FDIC Proposes Deposit Insurance Assessment Increases
The Federal Deposit Insurance Corporation (FDIC) released a proposal to increase deposit insurance assessment rates by two basis points, beginning in the first quarter of 2023.
FDIC staff noted that "for the industry as a whole, staff estimate that the estimated annual increase in assessments would average 1% of income, which includes an average of 0.9% for small banks and an average of 1% for large and highly complex institutions." The proposed increase would stay in place until the Deposit Insurance fund reserve ratio reaches 2%.
Comments on the plan are due Aug. 20.
Read the Proposal
CFPB to Review Credit Card Late Fees, Banks’ Overdraft Programs
The Consumer Financial Protection Bureau (CFPB) today issued an advance notice of proposed rulemaking regarding the 2010 credit card late fee initiative. The CFPB will assess whether credit card late fees are “reasonable and proportional.”
As part of a pilot program, the CFPB is also attempting to measure the impact of overdraft and nonsufficient funds practices on consumers. It has requested information on these funds practices from certain institutions identified as having a higher share of frequent overdraft users or higher average fees.
CFPB Director Rohit Chopra also announced plans to review Qualified Mortgage Rules as part of the bureau’s reconsidered approach to regulatory guidance.
Nonbank Mortgage Originations Climbs
According to Home Mortgage Disclosure Act data, the share of mortgages originated by nonbanks in 2021 increased by 3.2% to 63.9%. The total number of originated closed-end loans increased by about 528,000 between 2020 and 2021. Refinance originations decreased by 1.4% from 8.5 million, and home purchase lending increased by 9.2% from 4.8 million.