FDIC To Host Lending Technology Forum

  With the proliferation of Fintech, even smaller community banks are exploring different forms of automation in the lending process in an attempt to improve speed and efficiency of their processes.  As online lenders now expand into the once sacred ground of small business lending (traditionally been dominated by the community bank), there are pressures […]

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FDIC Conducting Testing of Standardized Export of Imaged Loan Documents

The Federal Deposit Insurance Corporation (FDIC) is developing and testing a standardized export of imaged loan documents in an effort to streamline examination processes. This initiative is anticipated to improve efficiencies during onsite examination activities and provide additional opportunities for conducting examination activities offsite.

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Agencies Propose Transition of New CECL Accounting Standard into Regulatory Capital Framework

The deadlines for implementation of the new Current Expected Credit Losses (CECL) are fast approaching.  The Office of the Comptroller of the Currency, the Board of Governors of the Federal Reserve System, and the Federal Deposit Insurance Corporation are inviting public comment on a joint proposal to address changes to U.S. generally accepted accounting principles […]

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Statistical Thinking

Economist Karl Popper referred to science as the “art of systematic over-simplification.” Indeed, if science is discovery and knowledge creation, that certainly cannot take place through “systematic over-complication.” Knowledge can only be created by that which is understood, and often the pathway there is through simplification.

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Agencies Change Appraisal Threshold Requirement

The agencies have jointly issued an amended rule that increases the current appraisal threshold for commercial real estate (CRE) transactions from $250,000 to $500,000.

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Agency Provides Update to Examination Modernization Project

The Federal Financial Institutions Examination Council (FFIEC) has announced an update on the status of its Examination Modernization Project.

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Model Specification for Fair Lending: When Less is More

It is important to bear in mind when conducting regression analysis for fair lending that models must be fit to data.

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CFPB Seeks Additional Public Comment

In a previous post, we highlighted the CFPB’s request for comment on its Civil Investigative Demand (CID) process. The CFPB is continuing to request comment on other facets of its operations in an apparent attempt to reform the fledgling agency. 

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Prevalence of Online Mortgage Lending & Fair Lending

The Federal Reserve Bank of New York released in February (2018) a study examining the role of technology-based residential mortgage lending. The report highlights the growth in volume of mortgage lending conducted exclusively over the internet along with other characteristics of this method of service delivery.

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FDIC Releases Stress-Testing Data for 2018; U.S. Economy Shows Signs of Strengthening

The FDIC last week released stress-testing data for 2018. These are economic scenarios that will be used by certain financial institutions with total consolidated assets of more than $10 billion for stress tests required under the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010.

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