Highlights:

• Third-party arrangements can assist institutions in attaining key strategic objectives, but they also present risks. In "Third-Party Arrangements: Elevating Risk Awareness," the FDIC shows how failure to manage these risks can expose a financial institution to everything from financial loss to regulatory action and loss of customers.
• Low interest rates in recent years and the emergence of nontraditional mortgage products have spurred housing demand as well as mortgage fraud. "Staying Alert to Mortgage Fraud" shares actual examples of mortgage fraud in FDIC-insured institutions and offers tips to protect a mortgage portfolio.
• "Wind Hazard Insurance: No Longer Just a Technical Exception," discusses the rising cost and, in some cases, the lack of availability of this protection for lenders against the loss of collateral value.
• "From the Examiner's Desk" takes a look at the impact of the electronic exchange of examination-related information, and "Accounting News" addresses the effects of recent decisions of the Financial Accounting Standards Board's Emerging Task Force on the accounting for split- dollar life insurance.

Distribution:
FDIC-Supervised Banks (Commercial and Savings)

Suggested Routing:
Chief Executive Officer

Related Topics:
Outsourcing
Nontraditional Mortgage Products
FDICconnect
Third-Party Service Providers
Suspicious Activity Reports
Property Insurance
Bank-owned Life Insurance

Attachment:
None

Contact:
Bobbie Jean Norris, Managing Editor
(bjnorris@FDIC.gov or 202- 898-3685)

Printable Format:
FIL-52-2007 - PDF 30k (PDF Help)

Note:
FDIC financial institution letters (FILs) may be accessed from the FDIC's Web site at www.fdic.gov/news/news/financial/2007/index.html.

To receive FILs electronically, please visit http://www.fdic.gov/about/subscriptions/fil.html.