FDIC Consumer Compliance Supervisory Highlights

The FDIC has issued FIL-22-2021 to announce the release of the latest issue of the FDIC’s Consumer Compliance Supervisory Highlights, which provides an overview of consumer compliance issues identified through the FDIC’s supervision of state non-member banks and thrifts in 2020. This edition includes:

• A summary of the FDIC’s supervisory approach in response to COVID-19;
• A description of the most frequently cited violations and other consumer compliance examination observations;
• Information on regulatory developments; and
• A summary of consumer compliance resources and information available to financial institutions

A table of most frequently cited violations highlights the numbers of Level 2 and Level 3 violations (there are three levels of concern from 1 to 3, with Level 1 representing the lowest level of concern), indicating that the most frequently cited violations (representing approximately 74 percent of the total violations cited in 2020) involve: the Truth in Lending Act (TILA), Truth in Savings Act (TISA), Flood Disaster Protection Act (FDPA), Electronic Funds Transfer Act (EFTA), and the Real Estate Settlement Procedures Act (RESPA).

The report section on Consumer Compliance Examination Observations focuses on matters involving RESPA, TILA and fair lending.