The Federal Reserve Board, the FDIC and the OCC issued final guidance for banking organizations on managing the risks associated with third-party relationships.
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Banking agencies proposed a rule that would require mortgage originators and secondary market issuers to "adopt policies, practices, procedures, and control systems to ensure that automated valuation models used in certain credit decisions or covered securitization determinations adhere to quality control standards."
Federal Reserve Board Governor Philip N. Jefferson concluded that U.S. financial markets remain resilient, but that economic growth will likely remain slow for the rest of 2023 due to increased uncertainty, and interest rates putting greater stress on banking organizations that have a high amount of uninsured deposits.
Federal Reserve Board Governor Michelle W. Bowman rejected arguments for "broad, fundamental reforms of the U.S. banking system" in favor of continuing "tailoring and risk-based supervision."
President Joseph R. Biden nominated individuals for open positions on the Federal Reserve Board.