Federal Financial Institutions Examination Council
| ||||||||||||||||||||
| ||||||||||||||||||||
| ||||||||||||||||||||
| ||||||||||||||||||||
| ||||||||||||||||||||
 | This page in a nutshell: U.S. regulatory body |
| Federal Financial Institutions Examination Council | |
|---|---|
| File:US-FFIEC-Logo.svg | |
| Overview | |
| Formed | March 10, 1979 |
| Executive | Todd M. Harper, Chairman[1] |
| Key document | FIRA |
| Website | |
| ffiec.gov | |
The Federal Financial Institutions Examination Council (FFIEC) is a formal U.S. government interagency body composed of five banking regulators that is "empowered to prescribe uniform principles, standards, and report forms to promote uniformity in the supervision of financial institutions".[2] It also oversees real estate appraisal in the United States.[3] Its regulations are contained in title 12 of the Code of Federal Regulations.
Composition
FFIEC includes five banking regulators—the Federal Reserve Board of Governors (FRB), the Federal Deposit Insurance Corporation (FDIC), the National Credit Union Administration (NCUA), the Office of the Comptroller of the Currency (OCC), and the Consumer Financial Protection Bureau (CFPB).
History
FFIEC was established March 10, 1979, pursuant to title X of the Financial Institutions Regulatory and Interest Rate Control Act of 1978 (FIRA).[2][4]
Housing and real estate
The FFIEC was given additional statutory responsibilities by section 340 of the Housing and Community Development Act of 1980 to facilitate public access to data that depository institutions must disclose under the Home Mortgage Disclosure Act of 1975 (HMDA) and the aggregation of annual HMDA data, by census tract, for each metropolitan statistical area (MSA). In accordance with HMDA, the FFIEC established an advisory State Liaison Committee composed of five representatives of state supervisory agencies.[3] The HMDA requires "most lenders to identify the race, sex, and income of loan applicants and borrowers",[3] so the FFIEC is able to deduce things like "the number of mortgages issued to black and Hispanic borrowers rose sharply", as it did in 1993.[5] In 2006, the State Liaison Committee was added to the Council as a voting member.[6]
The Appraisal Subcommittee (ASC) was established within the FFIEC pursuant to title XI of the Financial Institutions Reform, Recovery and Enforcement Act of 1989 (FIRREA). The ASC oversees The Appraisal Foundation, whose work is accomplished by three independent boards—the Appraiser Qualifications Board (AQB), the Appraisal Standards Board (ASB), and the Appraisal Practices Board (APB), who collectively regulate real estate appraisal in the United States.
Cybersecurity
Then Comptroller of the Currency and FFIEC Chair Thomas J. Curry stated on May 8, 2014, that "helping to make banks less vulnerable and more resilient to cyber-attacks" has been one of his top priorities.[7][8] In June 2014 FFIEC launched a new webpage on cybersecurity and announced that it was initiating a pilot for 500 member institutions that will focus on how these institutions manage cybersecurity and how prepared they are to mitigate cyber risks.[9] This was a welcome development since the FFIEC had previously relaxed their own guidance regarding cybersecurity. In guidance released in 2005, the body created rigorous standards that were to be enacted by subject institutions by the end of 2006 regarding multi-factor authentication.[10] The guidance called for strict measures to protect financial transactions that would combine biometrics with strong passwords and device fingerprinting, among other measures, as means of strong authentication. The document mentions biometrics fourteen separate times. The following year, the FFIEC released supplementary guidance that relaxed the strong authentication requirements, allowing institutions to add a "second authentication method" for layered security (not 2 factor authentication) – the supplement mentions biometrics only once.[11] Many institutions discontinued more costly two factor and biometric security measures in favor of what the FFIEC guidance had come to refer to as layered security. By the deadline, fully one third of banking and financial institutions had not complied.[12] When further guidance was released in 2011, it mentioned "strong authentication" only one time.[13]
On June 30, 2015 the FFIEC released the FFIEC Cybersecurity Assessment Tool [14] to enable regulated financial institutions to assess their cybersecurity readiness. This tool may be used as a self-assessment. Regulators may also review the completed assessment during their examination.[15]
Consumer Compliance
Consumer compliance in bank regulation is associated with the FFIEC’s Uniform Interagency Consumer Compliance Rating System (CC Rating System).[16] The FFIEC promotes compliance with federal consumer protection laws and regulations through each agency’s supervisory and outreach programs.
Appraisal Subcommittee
The Appraisal Subcommittee (ASC) of the Federal Financial Institutions Examination Council (FFIEC) was established to oversee the real estate appraisal regulatory framework for federally related transactions.
Purpose:
The ASC was created by Title XI of the Financial Institutions Reform, Recovery, and Enforcement Act of 1989 (FIRREA). Its primary role is to provide federal oversight of State appraiser and appraisal management company (AMC) regulatory programs. It also monitors the Appraisal Foundation and the Federal Financial Institutions Regulatory Agencies to protect federal financial and public policy interests in real estate appraisals.
Functions
- Monitoring State Programs: ASC ensures that state appraiser regulatory programs comply with Title XI requirements. This involves monitoring certification and licensing of appraisers.
- National Registry: ASC maintains a national registry of state-certified and -licensed appraisers eligible to perform appraisals in federally related transactions.
- Grants: It has the authority to make grants to the Appraisal Foundation and state agencies to support their activities related to Title XI compliance.
Membership:
The ASC consists of seven members, each designated by the heads of their respective federal financial institutions regulatory agencies.
Operational Activities:
ASC holds meetings at least four times a year, which are open to the public. These meetings discuss various aspects of appraisal regulation, compliance, and policy decisions.
Cybersecurity and Compliance:
With the increasing role of digital transactions in finance, the ASC, as part of the broader FFIEC, has emphasized cybersecurity. This includes initiatives to help financial institutions manage and mitigate cyber risks.
Links
Members
The FFIEC has six voting representatives of member agencies.[17] As of August 2021, FFIEC members include:[18][19]
- Chair, Todd M. Harper, Chairman / National Credit Union Administration[20]
- Vice Chair, Michael J. Hsu, Acting Comptroller / Office of the Comptroller of the Currency[21]
- Martin J. Gruenberg, Acting Chairman of the Federal Deposit Insurance Corporation
- David Uejio, Acting Director / Consumer Financial Protection Bureau[22]
- Randal K. Quarles, Vice Chairman for Supervision of the Board of Governors of the Federal Reserve System
- Thomas Fite, Director / Indiana Department of Financial Institutions (as chair of the FFIEC State Liaison Committee of the CSBS, ACSSS, and NASCUS)
See also
- Economic Growth and Regulatory Paperwork Reduction Act
- Systemically important financial institution (SIFI)
References
- ↑ "Members of the FFIEC". https://www.ffiec.gov/members.htm.
- ↑ 2.0 2.1 "About the FFIEC". FFIEC. http://www.ffiec.gov/about.htm.
- ↑ 3.0 3.1 3.2 "History of the Home Mortgage Disclosure Act". http://www.ffiec.gov/hmda/history2.htm.
- ↑ Vértesy, László (2007). "The Place and Theory of Banking Law - Or Arising of a New Branch of Law: Law of Financial Industries" (in en). Collega (Rochester, NY) 2-3. XI.. SSRN 3198092.
- ↑ Bradsher, Keith (29 July 1994). "Minorities Get More Mortgages". The New York Times. https://www.nytimes.com/1994/07/29/business/minorities-get-more-mortgages.html.
- ↑ "Federal Financial Institutions Examination Council". https://www.federalregister.gov/agencies/federal-financial-institutions-examination-council.
- ↑ Curry, Thomas J. (8 May 2014). "Remarks by Thomas J. Curry, Comptroller of the Currency, Before RMA's Governance, Compliance, and Operational Risk Conference, Cambridge, Massachusetts". Office of the Comptroller of the Currency: p. 7. http://www.occ.gov/news-issuances/speeches/2014/pub-speech-2014-69a.pdf.
- ↑ Hoar, Sean B. (1 July 2014). "Federal Financial Institutions Examination Council Launches Cybersecurity Webpage and Begins Cybersecurity Assessments". Privacy & Security Law Blog (Davis Wright Tremaine LLP). http://www.privsecblog.com/2014/07/articles/cyber-national-security/federal-financial-institutions-examination-council-launches-cybersecurity-webpage-and-begins-cybersecurity-assessments.
- ↑ "FFIEC Launches Cybersecurity Web Page, Promotes Awareness of Cybersecurity Activities". FFIEC Press Release. 24 June 2014. https://www.ffiec.gov/press/pr062414.htm.
- ↑ "FFIEC Press Release - October 12, 2005". https://www.ffiec.gov/press/pr101205.htm.
- ↑ "Supplement to Authentication in an Internet Banking Environment". 2006. https://www.ffiec.gov/pdf/auth-its-final%206-22-11%20(ffiec%20formated).pdf.
- ↑ Inc, InfoWorld Media Group (2007-01-01) (in en). InfoWorld. InfoWorld Media Group, Inc.. https://books.google.com/books?id=vDcEAAAAMBAJ&dq=penalties+for+not+meeting+authentication+deadline+FFIEC+2006&pg=PA8.
- ↑ "Supplement toAuthentication in an Internet Banking Environment". June 2011. https://www.ffiec.gov/pdf/Auth-ITS-Final%206-22-11%20(FFIEC%20Formated).pdf.
- ↑ FFIEC. Cybersecurity Assessment Tool. Retrieved from https://www.ffiec.gov/cyberassessmenttool.htm
- ↑ NCUA. FFIEC Releases Cybersecurity Assessment Tool. Press release. [Online] Available: https://www.ncua.gov/newsroom/Pages/NW20150630FFIEC.aspx
- ↑ "FFIEC Issues Uniform Interagency Consumer Compliance Rating System". FFIEC Press Release. 7 November 2016. https://www.ffiec.gov/press/PDF/FFIEC_CCR_SystemFR_Notice.pdf.
- ↑ Werthan, Jeffrey M. (11 May 2014). "Federal Financial Institutions Examination Council (FFIEC) Member Agencies and State of New York to Focus Attention on Cybersecurity". National Law Review. http://www.natlawreview.com/article/federal-financial-institutions-examination-council-ffiec-member-agencies-and-state-n.
- ↑ "Leadership of the Federal Financial Institutions Examination Council 1979-Present". https://www.ffiec.gov/pdf/2019%20FFIEC%20Leadership%20Listing%20(1979-present)_April%202019.pdf.
- ↑ "Members of the FFIEC". https://www.ffiec.gov/members.htm.
- ↑ "Harper Named NCUA Board Chairman". 25 January 2021. https://www.ncua.gov/newsroom/press-release/2021/harper-named-ncua-board-chairman.
- ↑ "OCC Leadership, Acting Conmptroller of the Currency". https://occ.gov/about/who-we-are/comptroller/bio-michael-hsu.html.
- ↑ "David Uejio, Acting Director". https://www.consumerfinance.gov/about-us/the-bureau/acting-director/.
External links
- Official website
- 12 U.S.C. ch. 34 (Federal Financial Institutions Examination Council)
- 12 U.S.C. Template:P1 ch. 34A (Appraisal Subcommittee)
- Federal Financial Institutions Examination Council in the Federal Register
Template:Bank regulation in the United States Template:Presidency of Jimmy Carter Lua error in Module:Authority_control at line 158: attempt to index field 'wikibase' (a nil value).