EGRRCPA has spurred 35 actions by regulators so far, more than half during past six weeks

September 25, 2018 CFPB, FDIC, NCUA, OCC, The Fed 0

Federal financial institution regulators have taken at least 35 individual public actions since late May to put into effect the new regulatory relief legislation, according to a compilation of the actions by Regulatory Report.

According to the compilation, the Federal Reserve has taken the most actions, completing at least 10. That total is followed by: the Federal Deposit Insurance Corp. (FDIC), with at least nine; the Office of the Comptroller of the Currency (OCC), with at at least eight; the National Credit Union Administration (NCUA), with at least five; and the Bureau of Consumer Financial Protection (BCFP, formerly known as the CFPB), with at least three. (See the table below for a listing of actions by regulators over the last four months, as reported by Regulatory Report).

Among other things, the regulatory relief law – the Economic Growth, Regulatory Relief, and Consumer Protection Act (EGRRCPA, S. 2155) – exempted more banks from proprietary trading restrictions, waived certain mortgage lending rules and eased some banks’ stress-test and capital requirements. It was enacted into law May 24 upon signature by President Donald Trump.

The actions by the regulatory agencies (from date of enactment to this week) include proposed and final rules, joint statements, guidance, frequently asked questions (FAQs) and others. The actions were largely designed by the agencies to put the law into effect by proposing (and finalizing) rules, or for explaining how the agencies will address the new law.

The count of actions taken includes joint statements issued by agencies (such as those issued by the Federal Reserve, FDIC and OCC). Each joint statement or other joint action issued is counted as an individual action by an agency.

Most of the actions taken by the regulators (more than half) have occurred over the last six weeks, starting around Aug. 22 (about 90 days since the bill’s enactment).

The first action taken in implementing the new law by a regulator was June 1, when NCUA changed its rules to effectively exclude all loans made on any 1-to-4-unit family dwelling from a federally insured credit union’s member business loan (MBL) cap. The rule change implemented a provision in EGRRCPA.

For the most part, the other regulators were largely quiet for more than a month after EGRRCPA’s enactment about how (or when) they intended to put the new law into action – that is, until July 6, when the three banking agencies issued a joint statement. The statement described interim positions that the regulatory agencies would take on changes made through the new law before incorporating the changes into their regulations.

Output from the agencies about the new law – including guidance and proposals – picked up significantly beginning Aug. 22, when the banking agencies issued an interim final rule on treating some municipal securities as “high-quality liquid assets.”

Top regulators from the Federal Reserve, NCUA, OCC and FDIC are scheduled to testify next week (Oct. 2) before the Senate Banking Committee about their agencies’ implementation of EGRRCPA to date.

Scheduled witnesses are: Joseph M. Otting, Comptroller; Randal K. Quarles, Federal Reserve Vice Chairman for Supervision; Jelena McWilliams, FDIC Chairman; and J. Mark McWatters, NCUA Chairman. The hearing is slated to begin at 10 a.m. ET.

Agency actions on EGRRCPA, June-Sept. 2018

Proposed and final rules, guidance, information collections and other actions taken by federal financial institution regulatory agencies since enactment of the Economic Growth, Regulatory Relief, and Consumer Protection Act (EGRRCPA, S. 2155), enacted May 24, 2018, as reported by Regulatory Report (regreport.info).

AGENCY

 ACTION

DATE REPORTED
 

BCFP
BCFP Agencies offer joint statement on HMDA exemptions resulting from reg relief legislation 5-July
BCFP BCFP rule interprets, clarifies recent reform law’s partial HMDA exemptions 31-Aug
BCFP Bureau updates FCRA model disclosures for credit freeze, fraud alert changes 13-Sep
 

FDIC

  
FDIC Agencies offer joint statement on HMDA exemptions resulting from reg relief legislation 5-Jul
FDIC Banking agencies spell out guidance about how they will proceed with reg relief law’s changes 6-Jul
FDIC Letter notes changes from reg relief law (EGRRCPA) effective for June 30 call reports 17-Jul
FDIC Reflecting reg relief law, changes proposed to CMP language 2-Aug
FDIC Agencies issue interim final rule treating some municipal securities as ‘high-quality liquid assets,’ carrying out S. 2155 change 22-Aug
FDIC More banks eligible for 18-month exam cycle as early as Wednesday 28-Aug
FDIC Rule implementing ‘high quality liquid asset’ tag for municipals under EGRRCPA in effect 30-Aug
FDIC FDIC proposes reciprocal/brokered deposits rule changes to meet EGRRCPA 13-Sep
FDIC Fed, FDIC, OCC propose HVCRE changes required by reg relief law 18-Sep
 

FED
FED Agencies offer joint statement on HMDA exemptions resulting from reg relief legislation 5-Jul
FED Banking agencies spell out guidance about how they will proceed with reg relief law’s changes 6-Jul
FED Fed provides guidance on new law’s relief for smaller banks from stress test, liquidity rules 6-Jul
FED Single-counterparty credit limit final rule takes effect Oct. 5; comments sought on new reporting form 3-Aug
FED Agencies issue interim final rule treating some municipal securities as ‘high-quality liquid assets,’ carrying out S. 2155 change 22-Aug
FED Fed unveils proposed form reflecting mortgage data reporting changes under EGRRCPA 27-Aug
FED Rule allowing holding companies of small community banks to keep higher debt levels (for ownership transfers) takes effect 28-Aug
FED More banks eligible for 18-month exam cycle as early as Wednesday 28-Aug
FED Rule implementing ‘high quality liquid asset’ tag for municipals under EGRRCPA in effect 30-Aug
FED Fed, FDIC, OCC propose HVCRE changes required by reg relief law 18-Sep
 

NCUA
NCUA CUs to no longer count any loans for 1-to-4-unit dwellings as business loans 1-Jun
NCUA Agencies offer joint statement on HMDA exemptions resulting from reg relief legislation 5-Jul
NCUA NCUA posts FAQs about changes wrought by reg relief law in four areas for credit unions 7-Aug
NCUA NCUA issues ‘consumer financial protection’ update on partial HMDA exemption 10-Sep
NCUA Exemption for some rural residential loans also added 20-Sep

OCC
OCC Agencies offer joint statement on HMDA exemptions resulting from reg relief legislation 5-Jul
OCC Banking agencies spell out guidance about how they will proceed with reg relief law’s changes 6-Jul
OCC Agencies issue interim final rule treating some municipal securities as ‘high-quality liquid assets,’ carrying out S. 2155 change 22-Aug
OCC More banks eligible for 18-month exam cycle as early as Wednesday 28-Aug
OCC Rule implementing ‘high quality liquid asset’ tag for municipals under EGRRCPA in effect 30-Aug
OCC Proposal allows national bank powers for FSAs up to $20 billion, per reg relief law 10-Sep
OCC Fed, FDIC, OCC propose HVCRE changes required by reg relief law 18-Sep
OCC Higher asset threshold means 8 banks would be covered under OCC-proposed recovery planning guidelines 18-Sep