LOAN CHARGEOFFS: The Exam Council is expected in the next several months to revise its loan chargeoff policy. The Exam Council is expected to drop a controversial proposal to require banks to write off all bad loans within 150 days. Instead, it will retain the 120-day writeoff period for closed-end loans and 180-day period for open-end loans.
FAIR-LENDING: The Exam Council is preparing guidance on fair-lending compliance. Includes details on how examiners will decide whether to search for pricing, underwriting, or marketing discrimination. The guidance is expected to be issued shortly and will take effect early next year.
SUBPRIME LENDING: The OCC is finalizing guidance on subprime lending which will urge banks to research the market before entering, prepare detailed business plans, and price credit based by risk, not by what competitors charge.
MONEY LAUNDERING: The Treasury Department's Financial Crimes Enforcement Network expects to approve a final anti-money laundering rule for nonbanks- such as check cashers and currency exchanges-by yearend. A proposed rule was issued for comment in May 1997.
DEPOSIT INSURANCE: The FDIC is considering a plan to make healthy banks involved in risky investment strategies pay higher deposit insurance premiums. Could take effect as early as the second half of 1999. In a Nov. 3 speech, the agency's chairman said the policy is expected to focus on banks that have overall Camels ratings of 1 or 2 but management ratings of 3 or worse.
SECURITIZATION: The Small Business Administration expects to issue in December a final rule that would let individual banks securitize the nonguaranteed portions of 7(a) loans if they retain a portion of the credit.
LOAN POOLING: The SBA will propose a rule in the first quarter of 1999 to let small banks pool and sell the nonguaranteed portions of their loans.