March 28, 2005 News Archive

SR 05-5: Interagency FAQs on Appraisal Regs; Statement on Appraisal/Evaluation Independence
In response to questions from regulated institutions, the federal banking agencies are issuing Frequently Asked Questions (FAQs) (PDF, 43KB) that address common questions on the requirements of the appraisal regulations and the October 2003 Interagency Statement on Independence of Appraisal and Evaluation Functions.

Agencies Issue Guidance on Response Programs for Security Breaches
The federal bank and thrift regulatory agencies have jointly issued Interagency Guidance on Response Programs for Unauthorized Access to Customer Information and Customer Notice.

The guidance interprets the agencies' customer information security standards and states that financial institutions should implement a response program to address security breaches involving customer information.

The response program should include procedures to notify customers about incidents of unauthorized access to customer information that could result in substantial harm or inconvenience to the customer. (PDF)

Congress Considers Responsible Lending Act
Responding to growing complaints about so-called "predatory" lending practices and conflicting state laws, as well as the need to further enhance consumer education and protections, two congressmen introduced the Responsible Lending Act, which would set a uniform national lending standard with enforcement mechanisms. Specifically, the new Responsible Lending Act includes provisions to strengthen and refine the Home Ownership and Equity Protection Act, which is the primary federal law for protecting mortgage borrowers from abusive lending practices. The new provisions generally would apply to higher-cost mortgages. In addition, the bill would amend some related laws, such as the Real Estate Settlement Procedures Act to enhance mortgage-servicing safeguards. The bill would modify federal housing statutes to improve counseling assistance and would update the national laws governing appraisals to enhance appraiser education, licensing and independence. The bill also would establish uniform mortgage broker licensing standards and set up a national registry to monitor the industry.