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Friday
Aug082014

Maine Updates Truth-In-Savings, Funds Availability Rule

Maine’s Truth-in-Savings and Funds Availability Rule is getting an overhaul. 

On August 6, 2014, Maine’s Bureau of Financial Institutions announced that changes to Chapter 118, Funds Availability and Truth-in-Savings had been finalized and will go into effect on September 1, 2014.  The final rule repeals and replaces former Chapter 18 of the Bureau’s rules.

According to the Bureau, the primary purpose of the newly revised rule is to incorporate by reference:

  • Regulation CC of the Federal Reserve Board regarding Funds Availability
  • Regulation DD of the Consumer Financial Protection Bureau regarding Truth-in-Savings
  • Part 707 governed by the National Credit Union Administration regarding Funds Availability and Truth-in-Savings.

According to Chapter 118, all of the provisions of these federal rules have been incorporated by reference into Maine regulation, with two exceptions:  (1) the definition of “business day,” and (2) the respective enforcement and liability provisions, as described in the rule.  The rule also includes model language regarding complaint resolution that should be included in the “schedule of account charges” or similar “literature” used to describe fees on an account.

The Superintendent’ Notice of the final rule is available here.  According to the notice, no interested parties filed comments on the proposed rule.

Wednesday
Aug062014

Maine's Greenleaf Decision Creates Mortgage “Insecurity” for MERS

In a decision sure to cast doubt on the validity of numerous mortgages throughout the State, Maine’s highest court invalidated the foreclosure of a mortgage held by MERS. In Bank of America v. Greenleaf, the Maine Law Court held that MERS, a Delaware corporation that acts as nominee for mortgagees around the country, did not have sufficient ownership interest in the mortgage to assign the right to foreclose. 2014 ME 89. A bank that attempts to foreclose on a mortgage received through assignment from MERS, therefore, may lack standing and have no right to foreclose on the mortgage.

Click to read more ...

Tuesday
Aug052014

FDIC: Banks can consult with FDIC staff instead of hiring consultants

The Summer 2014 edition of the FDICs Supervisory Insights Journal is now out. This edition includes two articles: (1) an article advising banks on how to meet regulatory expectations without outside consultants; and (2) an article summarizing common risks to banks as identified through FDIC examinations. The Journal concludes with a Regulatory and Supervisory Roundup listing recent Dodd-Frank rulemakings, FAQs, seminar listings, and operational guidance.

Click to read more ...

Thursday
Jul102014

Financial Institutions...In the News

  • Many borrowers suspicious of Home Affordable Refinance Program (HARP).  (Portland Press Herald 7.8.14)
  • Maine in top 5 of states with highest foreclosure inventory.  (Market Watch 7.8.14)
  • NBT plans to open branch in Portland, Maine. (Bangor Daily News 7.2.14) 
  • Many states have job levels at pre-recession levels even though the nation has regained all 9 million jobs.  (Portland Press Herald 7.2.14)
  • William J. Ryan to become board chair of Berkshire Hills Bancorp (Portland Press Herald 7.1.14)
  • Maine home sales increase 7.3% while sales prices decrease 4.8%.  (Portland Press Herald 6.25.14)
  • SunTrust Mortgage settles robo-signing dispute. 185 Mainers helped, according to Attorney General Janet Mills.  (Bangor Daily News 6.19.14) 
  • The FBI, several foreign governments and security firms break up sophisticated financial crime ring.  (Portland Press Herald 6.4.14)
Monday
Jun302014

Feds Release List of Rural, Middle-Income Geographies Qualifying for Community Development Credit

Today, federal banking regulators released the list of “distressed or underserved nonmetropolitan middle-income geographies” for 2014.  The list can be found here.  Bank activities in these geographies will receive consideration as “community development” under the Community Reinvestment Act.  

According to today’s release, the list of communities is based on criteria developed by the Federal Financial Institutions Examination Council (FFIEC), which can be found here.   Factors include unemployment, poverty, and population changes.  The designation includes a one-year “lag” for geographies that no longer meet the criteria.

In Maine, distressed communities (listed by census tract rather than by municipality) were designated in portions of Aroostook County, Washington County, Knox County, Piscataquis County, and Lincoln County.

A full copy of today’s release can be found at PR-51-2014.