The Board, the Federal Deposit Insurance Corporation (FDIC), the National Credit Union Administration (NCUA), the Office of the Comptroller of the Currency (OCC), and the state regulators recognize the serious impact of Texas Winter Storms on the customers and operations of many financial institutions and will provide appropriate regulatory assistance to affected institutions subject to their supervision. More... The agencies encourage institutions operating in the affected areas to meet the financial services needs of their communities. For more information, see the interagency statement on the Board’s website: https://www.federalreserve.gov/newsevents/pressreleases/bcreg20210222a.htm.

The U.S. Department of the Treasury’s Financial Crimes Enforcement Network (FinCEN) issued a final rule to reflect inflation adjustments to its civil monetary penalties (CMPs) as mandated by the Federal Civil Penalties Inflation Adjustment Act of 1990, as amended. More... This rule adjusts certain CMPs within the jurisdiction of FinCEN to the maximum amount required by the act. The final rule is effective January 28, 2021 (Department of the Treasury, Financial Crimes Enforcement Network at 3-1700), the same day it was published in the Federal Register.

On January 19, 2021, the Board, the FDIC, the NCUA, and the OCC (collectively, “the federal banking agencies”) and FinCEN issued Answers to Frequently Asked Questions Regarding Suspicious Activity Reporting and Other Anti-Money Laundering Considerations. More... The frequently asked questions (FAQs) are intended to provide clarity to industry questions regarding certain suspicious activity reports (SAR) filing requirements and compliance processes. The FAQs have been issued as a result of discussions among law enforcement, regulators, and industry representatives through the Bank Secrecy Act Advisory Group (Department of the Treasury, Financial Crimes Enforcement Network at 3-1700).

The Board is correcting changes to the definition of eligible retained income in the capital rule. This definition is used for calculating limitations on capital distributions and discretionary bonus payments and was adopted in an interim final rule published on March 18, 2020, and as a final rule published on October 8, 2020. More... The final rule is effective January 15, 2021 (Regulation Q, Docket R-1703), the same day it was published in the Federal Register.

The Consumer Financial Protection Bureau (CFPB) issued a final rule to amend the General “qualified mortgages” (QMs) loan definition in Regulation Z (Truth in Lending). Among other things, the final rule removes the General QM loan definition’s 43 percent limit on the ratio of the consumer’s total monthly debt to total monthly income (DTI or DTI ratio) and replaces it with price-based thresholds. More... Another category of QMs consists of loans that are eligible for purchase or guarantee by either the Federal National Mortgage Association (Fannie Mae) or the Federal Home Loan Mortgage Corporation (Freddie Mac) (government-sponsored enterprises or GSEs), while operating under the conservatorship or receivership of the Federal Housing Finance Agency (FHFA). The GSEs are currently under federal conservatorship. In 2013, the CFPB established this category of QMs (Temporary GSE QMs) as a temporary measure that would expire no later than January 10, 2021, or when the GSEs cease to operate under conservatorship. In a final rule released on October 20, 2020, the CFPB extended the Temporary GSE QM loan definition to expire on the mandatory compliance date of final amendments to the General QM loan definition in Regulation Z (or when the GSEs cease to operate under the conservatorship of the FHFA, if that happens earlier). In this final rule, the CFPB adopts the amendments to the General QM loan definition that are referenced in that separate final rule. The final rule is effective March 1, 2021 (Consumer Financial Protection Bureau, Regulation Z, Docket CFPB-2020-0020) and was published in the Federal Register on December 29, 2020.

The CFPB is amending Regulation Z to add a new category of QMs—Seasoned QMs—to the existing QMs loan definition. More... The final rule defines Seasoned QMs as first-lien, fixed-rate covered transactions that have met certain performance requirements over a seasoning period of at least 36 months, are held in portfolio until the end of the seasoning period by the originating creditor or first purchaser, comply with general restrictions on product features and points and fees, and meet certain underwriting requirements. The CFPB’s primary objective with this final rule is to ensure access to responsible, affordable mortgage credit. The final rule is effective March 1, 2021 (Consumer Financial Protection Bureau, Regulation Z, Docket CFPB-2020-0028) and was published in the Federal Register on December 29, 2020.

The Board issued a final rule amending its rules of practice and procedure to adjust the amount of each civil money penalty provided by law within its jurisdiction to account for inflation as required by the Federal Civil Penalties Inflation Adjustment Act Improvements Act of 2015. More... The final rule is effective January 13, 2021 (Procedural and Organizational Rules, Rules of Practice for Hearings, Docket R-1739), the same day it was published in the Federal Register.