OCC Revises Process for Matters Requiring Attention

On October 30, the OCC published revised policies and procedures for how it manages Matters Requiring Attention (MRA) resulting from its examination of supervised institutions.  MRAs communicate supervisors' concerns identified during examinations. The updated guidance standardizes MRA terminology, format, follow-up, analysis, and reporting across the agency.  Release.  OCC MRA Bulletin.

FHFA Index Shows Mortgage Interest Rates Continue To Decline

On October 30, the index of interest rates published by the FHFA on conventional purchase-money mortgages decreased slightly from August to September from 4.08% to 4.06%.  Release.

FDIC Releases National Survey of Unbanked and Underbanked

On October 29, the FDIC released the results of the 2013 FDIC National Survey of Unbanked and Underbanked Households. The survey indicates that the proportion of unbanked households declined from 8.2% in 2011 to 7.7% in 2013.  Release.  Survey.

Fed Issues Final Rule to Amend Regulation HH and Payment System Risk Policy

On October 28, the Federal Reserve Board issued a final rule that amends the Regulation HH risk-management standards for companies that have been designated as systemically important by the Financial Stability Oversight Council and for which the Fed has standard-setting authority pursuant to Title VIII of Dodd-Frank.  Key changes include establishing separate standards to address credit risk and liquidity risk, new requirements on recovery and orderly wind-down planning, a new standard on general business risk, a new standard on tiered participation arrangements, and increased requirements on transparency and disclosure.  Release.  Final Rule.  Policy Statement.

On October 30, Moody's released its methodology for rating government-related issuers.  Report.

On October 30, Fitch released its methodology for rating asset-backed commercial paper.  Report.

On October 30, DBRS released a series of methodologies for rating the Canadian auto industry.  Rental Car Fleet.  Auto Fleet Lease.  Auto Retail Loan and Lease.

On October 28, DBRS released two methodologies for rating the U.S. auto industry.  U.S. Auto Lease.  Unified Interest Rate Model.

On October 30, DBRS released its methodology for rating Canadian equipment finance securitizations.  Report.

Note: Free registration is required for rating agency releases and reports.

Court Grants HSBC's Motion to Dismiss Trustee Repurchase Action

On October 17, Justice Marcy S. Friedman of the Supreme Court of the State of New York granted HSBC's motion to dismiss a repurchase suit brought by Deutsche Bank, as Trustee for HSI Asset Securitization Corp. Trust 2007-NC1.  The Trustee asserted two causes of action:  one for breach of the cure and repurchase obligation in the agreement governing the trust, and one for failure to notify the Trustee of alleged underlying breaches of representations and warranties.  Following several of her prior decisions, Justice Friedman dismissed both of the Trustee's claims because non-compliance with the repurchase protocol—a remedial provision in the contract—does not give rise to an actionable breach separate from the underlying breach of the representations and warranties.  Justice Friedman granted the Trustee leave to amend to assert a claim for breach of representations and warranties.  Order.

JMLSG Board has Published Draft Guidance on Private Equity for Consultation

On October 29, the Joint Money Laundering Steering Group (JMLSG) published for comment, a revised anti-money laundering and counter-terrorist financing guidance on Private Equity.  The deadline for responses to the consultation is November 12, 2014.  Guidance.

EBA Releases Results of 2014 EU-Wide Stress Test

On October 26, the European Banking Authority (EBA) released the results of its 2014 EU-wide stress test covering more than 70% of total EU banking assets.  The purpose of the test is to address remaining vulnerabilities in the EU banking sector.

The impact of the stress test is assessed in terms of the transitional CRR/CRD IV Common Equity Tier 1 ratio for which defines 8.5% as the ratio for an adverse scenario as of end 2013.  The EBA reported that 24 participating banks fell below the defined thresholds leading to an aggregate maximum capital shortfall of €24.6 billion.

The EBA states that the supervisory actions will be communicated by each competent authority shortly after the publication of the stress test results.  Report.

ESMA Updates its Questions and Answers on EMIR Implementation

On October 24, the European Securities and Markets Authority (ESMA) published an updated version of its Questions and Answers on the European Market Infrastructures Regulation (EMIR).  In particular, new questions and answers have been highlighted and give further guidance on trade repositories.  Q&As.