OCC Bulletin 2014-2: Comptroller’s Handbook Revisions and Rescissions
On February 7, the Office of the Comptroller of the Currency (OCC) issued OCC Bulletin 2014-2, subtitled Description: Comptroller’s Handbook Revisions and Rescissions.
Description: Comptroller’s Handbook Revisions and Rescissions
Summary
The Office of the Comptroller of the Currency (OCC) issued today the “Mortgage Banking” booklet of the Comptroller’s Handbook. This updated booklet replaces a similarly titled booklet issued in March 1996 (and examination procedures issued in March 1998). The updated “Mortgage Banking” booklet also replaces Section 750, “Mortgage Banking,” issued in November 2008 as part of the former Office of Thrift Supervision’s (OTS) Examination Handbook for the examination of federal savings associations (FSA).
Highlights
The OCC’s “Mortgage Banking” booklet
- provides updated guidance to examiners and bankers on assessing the quantity of risk associated with mortgage banking and the quality of mortgage banking risk management.
- includes wholesale changes to the functional areas of production, secondary marketing, servicing, and mortgage servicing rights to incorporate recent lessons learned and regulatory changes.
- addresses recent amendments to Regulation X and Regulation Z issued by the Consumer Financial Protection Bureau (CFPB), as well as other statutory and regulatory changes, including those directed by the Dodd–Frank Wall Street Reform and Consumer Protection Act of 2010 (Dodd–Frank).
Note for Community Banks
The “Mortgage Banking” booklet applies to all banks engaged in mortgage banking activities.
Background
The OCC’s revised “Mortgage Banking” booklet is a comprehensive update that combines national bank and FSA guidance and examination procedures. The booklet provides an overview of Dodd–Frank’s mortgage-related provisions. Statutes and regulations governing FSAs also have been incorporated into the booklet.
Recently, the CFPB issued rules imposing new requirements related to mortgage servicing standards, loan origination compensation parameters, the Secure and Fair Enforcement for Mortgage Licensing (SAFE) Act of 2008, and ability-to-repay requirements, including conditions for residential mortgage loans to be considered “qualified mortgages.” The nature, general requirements, and core examination procedures are discussed in the appropriate sections. More comprehensive information regarding Regulation X and Regulation Z issues is available in other Comptroller’s Handbook booklets.
With the issuance of this booklet the OCC rescinds or replaces the following:
- Replaces the OCC’s “Mortgage Banking” booklet issued in March 1996 (and examination procedures issued in March 1998).
- Replaces Section 750, “Mortgage Banking,” issued in November 2008 as part of the former OTS Examination Handbook for the examination of FSAs.
- Rescinds OCC Bulletin 2011-29, “Foreclosure Management: Supervisory Guidance” (June 30, 2011).
For further information, contact Joseph A. Smith IV, Credit and Market Risk Division, at (202) 649-6434.
John C. Lyons Jr.
Senior Deputy Comptroller and Chief National Bank Examiner
Related Link
- “Mortgage Banking” (PDF)
Please click here to view the online bulletin.
About Safeguard
Safeguard Properties is the largest mortgage field services company in the U.S. Founded in 1990 by Robert Klein and based in Valley View, Ohio, the company inspects and maintains defaulted and foreclosed properties for mortgage servicers, lenders, and other financial institutions. Safeguard employs approximately 1,700 people, in addition to a network of thousands of contractors nationally. Website: www.safeguardproperties.com.
