Independent Bankers Association of Texas October 2013

Recent News .....................................................................................................................2 Publications, reports, studies, testimony & speeches .................................................9 Agency rulemaking ..........................................................................................................11 Selected upcoming federal compliance dates ..............................................................18 Selected federal compliance dates from the past 12 months ......................................20 IBAT educational opportunities ......................................................................................21 How to submit comments to your federal regulators ...................................................22 Common words, phrases, and acronyms ......................................................................24

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

Recent News Banking products gain municipal advisor registration exemption A provision in the Dodd-Frank Act requiring municipal advisors to register with the SEC and comply with regulations to be issued by the Municipal Securities Rulemaking Board raised questions as to whether community bankers providing advice to municipalities on banking products and services would have to register and comply. On Friday, September 18, 2013, the SEC finalized rules tailored to exempt banks providing advice on certain banking products and services to municipalities from registration. According to a fact sheet issued by the SEC, the exemption does not apply to banks that:

Engage in other municipal advisory activities such as providing advice on municipal derivatives or the issuance of municipal securities.

Provide advice on municipal derivatives, in part because municipal derivatives were a source of significant losses by municipalities in the financial crisis.

The final rule will be effective 60 days after publication in the Federal Register.

Comment: As part of IBAT's fight to relieve community banks of registration obligations, it filed a comment letter on the SEC's proposed rules urging the SEC to exempt community banks from registration. CFPB releases report on private student loan complaints The CFPB Student Loan Ombudsman released a report1 analyzing complaints the CFPB has received from private student loan borrowers. According to the report, private student loan borrowers face payment processing pitfalls that can lead to increased costs, prolonged repayments, and harm to their credit profiles. The CFPB is also issuing a consumer advisory today to help certain borrowers communicate their payment preferences to servicers, so they can take better control of their student loans. Comment: The CFPB offered some recommendations: “Given that some participants in the student loan servicing industry do not appear to have adequate means to accept payment application instructions through online servicing platforms or monthly payment coupons, confusion and additional burdensome paperwork is far too common. While some individual student loan servicers have indicated they are looking to make a number of improvements, many in the industry have been dilatory in making progress. As Congress prepares to reauthorize student loan programs under the Higher Education Act, it may be useful to assess whether certain reforms to the servicing of credit cards and mortgages (such as clear guidelines for payment application, records retention, etc.) might also be applicable to the student loan market. Unfortunately, significant problems unraveled in the mortgage servicing market that led to negative externalities

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for the broader economy. If industry fails to correct deficiencies in the student loan servicing market, policymakers may need to act to avoid further negative consequences for the economy.”

CFPB: Interim rule clarifies mortgage servicing rules CFPB released a bulletin2 and interim final rule3 to clarify the market concerning mortgage servicing rules that take effect in January 2014. The clarifications address communications with family members after a borrower dies, contact with delinquent borrowers, and treatment of consumers who have filed for bankruptcy or invoked certain protections under the Fair Debt Collection Practices Act. The amendments also clarify the specific disclosures required before counseling for high-cost mortgage can occur. Press release.4 The interim rule will be effective 30 days after publication in the Federal Register. This rule appears below in both the list of final rules and the list of rules open for comment. Comment: The bulletin provides examples of servicer policies and procedures in cases when the borrower dies, including allowing for continued payment on the mortgage as well as evaluating the heir (or whomever the legal interest in the home passes to) for assumption of the mortgage and, if appropriate, for loss mitigation measures. The bulletin clarifies that the servicer rule's requirement to attempt to contact a borrower every time there's a missed payment may be met through other contact that servicers have with such borrowers, for example, when evaluating them for loss mitigation or during collection calls. The rules clarify that even if delinquent borrowers have instructed servicers to stop communicating with them pursuant to the FDCPA, certain notices and

communications mandated by the CFPB servicing rules and the Dodd-Frank Act are still required. The rule exempts servicers from the requirement to provide periodic account statements and certain early intervention contacts with borrowers who are in bankruptcy while the CFPB assesses how bankruptcy law and the servicing requirements intersect. Fannie Mae, Freddie Mac, FHA, and VA: Work with borrowers affected by government shutdown Fannie Mae, Freddie Mac, FHA, and VA have each separately called on mortgagees and lenders to be sensitive to the financial hardships faced by borrowers as a result of the shutdown, including those borrowers who were subject to furlough, layoff, or a reduction in income related to the shutdown. FHA: HUD No. 13-1525 Fannie Mae: LL-2013-086 Freddie Mac: 2013-197 VA: Circular 26-13-238 . Comment: Each issuance is unique. Please forward the appropriate issuances to your bank’s CEO, Compliance Officer, Chief Lending Officer, and any other appropriate staff members. FDIC: D&O liability policies, exclusions, and indemnification for civil money penalties The FDIC has recently noted an increase in exclusionary terms or provisions in director and officer liability insurance policies purchased by financial

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institutions. These exclusions may limit insurance coverage under certain circumstances, thereby increasing the potential personal exposure of board members and bank officers in civil lawsuits. An FDIC advisory9 discusses the importance of thoroughly reviewing and understanding the risks associated with coverage exclusions contained in director and officer liability insurance policies. Additionally, the FDIC is issuing a reminder that an insured depository institution or depository institution holding company may not purchase an insurance policy that would indemnify institution-affiliated parties (IAPs) for civil money penalties assessed against them. Even if the IAP agrees to reimburse the depository institution for the cost of such coverage, the purchase of the insurance policy by the depository institution is prohibited. Comment: If your D&O policy indemnifies institution-affiliated parties for civil money penalties, you should contact your agent. FDIC: Importance of interest rate risk management The FDIC is re-emphasizing the importance of prudent interest rate risk oversight and risk management processes to ensure FDIC-supervised institutions are prepared for a period of rising interest rates. FIL-46-2013.10 Comment: The FDIC expects banks to view interest rate risk management as an ongoing process. Route the FIL to your bank’s CEO, CFO, and Chief Risk Officer.

Fed begins supplying new design $100 note On October 8, 2013, the Federal Reserve began supplying financial institutions with the redesigned $100 note. For more information about the new design $100 note, as well as training and educational materials, visit www.newmoney.gov. Read the Fed’s press release.11 Comment: Federal Reserve offices will not distribute old design $100 notes after October 7, 2013. The plastic cash pack material for the new design $100 note is in the gold-color range. The older designed notes are not being recalled, demonetized or devalued. You do not need to trade them in.

CFPB finalizes new trial disclosure policy The CFPB finalized a new trial disclosure policy12 that allows companies to apply for a waiver to test potential disclosure improvements on a trial basis. When the CFPB approves a specific trial, then for the agreed testing period, the CFPB will deem the testing company’s disclosure to be in compliance with, or hold it exempt from, applicable federal disclosure requirements. Comment: The CFPB hopes to enhance consumer protection by facilitating innovation and is recognizing that in-market testing may offer valuable information to improve disclosure rules and model forms. Testing the RESPA/Reg. Z integrated mortgage disclosures in real world situations before adopting them would be useful and informative.

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FFIEC agencies issue warning about Windows XP The FFIEC agencies issued a joint statement alerting financial institutions that as of April 8, 2014, Microsoft will not provide regular security patches, technical assistance or support for the Microsoft Windows XP operating system. Continued use of Windows XP after that date could present operational risks to financial institutions, third party service providers (TSPs), and activities supported by third parties. A variety of a bank’s and its TSPs’ devices could be exposed to increased operational risk, including personal computers, servers, and ATMs. According to the statement, Banks and their TSPs are expected to “identify, assess, and manage these risks to ensure that safety, soundness, and the ability to deliver products and services are not compromised.” For more information, click here to read the joint statement. Comment: After April 8, 2014, Microsoft WILL NOT provide support for Windows XP. No patches. No security fixes. Nothing. As soon as Microsoft issues a patch or a security update, hackers begin reverse engineering them and, if they can, they develop exploit code to attack the operating system. Hackers hope to attack before Microsoft fixes the problem. After April 8, 2014, Microsoft will not be fixing those problems, but the bad guys will continue to look for vulnerabilities to exploit. It is imperative that you stop using Microsoft XP anywhere in the bank as of April 8, 2014. And if you have employees who work from home, they should also upgrade to a newer operating system.

FinCEN: Important notice to BSA e-filers An updated version of the Discrete (online) Report of Foreign Bank and Financial Accounts (FBAR), FinCEN 114, is now available on the BSA E-Filing System. This version now provides the ability to select or enter a late filing reason and has a new section to enter Third Party Preparer information.

FinCEN has also released a batch filing capability for the FBAR on the production BSA E-Filing System. Batch files must adhere to the BSA Electronic Filing Requirements For Report of Foreign Bank and Financial Accounts (FinCEN Report 114)

FDIC: Supervisory approach to payment processing relationships for those in higher-risk activities The FDIC clarified (FIL-43-201313) its policy and supervisory approach related to facilitating payment processing services directly, or indirectly through a third party, for merchant customers engaged in higher-risk activities. Comment: The bottom line of this FIL is: “Facilitating payment processing for merchant customers engaged in higher-risk activities can pose risks to financial institutions; however, those that properly manage these relationships and risks are neither prohibited nor discouraged from providing payment processing services to customers operating in compliance with applicable law.” Financial institutions engaged in this activity must perform proper risk assessment, conduct due diligence, and maintain systems to monitor relationships. If your bank engages in or plans to engage in this activity, you should

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review the FDIC’s Guidance For Managing Third-Party Risk.14

FinCEN ruling: CTRs for customer/3rd party armored car transactions FinCEN issued an administrative ruling (FIN-2013-R00115) in response to issues and concerns related to FinCEN ruling FIN-2009-R002.116 That ruling clarified that, when an armored car service (“ACS”) is contracted to conduct transactions on behalf of a customer of a financial institution, the financial institution’s CTR filing requirements would be the same as they would be with any other third-party facilitating a transaction for a customer. Although FIN-2009-R002 is consistent with current and past policy, financial institutions and the armored car services industry have raised issues that have led FinCEN to provide an exception to CTR data collection and aggregation requirements. This exception applies only when ACS employees conduct transactions that debit or credit the account of a financial institution’s customer pursuant to instructions received from the customer or from a third party. Comment: In FIN-2009-R002, FinCEN clarified the aggregation standards and the minimum information requirements applicable to CTRs completed on transactions conducted by an ACS on behalf of a financial institution’s customer. Specifically, a financial institution is required to (a) collect the name, date of birth, and identification information of the ACS employee that made the delivery or pick-up (the natural person conducting the transaction); and (b) complete a CTR indicating multiple transactions, if applicable, for each ACS employee who, on any business day, delivers or picks up cash in one or more transactions that, in the aggregate,

exceed $10,000. All customers included in the transaction must be listed in the CTR, regardless of each customer’s individual contribution to the total amount.

OCC Directors Workshops The OCC has announced Community Bank Directors Workshops17 in Oklahoma City on October 29 and 30 (Risk Assessment and Credit Risk), on November 5 and 6 in Little Rock, AR (Risk Assessment and Compliance Risk) and in San Antonio on November 19 and 20 (Compliance Risk and Credit Risk). Comment: On November 1 and 2, IBAT is offering the Certified Community Bank Director designation (CCBD)18 – a collaboration of and administered by IBAT and the SW Graduate School of Banking Foundation (SWGSB). This certification covers not only the regulatory and fiduciary responsibilities of bank directors, but also board structures and processes. In addition, the program focuses on what makes boards and directors effective as well as what is expected of them by regulators, examiners and shareholders.

Agencies issue GLBA guidance on reporting elder abuse The Fed, CFTC, CFPB, FDIC, FTC, NCUA, OCC, and SEC issued guidance to financial institutions to clarify the applicability of privacy provisions of GLBA to reporting financial exploitation of older adults. Comment: This guidance clarifies that reporting suspected financial abuse of older adults to appropriate local, state, or federal agencies does not, in general, violate the privacy provisions of the GLBA or its implementing regulations. In fact, specific privacy provisions of the GLBA and its implementing regulations

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permit the sharing of this type of information under appropriate circumstances without complying with notice and opt-out requirements. Texas law requires that employees of financial institutions report elder abuse, neglect or exploitation. It is a Class A misdemeanor to knowingly fail to report it. See Human Resources Code §48.052. Human Resources Code §48.054 provides employees and employers, who file such reports, immunity from civil or criminal liability, unless they acted in bad faith or with malicious purpose.

Department of Labor on employee benefits for same sex spouses The U.S. Department of Labor announced19 new guidance interpreting the Supreme Court's decision in United States v. Windsor. In a technical release, the department's Employee Benefits Security Administration provides guidance to plans, plan sponsors, fiduciaries, participants and beneficiaries on the decision's impact on the Employee Retirement Income Security Act of 1974. The release states that, in general, the terms "spouse" and "marriage" in Title I of ERISA and in related department regulations should be read to include same-sex couples legally married in any state or foreign jurisdiction that recognizes such marriages, regardless of where they currently live. On June 26, 2013, the Windsor decision struck down the provisions of the Defense of Marriage Act that denied federal benefits to legally married, same-sex couples. Comment: The terms "spouse" and "marriage," do not include individuals in a formal relationship recognized by a

state that is not denominated a marriage under state law, such as a domestic partnership or a civil union, regardless of whether the individuals who are in these relationships have the same rights and responsibilities as those individuals who are married under state law.

FHFA campaign to inform homeowners about HARP The FHFA launched a nationwide campaign to inform homeowners about the HARP. The campaign is designed to encourage homeowners who have been making their mortgage payments, but who owe more than their home is worth, to contact their current lender or any other mortgage lender offering HARP refinances to review their refinancing options. As part of this campaign, FHFA has launched a new website, www.HARP.gov, and is working with mortgage companies across the U.S. and HGTV personality and star of Power Broker Mike Aubrey to help reach homeowners who may qualify. CFPB partners with Jackson, MS The CFPB and the City of Jackson, Mississippi announced a partnership20 to connect consumers with the CFPB to ask questions and submit complaints about financial products and services. Jackson consumers can now dial 311 to be connected with the Bureau when they have financial issues.

FFIEC announces availability of mortgage lending data The FFIEC announced21 the availability of data on mortgage lending transactions at 7,400 U.S. financial

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institutions covered by HMDA. Covered institutions include banks, savings associations, credit unions, and mortgage companies. The HMDA data made available today cover 2012 lending activity — applications, originations, purchases and sales of loans, denials, and other actions related to applications. The Fed also issued an article22 regarding the 2012 HMDA data. Comment: The 2012 HMDA data are the first to use the census tract delineations and population and housing characteristic data from the 2010 Census and from the American Community Survey (ACS). For 2012, the number of reporting institutions of 7,400 fell 3 percent from the number in 2011, continuing a downward trend since 2006 when HMDA coverage included just over 8,900 lenders. The total number of originated loans of all types and purposes reported increased by about 2.7 million, or 38 percent, from 2011, in part because of a 54 percent increase in the number of refinancings. Home purchase lending also increased, but by a more modest 13 percent. Eighty-two percent of conventional first-lien loans used to purchase manufactured homes exceeded the HPML reporting threshold in 2012. For conventional first-lien loans used to purchase site-built properties, about 3.2 percent of the reported loans exceeded the HPML reporting threshold (down from 3.9 percent in 2011). Regarding the disposition of applications for conventional home purchase loans in 2012, black and Hispanic white applicants experienced higher denial rates than non-Hispanic white applicants.

CFPB blog Consumer advisory: Stop getting sidetracked by your student loan servicer23

We’ve got answers to your financial questions24 We’re looking for innovative partners for financial education research25 A new toolkit for social services providers26 Our new mortgage visualization tool27 (This tool allows consumers easy access to public mortgage data collected under HMDA) Explainer: scoring student loan servicers28 Banks can help spot elder financial exploitation and abuse29 Banking on campus forum30 Live from Chicago, Illinois!31 HUD exempts small supervised lenders from audit requirements Prior to October 17, 2013, HUD’s regulations required all supervised lenders and mortgagees to submit annual audited financial statements as a condition of FHA lender approval and recertification. In September, HUD adopted a final rule that exempts small supervised lenders and mortgagees (lenders with less than $500 million in consolidated assets) from submitting a copy of an audited financial statement. Small supervised lenders and mortgagees are now instead required, within 90 days of their fiscal year end, to furnish to HUD the Call Report that the small supervised lender or mortgagee is required to submit to their respective federal banking agency.

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Additionally, the rule clarifies that small supervised lenders and mortgagees are no longer required to submit internal control and compliance reports. Small supervised lenders and mortgagees are only required to submit audited financial statements if HUD determines that the supervised lenders or mortgagees pose heightened risk to the FHA insurance fund. The effective date of the rule was October 17, 2013.

Publications, reports, studies, testimony & speeches

Fed's October Beige Book The Fed's October Beige Book,32 consisting of reports from the twelve Federal Reserve Districts, suggests that national economic activity continued to expand at a modest to moderate pace during the reporting period of September through early October. Eight Districts reported similar growth rates in economic activity as during the previous reporting period, while growth slowed some in the Philadelphia, Richmond, Chicago, and Kansas City Districts. Contacts across Districts generally remained cautiously optimistic in their outlook for future economic activity, although many also noted an increase in uncertainty due largely to the federal government shutdown and debt ceiling debate. Comment: The Eleventh District (Texas and parts of New Mexico and Louisiana) economy expanded at a moderate pace over the six weeks prior to October 7th. Manufacturing activity increased overall and retail sales edged up. Services firms reported mixed demand. The housing

sector remained strong, with rising construction and sales. Office and industrial leasing activity picked up. Financial institutions said loan demand was flat to up modestly. Energy activity remained at high levels, and the severity of drought conditions eased somewhat. Prices held steady or rose at most responding firms. Employment levels were flat or slightly increased, and wage pressures picked up.

NMLS releases report on state-licensed mortgage entities This NMLS report33 compiles data from the second quarter of 2013 concerning mortgage loan originators (MLOs) and institutions registered in the NMLS Federal Registry. Comment: As of June 30, 2013, Texas has 27,046 federally registered MLOs and 834 federally registered financial institutions.

OCC OREO booklet revisions aimed primarily at savings associations The OCC issued the “Other Real Estate Owned” booklet of the Comptroller’s Handbook. This updated booklet replaces a similarly titled booklet issued in March 1990 (and examination procedures issued in April 1998). The updated booklet also replaces section 251, “Real Estate Owned and Repossessed Assets,” issued in December 2010 as part of the OTS Examination Handbook for the examination of federal savings associations. The OCC’s “Other Real Estate Owned” booklet provides updated guidance to examiners and bankers on the acquisition, reporting, management, and disposition of OREO. Major

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revisions address interagency appraisal and evaluation guidance; managing and renting foreclosed residential properties; third-party service providers; borrower redemption periods after foreclosure; and the exchange of participation interests in OREO. The booklet discusses similarities and differences in the statutes and regulations unique to national banks and federal savings associations (FSA). Although policies governing OREO for national banks and FSAs are similar in many respects, some differences remain and are addressed in the booklet. In addition, areas governed by policy but not statute or regulation have been made uniform for national banks and FSAs in this booklet. For example, whereas section 251 described OREO hold or sell considerations that an FSA should address, the updated booklet directs FSAs to the general statutory and regulatory standard for national banks for OREO disposition. In another example, FSAs had been expected to use property acquired for future expansion within three years of acquisition or transfer the property to OREO, whereas national banks are expected to use such property within five years; FSAs now are allowed the five-year time frame. With the issuance of this booklet, the following documents are rescinded:

OTS Examination Handbook, section 251, “Real Estate Owned and Repossessed Assets” (December 2010)

OCC Bulletin 2011-49, “Foreclosed Properties: Guidance on Potential Issues With Foreclosed Residential Properties” (December 14, 2011)

OCC Bulletin 2011-10, “Other Real Estate Owned: Exchanging Other Real Estate Owned for Other Assets” (March 24, 2011)

Comment: The booklet provides updated guidance to examiners and bankers on acquisition, reporting, management, and disposition of OREO. Revisions address interagency appraisal and evaluation guidance; managing and renting foreclosed residential properties; third-party service providers; borrower redemption periods after foreclosure; and the exchange of participation interests in OREO. FedFlash for October

The October updates34 include:

Webinar: Account Management

Information and Accounting

Information Services Data File

Changes

Check Adjustments offers special

webinar pricing

Check Adjustments introduced Train

the Trainer webinar

Federal Reserve Banks to publish

new FedReceipt® RTNs

Check Adjustments Tip: Changes to

case submission requirements for

PAIDs

Fed issues latest FedFocus

FedFocus35 provides the latest Federal Reserve Financial Services news. Each edition keeps you informed about hot topics in the industry, as well as provides insight into the value of Federal Reserve Financial Services. The September edition of FedFocus includes these topics: seeking input on the payment system; the potential benefit of electronic payment orders;

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implementation of Dodd-Frank remittance rule; and the redesigned $100 note.

Agency rulemaking:

Selected final rules since last Capitol Comments:

CFPB: Amendments to the 2013 Mortgage Rules under the RESPA (Regulation X) and the TILA (Regulation Z)36 This rule amends provisions in Regulation Z and final rules issued by the CFPB in 2013, which, among other things, required that consumers receive counseling before obtaining high-cost mortgages and that servicers provide periodic account statement s and rate adjustment notices to mortgage borrowers, as well as engage in early intervention when borrowers become delinquent. The amendments clarify the specific disclosures that must be provided before counseling for high-cost mortgages can occur, and proper compliance regarding servicing requirements when a consumer is in bankruptcy or sends a cease communication request under the Fair Debt Collection Practices Act. The rule also makes technical corrections to provisions of other rules. The Bureau requests public comment on these changes. Comments must be received 30 days after publication in the Federal. Register. Comment: See the article regarding this in the News section of this issue. This rule also appears in the section for rules

with open comment periods because it is an interim final rule with an open comment period.

CFPB: Interim rule clarifies mortgage servicing rules37 CFPB released a bulletin38 and interim final rule39 to clarify the market concerning mortgage servicing rules that take effect in January 2014. The clarifications address communications with family members after a borrower dies, contact with delinquent borrowers, and treatment of consumers who have filed for bankruptcy or invoked certain protections under the Fair Debt Collection Practices Act. Press release.40 The interim rule will be effective 30 days after publication in the Federal Register. Comment: The bulletin provides examples of servicer policies and procedures in cases when the borrower dies, including allowing for continued payment on the mortgage as well as evaluating the heir (or whomever the legal interest in the home passes to) for assumption of the mortgage and, if appropriate, for loss mitigation measures. The bulletin clarifies that the servicer rule's requirement to attempt to contact a borrower every time there's a missed payment may be met through other contact that servicers have with such borrowers, for example, when evaluating them for loss mitigation or during collection calls. The rules clarify that even if delinquent borrowers have instructed servicers to stop communicating with them pursuant to the FDCPA, certain notices and communications mandated by the CFPB servicing rules and the Dodd-Frank Act are still required. The rule exempts servicers from the requirement to provide periodic account statements and certain early intervention contacts with borrowers who are in bankruptcy while the CFPB assesses how bankruptcy law and the servicing requirements intersect.

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OCC/Fed: Regulatory Capital Rules41 The OCC and FRB adopted a final rule that revises their risk-based and leverage capital requirements for banking organizations. The final rule consolidates three separate notices of proposed rulemaking that the OCC, Board, and FDIC published in the Federal Register on August 30, 2012, with selected changes. The final rule implements a revised definition of regulatory capital, a new common equity tier 1 minimum capital requirement, a higher minimum tier 1 capital requirement, and, for banking organizations subject to the advanced approaches risk-based capital rules, a supplementary leverage ratio that incorporates a broader set of exposures in the denominator. The final rule incorporates these new requirements into the agencies' prompt corrective action framework. In addition, the final rule establishes limits on a banking organization's capital distributions and certain discretionary bonus payments if the banking organization does not hold a specified amount of common equity tier 1 capital in addition to the amount necessary to meet its minimum risk-based capital requirements. Further, the final rule amends the methodologies for determining risk-weighted assets for all banking organizations, and introduces disclosure requirements that would apply to top-tier banking organizations domiciled in the United States with $50 billion or more in total assets. The final rule also adopts changes to the agencies' regulatory capital requirements that meet the requirements of section 171 and section 939A of the Dodd-Frank Act. The final rule also codifies the agencies' regulatory capital rules, which have

previously resided in various appendices to their respective regulations, into a harmonized integrated regulatory framework. In addition, the OCC is amending the market risk capital rule (market risk rule) to apply to Federal savings associations, and the Board is amending the advanced approaches and market risk rules to apply to top-tier savings and loan holding companies domiciled in the United States, except for certain savings and loan holding companies that are substantially engaged in insurance underwriting or commercial activities, as described in this preamble. Effective date: January 1, 2014, except that the amendments to Appendixes A, B and E to 12 CFR Part 208, 12 CFR 225.1, and Appendixes D and E to Part 225 are effective January 1, 2015, and the amendment to Appendix A to 12 CFR Part 225 is effective January 1, 2019. Mandatory compliance date: January 1, 2014 for advanced approaches banking organizations that are not savings and loan holding companies; January 1, 2015 for all other covered banking organizations.

HUD: FHA approval of lending institutions and mortgagees: streamlined reporting requirements for small supervised lenders and mortgagees42 This rule streamlines the FHA financial statement reporting requirements for lenders and mortgagees who are supervised by federal banking agencies and whose consolidated assets do not meet the thresholds set by their supervising federal banking agencies for submission of audited financial statements

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(currently set at $500 million in consolidated assets). HUD's regulations currently require all supervised lenders and mortgagees to submit annual audited financial statements as a condition of FHA lender approval and recertification. Through this rule, in lieu of the annual audited financial statements, small supervised lenders and mortgagees would be required to submit their unaudited financial regulatory reports that align with their fiscal year ends and are required to be submitted to their supervising federal banking agencies. Small supervised lenders and mortgagees would only be required to submit audited financial statements if HUD determines that the supervised lenders or mortgagees pose heightened risk to the FHA insurance fund. This rule does not impact FHA's annual audited financial statements submission requirement for nonsupervised and large supervised lenders and mortgagees. The rule also does not impact those supervised lenders and mortgagees with consolidated assets in an amount that requires that lenders or mortgagees submit audited financial statements to their respective supervising federal banking agencies. Additionally, this final rule, consistent with the proposed rule, makes three technical changes to current regulations regarding reporting requirements for FHA-approved supervised lenders and mortgagees. Effective October 17, 2013.

CFPB: Rules of Practice for Issuance of Temporary Cease-and-Desist Orders The Dodd-Frank Act requires the CFPB to prescribe rules establishing procedures for the conduct of adjudication proceedings. On June

29, 2012, the Bureau published the final Rules of Practice for Adjudication Proceedings. That final rule, however, does not apply to the issuance of a temporary cease-and-desist order (TCDO) pursuant to section 1053(c) of the Dodd-Frank Act. The CFPB issued an interim final rule governing such issuance and seeks public comments. The interim final rule took effect on September 26, 2013. Comments will be accepted until November 25, 2013. Comment: This interim final rule isn’t really of concern to many community banks because it only applies to financial institutions with more than $10 billion in assets; however, under the right circumstances it could apply to a community bank. This rule appears here and the below section for rules with open comment periods because the interim rule was effective September 26, 2013, but comments will be accepted until November 25, 2013.

Selected federal rule proposals with open comment periods:

CFPB: Amendments to the 2013 Mortgage Rules under the RESPA (Regulation X) and the TILA (Regulation Z)43 This rule amends provisions in Regulation Z and final rules issued by the CFPB in 2013, which, among other things, required that consumers receive counseling before obtaining high-cost mortgages and that servicers provide periodic account statement s and rate adjustment notices to mortgage borrowers, as well as engage in early intervention when borrowers become delinquent. The amendments clarify the specific

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disclosures that must be provided before counseling for high-cost mortgages can occur, and proper compliance regarding servicing requirements when a consumer is in bankruptcy or sends a cease communication request under the Fair Debt Collection Practices Act. The rule also makes technical corrections to provisions of other rules. The Bureau requests public comment on these changes. Comments must be received 30 days after publication in the Federal. Register. Comment: See the comment regarding this above in the News section. This rule also appears in the section for final rules because it is an interim final rule with an open comment period.

Five Agencies propose rules on loans in areas having Special Flood Hazards44 The OCC, FRB, FDIC, FCA, and NCUA (collectively, the Agencies) are proposing to amend their regulations regarding loans in areas having special flood hazards to implement provisions of the Biggert-Waters Flood Insurance Reform Act of 2012. Specifically, the proposal would establish requirements with respect to the escrow of flood insurance payments, the acceptance of private flood insurance coverage, and the force-placement of flood insurance. The proposal also would clarify the Agencies’ flood insurance regulations with respect to other amendments made by the Act and make technical corrections. Furthermore, the OCC and the FDIC are proposing to integrate their flood insurance regulations for national banks and Federal savings associations and for State non-member banks and State savings associations, respectively. Comments must be received by

December 10, 2013. (The government shutdown has affected the Office of Federal Register.) Comment: Highlights of the proposal: The proposal would generally require regulated lending institutions, or servicers acting on their behalf, to escrow premiums and fees for flood insurance for any loans secured by residential improved real estate or a mobile home, unless the institutions qualify for the statutory exception. The proposal would also require that regulated lending institutions accept private flood insurance that meets the statutory definition to satisfy the mandatory purchase requirement. The proposal requests comment on whether the Agencies should accept policies that don’t meet the FDPA definition of private flood insurance and what the Agencies might require for such a policy. The proposal includes new and revised sample notice forms and clauses. One of the new sample notice forms is Notice of Requirement to Escrow for Outstanding Loans to inform borrowers of the new escrow requirement. The proposal would amend the force-placement provisions to clarify that a lender or servicer has authority to charge for flood insurance on the date coverage lapses or becomes insufficient.

HUD proposes “Qualified Mortgage” definition45 HUD proposed a rule to define a ‘Qualified Mortgage (QM)’ that would be insured, guaranteed or administered by HUD, including single-family forward mortgages insured by the Federal Housing Administration (FHA). HUD is seeking the public’s comment on its proposed rule by October 30th. Read HUD’s proposed rule. There is a technical error in the rule as published in the Federal Register. HUD will publish a technical correction in the Federal Register at the earliest possible date. The corrected rule along with the

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rule's Regulatory Impact Analysis can be found here. Comment by October 30, 2013.

FDIC: Interim rule revising risk-based and leverage capital requirements46 The FDIC adopted an interim final rule that revises its risk-based and leverage capital requirements for FDIC-supervised institutions. This interim final rule is substantially identical to a joint final rule issued by the OCC and the Federal Reserve (together, with the FDIC, the agencies). The interim final rule consolidates three separate notices of proposed rulemaking that the agencies jointly published in the Federal Register on August 30, 2012, with selected changes. The interim final rule implements a revised definition of regulatory capital, a new common equity tier 1 minimum capital requirement, a higher minimum tier 1 capital requirement, and, for FDIC-supervised institutions subject to the advanced approaches risk-based capital rules, a supplementary leverage ratio that incorporates a broader set of exposures in the denominator. The interim final rule incorporates these new requirements into the FDIC's prompt corrective action framework. In addition, the interim final rule establishes limits on FDIC-supervised institutions' capital distributions and certain discretionary bonus payments if the FDIC-supervised institution does not hold a specified amount of common equity tier 1 capital in addition to the amount necessary to meet its minimum risk-based capital requirements. The interim final rule amends the methodologies for determining risk-weighted assets for all FDIC-supervised institutions. The interim final rule also

adopts changes to the FDIC's regulatory capital requirements that meet the requirements of section 171 and section 939A of the Dodd-Frank Wall Street Reform and Consumer Protection Act. The interim final rule also codifies the FDIC's regulatory capital rules, which have previously resided in various appendices to their respective regulations, into a harmonized integrated regulatory framework. In addition, the FDIC is amending the market risk capital rule (market risk rule) to apply to state savings associations. The FDIC is issuing these revisions to its capital regulations as an interim final rule. The FDIC invites comments on the interaction of this rule with other proposed leverage ratio requirements applicable to large, systemically important banking organizations. This interim final rule otherwise contains regulatory text that is identical to the common rule text adopted as a final rule by the Federal Reserve and the OCC. This interim final rule enables the FDIC to proceed on a unified, expedited basis with the other federal banking agencies pending consideration of other issues. Specifically, the FDIC intends to evaluate this interim final rule in the context of the proposed well-capitalized and buffer levels of the supplementary leverage ratio applicable to large, systemically important banking organizations, as described in a separate Notice of Proposed Rulemaking (NPR) published in the Federal Register August 20, 2013. The FDIC is seeking commenters' views on the interaction of this interim final rule with the proposed rule regarding the supplementary leverage ratio for large, systemically important banking

C A P I T O L C O M M E N T S O C T O B E R 2 0 1 3 Page 16

organizations. Comments are due on or before November 12, 2013.

CFPB: Rules of Practice for Issuance of Temporary Cease-and-Desist Orders The Dodd-Frank Act requires the CFPB to prescribe rules establishing procedures for the conduct of adjudication proceedings. On June 29, 2012, the Bureau published the final Rules of Practice for Adjudication Proceedings. That final rule, however, does not apply to the issuance of a temporary cease-and-desist order (TCDO) pursuant to section 1053(c) of the Dodd-Frank Act. The CFPB issued an interim final rule governing such issuance and seeks public comments. The interim final rule took effect on September 26, 2013. Comments will be accepted until November 25, 2013. Comment: This interim final rule isn’t really of concern to many community banks because it only applies to financial institutions with more than $10 billion in assets; however, under the right circumstances it could apply to a community bank. This rule appears here and the above section for final rules because the interim rule was effective September 26, 2013, but comments will be accepted until November 25, 2013.

Six agencies repropose risk retention rule47 This proposal was issued jointly by the Fed, HUD, the FDIC, FHFA, the OCC, and the SEC. The rule would provide asset-backed securities (ABS) sponsors with several options to satisfy the risk retention requirements. The original proposal generally measured compliance with the risk retention requirements based on the par value of securities issued in a securitization transaction and included a

so-called premium capture provision. The agencies are now proposing that risk retention generally be based on fair value measurements without a premium capture provision. Comments must be received on or before October 30, 2013. Comment: As required by the Dodd-Frank Act, the proposal would define QRM and exempt securitizations of QRMs from risk retention. The new proposal would define QRMs to have the same meaning as the term qualified mortgages as defined by the CFPB. The new proposal also requests comment on an alternative definition of QRM that would include certain underwriting standards in addition to the qualified mortgage criteria. Similar to the original proposal, under the new proposal, securitizations of commercial loans, commercial mortgages, or automobile loans of low credit risk would not be subject to risk retention. Further, the rule would recognize the full guarantee on payments of principal and interest provided by Fannie Mae and Freddie Mac for their residential mortgage-backed securities as meeting the risk retention requirements while Fannie Mae and Freddie Mac are in conservatorship or receivership and have capital support from the U.S. government. This provision also is unchanged from the original proposal.

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Selected federal proposed rulemaking with closed comment periods—final rule not yet issued: Fed, FDIC, OCC: Stress test guidance for medium-sized firms48 Three federal bank regulatory agencies (the Fed, the FDIC, and the OCC) are seeking comment on proposed guidance describing supervisory expectations for stress tests conducted by financial companies with total consolidated assets between $10 billion and $50 billion. These medium-sized companies are required to conduct annual company-run stress tests beginning this fall under rules the agencies issued in October 2012 to implement a provision in the Dodd-Frank Act. To help these companies conduct stress tests appropriately scaled to their size, complexity, risk profile, business mix, and market footprint, this guidance is proposed to provide additional details tailored to these companies. The stress test rules allow flexibility to accommodate different approaches by different companies in the $10 billion to $50 billion asset range. Consistent with this flexibility, the proposed guidance describes general supervisory expectations for Dodd-Frank Act stress tests, and, where appropriate, provides examples of practices that would be consistent with those expectations. The public comment period on the proposed supervisory guidance will be open until September 25, 2013.

Six agencies propose rule to exempt subset of higher-priced mortgage loan from appraisal requirements - Supplemental Proposal49 The Fed, CFPB, FDIC, FHFA, NCUA, and OCC issued a proposed rule that would create exemptions from certain appraisal requirements for a subset of higher-priced mortgage loans. The proposed exemptions are intended to save borrowers time and money and to promote the safety and soundness of creditors. The appraisal requirements for higher-priced mortgages were imposed by the Dodd-Frank Ac. Under the Dodd-Frank Act, mortgage loans are considered to be higher-priced if they are secured by a consumer's home and have interest rates above a certain threshold. The proposed rule would provide that the following three types of higher-priced mortgage loans would be exempt from the Dodd-Frank Act appraisal requirements: loans of $25,000 or less; certain "streamlined" refinancing; and certain loans secured by manufactured housing. Comments must be received on or before September 9, 2013. CFPB: Proposes Consumer Financial Civil Penalty Fund50 The Dodd-Frank Act establishes a “Consumer Financial Civil Penalty Fund” (Civil Penalty Fund) into which the CFPB must deposit any civil penalty it obtains against any person in any judicial or administrative action under Federal consumer financial laws. Under the Act, funds in the Civil Penalty Fund may be used for payments to the victims of activities for which civil penalties have been imposed under Federal consumer financial laws. In addition, to

C A P I T O L C O M M E N T S O C T O B E R 2 0 1 3 Page 18

the extent that such victims cannot be located or such payments are otherwise not practicable, the CFPB may use funds in the Civil Penalty Fund for the purpose of consumer education and financial literacy programs. This proposal is related to a final rule published simultaneously with this proposal. That final rule implements the statutory Civil Penalty Fund provisions by articulating the Bureau's interpretation of what kinds of payments to victims are appropriate and by establishing procedures for allocating funds for such payments to victims and for consumer education and financial literacy programs. Comments were due by July 8, 2013. Comment: Click here51 to learn about the CFPB’s Civil Penalty Fund.

OCC, Fed, FDIC propose clarifications to the Interagency Q&A regarding CRA52 The OCC, Fed, and FDIC (collectively, the Agencies) are proposing to clarify their Interagency Questions and Answers Regarding Community Reinvestment to address several community development issues. The Agencies propose to revise five questions and answers, which address (i) community development activities outside institutions' assessment areas, both in the broader statewide or regional area and in nationwide funds; (ii) additional ways to determine whether recipients of community services are low- or moderate-income; and (iii) providing a community development service by serving on the board of directors of a community development organization. The Agencies also propose to add two new questions and answers, one of which addresses the treatment of community development

performance in determining an institution's lending test rating, and the other addresses the quantitative consideration given to a certain type of community development investment. Finally, the Agencies also propose to redesignate one question and answer without substantive change. Click here53 to see the Agencies’ press release. Comments closed on May 17, 2013.

CFPB: Proposes integrated Mortgage Disclosures Under the Real Estate Settlement Procedures Act (Regulation X) and the Truth In Lending Act (Regulation Z) Notice of proposed rulemaking The comment period closed on November 6, 2012.

CFPB: Proposes 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 (Regulation X). The comment period closed on September 7, 2012. ___________________________

Selected upcoming final federal rule compliance dates: 10.28.2013 CFPB: Final Consumer protection

rule on international remittances (Reg. E) This rule was followed by a clarification: CFPB Final Rule: Clarificatory amendment and technical correction to a final rule and official interpretation of

C A P I T O L C O M M E N T S O C T O B E R 2 0 1 3 Page 19

disclosures for remittance transactions (Reg. E)

11.04.2013 Final rule prohibiting issuing credit

card unless ability to make payments is considered (Reg. Z)

01.01.2014 Regulatory Capital Rules (Basel III) The Fed approved a Basel III final rule. The final rule minimizes burden on smaller, less complex financial institutions. For more details, refer to the Federal Reserve’s Press Release54. The FDIC Board of Directors approved an interim final rule55 that adopts with revisions the three notices of proposed rulemaking (NPRs) that the banking agencies proposed last year related to Basel III and the standardized approach. The FDIC Board also approved a joint interagency Notice of Proposed Rulemaking56 to strengthen the supplementary leverage requirements for the largest most systemically important banking organizations. The OCC announced (NR 2013-11057) that it approved a final rule revising regulatory capital rules applicable to national banks and federal savings associations.

01.10.2014 CFPB: Loan Originator Compensation Requirements Under TILA/Regulation Z58 Amendments to §1026.36(h) and (i), which are a prohibition on financing credit insurance in connection with consumer credit transactions secured by a dwelling, and which were to be effective on June 1, 2013, will now be effective on January 10, 2014 after clarifications are adopted. Click here59 to read the notice of the delay of the effective date.

01.10.2014 CFPB: RESPA/Regulation X and

TILA/Regulation Z Mortgage Servicing60 RESPA final rule includes servicer’s’ obligations to correct errors asserted by mortgage loan borrowers; provide certain information requested by such borrowers; and provide protection to such borrowers in connection with force-placed insurance. The Reg. Z final rule includes initial rate adjustment notices, periodic statements for residential mortgage loans, crediting of mortgage

payments; and responses to requests for payoff amounts. This final rule was further corrected, clarified, and amended: CFPB finalizes corrections, clarifications, and amendments to mortgage rules61: ●Clarifies how to determine a consumer’s debt-to-income (DTI) ratio: ●Explains that CFPB’s RESPA rule does not preempt the field of servicing regulation by states. ●Establishes which mortgage loans to consider in determining small servicer status. ●Clarifies the eligibility standard of the temporary QM provision.

01.10.2014 CFPB: Clarifications to the2013

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) Among other things, these amendments: ●Clarify what servicer activities are prohibited in the first 120 days of delinquency; ●Facilitate servicers’ offering of short-term forbearance plans; ●Clarify best practices for informing borrowers about the address for error resolution documents; ●Facilitate lending in rural and underserved areas, while the CFPB is reexamining the rural and underserved definitions, by: 1) Exempting all small creditors from a new ban on high-cost mortgages featuring balloon payments so long as certain restrictions are met; and 2) making it easier for certain small creditors to continue to qualify for an exemption from a requirement to maintain escrows on certain HPMLs; ●Make clarifications about financing of credit insurance premiums; ●Clarify the definition of a loan originator; ●Clarify the points and fees thresholds and loan originator compensation rules for manufactured housing employees; ●Revise effective dates of many loan originator compensation rule provisions.

01.10.2014 CFPB: Ability to Repay (ATR) and

Qualified Mortgage (QM) Standards under TILA/Regulation Z62

01.10.2014 CFPB: High-Cost Mortgage and

Homeownership Counseling Amendments to TILA/Regulation Z and Homeownership Counseling

C A P I T O L C O M M E N T S O C T O B E R 2 0 1 3 Page 20

Amendments to RESPA/Regulation X63 implements Dodd-Frank Act amendments to TILA and 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.

01.18.2014 CFPB: Disclosure and Delivery Requirements for Copies of Appraisals and Other Written Valuations Under ECOA/Regulation B64

o1.18.2014 CFPB, FRB, FDIC, FHFA, NCUA, and OCC: Appraisals for Higher-Priced Mortgage Loans65

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

Selected final federal rule 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. 10.17.2013 FHA approval of lending

institutions and mortgagees: streamlined reporting requirements for small supervised lenders and mortgagees66 This rule streamlines the FHA financial statement reporting requirements for lenders and mortgagees who are supervised by federal banking agencies and whose consolidated assets do not meet the thresholds set by their supervising federal banking agencies for submission of audited financial statements (currently set at $500 million in consolidated assets).

07.01.2013 FTC: Amends the Children's Online

Privacy Protection Rule (“COPPA Rule” or “Rule”), consistent with the requirements of the Children's Online Privacy Protection Act, to clarify the scope of the Rule and strengthen its protections for children's personal information, in light of changes in online technology since the Rule went into effect in April 2000. The final amended Rule includes modifications to the definitions of operator, personal information, and Web site or online service directed to children. The amended Rule also updates the requirements set forth in the notice, parental consent, confidentiality and security, and safe harbor provisions, and adds a new provision addressing data retention and deletion. (Comment: Financial institutions are subject to COPPA if they operate a website or online services directed to children or have actual knowledge that they are collecting or maintaining personal information from a child online.)

06.01.2013 CFPB: Escrow Requirements for

Higher-Priced Mortgages Under TILA/Regulation Z 67 The CFPB issued Clarifications of the 2013 Escrows final rule68 (Reg. Z) on May 16, 2013.

06.01.2013 Amendments in the Loan

Originator Compensation final rules69 to §1026.36 (h) and (i) are effective on this June 1, 2013. Section 1026.36(h) is regarding the prohibition on mandatory arbitration clauses and waivers of certain consumer rights. Section 1026(i) is regarding the prohibition on financing single-premium credit insurance.

03.31.2013 FinCEN: SAR/CTR batch filers

must update their systems to the new specifications70. (Extended from June 30, 2012 to March 31, 201371) 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.

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03.28.2013 In order to resolve litigation

regarding a Reg. Z provision limiting fees a consumer must pay prior to opening a credit card account, the CFPB issued an April 2012 proposal to amend the rule to be consistent with a court ruling so that it no longer applies to fees charged prior to account opening. On March 22, the CFPB adopted a final rule72 adopting the proposal’s elimination of the cap on fees charged prior to account opening.

03.26.2013 The CFPB amended Reg. E73 to

conform to legislation that amended the EFTA to eliminate a requirement that owners of ATMs post a fee notice on all ATMs. The onscreen notice requirement remains.

01.01.2013 The IRS final regulations74

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,75 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

rule76 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.

IBAT educational opportunities:

Oct 22,

2013 Webinar

Dealing with Adverse Action:

What to Do and When to Do It

Oct 24,

2013 Irving, TX

LD Regions 3 & 4 - DFW

Educational Luncheon and

Golf Tournament

Oct 24,

2013 Webinar

Perfection of Security Interest

in Non-Real Estate Collateral

and Proper Foreclosure

Procedures After Default

Oct 29,

2013 Webinar

Technology Strategies and

Compliance Series: Advanced

Facebook Strategies for

Community Banks

Oct 31,

2013 Webinar

HMDA Solutions: Achieving

Data Integrity for Effective

Fair Lending Analysis

Oct 31,

2013 to

Nov 2,

2013

Dallas, TX

The Certified Community

Bank Director’s (CCBD)

Program

Nov 3,

2013 to

Nov 5,

2013

Dallas, TX ICBA 2013 BSA/AML

Institute

Nov 5,

2013 to

Nov 6,

2013

San

Antonio, TX

Dodd-Frank Update!

Regulations Z, B, and RESPA

Seminar - San Antonio

Nov 5,

2013 Webinar

Business Signature Cards and

Resolutions: Entities,

Authority and Documentation

Nov 6,

2013 Webinar

FDIC Records and Related

Email Retention Rules

Nov 7,

2013 Dallas, TX

IBAT Investments &

Asset/Liability Management

Summit

Nov 7,

2013 to

Nov 8,

2013

Irving, TX

Dodd-Frank Update!

Regulations Z, B, and RESPA

Seminar - Irving

Nov 7,

2013 Webinar

Mobile Payments for

Community Banks: Impacts,

Choices and What to Do Next

Nov 7,

2013 Houston, TX

Associate Member

Complimentary Area

C A P I T O L C O M M E N T S O C T O B E R 2 0 1 3 Page 22

Networking Event - Houston

Nov 7,

2013 Houston, TX

LD Region 9 - Educational

Meeting and Networking

Reception

Nov 9,

2013 Houston, TX

2013 Teach the Teacher -

Houston

Nov 11,

2013 webinar

Senior Housing Crime

Prevention Foundation: An

Innovative CRA Solution

Webinar

Nov 13,

2013 Webinar

Commercial Loan Annual

Credit Review

Nov 14,

2013 Webinar

Director Series: Documenting

Your Strategic Plan Years 1, 3

and 5: Meeting Examiner

Expectations

Nov 14,

2013 Waco, TX

Waco Area Cluster Program -

BSA/AML – What's Essential

in 2013?

Nov 15,

2013

Conference

Call

Associate Member Industry

Update Conference Call

Nov 15,

2013 Webinar

The 25 Most Important Things

to Know about the New

Mortgage Loan Origination

Rule Changes Before January

10, 2014

Nov 19,

2013 to

Nov 20,

2013

The

Woodlands,

TX

Branch Manager Summit

Sessions 3 & 4

Nov 19,

2013 Webinar

What You Need to Know

about Guarantors, Co-Signers,

Personal Guarantees and Joint

Applications

Nov 20,

2013 Austin, TX

2013 FDIC Banker Outreach -

Austin

Nov 20,

2013 Webinar

Simplifying the Compliance

Function: Tools, Checklists

and Reporting to Keep You on

Track

Nov 21,

2013 to

Nov 22,

2013

The

Woodlands,

TX

Head Teller Summit Sessions

2 & 3

Nov 21,

2013 Webinar

Fair Labor Standards Act: Dos

and Don’ts of Exempt and

Non-Exempt Pay Issues

Nov 22,

2013 Webinar

The 5 Definitions of a

Qualified Mortgage under

CFPB Rules Effective January

10, 2014: Including September

2013 Rule Changes

Nov 22,

2013

Richardson,

TX

2013 FDIC Banker Outreach -

Richardson

Nov 25,

2013 Webinar

New CFPB Mortgage

Servicing Rules Effective

January 10, 2014: What

Community Banks Must Do to

Comply

Nov 26,

2013 Webinar

Form 1099 Reporting: Third-

Party Vendors, Foreclosures,

Debt Forgiveness and More

Dec 5,

2013 to

Dec 6,

2013

Beaumont,

TX

Dodd-Frank Update!

Regulations Z, B, and RESPA

Seminar - Beaumont

Feb 26,

2014 to

Feb 28,

2014

Maui,

Hawaii

IBAT's Pre-ICBA Convention

Program

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.

C A P I T O L C O M M E N T S O C T O B E R 2 0 1 3 Page 23

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: 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 to http://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 accouni8ik2t numbers or Social Security numbers should not be included. Comments will not be edited to remove any identifying or contact information.

C A P I T O L C O M M E N T S O C T O B E R 2 0 1 3 Page 24

Common words, phrases, and acronyms

APOR

“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

CARD Act

Credit 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

CSBS Conference of State Bank Supervisors

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 Act The Dodd–Frank Wall Street Reform and Consumer Protection Act

FDIC Federal Deposit Insurance Corporation

EFTA Electronic Fund Transfer Act

Federal bank regulatory agencies

FDIC, FRB, and OCC

Federal financial institution regulatory agencies

CFPB, FDIC, FRB, NCUA, and OCC

FEMA Federal Emergency Management Agency

FFIEC Federal Financial Institutions Examination Council

FHFA Federal Housing Finance Agency

FHA Federal Housing Administration

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

FSOC Financial Stability Oversight Council

FTC Federal Trade Commission

GAO Government Accountability Office

HARP Home Affordable Refinance Program

HAMP Home Affordable Modification Program

C A P I T O L C O M M E N T S O C T O B E R 2 0 1 3 Page 25

HMDA Home Mortgage Disclosure Act

HOEPA Home Ownership and Equity Protections Act of 1994

HPML Higher Priced Mortgage Loan

HUD U.S. Department of Housing and Urban Development

IRS Internal Revenue Service

MLO Mortgage Loan Originator

MOU Memorandum of Understanding

NFIP

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

NMLS National Mortgage Licensing System

OCC Office of the Comptroller of the Currency

OFAC Office of Foreign Asset Control

QRM Qualified Residential Mortgage

Reg.

Abbreviation for “Regulation” – A federal regulation. These are found in the CFR.

Reg. B Equal Credit Opportunity

Reg. C Home Mortgage Disclosure

Reg. DD Truth in Savings

Reg. E Electronic Fund Transfers

Reg. G S.A.F.E. Mortgage Licensing Act

Reg. P Privacy of Consumer Financial Information

Reg. X Real Estate Settlement Procedures Act

Reg. Z Truth in Lending

RESPA Real 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.

SDN Specially Designated National

TILA Truth in Lending Act

TIN Tax Identification Number

TXDOB Texas Department of Banking

Treasury U.S. Department of Treasury

Visit our Web site at www.ibat.org To e-mail Shannon Phillips Jr., sphillips@ibat.org 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. © 2013 Independent Bankers Association of Texas; 1700 Rio Grande, Suite 100, Austin,

C A P I T O L C O M M E N T S O C T O B E R 2 0 1 3 Page 26

Texas 78701. Phone: (512) 474-6889; fax: (512) 322-9004. Web site: www.ibat.org. All rights reserved.

Shannon Phillips Jr., Editor

1http://files.consumerfinance.gov/f/201310_cfpb_stud

ent-loan-ombudsman-annual-report.pdf

2http://files.consumerfinance.gov/f/201310_cfpb_mor

tgage-servicing_bulletin.pdf

3http://files.consumerfinance.gov/f/201310_cfpb_mor

tgage-servicing_interim.pdf

4 http://www.consumerfinance.gov/newsroom/cfpb-

provides-guidance-on-mortgage-servicing-rules/

5http://portal.hud.gov/hudportal/HUD?src=/press/pres

s_releases_media_advisories/2013/HUDNo.13-152

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