Circular Letters
2007
Circular Letters announce news, policy, and guidance from the Board of Governors. The following letters were distributed by the Federal Reserve Bank of Cleveland in 2007. Click the appropriate number to view the letter in its entirety.
- December 19, 2007
- Circular Letter: 07-53 Confidentiality Provisions in Third-Party Agreement
- The purpose of this letter is to clarify the Federal Reserve's expectations regarding confidentiality provisions in agreements between a banking organization and its counterparties (for example, mutual funds, hedge funds, and other trading counterparties) or other third parties. Read More
- December 18, 2007
- Circular Letter: 07-52 Equal Opportunity - Final rule; technical amendment
- The Board is revising the official staff commentary to Regulation B, which implements the Equal Credit Opportunity Act, to
clarify an amendment published on November 9, 2007. The clarification and the earlier amendment relate to the electronic delivery of
disclosures under Regulation B.
Read More
- December 18, 2007
- Circular Letter: 07-51 Truth in Lending - Final Rule; technical amendment
- The Board is revising the official staff commentary to Regulation Z, which implements the Truth in Lending Act, to clarify an
amendment published on November 9, 2007. The clarification and the earlier amendment relate to the electronic delivery of disclosures
under Regulation Z. Read More
- December 18, 2007
- Circular Letter: 07-51 Truth in Lending - Final Rule; Technical Amendment
- The Board is revising the official staff commentary to Regulation Z, which implements the Truth in Lending Act, to clarify an
amendment published on November 9, 2007. The clarification and the earlier amendment relate to the electronic delivery of disclosures
under Regulation Z. Read More
- December 13, 2007
- Circular Letter: 07-50 FFIEC Guidance on Pandemic Planning
- The Federal Financial Institutions Examination Council (FFIEC) issued guidance today for use by financial institutions in identifying the continuity planning that should be in place to minimize the potential adverse effects of a pandemic. This guidance expands upon the contents of the Interagency Advisory on Influenza Pandemic Preparedness issued in March 2006. Read More
- December 13, 2007
- Circular Letter: 07-49 Fair Credit Reporting Act - Notice of proposed rulemaking
- The OCC, Board, FDIC, OTS, NCUA, and FTC (Agencies) are publishing for comment proposed regulations and guidelines to implement
the accuracy and integrity provisions in section 312 of the Fair and Accurate Credit Transactions Act of 2003 (FACT Act). The proposed regulations and guidelines would implement the requirement that the Agencies issue guidelines for use by furnishers regarding the accuracy and integrity of the information about consumers that they furnish to consumer reporting agencies and prescribe regulations requiring furnishers to establish reasonable policies and procedures for
implementing the guidelines. Read More
- December 13, 2007
- Circular Letter: 07-48 Risk-Based Capital Standards: Advanced Capital Adequacy Framework Basel II; Final Rule
- The Federal Reserve Board on Friday approved final rules to implement new risk-based capital requirements in the United States for large, internationally active banking organizations. The new advanced capital adequacy framework, known as Basel II, more closely aligns regulatory capital requirements with actual risks and should further strengthen banking organizations? risk-management practices. Read More
- December 13, 2007
- Circular Letter: 07-48 Risk-Based Capital Standards: Advanced Capital Adequacy Framework Basel II; Final Rule
- The Federal Reserve Board on Friday approved final rules to implement new risk-based capital requirements in the United States for large, internationally active banking organizations. The new advanced capital adequacy framework, known as Basel II, more closely aligns regulatory capital requirements with actual risks and should further strengthen banking organizations' risk-management practices. Read More
- December 12, 2007
- Circular Letter: 07-47 Term Auction Facility
- Today, the Bank of Canada, the Bank of England, the European Central Bank, the Federal Reserve, and the Swiss National Bank are announcing measures designed to address elevated pressures in short-term funding markets.
Read More
- December 11, 2007
- Circular Letter: 07-45 Change in Discount Rate on Primary Credit
- The Board of Governors of the Federal Reserve system has approved a 25 basis point decrease in the discount rate on primary credit to 4.75 percent. Accordingly, effective December 11, 2007, the Federal Reserve Bank of Cleveland has established the following schedule of rates for eligible borrowers under the Federal Reserve Act. PDF file
- November 9, 2007
- Circular Letter: 07-44 Adoption of Amendments to Five Consumer Financial Services and Fair Lending Regulations Under Five Consumer Protection Regulations
- The Federal Reserve Board on Thursday announced the adoption of amendments to five consumer financial services and fair lending regulations (Regulations B, E, M, Z, and DD) to clarify the requirements for providing consumer disclosures in electronic form.
Read More
- November 9, 2007
- Circular Letter: 07-43 Agencies Issue Final Rules on Identity Theft Red Flags and Notices of Address Discrepancy
- The federal financial institution regulatory agencies and the Federal Trade Commission have sent to the Federal Register for publication final rules on identity theft "red flags" and address discrepancies. The final rules implement sections 114 and 315 of the Fair and Accurate Credit Transactions Act of 2003. Read More
- November 9, 2007
- Circular Letter: 07-42 Agencies Issue Final Rules on Affiliate Marketing
- The federal financial regulatory agencies issued final rules today that provide consumers with an opportunity to "opt out" before a financial institution uses information provided by an affiliated company to market its products and services to the consumer. The final rules on affiliate marketing implement section 214 of the Fair and Accurate Credit Transactions Act of 2003, which amends the Fair Credit Reporting Act (FCRA). Read More
- November 1, 2007
- Circular Letter: 07-41 Reserve Requirement Exemption Amount for 2008
- The Federal Reserve Board on Wednesday announced the annual indexing of the reserve requirement exemption amount and of the low reserve tranche for 2008. These amounts are used in the calculation of reserve requirements of depository institutions. The Board also announced the annual indexing of the nonexempt deposit cutoff level and the reduced reporting limit that will be used to determine deposit reporting panels effective 2008.
Read More
- November 1, 2007
- Circular Letter: 07-40 Change in Discount Rate on Primary Credit
- The Board of Governors of the Federal Reserve System has approved a 25 basis point decrease in the discount rate on primary credit to 5.00 percent. Accordingly, effective November 1, 2007, the Federal Reserve Bank of Cleveland has established the following schedule of rates for eligible borrowers under the Federal Reserve Act. PDF file
- October 26, 2007
- Circular Letter: 07-39 Five Tips for Protecting your Checking Account
- Consumers need to keep five tips in mind for managing their checking accounts and safeguarding their funds from unauthorized transfers by criminals, according to a new Federal Reserve Board publication.
Read More
- September 21, 2007
- Circular Letter: 07-37 Agencies Issue Final Rules on Expanded Examination Cycle for Certain Institutions
- The federal bank and thrift agencies issued final rules on Friday expanding the range of small institutions eligible for an extended 18-month on-site examination cycle. The final rules allow well-capitalized and well-managed banks and savings associations with up to $500 million in total assets and a composite CAMELS rating of 1 or 2 to qualify for an 18-month (rather than a 12-month) on-site examination cycle.
Read More
- September 17, 2007
- Circular Letter: 07-34 Statement on Loss Mitigation Strategies for Servicers of Residential Mortgages
- The federal financial regulatory agencies and the Conference of State Bank Supervisors (CSBS) on Tuesday issued a statement encouraging federally regulated financial institutions and state-supervised entities that service securitized residential mortgages to review to determine the full extent of their authority under pooling and servicing agreements to identify borrowers at risk of default and pursue appropriate loss mitigation strategies designed to preserve homeownership.
Read More
- August 27, 2007
- Circular Letter: 07-33 Release of the Revised FFIEC Bank Secrecy Act/Anti-Money Laundering Examination Manual
- The Federal Financial Institutions Examination Council (FFIEC) issued the 2007 Bank Secrecy Act/Anti-Money Laundering (BSA/AML) Examination Manual. PDF file
- August 23, 2007
- Circular Letter: 07-32 Federal Trade Commission (FTC) Request for Comments on the use of Social Security Numbers (SSNs) within the Private Sector
- The FTC is requesting comment on the use of SSNs in the financial services industry, and within the private sector more generally, in response to recommendations established by the President's Task Force on Identity Theft. Read More
- August 17, 2007
- Circular Letter: 07-31 Change in Discount Rate on Primary Credit
- The Board of Governors of the Federal Reserve System has approved a 50 basis point decrease in the discount rate on primary credit to 5.75 percent. Accordingly, effective August 17, 2007, the Federal Reserve Bank of Cleveland has established the following schedule of rates for eligible borrowers under the Federal Reserve Act. PDF file
- August 17, 2007
- Circular Letter: 07-30 FFIEC Press Release on the U.S.Treasury Department Sponsored Exercise to Test Readiness to Deal with Pandemic Crisis
- The Federal Reserve along with the other Federal Financial Institutions Examination Council (FFIEC) agencies is inviting financial institutions to participate in the U.S Treasury Department sponsored industry-wide business continuity exercise for members of the financial services sector. Read More
- August 17, 2007
- Circular Letter: 07-29 Proposed Illustrations of Consumer Information for Subprime Mortgage Lending with request for comment
- The federal financial regulatory agencies today issued proposed illustrations of consumer information for certain adjustable-rate mortgage (ARM) products described in the agencies' Statement on Subprime Mortgage Lending (Subprime Statement), effective July 10, 2007. Read More
- August 17, 2007
- Circular Letter: 07-28 Regulation Z (Truth in Lending) Final rule; staff commentary
- The Board is publishing a final rule amending the staff commentary that interprets the requirements of Regulation Z (Truth in
Lending). Read More
- July 27, 2007
- Circular Letter: 07-27 The Fair Value Option and the Applicability of the Market Risk Capital Rule
- This SR Letter reminds banking organizations that reporting an amount of gross trading assets and liabilities that equals 10 percent or more of total assets, or $1 billion or more, may subject a banking organization to the market risk capital rule (See 12 CFR 208, appendix E, for state member banks and 12 CFR 225, appendix E, for bank holding companies). Read More
- July 27, 2007
- Circular Letter: 07-26 Management Official Interlocks - Final Rule
- The Office of the Comptroller of the Currency (OCC), the Board of Governors of the Federal Reserve System (Board), the Federal Deposit
Insurance Corporation (FDIC), and the Office of Thrift Supervision (OTS) (collectively, the Agencies) are amending their rules regarding
management interlocks to implement section 610 of the Financial Services Regulatory Relief Act of 2006 (FSRRA) and to correct inaccurate cross-references.
Read More
- July 27, 2007
- Circular Letter: 07-25 Agencies Issue Statement on Enforcement of Bank Secrecy Act/Anti-Money Laundering Requirements
- The federal financial regulatory agencies on Thursday issued a statement setting forth the agencies' policy for enforcing specific anti-money laundering requirements of the Bank Secrecy Act (BSA). The purpose of the Interagency Statement on Enforcement of Bank Secrecy Act/Anti-Money Laundering Requirements is to provide greater consistency among the agencies in enforcement decisions in BSA matters and to offer insight into the considerations that form the basis of those decisions. Read More
- July 11, 2007
- Circular Letter: 07-24 Proposed Revisions to Interagency Questions and Answers Regarding Community Reinvestment - Request for Comment
- The federal bank and thrift regulatory agencies today requested public comment on a series of new and revised interagency questions and answers pertaining to the Community Reinvestment Act (CRA). The Interagency Questions and Answers Regarding Community Reinvestment were first published in 1996 under the auspices of the Federal Financial Institutions Examination Council (FFIEC). They have been revised by the agencies periodically since then to help financial institutions and the public better understand CRA regulations. Read More
- July 11, 2007
- Circular Letter: 07-23 Final Statement on Subprime Mortgage Lending
- The federal financial regulatory agencies today issued a final Statement on Subprime Mortgage Lending to address issues relating to certain adjustable-rate mortgage (ARM) products that can cause payment shock. Read More
- June 22, 2007
- Circular Letter: 07-22 Notification of Delay in the Implementation of the Revised Suspicious Activity Report (SAR) by Depository Institutions
- The Financial Crimes Enforcement Network (FinCEN) has issued a Federal Register notice and press release (attached) announcing a delay in the implementation of certain revised Suspicious Activity Report (SAR) forms that were scheduled to become effective on June 30, 2007 and mandatory on December 31, 2007. Read More
- June 20, 2007
- Circular Letter: 07-21 Truth in Lending - Request for comments
- The Federal Reserve Board on Wednesday issued for public comment proposed amendments to Regulation Z (Truth in Lending) that are intended to improve the effectiveness of the disclosures consumers receive in connection with credit card accounts and other revolving credit plans by ensuring that information is provided in a timely manner and in a form that is readily understandable.
Read More
- June 19, 2007
- Circular Letter: 07-20 Banking Agencies Issue Host State Loan-to-Deposit Ratios
- The Board of Governors of the Federal Reserve System, the Federal Deposit Insurance Corporation, and the Office of the Comptroller of the Currency today issued the host state loan-to-deposit ratios that the banking agencies will use to determine compliance with section 109 of the Riegle-Neal Interstate Banking and Branching Efficiency Act of 1994. These ratios update data released on June 13, 2006. Read More
- June 18, 2007
- Circular Letter: 07-19 Illustrations of Consumer Information for Nontraditional Mortgage Products
- The federal bank, thrift, and credit union regulatory agencies on Thursday issued final illustrations of consumer information intended to help institutions implement the consumer protection portion of the Interagency Guidance on Nontraditional Mortgage Product Risks that the agencies adopted October 4, 2006. Read More
- May 25, 2007
- Circular Letter: 07-18 Automation of Circular Letters
- The Supervision and Regulation Department of the Federal Reserve Bank of Cleveland will be using a new automated service allowing users to better and more easily obtain Circular Letters and other information they wish to receive electronically. This initiative is the latest step in this department's efforts to keep institutions informed of information detrimental to their Bank. PDF file
- May 21, 2007
- Circular Letter: 07-17 Guidance on Filing Notices of Proposed Class Action Settlements
- The Board of Governors of the Federal Reserve System is issuing this SR/CA letter to provide guidance to banking organizations under its supervision of requirements for filing notice of proposed settlements of class action litigation.
Read More
- May 7, 2007
- Circular Letter: 07-16 Proposed Amendments to five consumer financial services and fair lending regulations (Regulations B, E, M, Z, and DD)
- The Federal Reserve Board on Friday requested public comment on proposed amendments to five consumer financial services and fair lending regulations (Regulations B, E, M, Z, and DD) to clarify the requirements for providing consumer disclosures in electronic form. Read More
- April 18, 2007
- Circular Letter: 07-15 Federal Regulators Encourage Institutions to Work with Mortgage Borrowers Who Are Unable to Make Their Payments
- The federal bank, thrift and credit union regulatory agencies are encouraging financial institutions to work with homeowners who are unable to make mortgage payments. Prudent workout arrangements that are consistent with safe and sound lending practices are generally in the long-term best interest of both the financial institution and the borrower. Institutions will not face regulatory penalties if they pursue reasonable workout arrangements with borrowers.
Read More
- April 18, 2007
- Circular Letter: 07-14 Agencies Announce Availability of 2006 HMDA Data
- The federal bank, credit union, and thrift supervisory agencies, along with the Department of Housing and Urban Development, announced today the availability of the 2006 home loan data disclosed under the Home Mortgage Disclosure Act (HMDA). Lenders are required to make these data available to the public, within thirty days after receiving a request, in the form of a Loan Application Register, after removing certain information to protect the privacy of applicants and borrowers.
Read More
- April 10, 2007
- Circular Letter: 07-13 Agencies Seek Comment on Expanded Examination Cycle for Certain Institutions
- The federal bank and thrift agencies on Tuesday requested public comment on proposed interim rules expanding the range of small institutions eligible for an extended 18-month on-site examination cycle. The proposed interim rules allow well-capitalized and well-managed banks and savings associations with up to $500 million in total assets and a composite CAMELS rating of 1 or 2 to qualify for an 18-month (rather than a 12-month) on-site examination cycle.
Read More
- April 6, 2007
- Circular Letter: 07-12 Imposition of Special Measures against Banco Delta Asia SARL
- The Board of Governors of the Federal Reserve System is issuing this SR letter to advise banking organizations under its supervision that the U.S. Department of the Treasury's Financial Crimes Enforcement Network (FinCEN) has imposed special measures against Banco Delta Asia SARL, Macau, Special Administrative Region, China (Banco Delta Asia). These measures create obligations for U.S. banking organizations with regard to this institution.
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- March 29, 2007
- Circular Letter: 07-11 Federal Regulators Seek Public Comment on Model Privacy Notice
- Eight federal regulators on Wednesday released a notice of proposed rulemaking (NPR) requesting comment on a model privacy form that financial institutions can use for their privacy notices to consumers required by the Gramm-Leach-Bliley Act (GLB Act). The privacy notices must describe an institution's information sharing practices, and, for certain types of sharing, consumers have the right to opt out. The notices must be provided when a consumer first becomes a customer of a financial institution and then annually for as long as the customer relationship lasts. Read More
- March 10, 2007
- Circular Letter: 07-10 Agencies Seek Public Comment on Proposed Supervisory Guidance for Basel II
- The federal bank and thrift regulatory agencies on Thursday announced that they will seek public comment on three proposed supervisory guidance documents related to the September 2006 notice of proposed rulemaking (NPR) on new risk-based capital requirements in the United States for large, internationally active banking organizations. Read More
- March 9, 2007
- Circular Letter: 07-09 Proposed Statement on Subprime Mortgage Lending - Request for Comment
- The federal financial regulatory agencies today issued for comment a proposed Statement on Subprime Mortgage Lending to address certain risks and emerging issues relating to subprime mortgage lending practices, specifically, particular adjustable-rate mortgage (ARM) lending products. Read More
- February 16, 2007
- Circular Letter: 07-08 Reminder of Supervisory Guidance for Financial Institutions affected by Hurrican Katrina
- The Federal Reserve, the other federal financial institutions regulatory agencies, and the state supervisory authorities in Alabama, Louisiana, and Mississippi jointly issued the attached statement to remind their regulated institutions that the interagency Hurricane Katrina guidance remains in effect.1 In issuing this statement, the agencies are reminding institutions that they retain the flexibility to work with their borrowers who may need additional time to resolve financial uncertainties related to the effects of the hurricane. Read More
- February 16, 2007
- Circular Letter: 07-08 Reminder of Supervisory Guidance for Financial Institutions affected by Hurricane Katrina
- The Federal Reserve, the other federal financial institutions regulatory agencies, and the state supervisory authorities in Alabama, Louisiana, and Mississippi jointly issued the attached statement to remind their regulated institutions that the interagency Hurricane Katrina guidance remains in effect. In issuing this statement, the agencies are reminding institutions that they retain the flexibility to work with their borrowers who may need additional time to resolve financial uncertainties related to the effects of the hurricane.
Read More
- January 24, 2007
- Circular Letter: 07-07 Revised Suspicious Activity Report (SAR) for Depository Institutions
- The Financial Crimes Enforcement Network (FinCEN) and the federal banking agencies announced Thursday that the format for the Suspicious Activity Report by Depository Institutions (SAR-DI) has been revised to support a new joint filing initiative, which will reduce the number of duplicate SARs filed for a single suspicious transaction. The revisions are the result of a joint effort by FinCEN and the federal banking agencies. Read More
- January 24, 2007
- Circular Letter: 07-06 Policy on Payments System Risk - Policy Statement
- The Federal Reserve Board on Friday approved changes to its Policy on Payments System Risk that revise the Board's expectations for systemically important payments and settlement systems subject to its authority and update and clarify the policy with regard to central counterparties.
Read More
- January 17, 2007
- Circular Letter: 07-05 Interagency Statement on Sound Practices Concerning Elevated Risk Complex Structured Finance Activities
- The Agencies are adopting an Interagency Statement on Sound Practices Concerning Elevated Risk Complex Structured Finance Activities ("Final Statement"). Read More
- January 17, 2007
- Circular Letter: 07-04 Management Official Interlocks - Joint Interim rule with request for comment
- The Office of the Comptroller of the Currency (OCC), the Board of Governors of the Federal Reserve System (Board), the Federal Deposit
Insurance Corporation (FDIC), and the Office of Thrift Supervision (OTS) (collectively, the Agencies) are amending their rules regarding
management interlocks to implement section 610 of the Financial Services Regulatory Relief Act of 2006 (FSRRA) and to correct inaccurate cross-references.
Read More
- January 3, 2007
- Circular Letter: 07-03 Concentrations in Commercial Real Estate Lending, Sound Risk Management Practices
- The Office of the Comptroller of the Currency, the Board of Governors of the Federal Reserve System, and the Federal Deposit Insurance Corporation on Wednesday issued final guidance on sound risk management practices for concentrations in commercial real estate lending. The guidance is intended to help ensure that institutions pursuing a significant commercial real estate lending strategy remain healthy and profitable while continuing to serve the credit needs of their communities. Read More
- January 3, 2007
- Circular Letter: 07-02 Revised Consumer Handbook on Adjustable-Rate Mortgages
- The Federal Reserve Board and the Office of Thrift Supervision today announced the availability of a revised Consumer Handbook on Adjustable-Rate Mortgages (the CHARM booklet), which provides information to consumers about the features and risks of such loans. In recognition of the growing use of nontraditional mortgage products that allow borrowers to defer payment of principal and sometimes interest, the agencies have substantially revised the CHARM booklet to include discussions about "interest-only" and "payment option" mortgages. Read More
- January 3, 2007
- Circular Letter: 07-01 Community Reinvestment Act Regulations - Joint Final Rule; technical correction
- The federal bank regulatory agencies announced the annual adjustment to the asset-size thresholds used to define "small bank" and "intermediate small bank" under the Community Reinvestment Act (CRA) regulations. The annual adjustments are required by the 2005 CRA regulatory amendments. Read More