Capitol CommentsJanuary 2013

When there is a deadline associated with an item, you will see this graphic:

What’s New in Capitol Comments?The banking industry, like most other industries, is full of acronyms and industry-specific words. And industry insiders use them as if everyone should know what they mean. But not everyone is a banking insider, and there was a time in every banking insider’s life when they were new to the industry and had to slowly learn these terms and acronyms.

In recognition that many of our readers are new to banking and aren’t yet familiar with all of the industry acronyms and idioms, Capitol Comments now contains a list of frequently used words, phrases, and acronyms. When a word, phrase, or acronym can’t be easily defined in a few words; we will link to webpages where you can read more about them.

We will build this list slowly. So, if you come across a word, phrase, or acronym you don’t know, let us know and we’ll consider adding it to our list.

Recent NewsCFPB issues Qualified Mortgage rules, rules on escrowing on mortgage loans, and rules on high cost and homeowner counseling

These rules are very big news. See our Agency Rulemaking Section for details.

New law eliminates physical notice of fees on ATMs

On December 20, 2012, President Obama signed H.R. 4367 eliminating the requirement for physical notices on ATMs regarding fees. This makes sense because the information on the physical notice is already disclosed onscreen, and consumers can’t continue a transaction without affirmatively acknowledging and accepting the possible fee.

Comment: The notices were originally required when onscreen disclosure was not always feasible. However, changes in technology have resulted in consistent, effective disclosures to consumers.Unfortunately, previous law included a penalty of the lesser of $500,000 or one percent of the net worth of the ATM operator for violating the notice requirement. This bounty led to instances of litigants removing placards, photographing the ATM and filing a lawsuit before the ATM operator is aware of the missing sign. A rash of class action lawsuits has been filed.

The question is whether or not this change is retroactive. The litigation team at the Cox Smith law firm has taken the position that there is no basis for these lawsuits with the elimination of the statutory remedy. In any event, punitive damages should not be available, even in cases alleging missing notices prior to the passage, and actual damages are nonexistent since the consumer had notice of the fee and agreed to pay it.The next step is for the CFPB to amend Reg. E to eliminate the signage requirement in the absence of the supporting law.

CFPB: When a final rule is posted online, that’s official issuance

A new CFPB rule provides that when a final rule is posted on the CFPB’s Web site before it is published in the Federal Register, the posting on the Web site constitutes the official issuance of the rule. The Final Rule provides that a rule will be considered issued upon publication in the Federal Register if by inadvertence or for some other reason the rule is not posted on the Web site or is published in the Federal Register before it is posted on the Web site. 77 FR 763531

Comment: This is a departure from the method used by the other Federal financial institution regulatory agencies, which consider final rules issued when they are published in the Federal Register.

Recent CFPB blogs

The following blogs were posted on the CFPB Web site since the last issue of Capitol Comments:

Tax Time2 (Advice regarding federal income taxes)

Giving or receiving a gift card? Know the terms and avoid the surprises3

HMDA threshold change

The CFPB published a final rule4 amending the official commentary that interprets the requirements of HMDA to reflect a change in the asset-size exemption threshold for banks, savings associations, and credit unions based on the annual percentage change in the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W). The exemption threshold is adjusted to increase to $42 million from $41 million. The adjustment is based on the 2.23 percent increase in the average of the CPI-W for the 12-month period ending in November 2012. Therefore, banks, savings associations, and

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credit unions with assets of $42 million or less as of December 31, 2012, are exempt from collecting data in 2013.

Comment: HMDA requires that the CFPB adjust this threshold annually.

Children’s Online Privacy Protection changes

The Federal Trade Commission adopted final amendments to the Children’s Online Privacy Protection5 Rule (COPPA) that strengthen kids’ privacy protections and give parents greater control over the personal information that websites and online services may collect from children under 13. Click here6 to read rule amendment.

Comment: If your bank has a section for children under 13, your Webmaster should study COPPA and these changes to make sure that the bank is in compliance.

Annual CRA asset size threshold adjustment

The federal bank regulatory agencies announced7 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 CRA regulations, effective January 1, 2013. The annual adjustments are required by the CRA rules. Financial institutions are evaluated under different CRA examination procedures based upon their asset-size classification. Those meeting the small and intermediate small asset-size threshold are not subject to the reporting requirements applicable to large banks. Annual adjustments to these asset-size thresholds are based on the change in the average of the Consumer Price Index (CPI) for urban wage earners and clerical workers, not seasonally adjusted, for each 12-month period ending in November, with rounding to the nearest million. 77 FR 755218

Comment: This annual adjustment is required by CRA regulations.

CFPB launches CARD Act inquiry

The CFPB announced9 that it is seeking public comment on how the Credit Card Accountability Responsibility and Disclosure Act of 2009 (CARD Act) has impacted consumers and the credit card market. The CFPB wants to know how the CARD Act has affected the daily lives of consumers and the behavior of industry. 77 FR 7541010

Comment: Comments must be submitted by February 19, 2013.

OCC names Amy Friend Chief Counsel

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The OCC announced11 that Amy Friend was named Chief Counsel. Ms. Friend was formerly an assistant counsel at the OCC and most recently a managing director at Promontory Financial Group.

Publications, reports, studies, testimony & speeches CFPB Semiannual Regulatory Agenda

The CFPB published its Semiannual Regulatory Agenda12 as part of the Fall 2013 Unified Agenda of Federal Regulatory and Deregulatory Actions. The CFPB reasonably anticipates having the regulatory matters identified therein under consideration during the period from October 1, 2012 to October 1, 2013. The next agenda will be published in spring 2013 and will update this agenda through October 1, 2013.

Comment: The CFPB anticipates a final rule on the consolidated mortgage disclosures in September.

Fed survey reveals consumers want debt protection products

The Federal Reserve issued a Bulletin entitled Consumers and Debt Protection Products: Results of a New Consumer Survey13.

Comment: The survey concludes that although sales penetration of debt protection has fallen in recent decades, consumer attitudes have not changed from the high levels of favorable views of the past. The survey suggests that, in the view of consumers, most lenders do not use abusive practices with regard to debt protection products.

FedFlash

The January installment of FedFlash is now available and, among other items, includes: FedLine user authentication enhancements migration update; 2013 Fed Financial Services fees; educational resources; changes to Social Security ACH benefit payments; ensuring institutions have current board resolutions and official authorization lists on file with their Fed banks.

FedFocus

This month’s FedFocus includes articles on: AMI Premium Services, national park coins (quarters), and switching federal benefit customers to direct deposit.

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GAO report analyzes bank failures

The U.S. Government Accountability Office’s entire report, Causes and Consequences of Recent Bank Failures14, as well as a Summary15 are available on the GAO web site.

Comment: The report shows that failures of the smaller banks (those with less than $1 billion in assets) in these states were largely driven by credit losses on CRE loans. The failed banks also had often pursued aggressive growth strategies using nontraditional, riskier funding sources and exhibited weak underwriting and credit administration practices. The rapid growth of CRE portfolios led to high concentrations that increased the banks’ exposure to the sustained real estate and economic downturn that began in 2007.

FTC Report on Dodd Frank’s affect on interchange fee

The FTC issued a report entitled Federal Trade Commission Report on Activities Related to Section 1075 of the Dodd-Frank Act.16 Section 1075 is entitled, Reasonable Fees and Rules for Payment Card Transactions and is more commonly known as the Durbin Amendment. It regulates debit card interchange fees.

Comment: The report state that data collected by the Federal Reserve Board (and released in May 2012) shows that fees paid to exempt issuers (less than $10 billion in assets) are higher than those paid to non-exempt issuers. It also states that a GAO report concluded that “community banks and credit unions have not, on average, experienced a significant decline in their debit interchange fees as a result of the Federal Reserve’s implementation of section 1075 of the Dodd-Frank Act.” The FTC says it hasn’t uncovered any evidence that payment card network companies have taken steps to diminish the ability of small banks and credit unions to successfully compete with large financial institutions in the debit card issuance market or that any such steps have been taken by the card network companies in coordination or collusion with large financial institutions.

OCC Mortgage Metrics Report for the Third Quarter published

The OCC published its Mortgage Metrics Report for the Third Quarter of 2012.17

Comment: The report shows that 88.6% of mortgages were current and performing compared with 88.7% the previous quarter and 88.0% a year earlier. The percentage of mortgage 30 to 59 days past due rose 10.4 percent from the 2nd quarter—from 3.1% to 3.6%. Mortgages 60 plus days past due remained unchanged from the 2nd quarter and down from 10.8 a year earlier.

FDIC State Profiles

The FDIC issued its Third Quarter State Profiles.18

OCC Semiannual Risk Perspective Report

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The OCC’s Semiannual Risk Perspective19 for fall 2012 provided additional details on risks facing the banking industry that include:

Threats to business models from low rates, sluggish economic growth, and the historic volume of new banking regulations, remains high.

Underwriting standards remain under pressure as banks compete aggressively for limited, high-quality lending opportunities.

Credit quality improvement in bank portfolios is stabilizing. Compliance and reputation risks remain high as banks struggle to maintain

investments consistent with higher market and regulatory standards. Modest economic growth forecasts reflect the cumulative weight of soft U.S. labor

markets, slower growth in emerging markets, and potential volatility from the Eurozone crisis and resolution of both near term and longer term U.S. fiscal policy challenges.

Low interest rates seem likely to persist, keeping pressure on net interest margins, as older assets mature or default and are replaced with lower yielding loans.

Market volatility, economic uncertainty, and low interest rates present revenue growth difficulties for asset management businesses, which contribute significantly to non-interest income.

Mid-year data show stabilization in the housing sector with modest price increases in selected markets.

Banks with extensive mortgage servicing operations have made progress in remediating standards and practices, but the financial and reputational costs remain high.

Commercial real estate exposures show improvement, but problem assets remain elevated.

Maturities and amortization of home equity lines of credit are an emerging risk as loans reach the end of their draw periods and payments increase to meet amortization requirements.

Obama Administration’s December housing scorecard

HUD and Treasury today released the December edition of the Obama Administration's Housing Scorecard – a comprehensive report on the nation’s housing market. The full Housing Scorecard is available online at www.hud.gov/scorecard.

Comment: Data continue to show important progress across many key indicators with the housing marketing bottoming out nationally and clearly turning a corner – as home values continue to rise and home sales remained strong in November – although officials caution that the overall recovery remains fragile.

Agency rulemaking:

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Selected final rules since last Capitol Comments:CFPB final rule: Ability-to-Repay

The CFPB’s Reg. Z final Ability-to-Pay rule20 contains these elements:

Ability-to-repay determinations. There are certain minimum requirements for creditors making ability-to-repay determinations. There are eight underwriting factors creditors generally must consider: (1) current or reasonably expected income or assets; (2) current employment status; (3) the monthly payment on the covered transaction (must be calculated based on the highest payment that will apply in the first five years); (4) the monthly payment on any simultaneous loan; (5) the monthly payment for mortgage-related obligations; (6) current debt obligations, alimony, and child support; (7) the monthly debt-to-income ratio or residual income (the consumer must have a total debt-to-income ratio that is less than 43 percent); and (8) credit history. The final rule provides for a second, temporary category of qualified mortgages that have more flexible underwriting requirements.

Presumption of Qualified Mortgages. Qualified mortgages are entitled to a presumption that the creditor satisfied the ability-to-repay requirements. If a prime loan satisfies the qualified mortgage criteria, it will be conclusively presumed that the creditor made a good faith and reasonable determination of the consumer’s ability to repay. Higher priced mortgages are provided a rebuttable presumption so long as the requirements for a qualified mortgage are followed.

General requirements for Qualified Mortgages. Loans with negative amortization, interest-only payments, balloon payments, or terms exceeding 30 years are generally prohibited from being qualified mortgages. No-doc loans can’t be qualified mortgages. If the points and fees paid by the consumer exceed three percent of the loan amount, it can’t be a qualified mortgage.

Rural balloon-payment Qualified Mortgages. Certain balloon-payment loans are treated as qualified mortgages if they originated and are held in-portfolio by small creditors operating predominately in rural or underserved areas. They must have a term of at least 5 years, fixed interest rate, and meet basic underwriting standards. Creditor must originate 50% of first-lien mortgages in rural or underserved counties, have less than $2 billion in assets, and originate no more than 500 first-lien mortgages per year. The CFPB will designate rural and underserved counties each year.

Other provisions. Prepayment penalties are generally prohibited, except for fixed-rate, qualified mortgages where the penalties satisfy certain restrictions and the creditor has offered the consumer an alternative. Creditors must keep records evidencing compliance for three years.

CFPB has issued a fact sheet21 and a summary22.

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The effective date is January 10, 2014.

Comment: This final rule will be incredibly significant to the mortgage industry. Although it will likely increase credit quality, it is just as likely to increase costs and further restrict available mortgage credit. Although we are pleased that the CFPB’s definition of rural or underserved counties is broader than originally proposed by the Federal Reserve, it remains narrower than necessary.

CFPB final rule: Escrow requirement under Truth in Lending

The CFPB’s Reg. Z final rule23 on escrow accounts has three main elements:

• As directed by the Dodd-Frank Act, the rule amends existing regulations that require creditors to establish and maintain escrow accounts for at least one year after originating a “higher - priced mortgage loan” (HPML) to require generally that the accounts be maintained for at least five years.

• The rule creates an exemption from the escrow requirement for small creditors that operate predominately in rural or underserved areas. Specifically, to be eligible for the exemption, a creditor must: (1) make more than half of its first lien mortgages in rural or underserved areas; (2) have an asset size less than $2 billion; (3) together with its affiliates, have originated 500 or fewer first lien mortgages during the preceding calendar year; and (4) together with its affiliates, not escrow for any mortgage it or its affiliates currently services, except in limited instances. Under the rule, eligible creditors need not establish escrow accounts for mortgages intended at consummation to be held in portfolio, but must establish accounts at consummation for mortgages that are subject to a forward commitment to be purchased by an investor that does not itself qualify for the exemption.

• Finally, the rule expands upon an existing exemption from escrowing for insurance premiums (though not for property taxes) for condominium units to extend the partial exemption to other situations in which an individual consumer’s property is covered by a master insurance policy.

The rule is effective June 1, 2013.

Comment: While the revisions exempt small creditor operating in rural or underserved areas, they also increase the time that mandatory escrow accounts must be maintained on HPMLs.

CFPB final rule: High cost and homeowner counseling amendments to Reg. Z and RESPA

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The CFPB issued this final rule24 to implement the Dodd-Frank Act’s amendments to the Truth in Lending Act and the RESPA. The final rule amends Regulation Z by expanding the types of mortgage loans that are subject to the protections of the Home Ownership and Equity Protections Act of 1994 (HOEPA), revising and expanding the tests for coverage under HOEPA, and imposing additional restrictions on mortgages that are covered by HOEPA, including a pre-loan counseling requirement. The final rule also amends Regulation Z and RESPA by imposing certain other requirements related to homeownership counseling, including a requirement that consumers receive information about homeownership counseling providers.

The rule is effective January 10, 2014.

Selected rules proposed since the previous issue of Capitol Comments:

CFPB Proposed rule: Ability-to-Repay

The proposed Ability-to-Pay25 rule seeks comment on:

Proposed exemption of certain lenders. The CFPB asks whether the general ability-to-repay and qualified mortgage rule should be modified to address potential adverse consequences on certain narrowly-defined categories of lending programs.. Specifically, the proposal seeks comment on whether it would be appropriate to exempt designated non-profit lenders, homeownership stabilization programs, and certain Federal agency and Government Sponsored Enterprise refinancing programs from the ability-to-repay requirements because they are subject to their own specialized underwriting criteria.

Proposed category for small creditors’ in-portfolio loans. The CFPB also seeks comment on whether to create a new category of qualified mortgages for loans without balloon-payment features that are originated and held on portfolio by small creditors. The new category would not be limited to lenders that operate predominantly in rural or underserved areas, but would use the same general size thresholds and other criteria as the rural balloon-payment rules.

Proposed threshold for small creditors’ Qualified Mortgages. The CFPB also seeks comment on whether to increase the threshold separating safe harbor and rebuttable presumption qualified mortgages for both rural balloon-payment qualified mortgages and the new small portfolio qualified mortgages, in light of the fact that small creditors often have higher costs of funds than larger creditors. Specifically, the Bureau is proposing a threshold of 3.5 percentage points above APOR for first-lien loans.

Comments must be received by February 25, 2013.

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Comment: It is good to see a proposal that sets apart in-portfolio loans from those sold into the secondary market. A proposal to exclude all creditors who hold their mortgage loans in-portfolio would be preferred. However, the proposed expanded definition of “rural or underserved,” (if adopted) would give some relief to small lenders and lessen somewhat the regulatory constraints on mortgage lending in these limited geographic areas.

CFPB proposed rule: International money transfers

The CFPB issued proposed revisions to a rule that creates certain protections for consumers who transfer money internationally. The proposed revisions are narrow in focus and intended to preserve the new consumer protections while facilitating compliance with the rule. The Bureau is also proposing to extend the implementation period until 90 days after it issues a revised final rule.

Today’s proposal builds on a final rule on international money transfers that was published by the Bureau on February 7, 2012, and later supplemented on August 20, 2012. Under the final rule, remittance transfer providers will be required to disclose certain fees and taxes, as well as the exchange rate that will apply to the transfer. The rule also provides consumers with error resolution and cancellation rights.

Today’s proposed changes are narrowly targeted to address the rule’s provisions on:

Disclosure of Foreign Taxes and Institution Fees: The proposal would provide increased flexibility and guidance with respect to the disclosure of taxes imposed by a foreign country’s central government as well as fees imposed by a recipient’s institution for receiving a remittance transfer in an account.

Disclosure of Subnational Taxes in Foreign Country: The proposal would require disclosure of foreign taxes imposed by a country’s central government, but would eliminate the requirement to disclose taxes imposed by foreign regional, provincial, state, or other local governments.

Errors from Incorrect Account Information: Under the proposal, when the provider can demonstrate that the consumer provided an incorrect account number and certain other conditions are satisfied, the provider would be required to attempt to recover the funds but would not bear the cost of funds that cannot be recovered.

Comments on the temporary delay will close 15 days after today’s proposed rule is published in the Federal Register. Comments on the remainder of the proposal will close 30 days after publication in the Federal Register. 77 FR 7718726

Selected federal rulemaking proposals from previous months with open comment periods:

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Other than the proposals listed above that were proposed after the issuance of this edition of Capitol Comments, there are no significant rule proposals open for comment.

Selected upcoming final federal compliance dates:01.10.2014 The CFPB’s Reg. Z final Ability-to-Pay rule27

01.10.2014 CFPB final rule28 implementing Dodd-Frank Act amendments to TILA and the RESPA. Expands the types of mortgage loans subject to the protections of HOEPA, revises and expands the tests for coverage under HOEPA, and imposes additional restrictions on mortgages that are covered by HOEPA, including a pre-loan counseling requirement.

06.13.2013 The CFPB’s Reg. Z final rule29 on establishing escrow accounts for HPML

02.07.2013 This final rule30 amending Reg. E provides new protections, including disclosures and error resolution and cancellation rights, to consumers who send remittance transfers to other consumers or businesses in a foreign country. The amendments implement statutory requirements set forth in Section 1073 of the Dodd-Frank Act.

03.31.2013 SAR/CTR batch filers must update their systems to the new specifications31. (Extended from June 30, 2012 to March 31, 201332) All institutions that batch file the current CTR, CTR-C, SAR-DI, SAR-SF, SAR-MSB, or SAR-C will have to convert their systems to file the new CTR and SAR. FinCEN will make other filing technical specifications available in the near future.

Comment: Distribute this calendar to your CEO, CFO, Compliance Officer, and Operations Officer.

Selected final federal compliance dates from the past 12 months:Our list of past final rule effective dates is limited to 12 months. To see the document “Selected Past Final Federal Rules,” containing final rules with effective dates more than 12 months old, click here.

01.01.2013 The IRS final regulations33 regarding the reporting requirements for interest that relates to deposits maintained at U.S. offices of certain financial institutions and is paid to certain nonresident alien individuals. These regulations apply to payments of interest made on or after January 1, 2013.

12.31.2012 Housing and Economic Recovery Act by The Helping Heroes Keep Their Homes Act of 2010 – The provision for an extended time period (extended from 90 days to nine months) for protections affecting foreclosure, sale, or seizure of servicemembers’ real or personal property expires.

11.30.2012 The Board is amending Regulation D,34 Reserve Requirements of Depository Institutions, to reflect the annual indexing of the reserve requirement exemption amount and the low reserve tranche for 2013.

10.01.2012 The Federal Reserve Board final rule35 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.

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07.21.2012 The interim final rule36 adopted by the OCC implements Section 610 of the Dodd-Frank Act revises the statutory definition of loans and extensions of credit for purposes of the lending limit to include certain credit exposures arising from a derivative transaction, repurchase agreement, reverse repurchase agreement, securities lending transaction, or securities borrowing transaction. State banks are subject to separate restrictions under section 611 of the Dodd-Frank Act.

07.01.2012 FinCEN adopted a requirement37 that all financial institutions subject to BSA reporting use electronic filing for certain reports. Hardship exemptions are available.

07.12.2012 Reg D amendment38 simplifying the administration of reserve requirements. (See April 2012 Capitol Comments)

07.12.2012 Reg J amendment39 (See April 2012 Capitol Comments)

04.30.2012 National Labor Relations Board’s final rule40 requiring employers to post workplaces notices regarding employee rights regarding unions and collective bargaining. Notices will be available at NLRB regional offices or on the NLRB website41 by October 1. Private sector employers subject to National Labor Relations Act must post the notice. The notice was originally required on 11.14.2011, but was delayed to allow for further education and outreach.

03.15.2012 ATMs must comply with the communication requirements of the ADA and ABA Accessibility Guidelines for Buildings and Facilities42.

How to submit comments to your federal regulators:Office of the Comptroller of the Currency: Because paper mail in the Washington, DC area and at the OCC is subject to delay, commenters are encouraged to submit comments by the Federal eRulemaking Portal or e-mail, if possible. Please use the title in the Federal Register publication of the proposal. You may submit comments by any of the following methods:

Federal eRulemaking Portal—Regulations.gov: Go to http://www.regulations.gov . Select “Document Type” of “Proposed Rule”, and in “Enter Keyword or ID Box”, enter the docket number found in the Federal Register publication of the proposed rule and click “Search.” On “View By Relevance” tab at bottom of screen, in the “Agency” column, locate the proposed rule for OCC, in the “Action” column, click on “Submit a Comment” or “Open Docket Folder” to submit or view public comments and to view supporting and related materials for this proposed rule. Click on the “Help” tab on the Regulations.gov home page to get information on using Regulations.gov, including instructions for submitting or viewing public comments, viewing other supporting and related materials, and viewing the docket after the close of the comment period. E-mail: regs.comments@occ.treas.gov Mail: Office of the Comptroller of the Currency, 250 E Street, SW., Mail Stop 2-3, Washington, DC 20219. Fax: (202) 874-5274. Hand Delivery/Courier: 250 E Street, SW., Mail Stop 2-3, Washington, DC 20219.

Instructions: You must include “OCC” as the agency name and the docket number in your comment. In general, OCC will enter all comments received into the docket and publish them on the Regulations.gov Web site without change, including any business or personal information that you provide such as name and address information, e-mail addresses, or phone numbers. Comments received, including attachments and other supporting materials, are part of the public record and subject to public disclosure.

Do not enclose any information in your comment or supporting materials that you consider confidential or inappropriate for public disclosure.

Board of Governors of the Federal Reserve System: You may submit comments, identified by the docket number and the RIN number found in the Federal Register publication of the rule proposal, by any of the following methods:

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Agency Web Site: http://www.federalreserve.gov. Follow the instructions for submitting comments at http://www.federalreserve.gov/generalinfo/foia/ProposedRegs.cfm. Federal eRulemaking Portal: http://www.regulations.gov. Follow the instructions for submitting comments. E-mail: regs.comments@federalreserve.gov. Include the docket number and RIN number in the subject line of the message. Fax: (202) 452-3819 or (202) 452-3102. Mail: Address to Jennifer J. Johnson, Secretary, Board of Governors of the Federal Reserve System, 20th Street and Constitution Avenue, NW., Washington, DC 20551.

Federal Deposit Insurance Corporation: You may submit comments, identified by RIN number, by any of the following methods:

Agency Web Site: http://www.FDIC.gov/regulations/laws/federal/propose.html. Follow instructions for submitting comments on the Agency Web Site. E-mail: Comments@FDIC.gov. Include the RIN number on the subject line of the message. Mail: Robert E. Feldman, Executive Secretary, Attention: Comments, Federal Deposit Insurance Corporation, 550 17th Street, NW, Washington, DC 20429. Hand Delivery: Comments may be hand delivered to the guard station at the rear of the 550 17th Street Building (located on F Street) on business days between 7:00 a.m. and 5:00 p.m.

Instructions: All comments received must include the agency name and RIN for this rulemaking and will be posted without change tohttp://www.fdic.gov/regulations/laws/ federal/propose.html, including any personal information provided.

Consumer Financial Protection Bureau: You may submit comments, identified by docket number, by any of the following methods:

Electronic: http://www.regulations.gov. Follow the instructions for submitting comments. Mail: Monica Jackson, Office of the Executive Secretary, Consumer Financial Protection Bureau, 1500 Pennsylvania Ave. NW., (Attn: 1801 L Street), Washington, DC 20220. Hand Delivery/Courier in Lieu of Mail: Monica Jackson, Office of the Executive Secretary, Consumer Financial Protection Bureau, 1700 G Street NW., Washington, DC 20006.

Instructions: The CFPB encourages the early submission of comments. All submissions must include the document title and docket number. Please note the number of the question to which you are responding at the top of each response (respondents need not answer each question). In general, all comments received will be posted without change to http://www.regulations.gov. In addition, comments will be available for public inspection and copying at 1700 G Street NW., Washington, DC 20006, on official business days between the hours of 10 a.m. and 5 p.m. Eastern Time. You can make an appointment to inspect the documents by telephoning (202) 435-7275. All comments, including attachments and other supporting materials, will become part of the public record and subject to public disclosure. Sensitive personal information such as account numbers or Social Security numbers should not be included. Comments will not be edited to remove any identifying or contact information.

Frequently used words, phrases, and acronymsAPOR “Average Prime Offer

Rates” are derived from average interest rates, points, and other pricing terms offered by a representative sample of creditors for

mortgage transactions that have low-risk pricing characteristics.

ATM Automated Teller Machine

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CARD ActCredit Card Accountability Responsibility and Disclosure Act of 2009

CFPB Consumer Financial Protection Bureau

CFR

Code of Federal Regulations. Codification of rules and regulations of federal agencies.

CRA

Community Reinvestment Act. This Act is designed to encourage loans in all segments of communities.

CRE Commercial Real Estate

CTR

Currency Transaction Report. Filed for each deposit, withdrawal, exchange of currency that involves a transaction in currency of more than $10,000.

Dodd-Frank ActThe Dodd–Frank Wall Street Reform and Consumer Protection Act

FDIC Federal Deposit Insurance Corporation

Federal bank regulatory agencies FDIC, FRB, and OCC

Federal financial institution regulatory agencies

CFPB, FDIC, FRB, NCUA, and OCC

FEMA Federal Emergency Management Agency

FFIECFederal Financial Institutions Examination Council

FinCEN Financial Crime Enforcement Network

FR

Federal Register. U.S. government daily publication that contains proposed and final administrative regulations of federal agencies.

FRB Federal Reserve Board

FTC Federal Trade Commission

GAO Government Accountability Office

HMDA Home Mortgage Disclosure Act

HOEPAHome Ownership and Equity Protections Act of 1994

HPML Higher Priced Mortgage Loan

HUDU.S. Department of Housing and Urban Development

NFIP

National Flood Insurance Program. U.S. government program to allow the purchase of flood insurance from the government.

OCCOffice of the Comptroller of the Currency

Reg.Regulation – A federal regulation. These are found in the CFR.

Reg. B Equal Credit Opportunity

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Reg. C Home Mortgage Disclosure

Reg. DD Truth in Savings

Reg. E Electronic Fund Transfers

Reg. P Privacy of Consumer Financial Information

Reg. XReal Estate Settlement Procedures Act

Reg. Z Truth in Lending

RESPAReal Estate Settlement Procedures Act

SAR

Suspicious Activity Report Report financial institutions file with the U.S. government (FinCEN) regarding activity that may be criminal in nature.

TILA Truth in Lending Act

Treasury U.S. Department of Treasury

This publication is designed to provide accurate and authoritative information in regard to the subject matter covered. It is provided with the understanding that the publisher is not engaged in the rendering of legal, accounting or other professional advice - from a Declaration of Principles adopted by the American Bar Association and a Committee of Publishers and Associations; All rights reserved; Shannon Phillips Jr., Editor; Oklahoma Edition, copyrighted by Craig Buford, CBAO President and CEO.

Capitol CommentsJanuary 2013

Craig Buford, CAEPresident and CEOCommunity Bankers Association of Oklahoma4101 Perimeter Center Drive, Suite 107Oklahoma City, OK 73112Office: 405-524-4122Cell: 405-833-9499Fax: 405-524-0443cbuford@cba-ok.orgwww.cba-ok.org

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1https://www.federalregister.gov/articles/2012/12/28/2012-31310/procedure-relating-to-rulemaking

2 http://www.consumerfinance.gov/blog/tax-time/

3 http://www.consumerfinance.gov/blog/giving-or-receiving-gift-cards-know-the-terms-and-avoid-surprises/

4https://www.federalregister.gov/articles/2012/12/31/2012-31311/home-mortgage-disclosure-regulation-c-adjustment-to- asset-size-exemption-threshold

5 http://www.ftc.gov/opa/2012/12/coppa.shtm

6 http://www.ftc.gov/os/2012/12/121219copparulefrn.pdf

7http://www.federalreserve.gov/newsevents/press/bcreg/bcreg20121219a.pdf

8https://www.federalregister.gov/articles/2012/12/21/2012-30775/community-reinvestment-act-regulations

9http://www.consumerfinance.gov/pressreleases/consumer-financial-protection-bureau-launches-public-inquiry-on-the- impact-of-the-card-act/

10https://www.federalregister.gov/articles/2012/12/20/2012-30609/request-for-information-regarding-credit-card-market

11 http://www.occ.gov/news-issuances/news-releases/2013/nr-occ-2013-6.html

12https://www.federalregister.gov/articles/2013/01/08/2012-31512/semiannual-regulatory-agenda

13http://www.federalreserve.gov/pubs/bulletin/2012/pdf/consumer_debt_products_20121227.pdf

14 http://www.gao.gov/assets/660/651154.pdf

15 http://www.gao.gov/products/GAO-13-71

16http://www.ftc.gov/opa/2012/12/DoddFrankReport.pdf

17 http://www.occ.gov/publications/publications-by-type/other-publications-reports/mortgage-metrics-2012/mortgage-metrics-q3-2012.pdf

18http://www.fdic.gov/bank/analytical/stateprofile/index.html

19 http://www.occ.gov/publications/publications-by-type/other-publications-reports/semiannual-risk-perspective/semiannual-risk-perspective-fall-2012.pdf

20http://www.consumerfinance.gov/regulations/ability-to-repay-and-qualified-mortgage-standards-under-the-truth-in- lending-act-regulation-z/

21http://files.consumerfinance.gov/f/201301_cfpb_ability-to-repay-factsheet.pdf

22http://files.consumerfinance.gov/f/201301_cfpb_ability-to-repay-summary.pdf

23http://files.consumerfinance.gov/f/201301_cfpb_final-rule_escrow-requirements.pdf

24http://files.consumerfinance.gov/f/201301_cfpb_final-rule_high-cost-mortgages.pdf

25http://www.consumerfinance.gov/regulations/ability-to-repay-and-qualified-mortgage-standards-under-the-truth-in- lending-act-regulation-z/

26https://www.federalregister.gov/articles/2012/12/31/2012-31170/electronic-fund-transfers-regulation-e

27http://www.consumerfinance.gov/regulations/ability-to-repay-and-qualified-mortgage-standards-under-the-truth-in- lending-act-regulation-z/

28http://files.consumerfinance.gov/f/201301_cfpb_final-rule_high-cost-mortgages.pdf

29http://files.consumerfinance.gov/f/201301_cfpb_final-rule_escrow-requirements.pdf

30http://www.gpo.gov/fdsys/search/pagedetails.action?granuleId=2012-1728&packageId=FR-2012-02-07&acCode=FR

31http://www.fincen.gov/news_room/nr/html/20110902.html

32http://www.fincen.gov/whatsnew/pdf/20111220.pdf

33 http://www.gpo.gov/fdsys/pkg/FR-2012-04-19/pdf/2012-9520.pdf

34 http://www.gpo.gov/fdsys/pkg/FR-2012-10-31/html/2012-26662.htm

35 http://www.gpo.gov/fdsys/pkg/FR-2012-08-03/pdf/2012-18726.pdf

36 http://www.occ.gov/news-issuances/news-releases/2012/2012-92a.pdf

37 http://www.gpo.gov/fdsys/pkg/FR-2012-02-29/html/2012-4756.htm

38 http://www.gpo.gov/fdsys/pkg/FR-2012-04-12/html/2012-8562.htm

39 http://www.gpo.gov/fdsys/pkg/FR-2012-04-12/html/2012-8563.htm

40http://www.federalregister.gov/articles/2011/08/30/2011-21724/notification-of-employee-rights-under-the-national-labor- relations-act

41 http://www.nlrb.gov/

42 http://www.access-board.gov/ada-aba/final.cfm#communication