Update included the following:

• Added language to the topic overview and several procedures to address outsourcing human capital functions.
• Added a reference and link to the diversity and inclusion IM in the Plan and Strategies procedure.
• Revised links to go to the eCFR and added hyperlinks to the AAP regulations.
• Added additional guidance in the Compensation Committee procedure to expand on considerations for committee effectiveness.
• Removed the section on maximum bank director compensation and moved applicable content to a bank only board policy evaluative question.
• Added a couple notes to the Employee Compensation procedure to address the incentive rules for insurance sales and not using FIRS ratings as incentive criteria.
• Updated the Audit procedure to be consistent with the other audit procedures in the Examination Manual.
• Made misc. other technical and grammatical changes. 
  

• HMDA
• TILA
• RESPA
• Margin Stock
  

Updated the guidance to address the new CECL requirements that were effective as of January 1, 2023. Specifically: 

• Changed the procedure name for Policy, Procedures, Methodologies, & Controls. (It was previously named Policy, Procedures, & Controls.)
• The Allowance Level and Policy, Procedures, Methodologies, & Controls procedures were rewritten to address the new CECL requirements.
• The Audit and Transaction Testing procedures included minor revisions to address the new CECL requirements. 
• Made other miscellaneous technical and grammatical updates.
  

Standards of Conduct (SOC)

• Changed the procedure name SOC Policy and Procedures to SOC Program.
• Updated the guidance in the SOC Program procedure to reflect the new SOC regulations that became effective on January 1, 2023.
• Removed procedures SOC Internal Controls and SOC Disclosure Statements. The updated guidance for these areas is now incorporated in the SOC Program procedure.
• Removed Workpaper WP 31.1-13 SOC Policies and Procedures.

• Published a new Board Committees procedure.
• Updated outdated hyperlinks in the Enterprise Risk Management procedure.
• Revised reference to the Board Policies and Charters Workpaper as this is now a supplemental document in the Policy Administration procedure. (Removed WP 003 Board Policies and Charters as this new supplemental document replaced the workpaper.)
• Added considerations for additional policy direction in the Internal Control Policy procedure.
• Added reference to specific SOC audit expectations and transaction testing for insider loans and criminal referrals in the Audit procedure.
• Removed reference to FCA Regulation 612.2155 in the Transaction Testing procedure.
• Made miscellaneous other technical and grammatical updates.
  

• Capital Management – Added reference to assessing capital needs and additional criteria under the weak rating regarding insufficient management processes.
• Allowance for Losses – Added criteria regarding allowance levels.
• Risk Identification – Added criteria for risk rating processes.
• Credit Administration – Added criteria for credit analysis and internal controls.
• Loan Underwriting Direction – Removed criteria for credit analysis, compensation programs, and delegated lending authorities.
• Corporate Governance – Removed reference to the IT governance framework and added criteria for the following areas:
• Board reporting processes
• Corrective action processes
• Internal control policy
• Board committees
• Policy administration
• Enterprise, third-party, and model risk management and IT governance programs
• Audit and Review Programs – Removed reference to the internal control policy and added criteria for the following areas:
• Audit plan
• Audit policies and procedures
• Internal audit structure and staffing
• Audit reports and effectiveness/reliability of audits
• Resolution of audit findings
• Information Technology & Security – Removed reference to the vendor management program and added criteria for the following areas:
• IT governance framework
• IT security controls
• IT operational controls
• Cybersecurity threats and vulnerabilities
• Financial & Shareholder Reporting –  Added additional criteria regarding compliance with regulations.
• Liquidity Risk – Added criteria for the high risk rating for associations regarding funding penalties or risk-based premiums.
• Interest Rate Risk – Rewrote the criteria for this factor. Removed the differentiation for banks and associations.