Page 6 - May 23, 2024 Bulletin

aRTiCLeS

risks that the sector poses to the U.S. financial system. The report insured institutions’ use of FDIC official signs, including on
noted that nonbank mortgage companies, or NMCs, originate digital media. They will also cover the prohibitions against
and service a majority of mortgages in the U.S. However, misrepresentations of deposit insurance coverage and misuse of
NMCs have “key vulnerabilities” that “can amplify shocks to the the FDIC’s name and logo, which apply to banks and nonbanks.
mortgage market and thereby pose risks to financial stability.” Each webinar will be hosted on Microsoft Teams.
“[B]ecause NMCs focus almost exclusively on mortgage-related Email the FDIC at DIBankerSeminars@FDIC.gov for instructions
products and services, shocks to the mortgage market can lead on how to watch the webinar.
to significant deterioration in NMC income, balance sheets and
access to credit simultaneously,” the council concluded. “NMCs Federal Trade Commission Bans
rely heavily on financing that can be repriced or canceled by Noncompete Clauses
the lender at times when the NMC is under financial stress. In
addition to these liquidity and leverage vulnerabilities, NMCs The Federal Trade Commission (FTC) has finalized a new rule
face significant operational risk because mortgage servicing is that bans the use of noncompete clauses in employee contracts,
complex and encompasses third-party and cybersecurity risks.” impacting bank affiliates that fall under the regulatory authority

The council said it supports efforts by state regulators and federal of the FTC.
agencies to act within their authorities to promote safe and sound According to the final rule’s summary provided by the FTC, “it
operations, address liquidity pressures in the event of stress, and is an unfair method of competition – and therefore a violation of
ensure the continuity of servicing operations. It also encouraged section 5 – for persons to, among other things, enter into non-
Congress to promote greater stability in the mortgage market and compete clauses (“non-competes”) with workers on or after the
the economy by addressing the risks outlined in the report. final rule’s effective date. With respect to existing non-competes
Read more: https://home.treasury.gov/system/files/261/FSOC-2024- – i.e., non-competes entered into before the effective date – the
Nonbank-Mortgage-Servicing-Report.pdf final rule adopts a different approach for senior executives than
for other workers. For senior executives, existing non-competes
IRS Releases Health Savings can remain in force, while existing non-competes with other
workers are not enforceable after the effective date.”
Account Amounts for 2025
The final rule is effective 120 days after the date of publication in
The IRS has published the inflation-adjusted contribution limits the Federal Register.
and high-deductible health plan requirements for 2025. For the Read more: https://www.ftc.gov/system/files/ftc_gov/pdf/
coming year, the annual deduction limit for individuals with noncompete-rule.pdf
self-only coverage under a high-deductible health plan is $4,300.
The annual deduction limit for individuals with family coverage Fed to Hold Webinar on FedNow
is $8,550.

Also for 2025, the minimum annual deductible for a high- Progress
deductible health plan is $1,650 for self-only coverage and The Federal Reserve will hold an Ask the Fed webinar on Tuesday,
$3,300 for family coverage. The minimum annual-of-pocket June 4, at 2 p.m. EDT to provide an update on industry progress
limit – such as deductibles, co-payments and other amounts, but with FedNow. The agency is also planning upcoming webinars on
not premiums – is $8,300 for self-only coverage and $16,600 for residential and commercial real estate trends.
family coverage.
Read more: https://bsr.stlouisfed.org/askthefed/Auth/Logon
Read more: https://www.irs.gov/pub/irs-drop/rp-24-25.pdf
CFPB Issues Report on Credit
FDIC to Hold Webinars on Deposit Card Rewards Program
Insurance Signage Complaints

The FDIC plans to hold four webinars for bank staff and
officers on its new rule governing the use of the FDIC name The CFPB has released a report identifying what it said were four
and logo by financial institutions. The first webinar will be held common criticisms about credit card rewards programs made by
Thursday, May 30, at 2 p.m. EDT, with the times of the other consumers who filed complaints with the bureau. The report was
three webinars to be announced at a later date. During the released the same day the CFPB held a joint hearing with the
first webinar, agency staff will cover requirements for FDIC- Department of Transportation on credit card and airline rewards
programs.

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