NCUA Approves Subordinated Debt Rule

The National Credit Union Administration Board approved a final rule on subordinated debt. The final rule makes two changes to the current subordinated debt rule that was finalized in 2020. Specifically, it replaces the maximum permissible maturity of subordinated debt notes with a requirement that any credit union seeking to issue subordinated debt notes with maturities longer than 20 years demonstrate how such instruments would continue to be considered “debt.” The rule also extends the regulatory capital treatment of grandfathered secondary capital to the later of 30 years from the date of issuance or January 1, 2052. This extension will align the treatment of grandfathered secondary capital with the maximum permissible maturity for any secondary capital issued by low-income credit unions under the U.S. Department of the Treasury’s Emergency Capital Investment Program or other programs administered by the U.S. government.

CFPB Publishes HMDA Coverage Chart

On March 15, 2023, the CFPB published the 2023 HMDA Institutional Coverage Chart and 2023 HMDA Transactional Coverage Chart to help institutions determine their Regulation C reporting requirements. 

CFPB Comments on FHA and ECOA Statement of Interest

The Justice Department and the Consumer Financial Protection Bureau (CFPB) announced that they filed a statement of interest to explain the application of the Fair Housing Act (FHA) and the Equal Credit Opportunity Act (ECOA) to lenders relying on discriminatory home appraisals. “Discriminatory home appraisals are unlawful, perpetuate the racial wealth gap, and deny communities of color the benefits of homeownership,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “When appraisers or lenders treat homebuyers or homeowners differently because of race, they violate federal law. The Justice Department is working to ensure an open and fair housing market by taking on appraisal bias, modern-day redlining, discriminatory loan pricing practices, and other forms of discrimination that may rear their ugly head at any stage of the home-buying process.”