Regulatory Bulletin  Regulatory Bulletin Update 3

Date:	03/29/2013
Referenced Sources:	Regulatory Bulletins issued by the Division of Banks

The Division of Banks (DOB) Issues third round of results from Regulatory Review Initiative

One of the key objectives for the DOB is to complete a comprehensive review of all bank and credit union Regulatory Bulletins and regulations to determine opportunities for the agency to reduce regulatory burden and compliance redundancy by streamlining, updating, or repealing requirements wherever possible. This initiative was a result of the several industry focus groups that the DOBheld throughout the Commonwealth of Massachusetts during 2011, and is a component of the DOB’s strategic planning process. Below are brief descriptions of such changes made in this third round.

Banks, credit unions, and licensees - consumer protection

• 1.3-106 Community Reinvestment and Fair Lending policy
  • This bulletin replaces and updates bulletin 2.3-101 and 5.3-101.  It combines the regulatory guidance for Fair Lending and Community Reinvestment assessment criteria.  The bulletin reiterates the need to ensure that all credit decisions, including small business lending, is conducted in a sound and fair manner.  Additionally, it recommends for regulated lenders to verify that compensation structures do not encourage any form of disparate treatment of loan applicants.  Lastly, the bulletin incorporates loss mitigation practices under counseling provided to borrowers when addressing mortgage defaults.

Banks and credit unions - general

• 2.1-102 Insider transactions
  • This bulletin has been updated for clarity where necessary and also reflects the consolidation of Regulatory Bulletin 4.1-101, which had applied only to credit unions, into this bulletin.

 

• 2.1-104 Branch office notice and application procedures
  • This bulletin was updated to reflect changes in available methods of reporting and the use of electronic media.  Additionally, the DOB eliminated certain notice requirements.

Banks and credit unions - consumer protection

• 2.3-106 Deposit return item fees
  • This bulletin was updated to incorporate the DOB's methodology for calculating the fee.

Credit unions only - general

• 4.1-101 Loans and fees to directors and senior management employees
  • This bulletin has been repealed in its entirety and its provisions were consolidated into Regulatory Bulletin 2.1-102 Insider Transactions.

• 4.1-102 Investment in foreign government bonds
  • This bulletin has been repealed in its entirety, with the relevant information now provided on the DOB's website.  This information is provided in the list of Regulatory Bulletins for credit unions only - general, and can be found under the heading 4.1-102.

• 4.1-103 Fidelity bond coverage requirements
  • This bulletin has been repealed in its entirety.  However, all credit unions must adhere to federal minimum fidelity bond coverage requirements.

Credit unions only - risk management

• 4.2-102 Minimum regulatory capital standards
  • This bulletin has been repealed in its entirety.  However, all credit unions must adhere to federal capital requirements.

• 4.2-103 Residential mortgage loan underwriting
  • This bulletin has been repealed in its entirety given other existing guidance.

Licensees only - general

• 5.3-101 Fair Lending policy - licensed mortgage lenders
  • This bulletin was repealed in its entirety and consolidated into Regulatory Bulletin 2.3-101.