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Th e M Rep o RT | 43 O r i g i nat i O n s e r v i c i n g a na ly t i c s s e c O n da r y m a r k e t SERVICING The laTesT Occ Finalizes risk management standards Agency moves forward with implementing more stringent requirements. t he Office of the Comp- troller of the Currency (OCC) published final guidelines last month for strengthening governance and risk management practices at large financial institutions. Organizations covered by the guidelines include insured national banks, federal savings associations, and branches of foreign banks with average total consolidated assets of $50 billion or more. Institutions with total consolidated assets averaging less than $50 billion and a parent company that is subject to the guidelines must also comply. Covered institutions will now be required to control and manage risk-taking activities by following a written risk governance framework, OCC announced. The guidelines also lay out a set of minimum standards for institutions' boards of directors to ensure proper oversight. "The 2008 financial crisis demonstrated that much stronger supervisory standards would be necessary to manage the risks associated with large, complex fi- nancial institutions," Comptroller of the Currency Thomas J. Curry said. "As a result, the OCC raised its standards for risk manage- ment, corporate governance, and control to help ensure these institutions effectively anticipate, evaluate, and mitigate the risks they face. The guidelines finalized today are an important step in making our federal system of banks and thrifts stronger and more resilient." According to OCC, institu- tions with more than $750 billion in total average consolidated assets must comply with the newly published guidelines im- mediately, while institutions with $100 billion to $750 billion in as- sets have six months. Institutions with between $50 billion and $100 billion in assets are required to comply with the new guide- lines within 18 months. The finalized guidelines are essentially the same as those proposed by OCC in January 2014. Changes were made to the final guidelines for clarity and to ensure banks' board mem- bers are not given management responsibilities.