The Consumer Compliance Examination Manual (CEM) published by the federal bank deposit insurer has been updated in the areas addressing qualified mortgage (QM) rules, lending equal credit opportunity rules, Community Reinvestment Act (CRA) requirements, and more, the agency said in an email announcement to subscribers Wednesday.
The CEM published by the Federal Deposit Insurance Corp. (FDIC) provides supervisory information regarding consumer compliance examinations, Community Reinvestment Act (CRA) performance evaluations, and other supervisory activities. It includes supervisory policies and examination procedures for evaluating financial institutions’ compliance with federal consumer protection laws and regulations, the agency said, and can be used by financial institutions to learn more about the FDIC’s examination process.
The FDIC said its March updates revised the following CEM sections:
- Violation Codes (II-14.1): Violation codes were updated in the Electronic Funds Transfer Act (EFTA), Fair Debt Collection Practices Act (FDCPA), and Home Mortgage Disclosure Act (HMDA) sections to address regulatory changes and remove obsolete codes.
- Truth in Lending Act (V-1.1): The Truth in Lending Act (TILA) chapter of the CEM was updated to reflect recent amendments to the QM rule that amended the sunset date of the temporary qualified mortgage definition for certain loans eligible for purchase or guarantee by the government sponsored enterprises (GSEs); amended the general QM definition, primarily by replacing its 43% debt-to-income ratio limit with a limit based on the loan’s pricing; and created a new category of qualified mortgages – known as “seasoned” QMs. Annual thresholds were also updated.
- Lending Equal Credit Opportunity Act (V-7.1): This chapter was updated to clarify limitations on the use of an applicant’s age or whether income derives from a public assistance program in systems for analyzing creditworthiness and provide additional information from the Official Interpretations.
- Consumer Leasing Act (V-10.1): The annual thresholds were updated in this chapter.
- Expedited Funds Availability Act (VI-1): The EFA Act chapter was updated to correct a technical issue related to deposits at ATMs.
- Community Reinvestment Act (XI-1): The annual thresholds were updated in this chapter, along with some technical changes.
- CRA Wholesale/Limited Purpose Institution (XI-5.1): This chapter was updated with technical corrections.