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Entries in Bureau of Financial Institutions (5)

Thursday
Oct182012

Maine Bureau Proposes New Regulation 28: Lending Limits for State-Chartered Institutions

On October 12, 2012, the Maine Bureau of Financial Institutions issued notice that it has proposed a complete repeal and replacement of Regulation 28: Loans to One Borrower Limitations.  Regulation 28 establishes certain lending limits for Maine-chartered financial institutions.  The purpose of the new Regulation is to establish guidelines for determining credit exposure from derivative transactions in connection with loans.  Derivative transactions can include swaps, loans, options and other financial agreements, and are an important tool in managing the risks underlying financial transactions.  Beginning in January of 2013, the Dodd-Frank Act will prohibit state-charted financial institutions from engaging in derivative transactions unless state law requires them to identify and manage credit risks associated with derivative transactions.  The proposed Regulation 28 implements various methods for financial institutions to use in considering these risks, adopting a number of methodologies used in the OCC’s new interim final rule for national banks.

The Bureau anticipates that it may amend the proposed Regulation 28 before it becomes final, to incorporate future amendments to the OCC’s rule.  The deadline for public comment on the new regulation is November 19, 2012.

Monday
May212012

Bureau Adopts New Regulation 18: Funds Availability and Truth-in-Savings

On April 17, 2012, the Bureau of Financial Institutions issued notice that it has adopted a new Regulation 18, Funds Availability and Truth-in-Savings.  We discussed the new regulation following its proposal by the Bureau in March 2012.  No substantive changes were made from the proposed rule.  The intent of the new rule is to address amendments to the federal regulations since the last promulgation of Regulation 18.  The new rule will become effective July 2, 2012.

Thursday
Mar222012

Bureau Issues New Proposed Regulation 18: Funds Availability and Truth-in-Savings

On March 20, 2012, the Bureau of Financial Institutions issued notice of the proposed repeal of Chapter 118, Deposit Account Disclosures (Regulation 18), and replacement with a new Regulation 18, Funds Availability and Truth-in-Savings.

The new Regulation 18 will directly incorporate certain federal regulations by reference: Reg. CC (Availability of Funds), Reg. DD (Truth in Savings), and NCUA Truth in Savings provisions set forth in 12 C.F.R. Part 707.  The intent is to address amendments to the federal regulations since the last promulgation of Regulation 18, including in the areas of overdraft service disclosures, balance disclosures through automated systems, substitute checks, and check processing by the Federal Reserve.  Certain provisions in the federal regulations, however, will not be adopted, including the definition of “business day,” to the extent it differs from the definition provided in Title 9-B, Section 145 of the Maine Revised Statutes (the “Banking Code”), and certain enforcement and liability provisions to the extent enforcement and liability are provided for in the Banking Code.  Certain provisions of Regulation 18 will be fully repealed, including disclosure requirements for non-consumer accounts and funds availability requirements for non-transaction accounts.

The deadline for public comment on the new rule is April 23, 2012. 

Monday
Jan162012

Maine financial institutions...In The News

Thursday
Oct202011

Bureau of Financial Institutions Report finds mortgage delinquencies down, foreclosures up 

On October 18, 2011, the Maine Bureau of Financial Institutions released its quarterly report of mortgage lending in Maine.  According to the report, “seriously delinquent” mortgages involving state-chartered institutions were down since June, but foreclosures are going up.   There is a silver lining, however. The report also found that, of those loans in foreclosure, more were leaving the process prior to foreclosure than at any point since 2006 when the State began tracking this statistic.  Mortgage originations are also up 9% over the prior quarter.  This story was also reported in Maine Biz on October 19, 2011.