Banking Law Update

A blog from the attorneys of Verrill

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Category: Agency Notices and Advisories

FDIC Adopts FRB's "Model Risk Management Guidance"

On June 7 th , the Federal Deposit Insurance Commission announced its adoption of Supervisory Guidance on Model Risk Management that was previously adopted in 2011 by the Federal Reserve Board ( SR 11-7 ) and the Office of Comptroller of the Currency ( OCC Bulletin 2011-12 ). The...
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U.S. House Passes Bill to Repeal and Replace Dodd-Frank Act

On Thursday, June 8, the U.S. House of Representatives passed the Financial Choice Act . The Act, which was approved along mostly party lines, would repeal and replace most of the financial regulations contained in the 2010 Dodd-Frank Wall Street Reform and Consumer Protection Act . Supporters of the...
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Maine Bureau of Financial Institutions Issues 2016 Annual Report

On January 15, 2017, the Maine Bureau of Financial Institutions issued its Annual Report for 2016. The report is available here . According to the Annual Report, there were a total of 43 state-chartered financial institutions supervised by the Bureau. This included 19 banks, 12 credit unions, and 12...
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Know Your Risks: FFIEC issues FAQs on its Cybersecurity Assessment Tool

On October 18, 2016, the Federal Financial Institutions Examination Council published a set of Frequently Asked Questions to help financial institutions utilize the Council’s Cybersecurity Assessment Tool. The FAQs were announced as part of FIL-68-2016 . The Cybersecurity Assessment Tool is a voluntary process designed to help the management...
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Federal Bank Regulators Seek Comments on "Enhanced" Cybersecurity Rules

Just one day after the Federal Financial Institutions Examination Council issued FAQs to help financial institutions utilize FFIEC’s Cybersecurity Assessment Tool , three federal banking regulators issued an Advance Notice of Proposed Rulemaking regarding “ Enhanced Cyber Risk Management Standards .” The rulemaking notice was issued on October 19...
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US Bank v. Decision One: Proving Assignment Of A Mortgage Just Got Harder

A recent Maine Superior Court decision in US Bank v. Decision One Mortgage highlights the challenge of a foreclosing party to prove that it owned -- or had sufficient rights in -- both the note and the mortgage. The importance of establishing ownership in order to foreclose on a...
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FEMA Issues New Rules, Although Not A Watershed Moment

Five federal regulatory agencies recently announced a joint rule that modifies regulations that apply to loans secured by properties located in special flood hazard areas. Flood hazard areas are delineated on maps issued by the Federal Emergency Management Agency (FEMA) and pertain to areas within the floodplain having a...
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FDIC issues TRID Exam Procedures: Integrating TILA and RESPA

On June 30 th of this year, the FDIC issued guidelines for banks related to compliance examination procedures for Truth-in-Lending Act (TILA) and the Real Estate Settlement Procedures Act (RESPA). The Integrated Disclosure Rule for the two acts is commonly referred to as “TRID." The TRID rules were issued...
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Maine Governor LePage Unveils Dramatic Tax Plan

On January 9, 2014, Maine’s Republican Governor Paul LePage released his Biennial Budget for the State of Maine for fiscal years 2016 and 2017. The Budget proposes sweeping changes to Maine’s tax code and would dramatically alter they way local government is funded. One of the most dramatic changes...
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Maine Crowdfunding - Is Your Business a Good Candidate?

The following was authored by Gregory Fryer and Elizabeth Riotte and was originally distributed by Verrill Dana's Securities Law Group as a client alert. The Maine Office of Securities has published a Maine crowdfunding rule that goes into effect on January 1, 2015. New Rule 523 – entitled “Rule...
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Financial Institutions May Now Post Annual Privacy Policies Online

Under the Gramm-Leach-Bliley Act and regulations promulgated by the Bureau of Consumer Financial Protection (Bureau), financial institutions are required to provide customers with an annual disclosure of their privacy policies. The cost of mailing paper copies to consumers is significant. The Bureau therefore promulgated a new rule effective October...
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Cyber-security: FDIC Issues Warning on “Shellshock” and “Bash”

On September 29, 2014, the FDIC , on behalf of the Federal Financial Institutions Examination Council , issued an alert to banks on recently discovered material vulnerabilities in the security of the GNU Bourne-again shell system software -- nicknamed “Bash” -- commonly used by bank servers and computers. Researchers...
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CFPB Issues Advisory on Bitcoin, Virtual Currencies

On August 11, 2014, the Consumer Financial Protection Bureau released a Consumer Advisory about virtual currencies . The Advisory followed a directive by the U.S. Government Accountability Office for the CFPB to conduct a close examination of the world of virtual currencies. The complete Advisory can be found here...
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Maine Updates Truth-In-Savings, Funds Availability Rule

Maine’s Truth-in-Savings and Funds Availability Rule is getting an overhaul. On August 6, 2014, Maine’s Bureau of Financial Institutions announced that changes to Chapter 118, Funds Availability and Truth-in-Savings had been finalized and will go into effect on September 1, 2014. The final rule repeals and replaces former Chapter...
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Maine's Greenleaf Decision Creates Mortgage “Insecurity” for MERS

In a decision sure to cast doubt on the validity of numerous mortgages throughout Maine, Maine’s highest court overturned the foreclosure of a mortgage held by MERS. In Bank of America v. Greenleaf , the Maine Law Court held that MERS , a Delaware corporation that acts as nominee...
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FDIC: Banks can consult with FDIC staff instead of hiring consultants

The Summer 2014 edition of the FDICs Supervisory Insights Journal is now out. This edition includes two articles: (1) an article advising banks on how to meet regulatory expectations without outside consultants ; and (2) an article summarizing common risks to banks as identified through FDIC examinations. The Journal...
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FDIC Releases Resource Guide to CDFIs

On May 8th, 2014, the FDIC released a Resource Guide to help banks meet their community credit and development goals, as required under the Community Reinvestment Act . The Resource Guide focuses on opportunities to work with community development financial institutions (CDFIs). CDFIs are special financial institutions whose mission...
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Financial Institutions...In the News

Interview with Samuel Ladd III , retired vice chairman of Maine operations for People’s United Bank . ( Portland Press Herald 4.17.14) John C. Marsh Jr., senior vice president of Bath Savings Institution , appointed to MaineHousing board by Gov. Paul LePage. ( Maine Biz 4.17.14) Farm Credit of...
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FDIC to Banks: Be Vigilant about Cyber-Security

Earlier this month, the FDIC issued guidance to financial institutions to help them address risks associated technology outsourcing and cyber security . On April 7 th , the FDIC issued FIL-13-2014 entitled “ Technology Outsourcing: Informational Tools for Community Bankers. ” The letter included links to previously issued guidance...
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Bank Regulators Warn About Cyber-Attacks

On April 2, 2014, the FDIC issued a Financial Institution Letter notifying banks of recent “large dollar” ATM fraud and related cyber-attacks aimed at tapping into web-based control panels for ATMs. The FDIC highlighted a recent $40 million theft involving the use of 12 debit card accounts. The FIL...
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