Federal regulators did not let their foot off the gas during
the final weeks of 2023. Below is a brief recap of some of the notable
developments from prudential regulators during that time with links to
additional information.
Federal agencies release 2024 CRA thresholds
The Federal Reserve and the Federal Deposit Insurance Corp. released
the 2024 asset-size thresholds defining “small banks” and “intermediate small
banks” under the Community Reinvestment Act (CRA) regulations. With a 4.06
percent CPI-W increase ending in November 2023, the revised thresholds took
effect Jan. 1 and are as follows:
·
Small banks: Institutions with total assets less
than $1.564 billion as of Dec. 31 in either of the previous two calendar years.
·
Intermediate small banks: Institutions with
assets between $391 million and $1.564 billion as of Dec. 31 in either of the
preceding two calendar years.
More details are information about CRA examination
thresholds and effective dates can be found here.
Senate confirms first Asian American NCUA Board member
The National Credit Union Administration (NCUA) Board’s
newest member, Tanya Otsuka, was confirmed by the Senate in December, becoming
the first Asian American to serve on the board.
“Tanya brings a deep dedication to public service and many
years of financial services law and policy experience to this important role,” NCUA
Chairman Todd Harper said in a press release. “Moreover, she’s hardworking,
insightful, and committed to building a financial services system that works
fairly for all Americans. I look forward to working alongside Tanya on the NCUA
Board to strengthen the U.S. financial system while protecting consumers and
expanding access to safe, fair, and affordable financial products and
services.”
President Joe Biden nominated Otsuka in September to replace
Rodney Hood, whose term expired in August 2023. Learn more in the Dodd Frank
Update article about Otsuka’s nomination here.
FSOC annual report to Congress
The Financial Stability Oversight Council’s (FSOC) 2023
annual report to Congress highlights vulnerabilities, significant market developments
and recommendations about the residential real estate market, U.S. banking
system, mortgages, consumer protection activities and U.S. beneficial ownership
information, among other topics to be covered in more detail in an upcoming
article. The complete report is available here.
CFPB report on Americans surprised by overdraft fees
The Consumer Financial Protection Bureau (CFPB) released a
report in December indicating about 43 percent of households were surprised by their
most recent overdraft or non-sufficient fund fees. Another 35 percent of
consumers surveyed said they thought an overdraft was possible and 22 percent
said they expected to be charged a fee. For more insight from the report,
follow this
link.
CFPB report on college-sponsored product fees
In another CFPB report published in December, the bureau detailed
findings regarding financial products offered by colleges and the fees
associated with them. The report indicates such products come with high and
unconventional fees and terms, potentially burdening students with unfavorable
financial obligations. The full report is available here.