, July 16, 2012, the Federal Reserve will offer $3 billion in 28-day term deposits through its Term Deposit Facility. As noted in the Federal Reserve Board's September 8, 2010 release, this offering is part of ongoing small-value operations designed to provide eligible institutions with an opportunity to become familiar with term deposit operations.

SR 12-10 / CA 12-9 Questions and Answers for Federal Reserve-Regulated Institutions Related to the Management of Other Real Estate Owned (OREO)

Posted July 6, 2012

This letter conveys various questions and answers regarding the management of OREO by institutions regulated by the Federal Reserve. During the recent financial crisis, financial institutions have experienced a rise in OREO caused by general weaknesses in the housing market, including increases in delinquencies and defaults, house price declines, and weaknesses in the structure of a number of commercial real estate financings.

Banking Agencies Issue Host State Loan-to-Deposit Ratios

Posted July 3, 2012

On June 29, 2012, the Board of Governors of the Federal Reserve System, the Federal Deposit Insurance Corporation, and the Office of the Comptroller of the Currency issued the host state loan-to-deposit ratios that the banking agencies will use to determine compliance with section 109 of the Riegle-Neal Interstate Banking and Branching Efficiency Act of 1994. These ratios update data released on June 30, 2011.

Agencies Sign Memorandum of Understanding on Supervisory Coordination

Posted June 6, 2012

Five federal supervisory agencies, including the Board of Governors of the Federal Reserve System (Federal Reserve Board), on June 4, 2012 released a Memorandum of Understanding (MOU) that clarifies how the agencies will coordinate their supervisory activities, consistent with the Dodd-Frank Wall Street Reform and Consumer Protection Act (the Dodd-Frank Act).

Agencies Finalize Large Bank Stress Testing Guidance

Posted May 16, 2012

The Federal Reserve Board, the Office of the Comptroller of the Currency, and the Federal Deposit Insurance Corporation on May 14, 2012 issued final supervisory guidance regarding stress-testing practices at banking organizations with total consolidated assets of more than $10 billion.

Federal Reserve Offers $3 Billion In 28-day Term Deposits Through Its Term Deposit Facility

Posted May 10, 2012

On Monday, May 14, 2012, the Federal Reserve will offer $3 billion in 28-day term deposits through its Term Deposit Facility. As noted in the Federal Reserve Board's September 8, 2010 release, this offering is part of ongoing small-value operations designed to provide eligible institutions with an opportunity to become familiar with term deposit operations.

Secure and Fair Enforcement for Mortgage Licensing Act (the S.A.F.E. Act) Requirements for Mortgage Loan Originator Registration

Posted April 27, 2012

The Bureau of Consumer Financial Protection assumed rulemaking authority for the SAFE Act on July 21, 2011, in accordance with Title X of the Dodd-Frank Wall Street Reform and Consumer Protection Act. On December 19, 2011, the Bureau of Consumer Financial Protection published for public comment an interim final rule establishing a new Regulation G (SAFE Mortgage Licensing Act—Federal Registration of Residential Mortgage Loan Originators) and a new Regulation H (SAFE Mortgage Licensing Act—State Compliance and Bureau Registration System).

Federal Reserve Board Announces the Formation of the Model Validation Council

Posted April 23, 2012

The Federal Reserve Board on April 20, 2012 announced the formation of the Model Validation Council, which will provide the Federal Reserve with expert and independent advice on its process to rigorously assess the models used in stress tests of banking institutions. In addition, the Federal Reserve announced it will host a two-day symposium to discuss best practices in stress testing.

Agencies Clarify Volcker Rule Conformance Period

Posted April 23, 2012

The Federal Reserve Board on April 19, 1012 announced its approval of a statement clarifying that an entity covered by section 619 of the Dodd-Frank Wall Street Reform and Consumer Protection Act, or the so-called Volcker Rule, has the full two-year period provided by the statute to fully conform its activities and investments, unless the Board extends the conformance period. Section 619 generally requires banking entities to conform their activities and investments to the prohibitions and restrictions included in the statute on proprietary trading activities and on hedge fund and private equity fund activities and investments.

Agencies Propose Revisions to Leveraged Finance Guidance

Posted March 29, 2012

The Board of Governors of the Federal Reserve System, the Federal Deposit Insurance Corporation, and Office of the Comptroller of the Currency (the agencies) are seeking comment on proposed revisions tothe interagency leveraged finance guidance issued in 2001.

Federal Reserve System Publishes Annual Financial Statements

Posted March 21, 2012

The Federal Reserve System on March 20, 2012 released the 2011 combined annual comparative financial statements for the Federal Reserve Banks, as well as for the 12 individual Federal Reserve Banks, the limited liability companies (LLCs) that were created to respond to strains in financial markets, and the Board of Governors.

Agencies and CDFI Fund to Sponsor National Interagency Community Reinvestment Conference

Posted March 12, 2012

The federal bank regulatory agencies, the Federal Reserve Bank of San Francisco, and the Community Development Financial Institutions Fund will host the 2012 National Interagency Community Reinvestment Conference in Seattle, Washington, from March 25 to 28. This biennial conference is designed to offer participants from around the country the opportunity to learn about the Community Reinvestment Act (CRA) and its regulations, as well as the chance to network with colleagues and discuss best practices and emerging challenges in community development.

Federal Reserve Board Releases Action Plans for Supervised Financial Institutions to Correct Deficiencies in Residential Mortgage Loan Servicing and Foreclosure Processing

Posted March 1, 2012

The Federal Reserve Board on February 27, 2012 released action plans for supervised financial institutions to correct deficiencies in residential mortgage loan servicing and foreclosure processing. It also released engagement letters between supervised financial institutions and independent consultants retained by the firms to review foreclosures that were in process in 2009 and 2010.

SR 12-2 Questions and Answers on Interagency Advisory on Interest Rate Risk Management

Posted February 7, 2012

On January 11, 2010, the Federal Reserve and the other financial regulators1 published an Advisory on Interest Rate Risk Management (SR letter 10-1, “Interagency Advisory on Interest Rate Risk”). Since its release, examiners and the industry have requested clarification of some specific recommendations in the advisory.

The Federal Reserve Bank of San Francisco, acting under delegated authority, has approved the application of Green Dot Bank, Provo, Utah, for membership in the Federal Reserve System.

Posted February 6, 2012

The Federal Reserve Bank of San Francisco, acting under delegated authority, has approved the application of Green Dot Bank, Provo, Utah, for membership in the Federal Reserve System. Green Dot Bank, which is in our Salt Lake City zone, will retain ABA transit numbers 124302529 and 124303120 and the encoded routing symbols 97-2529/1243 and 97-3120/1243.

Agencies Issue Guidance on Junior Lien Loan Loss Allowances

Posted February 2, 2012

Four federal financial regulatory agencies on January 31, 2012 issued supervisory guidance on allowance for loan and lease losses (ALLL) estimation practices associated with loans and lines of credit secured by junior liens on one- to four-family residential properties.

SR 11-15 Disposal of Problem Assets Through Exchanges

Posted January 18, 2012

On December 21, 2011, the Board of Governors of the Federal Reserve System issued SR 11-15 (Disposal of Problem Assets through Exchanges). This letter applies to all state member banks, bank holding companies and their nonbank subsidiaries, and savings and loan holding companies that engage in asset exchange transactions, including those with $10 billion or less in consolidated assets.

Consumer Financial Protection Bureau Interim Final Rules

Posted January 18, 2012

The Dodd-Frank Act transferred rulemaking authority for many consumer financial protection laws from various Federal agencies to the Consumer Financial Protection Bureau (Bureau). The Bureau is in the process of republishing these regulations with technical and conforming changes to reflect the transfer of authority and certain other changes made by the Dodd-Frank Act.

Federal Reserve Offers $3 Billion in 28-Day Term Deposits through its Term Deposit Facility

Posted January 5, 2012

On Monday, January 9, 2012, the Federal Reserve will offer $3 billion in 28-day term deposits through its Term Deposit Facility. As noted in the Federal Reserve Board's September 8, 2010 release, this offering is part of ongoing small-value operations designed to provide eligible institutions with an opportunity to become familiar with term deposit operations.

2011

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Federal Reserve Board Proposes Steps to Strengthen Regulation and Supervision of Large Bank Holding Companies and Systemically Important Nonbank Financial Firms

Posted December 23, 2011

The Federal Reserve Board on December 20, 2011 proposed steps to strengthen regulation and supervision of large bank holding companies and systemically important nonbank financial firms. The proposal, which includes a wide range of measures addressing issues such as capital, liquidity, credit exposure, stress testing, risk management, and early remediation requirements, is mandated by the Dodd-Frank Wall Street Reform and Consumer Protection Act.

Federal Reserve offers $5 billion in 28-day term deposits through its Term Deposit Facility

Posted November 9, 2011

On Monday, November 14, 2011, the Federal Reserve will offer $5 billion in 28-day term deposits through its Term Deposit Facility. As noted in the Federal Reserve Board's September 8, 2010 release, this offering is part of ongoing small-value operations designed to provide eligible institutions with an opportunity to become familiar with term deposit operations.

Election of Directors

Posted November 8, 2011

In accordance with the provisions of Section 4 of the Federal Reserve Act and the announcement dated September 20, 2011, in regard to the election of directors of this Bank to succeed Mrs. Karla S.

Federal Reserve Board Issues Final Rule Under Regulation B Regarding Data Collection Compliance Requirements for Motor Vehicle Dealers

Posted September 23, 2011

The Federal Reserve Board on September 20, 2011 issued a final rule amending Regulation B to provide that motor vehicle dealers are not required to comply with new data collection requirements in the Dodd-Frank Wall Street Reform and Consumer Protection Act (Dodd-Frank Act) until the Board issues final regulations to implement the statutory requirements.

Federal Reserve offers $5 billion in 28-day term deposits through its Term Deposit Facility

Posted September 16, 2011

On Monday, September 19, 2011, the Federal Reserve will offer $5 billion in 28-day term deposits through its Term Deposit Facility. As noted in the Federal Reserve Board's September 8, 2010 release, this offering is part of ongoing small-value operations designed to provide eligible institutions with an opportunity to become familiar with term deposit operations.

SR 11-13 Guidance Regarding Prior Notices with Respect to Dividend Declarations by Savings Association Subsidiaries of Savings and Loan Holding Companies

Posted August 3, 2011

Effective July 21, 2011, any savings association that is a subsidiary of a savings and loan holding company (SLHC) must provide notice to the Board at least 30 days before declaring a dividend.1 The duty to review and process these notices is one of the new responsibilities the Board assumed on July 21, 2011, as part of the supervisory and rulemaking authority previously held by the Office of Thrift Supervision (OTS) with respect to SLHCs.

SR 11-12 Deregistration Procedures for Certain Savings and Loan Holding Companies

Posted August 3, 2011

Under the Home Owners’ Loan Act (HOLA), a savings and loan holding company (SLHC) includes any company that directly or indirectly controls either a savings association or any other company that is an SLHC.1 The Dodd-Frank Wall Street Reform and Consumer Protection Act (Dodd-Frank Act) amended HOLA to exclude from the definition of an SLHC any company that controls only one savings association subsidiary, provided that subsidiary functions solely in a trust or fiduciary capacity as described in section 2(c)(2)(D) of the Bank Holding Company Act (BHC Act).

SR 11-11 / CA 11-5 Supervision of Savings and Loan Holding Companies (SLHCs)

Posted August 3, 2011

Title III of the Dodd-Frank Wall Street Reform and Consumer Protection Act1 (Dodd-Frank Act) transfers to the Board of Governors of the Federal Reserve System (Board) the supervisory functions of the Office of Thrift Supervision (OTS) related to SLHCs and their nondepository subsidiaries beginning on July 21, 2011. The Dodd-Frank Act also provides that all regulations, guidelines, and other advisory materials issued by the OTS on or before the transfer date with respect to SLHCs and their nondepository subsidiaries will be enforceable until modified, terminated, set aside, or superseded.

New Member BankBay Commercial Bank

Posted August 1, 2011

The Federal Reserve Bank of San Francisco, acting under delegated authority, has approved the application of Bay Commercial Bank, Walnut Creek, California, for membership in the Federal Reserve System.

Federal Reserve Offers $5 billion in 28-day Term Deposits Through Its Term Deposit Facility

Posted July 21, 2011

On Monday, July 25, 2011, the Federal Reserve will offer $5 billion in 28-day term deposits through its Term Deposit Facility. As noted in the Federal Reserve Board's September 8, 2010 release, this offering is part of ongoing small-value operations designed to provide eligible institutions with an opportunity to become familiar with term deposit operations.

SR 11-9 Interagency Supplement to Authentication in an Internet Banking Environment

Posted July 20, 2011

The Federal Reserve Board, together with the other members of the Federal Financial Institution Examination Council (FFIEC) (collectively, the agencies) have issued the attached guidance titled “Supplement to Authentication in an Internet Banking Environment” (Supplement), which supplements the similarly titled guidance issued by the FFIEC in 2005. Given heightened and evolving cyber threats in the online environment, the supplement reinforces the original risk-management framework guidance and updates the agencies’ expectations for supervised financial organizations regarding customer authentication, layered security, and other controls.

SR 11-10Interagency Counterparty Credit Risk Management Guidance

Posted July 20, 2011

The federal banking agencies1 are issuing the attached Interagency Supervisory Guidance on Counterparty Credit Risk Management. It is intended primarily for use by banking organizations with large derivatives portfolios in establishing and maintaining counterparty credit risk (CCR) management practices, as well as for supervisors as they assess and examine such institutions’ CCR management.

SR 11-8 Supervisory Guidance on Implementation Issues Related to the Advanced Measurement Approaches for Operational Risk

Posted July 20, 2011

The Board of Governors of the Federal Reserve System and the other federal banking agencies1 are issuing the attached Interagency Guidance on the Advanced Measurement Approaches for Operational Risk to address and provide clarity on implementation issues related to the advanced measurement approaches (AMA) in the agencies’ advanced capital adequacy framework (advanced approaches rule).2 Since the guidance only applies to banking organizations that are required to adopt the advanced approaches or have opted to do so, it generally will not be applicable to community banking organizations.

Dodd-Frank Wall Street Reform and Consumer Protection Act’s Regulations CC

Posted July 14, 2011

This circular is provided to advise management of a provision in the Dodd-Frank Wall Street Reform and Consumer Protection Act (Dodd-Frank Act) of 2010 that becomes effective July 21, 2011. Specifically, Section 1086 of the Dodd-Frank Act amends the Expedited Funds Availability Act (EFAA) implemented by Regulation CC.

Federal Reserve Releases Report on College Credit Card Agreements

Posted July 13, 2011

The Federal Reserve Board on July 7, 2011 released a report that contains 2010 payment and account information about more than 1,000 agreements between institutions of higher education or affiliated organizations and credit card issuers. The Board also updated an online database that includes the full text of each agreement that was in effect during 2010.

Federal Reserve and FTC Issue Final Rules to Implement the Credit Score Disclosure Requirements of the Dodd-Frank Act

Posted July 7, 2011

The Federal Reserve Board (Board) and the Federal Trade Commission (FTC) on July 6, 2011 issued final rules to implement the credit score disclosure requirements of the Dodd-Frank Wall Street Reform and Consumer Protection Act. If a credit score is used in setting material terms of credit or in taking adverse action, the statute requires creditors to disclose credit scores and related information to consumers in notices under the Fair Credit Reporting Act (FCRA).

Banking Agencies Issue Host State Loan-To-Deposit Ratios

Posted July 7, 2011

The Board of Governors of the Federal Reserve System, the Federal Deposit Insurance Corporation, and the Office of the Comptroller of the Currency recently issued the host state loan-to-deposit ratios that the banking agencies will use to determine compliance with section 109 of the Riegle-Neal Interstate Banking and Branching Efficiency Act of 1994. These ratios update data released on June 24, 2010.

Federal Reserve Issues a Final Rule Establishing Standards for Debit Card Interchange Fees and Prohibiting Network Exclusivity Arrangements and Routing Restrictions

Posted July 7, 2011

The Federal Reserve Board on June 29, 2011 issued a final rule establishing standards for debit card interchange fees and prohibiting network exclusivity arrangements and routing restrictions. This rule, Regulation II (Debit Card Interchange Fees and Routing), is required by the Dodd-Frank Wall Street Reform and Consumer Protection Act.

Annual Adjustment of Fee-Based Trigger for Additional Mortgage Loan Disclosures

Posted June 27, 2011

The Federal Reserve Board on June 13, 2011 published its annual adjustment to the amount of fees that triggers additional disclosure requirements under the Truth in Lending Act and the Home Ownership and Equity Protection Act of 1994 for home mortgage loans that bear rates or fees above a certain amount.

Federal Reserve Proposes Rules Under Regulation B to Clarify Data Collection Compliance Requirements for Motor Vehicle Dealers

Posted June 27, 2011

The Federal Reserve Board on June 20, 2011 issued a proposed rule under Regulation B to clarify that motor vehicle dealers temporarily are not required to comply with certain data collection requirements in the Dodd-Frank Wall Street Reform and Consumer Protection Act (Dodd-Frank Act) until the Board issues final regulations to implement the statutory requirements. The Board believes that implementing rules are needed to ensure data are collected and reported in a consistent and standardized way.

Agencies Adopt a Final Rule to Establish a Risk-Based Capital Floor

Posted June 27, 2011

Three federal banking regulatory agencies adopted a final rule that establishes a floor for the risk-based capital requirements applicable to the largest, internationally active banking organizations. The rule, finalized by the Federal Reserve Board, the Federal Deposit Insurance Corporation, and the Office of the Comptroller of the Currency, is consistent with the requirements of Section 171 of the Dodd-Frank Wall Street Reform and Consumer Protection Act.

Agencies Seek Comment on Stress Testing Guidance

Posted June 10, 2011

The Federal Reserve Board, the Office of the Comptroller of the Currency, and the Federal Deposit Insurance Corporation are seeking comment on proposed supervisory guidance regarding stress-testing practices at banking organizations with total consolidated assets of more than $10 billion.

Agencies Extend Comment Period on Risk Retention Proposal

Posted June 9, 2011

Six federal agencies have approved and will submit a Federal Register notice that extends the comment period on the proposed rules to implement the credit risk retention requirements of the Dodd-Frank Wall Street Reform and Consumer Protection Act. The comment period was extended to August 1, 2011, to allow interested persons more time to analyze the issues and prepare their comments.

The Federal Reserve Bank of San Francisco, acting under delegated authority, has approved the application of Westamerica Bank, San Rafael, California, for membership in the Federal Reserve System.

Posted May 27, 2011

The Federal Reserve Bank of San Francisco, acting under delegated authority, has approved the application of Westamerica Bank, San Rafael, California, for membership in the Federal Reserve System. Westamerica Bank, which is in our San Francisco zone, will retain ABA transit number 121140218 and the encoded routing symbol 90-4021 / 1211.

SR 11-7 Guidance on Model Risk Management

Posted May 25, 2011

The Federal Reserve and Office of the Comptroller of the Currency (OCC) have issued the attached Supervisory Guidance on Model Risk Management, which is intended for use by banking organizations and supervisors as they assess organizations’ management of model risk. This guidance should be applied as appropriate to all banking organizations supervised by the Federal Reserve, taking into account each organization’s size, nature, and complexity, as well as the extent and sophistication of its use of models (as defined and discussed below).

Federal Reserve Offers $5 Billion in 28-day Term Deposits Through its Term Deposit Facility

Posted May 25, 2011

On Tuesday, May 31, 2011 the Federal Reserve will offer $5 billion in 28-day term deposits through its Term Deposit Facility. As noted in the Federal Reserve Board's September 8, 2010 release, this offering is part of ongoing small-value operations designed to provide eligible institutions with an opportunity to become familiar with term deposit operations.

Federal Reserve Proposes Rule Under Regulation E to Create New Consumer Protections for Remittance Transfers

Posted May 19, 2011

The Federal Reserve Board on May 12, 2011 requested public comment on a proposed rule that would create new protections for consumers who send remittance transfers to recipients located in a foreign country. The proposed rule would require that remittance transfer providers make certain disclosures to senders of remittance transfers, including information about fees and the exchange rate, as applicable, and the amount of currency to be received by the recipient.

Spanish Translation of the FFIEC BSA/AML Examination Manual

Posted April 21, 2011

The Federal Reserve, together with the Federal Deposit Insurance Corporation and the Office of the Comptroller of the Currency (collectively, the Agencies), have issued a Spanish-language translation of the Federal Financial Institutions Examination Council’s (FFIEC) Bank Secrecy Act/Anti-Money Laundering Examination Manual (manual). The Spanish version is based on the most recent version of the manual issued by the FFIEC in April 2010.

Guidance on Accepting Accounts from Foreign Embassies, Consulates and Missions (foreign missions)

Posted April 21, 2011

An Interagency1 Advisory has been issued to supplement SR letter 04-10, “Banking Accounts for Foreign Governments, Embassies, and Political Figures.” The supplemental advisory provides information to financial institutions regarding the provision of account services to foreign missions in a manner that fulfills the needs of those foreign governments while complying with the provisions of the Bank Secrecy Act (BSA).

Interagency Statement on Reorganization of FinCENs Bank Secrecy Act Regulations

Posted April 21, 2011

The Federal Reserve, together with the Federal Deposit Insurance Corporation, the National Credit Union Administration, the Office of the Comptroller of the Currency, the Office of Thrift Supervision, and the State Liaison Committee of the Federal Financial Institutions Examination Council, has issued the attached interagency statement entitled Reorganization of FinCEN’s Bank Secrecy Act Regulations.

Agencies Seek Comment on Swap Margin and Capital Requirements

Posted April 21, 2011

Five federal agencies are seeking comment on a proposed rule to establish margin and capital requirements for swap dealers, major swap participants, security-based swap dealers, and major security-based swap participants as required by the Dodd-Frank Wall Street Reform and Consumer Protection Act.

Agencies Seek Comment on Resolution Plan Reporting

Posted April 21, 2011

Large, systemically significant bank holding companies and nonbank financial companies would be required to submit annual resolution plans and quarterly credit exposure reports under a rule proposed by the Federal Reserve Board and the Federal Deposit Insurance Corporation.

Federal Reserve Seeks Comment on Proposed Rule to Repeal Regulation Q, Which Prohibits the Payment of Interest on Demand Deposits

Posted April 8, 2011

The Federal Reserve Board on April 6, 2011 requested comment on a proposed rule to repeal the Board's Regulation Q, which prohibits the payment of interest on demand deposits by institutions that are member banks of the Federal Reserve System. The proposed rule would implement Section 627 of the Dodd-Frank Wall Street Reform and Consumer Protection Act, which repeals Section 19(i) of the Federal Reserve Act in its entirety effective July 21, 2011.

Agencies Seek Comment on Risk Retention Proposal

Posted April 5, 2011

Six federal agencies are seeking comment on a proposed rule that would require sponsors of asset-backed securities (ABS) to retain at least 5 percent of the credit risk of the assets underlying the securities and would not permit sponsors to transfer or hedge that credit risk.

Agencies Seek Comment on Risk Retention Proposal

Posted April 5, 2011

Six federal agencies are seeking comment on a proposed rule that would require sponsors of asset-backed securities (ABS) to retain at least 5 percent of the credit risk of the assets underlying the securities and would not permit sponsors to transfer or hedge that credit risk.

Federal Reserve System Publishes Annual Financial Statements

Posted March 23, 2011

The Federal Reserve System on March 22, 2011 released the 2010 combined annual comparative financial statements for the Federal Reserve Banks, as well as for the 12 individual Federal Reserve Banks, the limited liability companies (LLCs) that were created to respond to strains in financial markets, and the Board of Governors. These financial statements are audited annually by an independent auditing firm.

Federal Reserve Issues Clarifications to Regulation Z Provisions That Apply to Open-End Credit Plans, Including Credit Cards

Posted March 21, 2011

The Federal Reserve Board on March 18, 2011 approved a rule amending Regulation Z (Truth in Lending) to clarify aspects of prior Board rules implementing the Credit Card Accountability Responsibility and Disclosure Act of 2009 (Credit Card Act). This rule is intended to enhance protections for consumers who use credit cards and to resolve areas of uncertainty so that card issuers fully understand their compliance obligations.

Federal Reserve Proposes Amendments to Regulation CC Regarding Collection of Checks and Availability of Funds

Posted March 9, 2011

The Federal Reserve Board on March 3, 2011 requested public comment on proposed amendments to Regulation CC (Availability of Funds and Collection of Checks) to encourage banks to clear and return checks electronically, add provisions that govern electronic items cleared through the check-collection system, and shorten the 'exception' hold periods on deposited funds.

Federal Reserve Issues Final Rule to Implement Volcker Rule Conformance Period

Posted February 18, 2011

The Federal Reserve Board on Wednesday February 9, 2011 announced its approval of a final rule to implement the provisions of the Dodd-Frank Wall Street Reform and Consumer Protection Act that give banking firms a period of time to conform their activities and investments to the prohibitions and restrictions of the so-called Volcker Rule.

Consumer Advisory Council Will Meet on March 10, 2011

Posted February 18, 2011

The Federal Reserve Board announced Wednesday that the Consumer Advisory Council will hold its next meeting on Thursday, March 10. The meeting will take place in Dining Room E, Terrace Level, in the Board’s Martin Building.

2010

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Election of Directors

Posted November 29, 2010

In accordance with the provisions of Section 4 of the Federal Reserve Act and the announcement dated October 8, 2010, in regard to the election of directors of this Bank to succeed Mr. William D.

Federal Reserve Issues Proposal to Implement Volcker Rule Conformance Period

Posted November 24, 2010

The Federal Reserve Board on November 17, 2010 requested comment on a proposed rule to implement provisions of the Dodd-Frank Wall Street Reform and Consumer Protection Act that give banking firms a defined period of time to conform their activities and investments to the so-called Volcker Rule.

Federal Reserve Announces Interim Final Rule on Real Estate Appraisal

Posted November 10, 2010

The Federal Reserve Board announced on October 18, 2010 an interim final rule to ensure that real estate appraisers are free to use their independent professional judgment in assigning home values without influence or pressure from those with interests in the transactions. The rule also seeks to ensure that appraisers receive customary and reasonable payments for their services.

New Member BankAltaPacific Bank

Posted November 5, 2010

The Federal Reserve Bank of San Francisco, acting under delegated authority, has approved the application of AltaPacific Bank, Santa Rosa, California, for membership in the Federal Reserve System.

Financial Regulators Adopt Guidance on Reverse Mortgage Products

Posted September 17, 2010

Abstract: The Federal Financial Institutions Examination Council (FFIEC) released guidance on August 16, 2010 on reverse mortgage products. The guidance, adopted by each of the financial regulators, emphasizes the consumer protection concerns raised by reverse mortgages and the importance of financial institutions mitigating the compliance and reputation risks associated with these products.

Federal Reserve Issues Interim Rule Revising Disclosure Requirements for Closed-End Mortgages

Posted August 27, 2010

Abstract: The Federal Reserve Board issued an interim rule on August 16, 2010 that revises the disclosure requirements for closed-end mortgage loans under Regulation Z (Truth in Lending). The interim rule implements provisions of the Mortgage Disclosure Improvement Act (MDIA) that require lenders to disclose how borrowers' regular mortgage payments can change over time.

Federal Reserve Proposes Rule to Revise Escrow Account Requirements for Jumbo Mortgages

Posted August 27, 2010

Abstract: The Federal Reserve Board proposed on August 16, 2010 a rule to revise the escrow account requirements for higher-priced, first-lien "jumbo" mortgage loans. The proposed rule, which implements a provision of the Dodd-Frank Wall Street Reform and Consumer Protection Act, would increase the annual percentage rate (APR) threshold used to determine whether a mortgage lender is required to establish an escrow account for property taxes and insurance for first-lien jumbo mortgage loans.

Federal Agencies Issue Final Rules to Implement S.A.F.E. Act Requirements for Registration of Mortgage Loan Originators

Posted August 23, 2010

Abstract: Federal agencies issued final rules on July 28, 2010 requiring residential mortgage loan originators who are employees of national and state banks, savings associations, Farm Credit System institutions, credit unions, and certain of their subsidiaries (agency-regulated institutions) to meet the registration requirements of the Secure and Fair Enforcement for Mortgage Licensing Act of 2008 (S.A.

Annual Adjustment of Fee-Based Trigger for Additional Mortgage Loan Disclosures

Posted August 23, 2010

Abstract:The Federal Reserve Board published on July 30, 2010 its annual adjustment of the dollar amount of fees that triggers additional disclosure requirements under the Truth in Lending Act and the Home Ownership and Equity Protection Act of 1994 for home mortgage loans that bear rates or fees above a certain amount.

Banking Agencies Issue Host State Loan-to-Deposit Ratios

Posted July 22, 2010

The Board of Governors of the Federal Reserve System, the Federal Deposit Insurance Corporation, and the Office of the Comptroller of the Currency issued on June 24, 2010 the host state loan-to-deposit ratios that the banking agencies will use to determine compliance with section 109 of the Riegle-Neal Interstate Banking and Branching Efficiency Act of 1994. These ratios update data released on June 29, 2009.

Agencies Propose to Expand Scope of Community Reinvestment Act Regulations

Posted July 1, 2010

The federal bank and thrift regulatory agencies announced on June 17, 2010 a proposed change to the Community Reinvestment Act (CRA) regulations to support stabilization of communities affected by high foreclosure levels. The proposed change specifically would encourage depository institutions to support the Neighborhood Stabilization Program (NSP) administered by the U.

Federal Reserve Announces Discussion Topics for Public Hearings on Home Mortgage Disclosure Act

Posted July 1, 2010

The Federal Reserve Board announced on June 17, 2010 the discussion topics for its upcoming public hearings on potential revisions to Regulation C, which implements the Home Mortgage Disclosure Act (HMDA). Members of the Board's Consumer Advisory Council (CAC), who represent consumer and community organizations, the financial services industry, academic institutions, and state agencies, will join Board officials in presiding at the hearings.

Federal Reserve, OCC, OTS, FDIC Issue Final Guidance on Incentive Compensation

Posted July 1, 2010

The Federal Reserve, the Office of the Comptroller of the Currency (OCC), the Office of Thrift Supervision (OTS), and the Federal Deposit Insurance Corporation (FDIC) issued final guidance on June 21, 2010 to ensure that incentive compensation arrangements at financial organizations take into account risk and are consistent with safe and sound practices. The guidance was originally proposed by the Federal Reserve last year.

Consumer Advisory Council Appointment

Posted June 25, 2010

The Federal Reserve Board has named Maeve Elise Brown, Executive Director of Housing and Economic Rights Advocates (HERA) in Oakland, California, to fill a vacancy on its Consumer Advisory Council.

Consumer Advisory Council will meet on June 17, 2010

Posted June 9, 2010

The Federal Reserve Board announced on June 3, 2010 that the Consumer Advisory Council will hold its next meeting on Thursday, June 17. The meeting will take place in Dining Room E, Terrace Level, in the Board’s Martin Building.

Board to Hold Four Public Hearings on Home Mortgage Disclosure Act

Posted May 21, 2010

The Federal Reserve Board announced on April 23, 2010 that it will hold four public hearings, beginning in July, on potential revisions to Regulation C, which implements the Home Mortgage Disclosure Act. The act requires mortgage lenders to provide detailed annual reports of their mortgage lending activity to regulators and the public.

Federal Reserve System Publishes Annual Financial Statements

Posted May 6, 2010

The Federal Reserve System released on April 21, 2010 the 2009 annual comparative financial statements for the combined Federal Reserve Banks, the 12 individual Federal Reserve Banks, the limited liability companies (LLCs) that were created to respond to strains in financial markets, and the Board of Governors. The individual and combined Reserve Bank financial statements and those of the consolidated LLCs and the Board are audited annually by an independent auditing firm.

Federal Banking Agencies Issue Policy Statement on Funding and Liquidity Risk Management

Posted April 19, 2010

The federal banking agencies, in conjunction with the Conference of State Bank Supervisors (CSBS), released a policy statement on March 17, 2010 on their expectations for sound funding and liquidity risk management practices.1 This policy statement, adopted by each of the agencies, summarizes the principles of sound liquidity risk management issued previously and, when appropriate, supplements them with the 'Principles for Sound Liquidity Risk Management and Supervision' issued in September 2008 by the Basel Committee on Banking Supervision.

Submission of Consumer Credit Card Agreement

Posted April 9, 2010

The purpose of this letter is to reiterate and highlight Regulation Z (Truth in Lending) requirements related to the submission of consumer credit card agreements. Under the Credit Card Accountability Responsibility and Disclosure Act of 2009, credit card issuers must submit their consumer credit card agreements to the Federal Reserve Board (Board) for posting on the Board's Web site.

Board Releases Online Publication on New Overdraft Rules for Debit and ATM Cards

Posted March 24, 2010

Bank account overdraft fees can be a source of unexpected costs for consumers. A new online Federal Reserve Board publication will help consumers better understand rules that provide additional protection when a debit card or automated teller machine (ATM) transaction causes an account to be overdrawn.

Consumer Advisory Council will meet on March 25, 2010

Posted March 19, 2010

The Federal Reserve Board announced on March 10, 2010 that the Consumer Advisory Council will hold its next meeting on Thursday, March 25. The meeting will take place in Dining Room E, Terrace Level, in the Board’s Martin Building.

Federal Reserve Announces an Online Consumer Guide to Credit Cards

Posted March 16, 2010

The Federal Reserve Board launched a new interactive website on February 19, 2010 to help consumers better understand the new credit card protections that went into effect on February 22. These rules ban several harmful practices and require greater transparency in the disclosure of the terms and conditions of credit card accounts.

Regulators Issue Statement on Lending to Creditworthy Small Businesses

Posted March 15, 2010

The federal financial regulatory agencies and the Conference of State Bank Supervisors (the regulators) issued a statement on February 5, 2010 on prudent lending to creditworthy small business borrowers.1 The regulators recognize that small businesses play an important role in the economy and know that some are experiencing difficulty in obtaining or renewing credit.

FFIEC Issues 2009 Mortgage Fraud White PaperThe Detection and Deterrence of Mortgage Fraud Against Financial Institutions

Posted March 15, 2010

The Federal Financial Institutions Examination Council (FFIEC), on behalf of its members, released an updated edition of its white paper on February 16, 2010 on mortgage fraud detection and deterrence. The white paper defines various types of fraud, gives examples of how individuals commit fraud, provides a list of red flags, and outlines best practices.

Rates of Interest on Advances and Discounts

Posted February 19, 2010

Enclosed is an amendment to the rates of interest on advances and discounts in the Twelfth Federal Reserve District. The enclosure, which is effective February 19, 2010, reflects an increase from 0.

Board Advises Institutions of Supervisory Expectations for Sound Practices in Managing Interest Rate Risk

Posted February 18, 2010

The Federal Reserve released an advisory on January 7, 2010 reminding depository institutions of supervisory expectations for sound practices in managing interest rate risk. This advisory, adopted along with the other financial regulators, reiterates the importance of effective corporate governance, policies and procedures, risk measuring and monitoring systems, stress testing, and internal controls related to the interest rate risk exposures of depository institutions.

Agencies Release Annual CRA Asset-Size Threshold Adjustments for Small and Intermediate Small Institutions

Posted February 4, 2010

The federal bank regulatory agencies announced on December 22, 2009 the annual adjustment to the asset-size thresholds used to define 'small bank,' 'small savings association,' 'intermediate small bank' and 'intermediate small savings association' under the Community Reinvestment Act (CRA) regulations. The annual adjustments for banks are required by the 2005 CRA regulatory amendments and for savings associations by the Office of Thrift Supervision (OTS) 2007 CRA regulatory amendments.

The Federal Reserve Board has Approved Amendments to Appendix A of Regulation CC that Reflect the Restructuring of the Federal Reserve Banks’ Check-Processing Operations

Posted February 4, 2010

Appendix A provides a routing symbol guide that helps depository institutions determine the maximum permissible hold periods for most deposited checks. On February 27, 2010, the Reserve Banks will transfer the check-processing operations of the head office of the Federal Reserve Bank of Atlanta to the head office of the Federal Reserve Bank of Cleveland.

Agencies Issue Final Rules on Risk-Based Pricing Notices

Posted February 3, 2010

The Federal Reserve Board and the Federal Trade Commission announced on December 22, 2009 final rules that generally require a creditor to provide a consumer with a notice when, based on the consumer's credit report, the creditor provides credit to the consumer on less favorable terms than it provides to other consumers. Consumers who receive this 'risk-based pricing' notice will be able to obtain a free credit report to check the accuracy of the report.

Board Approves Reduction in Maximum Maturity of Primary Credit Loans effective January 14, 2010

Posted January 27, 2010

In light of the continued improvement in financial market conditions, the Federal Reserve Board announced on November 17, 2009 that it approved a reduction in the maximum maturity of primary credit loans at the discount window for depository institutions to 28 days from 90 days effective January 14, 2010. Primary credit loans will remain eligible for renewal upon request of the borrower.

Federal Reserve Approves Interim Final Rule Requiring Notice be given to Consumers When their Mortgage Loan is Sold or Transferred

Posted January 22, 2010

The Federal Reserve Board approved an interim final rule on November 16, 2009 to implement a recent statutory amendment requiring that notice be given to consumers when their mortgage loan has been sold or transferred. The new disclosure requirement became effective immediately upon enactment of the Helping Families Save Their Homes Act in May, 2009.

Federal Reserve Adopts Policy Statement Supporting Prudent Commercial Real Estate (CRE) Loan Workouts

Posted January 5, 2010

The Federal Reserve adopted a policy statement on October 30, 2009 supporting prudent commercial real estate (CRE) loan workouts. This policy statement, adopted by each of the financial regulators,1 provides guidance for examiners, and for financial institutions that are working with CRE borrowers who are experiencing diminished operating cash flows, depreciated collateral values, or prolonged delays in selling or renting commercial properties.

2009

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Federal Reserve Announces Changes to Procedures for Evaluating Asset-Backed Securities Pledged to the Term Asset-Backed Securities Loan Facility (TALF)

Posted November 24, 2009

The Federal Reserve Board announced on October 5, 2009 two changes to the procedures for evaluating asset-backed securities (ABS) pledged to the Term Asset-Backed Securities Loan Facility (TALF). The TALF, which was authorized by the Board on November 24, 2008, helps market participants meet the credit needs of households and businesses by lending to investors in highly rated ABS and commercial mortgage-backed securities (CMBS).

CA 09-12Short-Term Balloon Loans and Regulation Z Repayment Ability Requirement for Higher-Priced Mortgage Loans

Posted November 20, 2009

This letter provides answers to frequently asked questions regarding compliance with Regulation Z’s repayment ability rule for higher-priced balloon mortgage loans with terms of less than 7 years.1 In 2008, the Board revised Regulation Z, which implements the Truth in Lending Act and the Home Ownership and Equity Protection Act, to prohibit creditors from making higher-priced mortgage loans “based on the value of the consumer’s collateral without regard to the consumer’s repayment ability as of consummation, including the consumer’s current and reasonably expected income, employment, assets other than the collateral, current obligations, and mortgage-related obligations.

Federal Reserve to Implement Consumer Compliance Supervision Program of Nonbank Subsidiaries of Bank Holding Companies and Foreign Banking Organizations

Posted October 19, 2009

The Federal Reserve, under a policy announced September 15, 2009, will implement a consumer compliance supervision program in nonbank subsidiaries of bank holding companies (BHCs) and foreign banking organizations (FBOs) with activities covered by the consumer protection laws and regulations the Federal Reserve has the authority to enforce. The policy, which will take effect immediately, also provides for the investigation of consumer complaints against these nonbank entities.

Election of Directors

Posted October 16, 2009

In accordance with the provisions of Section 4 of the Federal Reserve Act and the announcement dated August 26, 2009, in regard to the election of directors of this Bank to succeed Mr. Kenneth P.

Election of DirectorsNomination Procedures

Posted August 26, 2009

An election will be conducted under the provisions of Section 4 of the Federal Reserve Act for the positions held by the following directors of this Bank…

Changes to the Collateral Margins Table for Discount Window and Payment System Risk Purposes

Posted August 19, 2009

On August 19, 2009, the Federal Reserve Banks announced changes to the collateral margins table for discount window (including Term Auction Facility lending) and payment system risk purposes, effective October 19, 2009. Since your institution pledges collateral for discount window and/or payment system risk purposes, I am writing to inform you of these changes.

Federal Reserve Board Proposes Significant Changes to Regulation Z (Truth in Lending)

Posted August 11, 2009

The Federal Reserve Board proposed significant changes to Regulation Z (Truth in Lending) on July 23, 2009 intended to improve the disclosures consumers receive in connection with closed-end mortgages and home-equity lines of credit (HELOCs). These changes, offered for public comment, reflect the result of consumer testing conducted as part of the Board's comprehensive review of the rules for home-secured credit.

Federal Reserve Board Approves Interim Final Rule Amending Regulation Z (Truth in Lending)

Posted July 23, 2009

The Federal Reserve Board approved an interim final rule on July 15, 2009 amending Regulation Z (Truth in Lending) to require creditors to provide consumers earlier advance notice before the rate on a credit card account is increased or a significant change is made to the account's terms. The amendments also allow consumers to reject such increases and changes by informing the creditor before the increase or change goes into effect.

Agencies Issue Frequently Asked Questions on Identity Theft Rules

Posted July 23, 2009

Six federal agencies issued a set of frequently asked questions (FAQs) on June 11, 2009 to help financial institutions, creditors, users of consumer reports, and issuers of credit cards and debit cards comply with federal regulations on identity theft and discrepancies in changes of address.

Federal Reserve Board Approves Final Rules Revising Regulation Z (Truth in Lending)

Posted May 29, 2009

The Federal Reserve Board on May 7, 2009 approved final rules that revise the disclosure requirements for mortgage loans under Regulation Z (Truth in Lending). The revisions implement the Mortgage Disclosure Improvement Act (MDIA), which was enacted in July 2008 as an amendment to the Truth in Lending Act (TILA).

Financial Crimes Enforcement Network (FinCEN) Educational Pamphlet on the Currency Transaction Report (CTR) Reporting Requirement

Posted March 23, 2009

On February 24, 2009, FinCEN released the educational pamphlet, 'Notice to Customers: A CTR Reference Guide,' for financial institutions and their customers containing information on the currency transaction reporting (CTR) requirement. The pamphlet, which may be provided to customers, is intended to be used as a resource for financial institutions to help address questions frequently asked by their customers regarding currency transactions.

Federal Emergency Management Agency (FEMA) Makes Minor Revisions to the Standard Flood Hazard Determination Form

Posted February 25, 2009

The Federal Emergency Management Agency (FEMA) has made minor revisions to the Standard Flood Hazard Determination Form (SFHDF) 81-93 and the accompanying instructions. The new SFHDF contains an updated form expiration date of December 31, 2011, and the instructions have been modified to include the addition of the Department of Homeland Security as part of the address provided for those who want to send comments or suggestions concerning the estimated paperwork burden time.

New Member BankMarlin Business Bank

Posted January 13, 2009

The Federal Reserve Bank of San Francisco, acting under delegated authority, has approved the application of Marlin Business Bank, Salt Lake City, Utah, for membership in the Federal Reserve System.