Friday's News

 

October 25, 2019

 

NYBA lauds the passage of new BSA/AML legislation that, importantly, does not create new compliance burdens for banks. A federal judge dealt a blow to the OCC’s plan to issue charters to fintechs.

Federal Legislative Developments

  • The House passed the banking-industry supported Corporate Transparency Act, legislation that would require businesses to reveal their true owners to the federal government via a FinCen-run database. Financial watchdogs and banks argued it would help identify criminals hiding behind anonymous shell companies. NYBA strongly supported the bill (H.R. 2513), and contacted members of the New York Congressional delegation earlier this week urging their support of the bill which was sponsored by New Yorker Carolyn Maloney (D-Manhattan).
  • More than two dozen lawmakers from both parties are asking the Office of Financial Research to conduct a study of the potential impact of CECL on financial stability. Treasury Secretary Steve Mnuchin has agreed to raise the issue at the next meeting of the Financial Stability Oversight Council.

Federal Regulatory Developments

  • For the first time in twenty years, the OCC has made changes to its regulations governing Other Real Estate Owned, also known as OREO. The new rule clarifies the holding period for OREO. The methods of disposal of OREO, and disclosure and appraisal requirements.
  • Under a new Labor Department proposal, retirement plans will get a disclosure makeover that gives a safe harbor to employee benefit plan administrators for the use of electronic delivery of notices and disclosures.

State Legislative Developments

  • Although the Legislature is on break until January, A.8686 (Kim)/S.6792 (Salazar), to create the “Empire State Inclusive Value Ledger Establishment and Administration Act”, was introduced this week. The bill would permit several NYS agencies to work together in developing and maintaining a value storage and payment digital platform. The platform would enable residents to create and manage their own individual wallets in order to send and receive credit points as a complementary currency managed in the system.
  • A.8707 (Zebrowski), relating to credit card surcharge notices, was also introduced this week.  This bill would require a notice for credit card surcharging, place a cap on the surcharge or fee, and restrict surcharging or fees for the use of a debit card. There is no sponsor currently in the Senate.

State Regulatory Developments

  • The Department of Financial Services published a notice of Emergency Rule Making regarding standards governing the servicing of residential home mortgage loans, (Part 419 to Title 3 NYCRR), extending the rule until January 4, 2020. NYBA previously submitted a comment letter to the Department of Financial Services in June 2019 following their notice to make the rule permanent. In the letter, an extension of time for enforcement was requested along with feedback from members highlighting differences between the temporary rule and the proposed final rule.

Legal Developments

  • A federal judge in New York ruled that the OCC cannot issue bank charters to institutions that don’t take deposits, dealing a severe setback to the regulator’s plan to create national charters for fintech firms.
  • The United States Supreme Court said it would review the constitutionality of the single directorship structure of the Consumer Financial Protection Bureau (CFPB). The case being appealed involves a debt relief company that was the subject of a civil investigative demand by the CFPB in 2017.

Resources

  • The Federal Trade Commission says consumers over age 60 lost $400 million fraudsters last year, and has made outreach and education resources available. Click here to learn more about the Safe Banking for Seniors program.

New Initiative of the New York Federal Reserve to Boost Puerto Rico Development

NYBA President Mike Smith, NYBA staff members, colleagues from the New Jersey Bankers Association and the Federal Home Loan Bank of New York heard a presentation by senior Federal Reserve Bank of New York officials on a program to connect banks with investment opportunities to redevelop Puerto Rico. There is potential for CRA credit for associated projects. NYBA will be working with the New York Fed to broaden its outreach regarding the program in the weeks ahead


Questions? 

Contact Mike Smith at (212) 297-1699 or msmith@nyba.com, or Clare Cusack at (212) 297-1664 or ccusack@nyba.com.
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Questions?

Karen Armstrong, Senior Vice President, Communications and Political Action
karmstrong@nyba.com

Duncan McCausland
, Marketing and Communications
dmccausland@nyba.com