Under the Economic Growth and Regulatory Paperwork Reduction Act, Federal law required a review of banking regulations once every ten years. The hope is that these recurring reviews will catch outdated legislation and suggest ways to improve it, which is one of many jobs that the Federal Financial Institutions Examination Council does. The following is a brief history of this Council, and a short summary of its aims and goals.
The FFIEC was passed and established on March 10, 1979. The organization was given responsibility to help mortgage institutions access the information they needed on buyers. This data was already publicly accessible, but the FFIEC was directed to archive and manage it.
The agency was also responsible for analyzing issues raised by the public, and providing recommendations on those issues. In other words, the organization was asked to decide whether legislation or regulation was required to solve the problem.
The Economic Growth and Regulatory Paperwork Act also amended a variety of laws to strengthen or update how the Fed handled those types of disputes. It streamlined the mortgage lending process, and eliminated various record-keeping requirements that were viewed as out of date.
The act also amended the Fair Credit Reporting Act, which provided even more consumer protections from credit agencies.
The rules of finance are constantly changing, and banks make a lot of money from skirting some of these issues. The FFIEC is there to help stop some of these abuses and take actions to help streamline lending.