Compliance Bulletins

Compliance Bulletin

Brokered Deposits

On December 15, 2020, the Federal Deposit Insurance Corporation (FDIC) adopted a final rule that creates a new framework for analyzing certain provisions of the “deposit broker” definition, including “facilitating” and “primary purpose”.

Compliance Bulletin

S.B. 1383 – California Family Rights Act Expansion

SB 1383, which was chaptered on September 17, 2020, expands the California Family Rights Act (“CFRA”) and will go into effect on January 1, 2021.                                         

For more information, please view the Compliance Bulletin.

Compliance Bulletin

S.B. 1079 – Foreclosure: Eligible Bidders

SB 1079, which was chaptered on September 28, 2020, makes three changes related to the non-judicial foreclosure sale process.                                           

For more information, please view the Compliance Bulletin.

Compliance Bulletin

S.B. 973 – Annual Pay Data Report

Chaptered on September 30, 2020, SB 973 requires new pay data reporting for certain California employers.                                                 

For more information, please view the Compliance Bulletin.

Compliance Bulletin

S.B. 908 – Debt Collection Licensing Act

SB 908, which was chaptered on September 25, 2020, enacts the Debt Collection Licensing Act (“DCLA”) to create a new licensing law for debt collectors and debt buyers.                                                

For more information, please view the Compliance Bulletin.

Compliance Bulletin

A.B. 3088 – Tenancy: Rental Payment Default: Mortgage Forbearance: State of Emergency: COVID-19

On August 31, 2020, Governor Newsom approved AB 3088 as an emergency measure that went into effect immediately. AB 3088 made important changes in many different California statutes.  Two of those changes have an important impact on lenders holding liens on residential property of 1-4 residential units, borrowers who own such properties and tenants who occupy such properties. 

For more information, please view the Compliance Bulletin.

Compliance Bulletin

A.B. 1885 – Homestead Exemption Expansion

AB 1885, which was chaptered on September 18, 2020, will expand the homestead exemption to increase the amount of equity a homeowner can retain and decrease the assets for a creditor to pursue to satisfy an outstanding debt.  The effective date of the new law will be January 1, 2021.

For more information, please view the Compliance Bulletin.

Compliance Bulletin

A.B. 1867 – Supplemental Paid Sick Leave

AB 1867, which was chaptered on September 10, 2020, provides up to 80 hours of supplemental paid sick leave for COVID-19 reasons. This legislation will take effect no later than 10 days after the enactment of the bill. 

For more information, please view the Compliance Bulletin.

Compliance Bulletin

S.B. 616: California’s New Automatic Exemption Applicable to a Deposit Account

Under California law, a deposit account owner currently enjoys two groups of automatic protections relating to a deposit account maintained with a financial institution when a creditor or other claimant seeks funds in the account. The financial institution is obligated to grant the protections without further actions by the accountholder. 

For more information, please click here to view the Compliance Bulletin.

Compliance Bulletin

Agencies Adopt Rule to Exempt Community Banks from Application of the Volcker Rule

On July 9, 2019, the OCC, Federal Reserve, FDIC, Commodity Futures Trading Commission and the SEC finalized a rule implementing provisions of the Economic Growth, Regulatory Relief and Consumer Protection Act (EGRRCPA), that exempts certain institutions from application of the Volcker Rule. The rule exempts community banks and their controlling entities with $10 billion or less in total consolidated assets, and total trading assets and liabilities equal to five percent or less of total consolidated assets, from the application of the Volcker Rule.

Compliance Bulletin

Final Rule Issued on Federal Flood Insurance Coverage Requirements

The OCC, Federal Reserve, FDIC, Farm Credit Administration and the National Credit Union Administration have issued their final rule stating the circumstances under which lenders are required to accept private flood insurance in satisfaction of federal flood insurance coverage requirements. The rule became effective July 1, 2019. 

For more information, please click here to view the Compliance Bulletin.

Compliance Bulletin

Agencies Seek Comment on Reduced Reporting for Covered Depository Institutions

The FDIC, the OCC and the Federal Reserve are seeking comment on a proposed rule to implement Section 205 of the Economic Growth, Regulatory Relief and Consumer Protection Act (EGRRCPA). The proposed rulemaking increases the number of banks that qualify to file the more streamlined call report (the FFIEC 051 Call Report).  Comments are due on or before January 19, 2019.

Compliance Bulletin

California’s New California Consumer Privacy Act

California’s new California Consumer Privacy Act of 2018 has received considerable attention, both statewide and nationwide. Commentators consider it the most sweeping law to date in this subject area. The Act, together with its subsequent amendment by SB 1121, is summarized in CBA’s Regulatory Compliance Bulletin, authored by CBA affiliate member Morrison & Foerster. The bulletin can be reviewed here.

Compliance Bulletin

New Law Relating to the Use of Background Checks

Signed into law by Governor Brown on September 30, 2018, SB 1412 amends California Labor Code Section 432.7, relating to the use of background checks.  As originally proposed, the requirements of the bill would have contradicted the requirements of the Federal Deposit Insurance Act, which restricts financial institutions’ ability to hire employees who have been convicted of certain crimes. CBA was able to negotiate language addressing this quandary, but financial institutions are still urged to proceed with caution. CBA’s Regulatory Compliance Bulletin disc

Compliance Bulletin

New Mandates for Board of Directors in California

On September 30, 2018, Governor Jerry Brown signed SB 826 into law. The bill adds provisions to the California Corporations Code mandating that the boards of directors of certain corporations include a specific number of women, and provides penalties for violation. CBA’s Regulatory Compliance Bulletin discussing the new law can be found here.

Compliance Bulletin

California Supreme Court Decision on Independent Contractors

The California Supreme Court decision in Dynamex Operations West, Inc. v. Superior Court has caused considerable furor in the business community. It departs from prior law by establishing a presumption that workers are employees rather than independent contractors, and puts the burden on the employer to establish that a worker is truly an independent contractor and not an employee entitled to typical worker protections.

Compliance Bulletin

CBA Summary of the Economic Growth, Regulatory Relief and Consumer Protection Act

The Economic Growth, Regulatory Relief and Consumer Protection Act, aka S.2155, was enacted just over four months ago. CBA is taking this opportunity to summarize some of the provisions of the Act, primarily to highlight those provisions that have been, or will be, the subject of agency rulemaking. CBA will continue to update you on the effect of S.2155 as rulemaking continues. CBA’s Regulatory Compliance Bulletin can be viewed here.

Compliance Bulletin

OCC Request for Comment: Proposed Rule Permitting Certain Federal Thrifts to Elect the Rights and Duties of National Banks

The OCC is inviting comment on proposed rules implementing a new section of HOLA that was enacted as part of S.2155. The new law would offer qualifying federal savings associations the opportunity to elect to operate as a “covered savings association,” such that they would be treated as national banks in certain respects without having to apply for a national bank charter. The OCC believes the new law, and the rules that it is now proposing, offer federal savings associations opportunities to increase, for example, commercial or consumer lending, and to better serve their communit

Compliance Bulletin

Agencies Acknowledge Exemptions to Certain HMDA Reporting Requirements for Small Lenders
July 13, 2018

On July 5, 2018 the Federal Reserve, the OCC and the FDIC each issued statements acknowledging partial exemptions from HMDA data reporting requirements that are set forth in the recently-enacted Economic Growth, Regulatory Relief, and Consumer Protection Act (S. 2155).

Please read CBA’s Regulatory Compliance Bulletin for additional information.

Compliance Bulletin

Agencies Raise Appraisal Threshold for CRE Transactions
April 10, 2018

Effective April 9, 2018, the Federal Reserve, the OCC and the FDIC each enacted a final rule increasing the threshold level at or below which appraisals are not required for commercial real estate transactions from $250,000 to $500,000, i.e., formal appraisals are not required for any commercial real estate transaction with a transaction value less than $500,000. A “commercial real estate transaction” is defined as a real estate-related financial transaction that is not secured by a single 1-to-4 family residential property.

Compliance Bulletin

Bill Creates New Real Estate Recording Fee
December 1, 2017

A bill enacted this year, SB 2, creates the “Building Homes and Jobs Act,” which promotes development of affordable housing across the state in part by imposing a new fee in connection with the recording of real estate instruments, papers, and notices. Proceeds go into a new state treasury fund called the Building Homes and Jobs Fund. Moneys collected will be made available to local governments and to the Department of Housing and Community Development. In addition to existing applicable recording fees, a fee of at least $75 is imposed at the time of recording (with a maximum of $225).