Guidance for home equity lines of credit nearing their end-of-draw periods
The Board of Governors of the Federal Reserve
System (FRB), the Federal Deposit Insurance Corporation (FDIC), the National
Credit Union Administration (NCUA), and the Office of the Comptroller of the
Currency (OCC) and the Conference of State Bank Supervisors (CSBS) today issued
guidance to financial institutions regarding home equity lines of credit
(HELOCs) nearing their "end-of-draw" periods, which occurs when
the principal amount of the HELOC must begin to be repaid. The guidance
describes how financial institutions can effectively manage their potential
exposures under these circumstances. The guidance promotes an understanding of
potential exposures and describes consistent, effective responses to HELOC
borrowers unable to meet their contractual obligations. Also discussed are the appropriate
accounting and reporting procedures for HELOCs nearing their end-of-draw
available on integrated disclosures
missed the June 17, 2014, FRB/CFPB Consumer Compliance Outlook Live webcast on the TILA-RESPA Integrated
Disclosures Rule, a recording of the webinar is now available. Presentation
materials from the webinar are also available. Those who have not
previously registered for the event will need to provide registration
information before accessing the recording.
Quarter 2014 issue of Consumer Compliance Outlook is now available. Consumer Compliance Outlook is a Federal
Reserve System publication dedicated to consumer compliance issues. Items covered in the issue include a CFPB
update; recent court opinions (TILA, EFTA, FCRA, NFIA); and an article on social
media and compliance risks.
OFAC’s largest ever settlement
Department of the Treasury’s Office of Foreign Assets Control (OFAC) announced
a $963 million agreement, the largest settlement to date, with BNP Paribas SA
(BNPP) to settle its potential liability for apparent violations of U.S.
sanctions regulations. The specific payment practices used to process
sanctions-related payments included omitting references to sanctioned parties;
replacing the names of sanctioned parties with BNPP’s name or a code word; and
structuring payments in a manner that did not identify the involvement of
sanctioned parties in payments sent to U.S. financial institutions.