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OCC BULLETIN 2016-3
To: Chief Executive Officers of All National Banks and Federal Savings Associations, Department and Division Heads, All Examining Personnel, and Other Interested Parties

Description: Revised Comptroller’s Handbook Booklet and Rescissions

Summary

The Office of the Comptroller of the Currency (OCC) issued today the “Installment Lending” booklet of the Comptroller’s Handbook. This revised booklet updates and replaces the “Installment Loans” booklet issued in March 1990 (and examination procedures issued in March 1998). The revised booklet also replaces section 217, “Consumer Lending,” issued in January 2000 as part of the former Office of Thrift Supervision Examination Handbook for examining federal savings associations.

The revised booklet incorporates national bank and federal savings association statutes and regulations, guidance, and examination procedures. The booklet also provides updated guidance to examiners on assessing and managing the risks associated with installment lending activities.

Note for Community Banks

The “Installment Lending” booklet applies to examinations of all national banks and federal savings associations engaged in installment lending activities.

Highlights

The “Installment Lending” booklet

  • rescinds OCC Bulletin 2004-59, “Retail Lending: Interim Examination Procedures.”
  • provides updated guidance to examiners for assessing the quantity of risk associated with installment lending activities and provides guidance for assessing the quality of installment lending risk management.
  • provides updated guidance to examiners on the administration of installment lending practices and the controls and processes necessary to effectively manage the associated risks. These processes include underwriting or account eligibility criteria, charge-off, risk management and control systems, and third-party management.

For further information, contact David R. Henry, Credit Risk Division, at (202) 649-5866.

 

Jennifer C. Kelly
Senior Deputy Comptroller and Chief National Bank Examiner

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