FEDERAL GOVERNMENT RELATIONS
Global tech outage hits airlines, banks, health care and public transit
A major technology outage grounded flights, hampered public transit systems and disrupted operations at banks and hospitals around the globe Friday in an incident a cybersecurity firm blamed on a faulty system update.
Federal agencies issue guidance on residential real estate reconsiderations of value
Five agencies issued final guidance to highlight what they said are the risks associated with deficient residential real estate valuations, and to describe how financial institutions may incorporate reconsiderations of value processes and controls into their risk management functions.
Private-public partnership releases new bank resources for cloud computing adoption
Financial industry representatives and federal officials released a suite of resources to enhance the relationship between cloud service providers and financial institutions, and to give regulators more confidence that bank cloud services can be used safely and soundly.
FDIC releases FAQ on new signage rule
The Federal Deposit Insurance Corp. has released a list of questions and answers about its new rule regarding the display of the official FDIC sign in banks and bank digital channels, as well as the misrepresentation of deposit insurance status. The FAQ will be periodically updated. They also released presentation slides from their May 30 webinar, and you can sign up for another webinar on July 31 covering compliance and implementation.
Regulators release 2024 list of distressed, underserved communities
Federal banking regulators released the 2024 list of distressed or underserved nonmetropolitan middle-income geographies eligible to receive Community Reinvestment Act consideration.
Agencies finalize guidance on real estate value reconsiderations
Federal regulators issued final guidance addressing reconsiderations of value for residential real estate transactions. ROVs are requests from financial institutions to appraisers or other preparers of valuation reports to reassess the value of residential real estate. The guidance provides policies and procedures that financial institutions may implement to allow consumers to provide financial institutions with information that may not have been considered during an appraisal or if deficiencies are identified in the original appraisal. The guidance offers examples of ROV policies and procedures that a financial institution may implement to help institutions identify, address and mitigate discrimination risk; describes the risks of deficient residential real estate valuations; and explains how financial institutions may incorporate ROV processes into risk management functions.
Agencies issue final rule on automated valuation models
Federal financial services regulators formally issued a final rule to implement quality control standards for automated valuation models, or AVMs, which mortgage lenders use to value real estate collateral. AVMs are used as part of the real estate valuation process and are driven in part by advances in database and modeling technology and the availability of larger property datasets. The interagency rule, which the Federal Deposit Insurance Corp. released last month following approval by its board of directors, requires institutions that engage in covered transactions to adopt systems to ensure AVMs adhere to quality control standards designed to ensure the credibility and integrity of valuations. The agencies want to allow the industry to design and implement systems to determine if an AVM meets these standards.