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Community=20 Affairs

August=20 2005

OCC=20 UPDATE

 

 

 

OCC=20 Update = is a=20 quarterly, electronic newsletter that provides information about the = Office of=20 the Comptroller of the Currency's work in the area of fair treatment and = fair=20 access to financial services for all Americans. It provides information = about=20 national bank involvement in community development lending, investments = and=20 services, small business financing, financial literacy, access to = financial=20 services, consumer protection, CRA, HMDA and other consumer compliance=20 issues.  If you have any = questions=20 about this information or the OCC's Community Affairs activities, please = contact=20 Barry=20 Wides,=20 Deputy=20 Comptroller, Karen=20 Bellesi,=20 Special Advisor for Community Affairs, or Hershel=20 Lipow,=20 Information and Communication Specialist.   

 

Contents:

I.           = ;      =20 New and=20 Noteworthy

II.           = ;   =20 CRA=20 Examinations

III.          =20 Enforcement=20 Actions

IV.           = ; =20 Publications/Studies/Guidance

V.           = ;    =20 OCC=20 News

 

 

  =20 I. New and Noteworthy =

 

Of=20 particular note:

 

=B7  =20 On=20 August 4, 2005, John C. Dugan assumed office as the 29th = Comptroller=20 of the Currency, following Senate confirmation on July 29, 2005.  See News=20 Release 2005-77,=20 Comptroller=20 Dugan's biography,=20 and information about the past=20 Comptrollers=20 of the Currency.  =20

 

=B7  =20 The Summer=20 2005 issue of Community=20 Developments Investments = is=20 available on-line.  It = features=20 "Investment Intermediaries: Helping Banks Achieve a Double Bottom = Line". 

 

=B7  =20 The Office=20 of the Comptroller of the Currency (OCC) issued = a consumer=20 advisory = giving=20 consumers important facts about their=20 rights when using checks to make payments.

=B7  =20 The=20 OCC's Community Assistance Group (CAG) published a new brochure=20 "Assistance=20 for Customers of National Banks"=20 that describes its mission and how customers can file complaints and = obtain=20 information about national banks.

 

=B7  =20 OCC=20 Working Paper 2005-2, "Searching for Age = and Gender=20 Discrimination in Mortgage Lending," Jason Dietrich and Hannes=20 Johannsson.  Using=20 modifications of racial discrimination tests, the authors test for age = and=20 gender discrimination and find no=20 evidence of systematic discrimination on the basis of age or=20 gender.

 

Community=20 Reinvestment

 

CRA

The federal=20 banking agencies issue final Community Reinvestment Act rules, which = take effect=20 on September 1, 2005. NR=20 2005-71 = is the=20 Joint Release issued by the Board of Governors of the Federal Reserve = System,=20 the Federal Deposit Insurance Corporation, and the OCC. The = joint=20 final rule = is issued=20 at 12 CFR, Parts 228, 345, and 25, respectively for each agency.=20 OCC=20 Bulletin 2005-5 = transmits=20 the interagency notice=20 of proposed rulemaking. 

 

HMDA
"Home = Mortgage=20 Disclosure," Comptroller's=20 Handbook, = July=20 2005. Revised booklet incorporates Federal Reserve Board changes to = Regulation C=20 (12 CFR 203) requiring lenders to include additional information on = their HMDA=20 loan application register.

 

News=20 Release 2005-37 = announces=20 release of HMDA-related answers=20 to frequently asked questions = that=20 address the new home loan price data that financial institutions must = disclose=20 for the first time this year.

Consumer=20 Credit and Lending

 

Appraisals

OCC=20 Bulletin 2005-6 = announces=20 that that the OCC, FRB, FDIC, OTS, and the NCUA are issuing = frequently=20 asked questions = (FAQs)=20 concerning the independence of the collateral valuation process. The = FAQs=20 clarify existing standards in appraisal and real estate lending=20 regulations.

 

Checking

The OCC=20 issued = a consumer=20 advisory = giving=20 consumers important facts about their=20 rights when using checks to make payments.

OCC=20 Bulletin 2005-23 = transmits=20 a final=20 rule = designed=20 to improve the uniformity and adequacy of information to consumers about = certain=20 services provided by banks to their deposit customers (courtesy = overdraft=20 protection).

 

OCC=20 Bulletin 2005-9 = transmits=20 guidance, = published=20 jointly by the OCC, FDIC, FRB, and NCUA in the Federal Register, = on the=20 marketing, disclosure, and implementation of overdraft protection=20 programs.

 

Credit=20 Cards

In=20 testimony = before a=20 House Sub-Committee, Acting Comptroller Williams described the OCC's=20 perspectives on the marketing and disclosure practices of the=20 U.S. credit card industry. = See this=20 summary = of her=20 testimony, as well as <= SPAN=20 style=3D"COLOR: #990000; FONT-FAMILY: Arial; TEXT-DECORATION: none; = text-underline: none">News=20 Release 2005-57.

In=20 testimony = before the=20 Senate Banking Committee, Acting Comptroller Williams described the = OCC's=20 perspectives on the marketing and disclosure practices of the=20 U.S. credit card industry. = See this=20 summary = of her=20 testimony, as well as News=20 Release 2005-49.

In a May=20 2005 speech calling for a re-examination of the process of developing = consumer=20 disclosures for financial products and services, Acting Comptroller = Williams=20 tells = bankers=20 that disclosures are not working for consumers and are imposing = unnecessary=20 burdens.

 

Home=20 Equity

OCC=20 Bulletin 2005-22 = transmits=20 guidance, = issued by=20 the regulatory agencies, to promote sound risk management practices for = home=20 equity lines of credit and loans. See also News=20 Release 2005-48.

 

Mortgage=20 Delinquency

Acting=20 Comptroller Williams <= SPAN=20 style=3D"COLOR: #990000; FONT-FAMILY: Arial; TEXT-DECORATION: none; = mso-bidi-font-size: 10.0pt; text-underline: = none">cites=20 foreclosures as the most immediate community development challenge in a=20 speech = stressing=20 the need for multi-dimensional mortgage delinquency intervention = programs.=20

 

Real=20 Estate Settlement Procedures Act

OCC=20 Bulletin 2005-27=20 transmits guidance to national banks about third parties that provide = real=20 estate settlement services to banks. =20 The institutions should make sure that they comply with=20 section=20 8 of RESPA (Real Estate Settlement Procedures Act).

Information=20 and Privacy Protection

 

Information=20 Sharing

OCC=20 Bulletin 2005-7 = announces=20 that the Federal Trade Commission published a final=20 rule = improving=20 the required notice to consumers of their right to opt out of = prescreened=20 solicitations for credit or insurance.

 

OCC=20 News Release 2005-55 = says that=20 the regulators have issued interim=20 final rules = under the=20 FCRA that create exceptions to the statutory prohibition against = obtaining or=20 using medical information for determining eligibility for credit. =

Security=20 Breaches/Fraudulent Practices

News=20 Release 2005-35 = reports=20 that the federal bank and thrift regulatory agencies have jointly issued = interagency=20 guidance = on=20 response programs for security breaches.

 

OCC=20 Bulletin 2005-24 provides=20 guidance for banks on how to respond to incidents of a Web-site fraud = called=20 spoofing and procedures for lowering associated risks. Also see OCC's=20 Anti-Phishing (identify theft frauds) = brochure = for=20 further information.

 

OCC Bulletin = 2005-13=20 transmits=20 interagency=20 guidance = on=20 response programs financial institutions should have to address security = breaches involving customer information.

Bank=20 Supervision and Regulation

 

BSA/Anti-Money=20 Laundering (AML)

News Release=20 2005-64 = announces=20 the release of the Federal Financial Institutions Examination Council = (FFIEC)=20 Bank Secrecy Act/Anti-Money Laundering Examination Manual (FFIEC BSA/AML = Examination Manual), which includes the examination procedures that = examiners=20 will begin using during the 3rd quarter 2005 when conducting BSA/AML=20 examinations. See also:

=B7           = ;        =20 Transmittal = Letter=20

=B7           = ;        =20 Questions and Answers on = the BSA/AML=20 Examination Manual

=B7           = ;        =20 Outreach Fact = Sheet 

=B7           = ;        =20 BSA/AML Examination Manual: = Introduction/Overview  =

=B7           = ;        =20 BSA/AML Examination Manual: = Core/Expanded Examination Procedures 

=B7           = ;        =20 Appendices=20

 

Acting=20 Comptroller Williams testifies = before the=20 Senate Committee on Implementation of the Bank Secrecy Act regarding = Money=20 Services Businesses (MSB). =20 See the=20 summary = of the=20 speech and <= SPAN=20 style=3D"COLOR: #990000; FONT-FAMILY: Arial">News Release=20 2005-41.

OCC Bulletin=20 2005-19 = transmits=20 interagency guidance = on=20 providing banking services to money services businesses (MSB).

OCC Bulletin=20 2005-16 = transmits=20 frequently asked questions=20 (FAQs) = that=20 provide guidance on implementation of the USA = Patriot=20 Act's Customer Identification Program requirements; see also = News Release=20 2005-42.

OCC Bulletin=20 2005-15 = transmits=20 a joint=20 statement = issued on=20 March 30 by the federal financial regulatory agencies and the Financial = Crimes=20 Enforcement Network (FinCEN) regarding the Bank Secrecy Act and money = services=20 businesses. See also News Release=20 2005-40, = which=20 announces interagency interpretive guidance = on=20 providing banking services to money services businesses operating in the = United=20 States.

The staffs=20 of the OCC, the Federal Reserve, FDIC, OTS, NCUA, the Department of = Treasury and=20 Treasury's Financial Crimes Enforcement Center unit issued a set of=20 Frequently Asked=20 Questions = (FAQs)=20 that provide guidance on implementation of the USA Patriot Act's = Customer=20 Identification Program requirements.

 

Preemption

In a=20 speech = before the=20 New = York=20 Bankers Association, Acting Comptroller Williams noted recent = developments in=20 federal/state jurisdiction over national banks and discussed how those=20 developments relate to the history and characteristics of the national = banking=20 system and the bank supervisory process. See the summary = of the=20 speech and News Release=20 2005-68.

News Release=20 2005-59 = announces=20 that the OCC files suit to prevent New York Attorney General from = disrupting=20 fair lending examination and supervision of national banks.  Motion = for=20 Preliminary Injunction,=20 Complaint,=20 Memorandum in Support of = Motion for=20 Preliminary Injunction.

 

Regulatory=20 Burden

In=20 testimony = before the=20 Senate Banking Committee, Acting Comptroller Williams supported = regulatory=20 burden relief legislation and said that efforts to streamline consumer=20 disclosure requirements present an opportunity to reduce regulatory = burden and=20 improve the quality of information provided to consumers. See=20 News Release=20 2005-60 = and the=20 Acting Comptroller's oral=20 statement.

Acting=20 Comptroller Williams testified = before the=20 House Subcommittee on Financial Institutions and Consumer Credit on the=20 challenge of reducing unnecessary regulatory burden on our nation's = banking=20 institutions. See the summary = of her=20 testimony, her oral=20 statement = and=20 News Release=20 2005-57.

 

II.     =20 CRA=20 Examinations

 

Examination=20 Schedule

The=20 CRA examination=20 schedule = for the=20 3rd quarter 2005 is provided.

 

Evaluations

Completed=20 CRA Evaluations are available electronically for downloading and viewing = from=20 links on http://www.occ.treas.gov/cra/electric.htm= . 

 

CRA=20 evaluations announced during the second quarter 2005 include:=20

 

=B7  =20 CRA=20 evaluations = for 21=20 national banks (AR, CA, GA, IA, IL, KY, MN, ND, NE, TX,=20 WI).

 

=B7  =20 CRA=20 evaluations = for 32=20 national banks (AR, CA, CT, FL, IA, IL, KS, KY, MN, MS, NC, NM, OH, OK, = PA, TX,=20 VA, WY).

=B7  =20 CRA=20 evaluations = for 23=20 national banks (AR, AZ, CA, DC, IN, KY, MA, MN, MO, OK, PA, SC, SD,=20 TX).

=B7  =20 CRA=20 evaluations = for 31=20 national banks (AL, AZ, CO, FL, IL, IN, MA, MN, MO, MS, NH, NJ, NY, OH, = OK, PA,=20 SC, TN, TX, WA).

III.     =20 Enforcement=20 Actions

 

The OCC=20 maintains a searchable database of all public enforcement actions taken = since=20 August 1989 on its Internet Web site located at: http://www.occ.treas.gov/enforce/enf_search.htm<= /B>.

 

Recent=20 Enforcement Actions:

News Release=20 2005-69 = announces=20 25 enforcement actions and 1 termination (CA, FL, IL, KY, MN, MT, SD, = TN, and=20 TX).

 

News Release=20 2005-58 = announces=20 nine enforcement actions and five terminations (AL, CA, FL, IL, MO, OH, = VA, and=20 WY).

 

News Release=20 2005-50 = announces=20 18 enforcement actions (DC, MN, NC, NY OH, and TX).

 

News Release=20 2005-38 = announces=20 15 enforcement actions and 2 terminations (NE, NY, PA, TN, TX, and=20 WA).

 

News Release=20 2005-33 = announces=20 34 enforcement actions and 6 terminations (CA, CO, GA, IL, KS, LA, NE, = NY, PA,=20 TX, and WV).

 

<= SPAN=20 style=3D"COLOR: #990000; FONT-FAMILY: Arial">OCC News Release=20 2005-21 = announces=20 enforcement action against Chicago Title Insurance Company.=20

 

IV.     =20 Publications/Studies/Guidance

 

Banking

An updated=20 version of "A Guide to the National = Banking=20 System" = of the=20 Comptroller's Licensing Manual series is now available. It = replaces the=20 1999 version.

Community=20 Development

The Summer 2005 issue of Community Developments=20 Investments = is=20 available on-line. It features "Investment Intermediaries: Helping Banks = Achieve=20 a Double Bottom Line". =20

 

<= SPAN=20 style=3D"COLOR: #990000; FONT-FAMILY: Arial">News Release=20 2005-25 = announces=20 the publication of = Community Developments=20 Insights, = which=20 focuses on Individual Development Accounts.

To=20 find out about the growth of payroll cards and how national banks can = use them=20 to attract the nearly 10 million unbanked households see this June 2005=20 Community Developments Insights, = "Payroll Cards: An = Innovative Product=20 for Reaching the Unbanked and = Underbanked." =

Fair Lending/CRA=20

OCC Bulletin=20 2005-17=20 transmits = frequently asked=20 questions = (FAQs),=20 released by HUD and regulators, which addresses HMDA new loan price data = disclosed this year. These questions were originally included with a = joint news=20 release (News Release=20 2005-37), March=20 31, 2005.

 

OCC Bulletin=20 2005-14 = transmits=20 data = from the=20 U.S. Census and HUD that = are used to=20 determine 2005 income levels of geographies (Census) and borrowers (HUD) = in CRA=20 performance evaluations.

 

OCC Bulletin=20 2005-11 = transmits=20 a joint final=20 rule = that=20 adopts changes in the Standards for Defining Metropolitan and = Micropolitan=20 Statistical Areas, census tracts designations, and the FRB's Regulation=20 C.

OCC=20 General

OCC News Release=20 2005-56 = announces=20 publication of the=20 2004 Report of the=20 Ombudsman = and a=20 customer assistance=20 brochure.

The=20 March = (4th=20 quarter 2004) and June=20 2005=20 (1st quarter 2005) of OCC's Quarterly Journal are available = on-line.=20

 

  =20 V.     =20 OCC=20 News: Find Out What's Happening At=20 OCC

 

The OCC's=20 Web site = has been=20 refreshed to make it easier to read and find important information about = the OCC=20 and new developments in banking and community affairs.=20

The easiest=20 way to locate information is to utilize the site's search feature or to = go to=20 the site=20 map = to=20 investigate specific topics.

 

OCC=20 News

The OCC Web=20 page maintains a complete listing of OCC news releases, = publications, = and new=20 items = of=20 interest.

 

OCC New List = Service: The=20 OCC also has an electronic information service available free to the=20 public.  You can now = receive press=20 releases, speeches by senior OCC officials, and other OCC issuances = (advisory=20 letters, bulletins, etc.) about the national banking system = automatically via=20 e-mail.  =

 

Just sign=20 up for "OCC-News", an Internet subscription list, by going to=20 http://www.occ.treas.gov/listserv.htm = and=20 following these instructions. =20 Address an e-mail to http://listserv@peach.ease.lsoft.com/ = In the body of the message, type: =

 

Subscribe OCC-News = Your Name=20

 

For=20 example, if John Jones subscribed, his message would read:=20

 

Subscribe=20 OCC-News John Jones

 

Community=20 Affairs

 

The=20 Community=20 Affairs = Division=20 supports=20 the OCC's mission to ensure a safe and sound banking system by helping = national=20 banks to be leaders in providing community development financing and = retail=20 services to underserved communities and consumers.

 

Publications

Community=20 Affairs makes available community development = publications=20 and other materials relevant to banks and their community = development=20 partners.  = For a copy=20 of these documents, please contact Tom=20 Goffe = at the=20 OCC's Community Affairs Department at (202) = 874-5556.

 

Community Affairs = Information=20 Service

Community=20 Affairs has a new electronic = information=20 service = available=20 free to the public.  You = can now=20 receive OCC Community Affairs news and information automatically in your = e-mail=20 by subscribing to the OCC Community Affairs News List Service in two = easy=20 steps:

1.     =20 Address an=20 e-mail to listserv@peach.ease.lsoft.com  (You may leave the subject = line=20 blank.)

2.     =20 In = the body=20 of the message, type:

 

Subscribe=20 OCC-COMMUNITY-AFFAIRS-NEWS Your Name

 

For example, if John = Jones=20 subscribed, his message would read:

 

Subscribe=20 OCC-COMMUNITY-AFFAIRS-NEWS John Jones

 

Staff=20 Contacts

CA staff=20 contacts, including the Community Affairs Officers located in each of = the OCC's=20 four Districts can be found at http://www.occ.treas.gov/cdd/contacts.htm. 

 

CRA=20 Ratings and Enforcement Actions

 

CRA

The OCC's=20 Web site (http://www.occ.treas.gov) also offers access to a searchable = list of=20 all public CRA evaluations (http://www.occ.treas.gov/cra/crasrch.htm<= SPAN=20 style=3D"COLOR: black; FONT-FAMILY: Arial; mso-bidi-font-size: = 12.0pt">).   The button labeled = "CRA=20 Information" leads to the following information:

=B7           =         =20  CRA ratings of national = banks=20 examined since May 1996

=B7           =         =20  Schedule of upcoming CRA=20 exams

=B7           =         =20  Copies of CRA performance=20 evaluations=20

=B7           =         =20  CRA "Q and=20 As"

=B7           =         =20  CRA interpretive=20 letters

 

Copies of=20 the actual evaluations may be obtained by e-mail request to=20 FOIA-PA@occ.treas.gov = or=20 from:  Office of the = Comptroller of=20 the Currency, Public Information Room, Mailstop 1-5, Washington,=20 DC 20219.  When requests are made = electronically,=20 remember to include your postal mailing address.  Facsimile requests may be sent = to (202)=20 874-4448.

 

Enforcement=20 Actions

Generally,=20 the OCC may take formal enforcement actions for violations of laws, = rules or=20 regulations, unsafe or unsound practices, violations of final orders, = violations=20 of conditions imposed in writing, and for breaches of fiduciary=20 duty.

 

The OCC=20 maintains a searchable database of all public enforcement actions taken = since=20 August 1989 on its Internet Web site located = at:

 

http://www.occ.treas.gov/enforce/enf_search.htm<= /B>.

 

A = list of=20 enforcement actions previously disclosed and copies of the actual = documents are=20 available from the OCC's Communications Division by writing to: = Comptroller of=20 the Currency, Public Information Room (1-5), Washington, DC = 20219. Requests = made by=20 facsimile transmission should be sent to (202) 874-4448. Please include = the=20 identifying enforcement action number when placing an order. Enforcement = actions=20 are also listed monthly in OCC Interpretations and=20 Actions=20 (available=20 electronically from 1995-2004). Subscriptions to that publication are = available=20 from the OCC's Communications Division.

 

Customer=20 Assistance

 

Customer=20 Assistance Group

The OCC=20 Customer=20 Assistance Group = (CAG),=20 part of the OCC's Office of the Ombudsman, was created to answer = questions,=20 offer guidance, and assist consumers in resolving complaints about = national=20 banks.  This year, the CAG = unit expects to recover about $6 million for individual bank = customers who=20 filed complaints against their banks. =20 See their new brochure=20 for a description of their mission and how consumers can file=20 complaints.

 

Further=20 Information

 

For printed=20 copies of referenced documents, please contact Tom=20 Goffe = at the=20 OCC's Community Affairs Department at (202) 874-5556. =