Formations of, Acquisitions by, and Mergers of Bank Holding Companies, 66660 [E9-29873]
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66660
Federal Register / Vol. 74, No. 240 / Wednesday, December 16, 2009 / Notices
srobinson on DSKHWCL6B1PROD with NOTICES
lender in order to obtain the reverse
mortgage; 35
➢ Adopt clear policies so that
originators do not have an inappropriate
incentive to sell other products that may
appear to be linked to the granting of a
mortgage. For example, the institution’s
policy could state that neither the
lender nor any broker will offer to the
borrower or refer the borrower to a
provider of an annuity or other product
or service prior to the closing of the
reverse mortgage or, if applicable, the
expiration of the borrower’s right to
rescind the loan; and
➢ Adopt clear compensation policies
to guard against other inappropriate
incentives for loan officers and third
parties, such as mortgage brokers and
correspondents, to make a loan.
In addition, conflicts are less likely to
be a concern if the borrower has
received information and access to
independent counseling as described
above.
Policies, Procedures, and Internal
Controls—Institutions should have
policies and procedures to address the
concerns expressed in this guidance,
including those involving conflicts of
interest and the provision of consumer
information. In addition, institutions
should have effective internal controls
to monitor whether actual practices are
consistent with their policies and
operating procedures relating to reverse
mortgages. To achieve these objectives,
training should be designed so that
relevant lending personnel are able to
convey information to consumers about
product terms and risks in a timely,
accurate, and balanced manner.
Furthermore, institutions’ independent
monitoring should assess how well
lending personnel are following internal
policies and procedures and evaluate
the nature and extent of policy
exceptions. Findings should be reported
to relevant management. In addition,
institutions’ legal and compliance
35 The anti-tying provisions of Section 106(b) of
the Bank Holding Company Act of 1970 applicable
to banks, and comparable anti-tying provisions for
savings associations, savings and loan holding
companies, and their affiliates, prohibit these
institutions from, among other things, requiring a
customer to purchase certain nonbanking products
or services, including insurance and annuity
products, as a condition to obtaining or varying the
price of credit. See 12 U.S.C. 1972, 1464(q), and
1467a(n), respectively. In addition, banks and
savings associations that offer insurance and
annuities are specifically prohibited from engaging
in practices that would cause a consumer to believe
that an extension of credit is conditioned on the
purchase of insurance or an annuity from the
creditor. See 12 U.S.C. 1831x and Consumer
Protection in Sales of Insurance Rules, 12 CFR
14.30, 208.83, 343.30, and 536.30. The Agencies
examine institutions for compliance with these
legal requirements and will take appropriate action
to address any violations.
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reviews should include oversight of
compensation programs to ensure that
lending personnel are not improperly
encouraged to direct consumers to
particular products. Finally, institutions
should also review consumer
complaints to identify potential
compliance and reputation risks.
Third Party Risk Management—When
making, purchasing, or servicing reverse
mortgages through a third party, such as
a mortgage broker or correspondent,
institutions should take steps to manage
the compliance and reputation risks
presented by such relationships. These
steps would include: (1) Conducting
due diligence and establishing criteria
for entering into and maintaining
relationships with such third parties; (2)
establishing criteria for third-party
compensation that are designed to avoid
providing incentives for originations
inconsistent with the institution’s
policies and procedures; (3) setting
requirements for agreements with such
third parties; (4) establishing internal
procedures and systems to monitor
ongoing compliance with applicable
agreements, institution policies, and
laws and regulations; and (5)
implementing appropriate corrective
actions in the event that the third party
fails to comply with such agreements,
policies, or laws and regulations. In
addition, institutions should structure
third party relationships so as not to
contravene RESPA’s general prohibition
against paying or receiving any fee or
other thing of value in exchange for the
referral of business related to a reverse
mortgage transaction. Fees must be paid
only for the permissible services
provided by the third party, consistent
with the provisions of Section 8 of
RESPA.
Moreover, institutions should not
accept fees from any third party without
providing appropriate services to
warrant any such fee.
Dated: December 11, 2009.
Federal Financial Institutions Examination
Council.
Paul Sanford,
Executive Secretary.
[FR Doc. E9–29882 Filed 12–15–09; 8:45 am]
225), and all other applicable statutes
and regulations to become a bank
holding company and/or to acquire the
assets or the ownership of, control of, or
the power to vote shares of a bank or
bank holding company and all of the
banks and nonbanking companies
owned by the bank holding company,
including the companies listed below.
The applications listed below, as well
as other related filings required by the
Board, are available for immediate
inspection at the Federal Reserve Bank
indicated. The application also will be
available for inspection at the offices of
the Board of Governors. Interested
persons may express their views in
writing on the standards enumerated in
the BHC Act (12 U.S.C. 1842(c)). If the
proposal also involves the acquisition of
a nonbanking company, the review also
includes whether the acquisition of the
nonbanking company complies with the
standards in section 4 of the BHC Act
(12 U.S.C. 1843). Unless otherwise
noted, nonbanking activities will be
conducted throughout the United States.
Additional information on all bank
holding companies may be obtained
from the National Information Center
website at www.ffiec.gov/nic/.
Unless otherwise noted, comments
regarding each of these applications
must be received at the Reserve Bank
indicated or the offices of the Board of
Governors not later than January 11,
2010.
A. Federal Reserve Bank of Dallas
(W. Arthur Tribble, Vice President) 2200
North Pearl Street, Dallas, Texas 752012272:
1. Bank4Texas Holdings Inc., Tomball
Texas, to become a bank holding
company by, acquiring 100 percent of
Northern Bancshares, Inc., Chillicothe,
Texas, and indirectly acquire The First
National Bank of Chillicothe,
Chillicothe, Texas.
Board of Governors of the Federal Reserve
System, December 11, 2009.
Robert deV. Frierson,
Deputy Secretary of the Board.
[FR Doc. E9–29873 Filed 12–15–09; 8:45 am]
BILLING CODE 6210–01–S
BILLING CODE 6210–01–P
FEDERAL MARITIME COMMISSION
FEDERAL RESERVE SYSTEM
Notice of Agreements Filed
Formations of, Acquisitions by, and
Mergers of Bank Holding Companies
The Commission hereby gives notice
of the filing of the following agreements
under the Shipping Act of 1984.
Interested parties may submit comments
on the agreements to the Secretary,
Federal Maritime Commission,
Washington, DC 20573, within ten days
of the date this notice appears in the
The companies listed in this notice
have applied to the Board for approval,
pursuant to the Bank Holding Company
Act of 1956 (12 U.S.C. 1841 et seq.)
(BHC Act), Regulation Y (12 CFR Part
PO 00000
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[Federal Register Volume 74, Number 240 (Wednesday, December 16, 2009)]
[Notices]
[Page 66660]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E9-29873]
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FEDERAL RESERVE SYSTEM
Formations of, Acquisitions by, and Mergers of Bank Holding
Companies
The companies listed in this notice have applied to the Board for
approval, pursuant to the Bank Holding Company Act of 1956 (12 U.S.C.
1841 et seq.) (BHC Act), Regulation Y (12 CFR Part 225), and all other
applicable statutes and regulations to become a bank holding company
and/or to acquire the assets or the ownership of, control of, or the
power to vote shares of a bank or bank holding company and all of the
banks and nonbanking companies owned by the bank holding company,
including the companies listed below.
The applications listed below, as well as other related filings
required by the Board, are available for immediate inspection at the
Federal Reserve Bank indicated. The application also will be available
for inspection at the offices of the Board of Governors. Interested
persons may express their views in writing on the standards enumerated
in the BHC Act (12 U.S.C. 1842(c)). If the proposal also involves the
acquisition of a nonbanking company, the review also includes whether
the acquisition of the nonbanking company complies with the standards
in section 4 of the BHC Act (12 U.S.C. 1843). Unless otherwise noted,
nonbanking activities will be conducted throughout the United States.
Additional information on all bank holding companies may be obtained
from the National Information Center website at www.ffiec.gov/nic/.
Unless otherwise noted, comments regarding each of these
applications must be received at the Reserve Bank indicated or the
offices of the Board of Governors not later than January 11, 2010.
A. Federal Reserve Bank of Dallas (W. Arthur Tribble, Vice
President) 2200 North Pearl Street, Dallas, Texas 75201-2272:
1. Bank4Texas Holdings Inc., Tomball Texas, to become a bank
holding company by, acquiring 100 percent of Northern Bancshares, Inc.,
Chillicothe, Texas, and indirectly acquire The First National Bank of
Chillicothe, Chillicothe, Texas.
Board of Governors of the Federal Reserve System, December 11,
2009.
Robert deV. Frierson,
Deputy Secretary of the Board.
[FR Doc. E9-29873 Filed 12-15-09; 8:45 am]
BILLING CODE 6210-01-S
