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          FDIC Releases Supervisory                              appraisers. It is believed that these changes are an important

          Insights Journal                                       step toward encouraging new entrants into the profession and
                                                                 addressing the appraisal issues currently facing the industry.
          The  FDIC has released  the Winter                     To view the proposal visit: https://appraisalfoundation.
          2017 issue of Supervisory Insights           
          featuring articles of interest to
          examiners, bankers, and supervisors.
          The first article makes suggestions for strengthening a Credit   In Key Change, CFPB
          Management Information System by incorporating forward-  Consolidates Fair Lending
          looking risk indicators and establishing a sound governance   Oversight in Supervision and
          framework. The second article summarizes results of the recent
          Credit and Consumer Products/Services Survey with a focus   Enforcement Unit
          on lending activity, including trends in underwriting, loan   The CFPB will remove day-to-day oversight and enforcement
          growth, and funding. This issue also includes the Regulatory   authority from its Office of Fair Lending and Equal Opportunity,
          and Supervisory Roundup, an overview of recently released   according to reports. Those responsibilities will now be carried
          regulations and supervisory guidance.                  out by the CFPB’s supervision, enforcement and fair lending
          To read more visit:  division. The decision came after a memo by Acting Director
          examinations/supervisory/insights/index.html           Mick Mulvaney pledged that the bureau will no longer “push
                                                                 the envelope” in the name of enforcing consumer protection
          CFPB Launches 2018 HMDA                                laws.

          LAR Formatting Tool                                    C Corp Banks – FASB Issues
          The CFPB has launched the 2018 HMDA LAR formatting     Tax Reform Proposal –
          tool to help banks create a  data file that can be submitted
          electronically. The tool should be used for data collected in 2018   Regulators Allow Change for
          and reported in 2019. The CFPB has also made minor updates   Year-End Call Reports
          to the 2018 filing instructions guide.
                                                                 The Financial Accounting
          To learn more visit:  Standards Board has issued
          research/hmda/lar-formatting-tool                      a proposal for adjusting
          To view the 2018 filing instructions guide visit: https://  regulatory capital balances
  that  were unexpectedly  affected  by  the  new  tax  reform  law.
          filers/2018/2018-HMDA-FIG.pdf                          Citing year-end reporting concerns, FASB issued the draft with
                                                                 a 15-day comment period in an effort to finalize the proposal
          Appraisal Qualifications Board                         in time for companies to apply the new standard to their 2017
                                                                 results. Comments were due Feb. 2.
          Adopts Proposal to Address                             Under current tax accounting, the reduction of deferred tax
          Appraiser Shortage                                     assets and liabilities are recorded entirely within net income,

          The Appraisal Qualifications                           including those applying to items in accumulated other
          Board announced that it will                           comprehensive income such as unrealized gains and losses on
          adopt a proposal to change the                         available-for-sale securities. As a result, not only are net income
          qualification criteria for real                        and regulatory capital distorted, but this treatment also creates
          property appraisers. Effective                         onerous operational burdens to track the related amounts in the
          May 1,  the  AQB  will  reduce                         future.
          the college-level education degree requirements for licensed   While the FASB proposal will not change the impact to net
          residential and certified residential appraisers, create an   income, the proposed adjustment between AOCI and retained
          alternative track for licensed residential appraisers to become   earnings will allow ending regulatory capital to be appropriately
          certified without obtaining a bachelor’s degree and reduce the   stated and also avoid onerous operational requirements to keep
          number of field hours needed to obtain certification from 2,000   track of the amounts that would have been “stranded” within
          to 1,000 for licensed appraisers and 2,500 to 1,500 for certified   AOCI.

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