Regulators Release Guidance on Private Student Loans With Graduated Repayment Terms at Origination
On January 29, the federal financial regulatory agencies (the Board of Governors of the Federal Reserve System, the Consumer Financial Protection Bureau, the Federal Deposit Insurance Corporation, the National Credit Union Administration, and the Office of the Comptroller of the Currency), in partnership with the State Liaison Committee (SLC) of the Federal Financial Institutions Examination Council, issued guidance for financial institutions on private student loans with graduated repayment terms at origination.
This guidance provides principles that financial institutions should consider in their policies and procedures for originating private student loans with graduated repayment terms which are structured to provide for lower initial monthly payments that gradually increase. The Agencies issued this guidance because they recognize that the competitive job market, traditionally low entry-level salaries, and higher student debt loads can contribute to some borrowers preferring greater flexibility with their payments as they transition into the labor market. Press Release. Published Guidance.
FHFA Director Testifies in Front of the U.S. House of Representative Committee on Financial Services
On January 27, 2015 the FHFA Director, Melvin L. Watt, testified in front of the U.S. House of Representatives Committee on Financial Services. Director Watt's testimony provided, amongst other items, an update on the financial condition of Fannie Mae and Freddie Mac and the financial condition of the Federal Home Loan Banks. Release.
Federal Reserve Issues "Strategies for Improving the U.S. Payment System"
On January 26, 2015 the Federal Reserve issued a multi-faceted plan for collaborating with payment system stakeholders, including large and small businesses, emerging payments firms, card networks, payment processors, consumers and financial institutions to enhance the speed, safety and efficiency of the U.S. payment system. Release.
Michael Brickman Named Deputy Comptroller for Special Supervision
On January 26, 2015 Michael Brickman was named Deputy Comptroller for Special Supervision at the OCC. As Deputy Comptroller of Special Supervision, Mr. Brickman will oversee the supervision of the OCC's most critical problem midsize and community banks as well as the development and implementation of rehabilitation or resolution strategies for assigned banks and savings associations, including the orderly management of closings, when necessary. Release.
CFTC Issues No-Action Relief to Certain Introducing Brokers
On January 23, 2015 the CFTC Division of Swap Dealer and Intermediary Oversight issued no-action relief to certain introducing brokers (IBs) with respect to net capital and financial reporting requirements under Commission Regulations 1.10 and 1.17, respectively. The conditioned relief permits foreign-domiciled IBs to file audited and unaudited form 1-FR-IBs, as applicable, using local accounting principles in effect where the IB is domiciled in lieu of U.S. Generally Accepted Accounting Principles or International Financial Reporting Standards. In addition, eligible foreign-domiciled IBs will not be required to apply certain foreign currency capital charges under Regulation 1.17 and staff guidance. Release.
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