A look at news across HousingWire’s weekend desk, with more coverage to come on bigger issues: Regulation Z, a monthly payment disclosure within mortgages became effective Sunday. The rule from the Federal Reserve mandates lenders disclose how and when a loan’s interest rate may change. Lenders must provide an interest rate and payment summary in the form of a table rather than a payment schedule box, as was the case previously. The changes are similar to those now found on credit card bills. The latest interim rule clarifies another rule published by the Federal Reserve in September and is part of Regulation Z in the Truth in Lending Act. In December, the Fed said the new rules seek “to alert borrowers to the risks of payment increases before they take out mortgage loans with variable rates or payments.” For adjustable-rate loans, the table must show the borrower the maximum possible interest rate during the first five years and the earliest date the rate is applicable. Lenders also need to provide a “worst case” scenario showing the maximum rate and payment over the life of the loan. For interest-only loans, the table must show when the rate may increase and/or when the payment may rise. Compliance is optional for loan applications received before Oct. 1. The Fed is taking comments on the interim rule until Feb. 28 and is expected to publish a final rule soon thereafter. Meanwhile on Friday, the International Accounting Standards Board and the Financial Accounting Standards Board proposed to establish a new approach to offsetting financial assets and liabilities on balance sheets. The boards said the variations when accounting for assets and liabilities “result in the single largest quantitative difference” for financial institutions adhering to current accounting standards, especially in the presentation of derivatives. “The fact that companies can, in some instances, report IFRS balance sheet figures that are double the size of their U.S. GAAP numbers is not acceptable in global capital markets,” said Sir David Tweetie, chairman of IASB. The boards propose offsetting that should apply “only when the right of set-off is enforceable at all times, including in default and bankruptcy, and the ability to exercise this right is unconditional,” not depending on another event, and the reporting entity plans to settle the amounts due with a single payment, or simultaneously. The proposal is in response to requests from investors, the G20 and the Financial Stability Board. “Investors expressed a desire for information about both the gross amounts of financial assets and liabilities and the net amounts, if credit risk has been mitigated” according to FASB Chairman Leslie Seidman. “This proposal would change U.S. GAAP to require netting in a narrower set of circumstances, but the effect of other forms of credit mitigation would be disclosed in the footnotes.” The boards will accept comments on the proposal through April 28. Elsewhere, Chapman and Cutler LLP added James Croke and Peter Manbeck as partners in the firm’s asset securitization group in New York. Both Croke and Manbeck had been with Orrick, Herrington & Sutcliffe. Prior to that, they worked together in London with Cadwalader, Wickersham & Taft, where Croke led the capital markets department and was instrumental in the legal development of the European ABCP market. He also has been a director of the American Securitization Forum. “With an increased demand from our clients to develop new ways to access and invest in structured finance transactions, Jim and Peter bring valuable thought leadership to answering this demand,” said Chapman and Cutler Chief Executive Partner Tim Mohan. Regulators closed four banks last week. After nearly 300 institutions failed the prior two years, 11 banks failed in the first month of 2011. The Federal Deposit Insurance Corp. estimates the total cost to its deposit insurance fund from last week’s failed banks at about $545.5 million. The Oklahoma State Banking Department closed First State Bank of Camargo, Okla., and the FDIC was appointed receiver. Bank 7 of Oklahoma City agreed to assume all the deposits of the failed institution. As of Sept. 30, the lone branch of First State bank had about $43.5 million in total assets and $40.3 million in total deposits. The Wisconsin Department of Financial Institutions closed Evergreen State Bank of Stoughton, Wis. The FDIC signed an agreement with McFarland State Bank to assume all of the deposits and most of the assets of the shuttered bank. The four branches of Evergreen State Bank had about $246.5 million in total assets and $195.2 million in deposits as of Sept. 30. FirsTier Bank of Louisville, Colo., was closed by the Colorado Division of Banking. The FDIC formed the Deposit Insurance National Bank of Louisville that will be open through February to allow depositors access to their funds and time to find another bank. FirsTier listed assets of $781.5 million and deposits of $722.8 million as of Sept. 30. The New Mexico Financial Institutions Division closed First Community Bank of Taos, N.M. The FDIC signed an agreement with U.S. Bancorp’s (USB) U.S. Bank National Association of Minneapolis to assume all the deposits and nearly all the assets of the failed bank. As of Sept. 30, the failed bank had total assets of $2.31 billion with deposits of $1.94 billion. Write to Jason Philyaw. The author holds no relevant investments.