Notice2021-20160
Notice of the FDIC's Response to Exception Requests Pursuant to Recordkeeping for Timely Deposit Insurance Determination
Primary source
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Published
September 17, 2021
Effective
September 14, 2021
Issuing agencies
Federal Deposit Insurance Corporation
Abstract
In accordance with its rule regarding recordkeeping for timely deposit insurance determination, the FDIC is providing notice that it has granted time-limited exception relief to two covered institutions from the information technology system and recordkeeping requirements applicable to deposits reflected on loan systems, including deposits resulting from credit balances on an account for debt owed to the covered institution and deposits held in escrow by a covered institution. The two covered institutions are in the process of converting or upgrading their loan systems.
Full Text
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<title>Federal Register, Volume 86 Issue 178 (Friday, September 17, 2021)</title>
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[Federal Register Volume 86, Number 178 (Friday, September 17, 2021)]
[Notices]
[Pages 51887-51888]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2021-20160]
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FEDERAL DEPOSIT INSURANCE CORPORATION
Notice of the FDIC's Response to Exception Requests Pursuant to
Recordkeeping for Timely Deposit Insurance Determination
AGENCY: Federal Deposit Insurance Corporation (FDIC).
ACTION: Notice of the FDIC's response to exception requests pursuant to
the recordkeeping for timely deposit insurance determination rule.
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SUMMARY: In accordance with its rule regarding recordkeeping for timely
deposit insurance determination, the FDIC is providing notice that it
has granted time-limited exception relief to two covered institutions
from the information technology system and recordkeeping requirements
applicable to deposits reflected on loan systems, including deposits
resulting from credit balances on an account for debt owed to the
covered institution and deposits held in escrow by a covered
institution. The two covered institutions are in the process of
converting or upgrading their loan systems.
DATES: The FDIC's grant of exception relief is effective as of
September 14, 2021.
FOR FURTHER INFORMATION CONTACT: Cassandra Knighton, Acting Section
Chief, Division of Complex Institution Supervision and Resolution;
<a href="/cdn-cgi/l/email-protection#d0939bbeb9b7b8a4bfbe9096949993feb7bfa6"><span class="__cf_email__" data-cfemail="3370785d5a545b475c5d7375777a701d545c45">[email protected]</span></a>; 972-761-2802.
SUPPLEMENTARY INFORMATION: The FDIC granted a time-limited exception
request to two covered institutions pursuant to the FDIC's rule
entitled ``Recordkeeping for Timely Deposit Insurance Determination,''
codified at 12 CFR part 370 (part 370).\1\ Part 370 generally requires
covered institutions to implement the information technology system and
recordkeeping capabilities needed to quickly calculate the amount of
deposit insurance coverage available for each deposit account in the
event of failure. Pursuant to Sec. 370.8(b)(1), one or more covered
institutions may submit a request in the form of a letter to the FDIC
for an exception from one or more
[[Page 51888]]
of the requirements of part 370 if circumstances exist that would make
it impracticable or overly burdensome to meet those requirements.
Pursuant to Sec. 370.8(b)(2), the FDIC publishes a notice of its
response to each exception request in the Federal Register. Pursuant to
Sec. 370.8(b)(3), a covered institution may rely upon another covered
institution's exception request which the FDIC has previously granted
by notifying the FDIC that it will invoke relief from certain part 370
requirements and demonstrating that the covered institution has
substantially similar facts and circumstances to those of the covered
institution that has already received the FDIC's approval. The
notification letter must also include the information required under
Sec. 370.8(b)(1) and cite the applicable notice published pursuant to
Sec. 370.8(b)(2). Unless informed otherwise by the FDIC within 120
days after the FDIC's receipt of a complete notification for exception,
the exception will be deemed granted subject to the same conditions set
forth in the FDIC's published notice.
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\1\ 12 CFR part 370.
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These grants of relief will be subject to ongoing FDIC review,
analysis, and verification during the FDIC's routine part 370
compliance tests. The FDIC presumes each covered institution is meeting
all the requirements set forth in the Rule unless relief has otherwise
been granted. These grants of relief may be rescinded or modified upon:
Discovery of misrepresentation; material change of circumstances or
conditions related to the subject accounts; or failure to satisfy
conditions applicable to each. The following exceptions were granted by
the FDIC as of September 14, 2021.
I. Certain Deposits Reflected on Loan Systems for Which the Covered
Institutions Is Not Capable of Completing Deposit Insurance Calculation
Process Because Additional Time Is Required for System Upgrades or
Conversions
The FDIC granted time-limited exception relief from part 370's
information technology system requirements set forth in Sec. 370.3 and
recordkeeping requirements set forth in Sec. 370.4 applicable to
deposits reflected on loan systems, including deposits resulting from
credit balances on an account for debt owed to the covered institution
and deposits held in escrow by the covered institution. Such relief was
granted to two covered institutions for up to 18 months after their
compliance date. One covered institution requested exception relief
from the recordkeeping requirements because it has multiple lending
systems in need of recordkeeping upgrades and technical coding fixes
without which it cannot produce the requisite data within the timeframe
and in the format required by Sec. 370.4(d). The covered institution
requested exception relief in order to complete its IT solution to
integrate data into its part 370 calculation system and perform
relevant testing. The other covered institution requested exception
relief from the information technology system and recordkeeping
requirements because it requires additional time to complete the
conversion of its commercial loan servicing platform and make system
upgrades. The FDIC granted both covered institutions a time-limited
exception for up to 18 months from their respective compliance dates.
In connection with the FDIC's grants of relief, these covered
institutions represented that they will maintain the capability to
place holds on the deposit accounts subject to the exception in the
event of failure until deposit insurance can be calculated using data
manually extracted from the current loan systems. As conditions of
relief, these covered institutions must submit a status report to
<a href="/cdn-cgi/l/email-protection#06766774723531364660626f6528616970"><span class="__cf_email__" data-cfemail="d3a3b2a1a7e0e4e393b5b7bab0fdb4bca5">[email protected]</span></a> at the midpoint of the exception relief period and
immediately bring to the FDIC's attention any change of circumstances
or conditions.
Federal Deposit Insurance Corporation.
Dated at Washington, DC, on September 14, 2021.
James P. Sheesley,
Assistant Executive Secretary.
[FR Doc. 2021-20160 Filed 9-16-21; 8:45 am]
BILLING CODE 6714-01-P
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