The Federal Reserve of Cleveland announced a key leadership
change that, in turn, also means a change to the Federal Open Market Committee
(FOMC), which is tasked with determining the timing of future interest rate
alterations.
Read about this development and others in this regulatory
roundup, below:
Federal Reserve of Cleveland names new president, CEO
The Federal Reserve Bank of Cleveland appointed Beth Hammack
to serve as its next president and CEO, representing the Fourth Federal Reserve
District on the FOMC. Hammack brings more than 30 years of experience in
finance, capital markets and risk management to the position, as well as
service on several advisory groups to the U.S. Treasury Department and the
financial industry. Most recently, she was co-head of global financing at the
Goldman Sachs Group, Inc., where she was a member of the management committee,
and also held roles as the firm’s global treasurer, global head of short-term
macro trading and global head of repo trading. Learn more about Hammack’s
experience and qualifications here.
Banking agencies publish updated state loan-to-ratios
Federal bank regulatory agencies jointly issued updated
loan-to-deposit ratios for host states, to be used in evaluating compliance
with the Riegle-Neal Interstate Banking and Branching Efficiency Act. Each
respective host state loan-to-deposit ratio shows the ratio of total loans in a
state to total deposits in the state for all banks that have that state as
their home state. These ratios replace those issued in May 2023. Banks are
generally prohibited from establishing or acquiring branches outside of their
home state primarily for the purpose of acquiring additional deposits. The Fed
explained this prohibition is intended to prevent interstate bank branches from
taking deposits from a community without the bank also reasonably helping to
meet the credit needs of that community. Learn more about the updated ratios here.
NCUA celebrates MDI Awareness Month
The National Credit Union Administration (NCUA) announced it
is celebrating Minority Depository Institution (MDI) Awareness Month with a
series of activities and events highlighting the vital role MDIs play in their
communities. An MDI credit union is defined as having a majority of its current
members, board of directors, and the community it serves consisting of
individuals who are Black American, Asian American, Hispanic American, or
Native American. The NCUA in 2015 launched the MDI Preservation
Program, offering technical and educational services to address the unique
needs of MDIs. Find out more about MDI credit unions and what the agency has
planned by following this link.
FHA issues FAQ on subordinate liens
The Federal Housing Administration (FHA) published a
Frequently Asked Question (FAQ) document to address stakeholder inquiries
regarding reimbursement of attorney’s fees for judicial foreclosures in states
where non-judicial foreclosure is the preferred method of foreclosure, but a
mortgagee determines to proceed judicially due to the presence of an FHA
subordinate lien. The FHA has been assessing feedback received from various
stakeholders as part of its evaluation of policies pertaining to subordinate
federal liens and the nonjudicial foreclosure process. The agency wrote in the
FAQ that “if the mortgagee proceeds with a judicial foreclosure due to the
presence of a subordinate federal lien, such as a secretary-held lien, in
a state where non-judicial foreclosure is the preferred method as listed in
Appendix 5.0 of the Single
Family Housing Policy Handbook 4000.1 (Handbook 4000.1), HUD will consider
judicial foreclosure to be the preferred method of foreclosure notwithstanding
Appendix 5.0 of Handbook 4000.1.”