District Circular Letters

The Federal Reserve Board proposed on October 19, 2010 a rule amending Regulation Z (Truth in Lending) to clarify aspects of the Board's rules protecting consumers who use credit cards. The proposal is intended to enhance protections for consumers and to resolve areas of uncertainty so that card issuers fully understand their compliance obligations.

The Federal Reserve Bank of San Francisco, acting under delegated authority, has approved the application of AltaPacific Bank, Santa Rosa, California, for membership in the Federal Reserve System.

The Federal Reserve Board announced on October 19, 2010 a final rule implementing recent legislation modifying the effective date of certain disclosure requirements applicable to gift cards under the Credit Card Accountability Responsibility and Disclosure Act of 2009.

Janet L. Yellen and Sarah Bloom Raskin took the oath of office as members of the Board of Governors of the Federal Reserve System on October 1, 2010. Dr. Yellen was also sworn in as Vice Chair of the Board. The oaths were administered by Chairman Ben S. Bernanke in the Board Room.

The credit quality of large loan commitments owned by U.S. bank organizations, foreign bank organizations (FBOs), and nonbanks remained weak in 2010, but improved from 2009, according to the Shared National Credits (SNCs) Review for 2010.

The Federal Reserve Board announced on September 8, 2010 that it has authorized ongoing small-value offerings of term deposits under the Term Deposit Facility (TDF).

The federal banking and thrift regulatory agencies announced on September 29, 2010 a final Community Reinvestment Act (CRA) rule to implement a provision of the Higher Education Opportunity Act.

Abstract: The Federal Financial Institutions Examination Council (FFIEC) released guidance on August 16, 2010 on reverse mortgage products. The guidance, adopted by each of the financial regulators, emphasizes the consumer protection concerns raised by reverse mortgages and the importance of financial institutions mitigating the compliance and reputation risks associated with these products.

Abstract: The proposal includes significant changes to Regulation Z (Truth in Lending) and represents the second phase of the Board's comprehensive review and update of the mortgage lending rules in the regulation. The proposed changes reflect the results of consumer testing by the Board, which has begun accepting public comment.