Federal Deposit Insurance Corp. announces revisions to proposed large bank pricing rule

On March 20, the Federal Deposit Insurance Corp. (FDIC) announced a proposed amendment to the Assessments, Dividends, Assessment Base and Large Bank Pricing Rule that it put forward in February 2011. The revised rule attempts to address lender concerns that they would be unable to comply with the new rule’s provisions, particularly the added requirement of reporting subprime and leveraged consumer loans.

Revisions proposed to the large bank pricing rule

Under the new proposal, subprime consumer loans would be renamed “higher-risk consumer loans and securities” and would be defined as:

• All consumer loans where, as of origination or refinance, the probability of default within two years was greater than 20 percent, excluding those consumer loans considered to be nontraditional mortgage loans; and
• Securitizations that are more than 50 percent collateralized by consumer loans meeting the criteria above, except those that are classified as trading book.

The FDIC will collect comments on the changes for 60 days and has extended the compliance date for the new reporting requirements until Oct. 1, 2012.

To find out how Experian can help you comply with the FDIC’S Large Bank Pricing Rule, contact us today or call 1 888 414 1120.

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1. New Rule Proposed by the CFPB