What's New? Temporary Unlimited Coverage on Noninterest Bearing Transaction Accounts to Expire

The temporary unlimited deposit insurance coverage for noninterest-bearing transaction account (under the Dodd-Frank Wall Street Reform and Consumer Protection Act) is scheduled to expire on December 31, 2012. Absent a change in law, beginning January 1, 2013, the FDIC will no longer provide separate, unlimited deposit insurance coverage for noninterest bearing transaction accounts. 

Gold Book sections Transaction Account Guarantee Program, Notice Requirements, and IOLTA have been updated accordingly.

What's New? Hurricane Sandy Relief for Qualified Plans

The Internal Revenue Service issued Announcement 2012-44 on November 16, 2012 providing relief to victims of Hurricane Sandy who have retirement assets in qualified employer plans and Individual Retirement Accounts (IRAs) they would like to use to alleviate hardships caused by Hurricane Sandy.

Updates have been made in the Pension chapter to reflect changes in hardship distributions, plan loans and penalty exceptions.

See:

IRS Penalty Exceptions

IRS Penalty Exceptions, Hurricane Sandy Victims

401(k) Plan Hardship Distributions

Loans, Hurricane Sandy Victims

What's New? Reg Z Dollar Thresholds Increased for 2013

The Federal Reserve Board and the Consumer Financial Protection Bureau announced 2013 increases in the dollar thresholds for Regulation Z (Truth-in-Lending) and Regulation M (Consumer Leasing) for exempt consumer credit and lease transactions. 

The following sections of The Gold Book are updated:

High-Cost Mortgages

Truth-in-Lending (Regulation Z) Coverage

Truth-in-Lending (Regulation Z) Exemptions

What's New? New Classification System for Citing Violations in Reports of Examination

A new classification system for citing violations in reports of examination was effective October 1, 2012. Read more.

Deposit Insurance on Non-Interest Bearing Accounts

Pursuant to Section 343 of the Dodd-Frank Wall Street Reform and Consumer Protection Act (Dodd-Frank Act), temporary unlimited deposit insurance coverage for noninterest-bearing transaction accounts (NIBTAs), including Interest on Lawyer Trust Accounts, is scheduled to expire on December 31, 2012. Absent a change in law, beginning January 1, 2013, the FDIC no longer will provide separate, unlimited deposit insurance coverage for NIBTAs at insured depository institutions (IDIs). IDIs are encouraged to take reasonable steps to provide adequate advance notice to NIBTA depositors of the changes in FDIC insurance coverage so that they may consider the impact of any change in coverage in their management of these transaction accounts.

The FDIC has provided FAQs on the changes and notifications required by the end of next month.

Click here: FDIC: FIL-45-2012: Notice of Expiration: Temporary Unlimited Coverage for Noninterest-Bearing Transaction Accounts

Regulatory Relief: Financial Needs of Customers Affected by Hurricane Sandy

The FDIC encourages depository institutions to consider all reasonable and prudent steps to assist customers in communities affected by recent storms. The FDIC realizes that although the effects of natural disasters on local businesses and individuals can be devastating, they often are transitory. The FDIC recognizes that efforts to work with borrowers in the affected communities can be consistent with safe-and-sound banking practices and in the public interest.

Hurricane Sandy Human Resource FAQs

Hurricane Sandy was a tropical cyclone that severely affected portions of the Caribbean, Mid-Atlantic and Northeastern United States in late October 2012. Many financial institutions and/or their branch offices were forced to close due to the devastation and power outages. Though the FAQs below may apply to other cases where employees are absent from work, these issues are presently in the minds of employers who were affected by Hurricane Sandy. We have added some FAQs to the Fair Labor Standards Act sections of the Human Resources chapter to address these concerns.

We are back in the office....

....thanks to all who were concerned about how we were doing!

Carlos
Jeffrey
Cheryl
Karen 

OCC Allows National Bank and Federal Savings Association Offices Affected by Hurricane Sandy to Close

The Office of the Comptroller of the Currency has issued a proclamation allowing national bank and federal savings association offices affected by Hurricane Sandy to close at their discretion.

Those offices should make every effort to reopen as quickly as possible to address the banking needs of customers.

CFPB Remittance Rule Guide Available

The Consumer Financial Protection Bureau(CFPB) has published an International Fund Transfers Small Entity Compliance Guide to assist small businesses in complying with the new remittance rule, which takes effect February 7, 2013. Read more here.

Web Site Accessibility Standards

There are no uniformly-accepted standards that determine the accessibility to web site-based services for persons with disabilities.  The Americans with Disabilities Act of 1990 (“ADA”) provides safe-harbors for providing accessibility to physical banking locations. Proposed ADA rulemaking addresses the requirements for making goods, services, facilities, privileges and accommodations via the internet. For more details, see Websitesunder the Americans with Disabilities Actin the Compliance chapterof The Gold Book. 

IRS Issues 2013 Cost of Living Adjustments

The Gold Book has been updated to reflect the cost-of-living adjustments affecting dollar limitations for pension plans and other retirement-related items for tax year 2013. In general, many of the pension plan limitations will change for 2013 because the cost-of-living index met the statutory thresholds that trigger their adjustments. Several sections within the Pension chapter are updated accordingly.

Foreign Remittances

The remittance rule published by the CFPB (subpart B of Regulation E), which goes into effect on February 7, 2013, generally requires remittance transfer providers to give certain specified disclosures to consumers sending remittance transfers. Among other requirements, a provider generally must disclose to a sender the total amount the recipient will receive, as well as the applicable exchange rate, fees, and taxes. In certain circumstances, the rule permits providers to estimate these amounts. Click here to read more about foreign remittances and the safe harbor list.

Bank management may declare legal holiday

The Comptroller of the Currency issued supervisory guidance on declaring a legal holiday for banks because of an emergency or natural disaster. Read more.

What's New? NYS Preauthorized EFT Law

On August 17, 2012, Governor Cuomo signed S.219-A / A978, which became Chapter 403 of the laws of 2012.  The new law amends Banking Law section 9-s regarding stop payments of electronic funds transfers (the New York version of the Electronic Funds Transfer Act.)

Text in The Gold Book addressing New York rules for stopping payment on preauthorized electronic transfers have been updated in the Compliance and Electronic Banking chapters.

What's New? NYS Social Security Law Amended

A person may not be required to disclose or furnish his or her Social Security Number (SSN) for any purpose under a new law signed by New York Governor Andrew Cuomo.  The new law safeguarding SSNs (A.8992-A/S.6608-A) applies to employers and certain other entities in the state.   It adds new section 399-ddd to the General Business Law and becomes effective December 12, 2012. Businesses must review their practices with employees, customers and other individuals in situations where all or a part of the Social Security Number is involved.

Read more in The Gold Book. Click Here.

FDIC Issues Two New Deposit Insurance Resources

The FDIC has developed two new resources to help bank employees and depositors understand FDIC deposit insurance coverage: (1) a large-print version of the brochure Your Insured Deposits and (2) a computer-based, interactive training module called FDIC Deposit Insurance Coverage for Bankers.

Insured institutions may access and order the FDIC's two new deposit insurance resources on the FDIC's Web site at www.fdic.gov/deposit/deposits/.

Announcing New Website

Banking Spectrum is proud to announce

the launch of our new website!

To better serve our clients, our new website is even easier to learn more about the services we provide.

Registered users of The Gold Book may access the online manual through the website or directly at http://goldbook.bankingspectrum.com.

And be sure to visit the What's New page with each visit for the latest banking news and updates to The Gold Book.

Don't have access to The Gold Book? Click here to Register and a representative will be in touch.

We hope you like the new site. Let us know what you think.

NYS Law Abolishes Yield Spread Premiums

Effective August 17, 2012, Governor Cuomo signed A.7329/S.886, which became Chapter 404 of the Laws of 2012.  The law adds Banking law Section 3-a, which states that a person who makes or brokers a home loan may not receive compensation based on, or varies with, any of the loan terms.  Compensation based on the loan amount (principal) is permitted.

The amendment also bans yield spread premiums - compensation paid by a lender to a mortgage loan broker based on the difference between a stated interest rate or loan yield preferred by the lender.

Brokers being paid on the basis of a yield spread premium, as opposed to a percentage of the loan amount or points, may be inclined to steer applicants to lenders offering loans at higher rates, thus acting in their own or the lender’s interests and not the interest of their applicant-client.

CFPB Proposal Requires Free Appraisal Reports

The CFPB issued a proposed rule that would require creditors to inform consumers of their right to receive a free copy of appraisal reports and home-value estimates within three days of applying for a mortgage loan. Creditors then would be required to provide the reports to consumers as promptly as possible, but no later than three days before closing -- regardless of whether credit is extended, denied, incomplete or withdrawn.