Skip to content

Exception Tracking Spreadsheet (TicklerTrax™)
Downloaded by more than 1,000 bankers. Free Excel spreadsheet to help you track missing and expiring documents for credit and loans, deposits, trusts, and more. Visualize your exception data in interactive charts and graphs. Provided by bank technology vendor, AccuSystems. Download TicklerTrax for free.

Click Now!


Top Story Compliance Related

11/03/2020

NCUA fair lending and consumer compliance webinar announced

The NCUA has announced it will host a webinar on November 17, 2020, on a range of fair lending and consumer compliance topics. Registration for the “Fair Lending and Consumer Compliance Regulatory Update” webinar is open. The session is scheduled to begin at 3 p.m. Eastern Time and last approximately 60 minutes. The webinar will be closed-captioned and archived online approximately three weeks following the live event.

11/03/2020

OCC CRA evaluations released

The OCC has released a list of Community Reinvestment Act (CRA) performance evaluations that became public in October (links are to the evaluation reports):

Of the 22 evaluations listed, 16 were rated satisfactory. We congratulate the six banks whose evaluations were rated outstanding:

11/03/2020

OFAC advisory on risks in dealing in costly artwork

OFAC has issued an "Advisory and Guidance on Potential Sanctions Risks Arising from Dealings in High-Value Artwork," to highlight sanctions risks arising from dealings in high-value artwork associated with persons blocked pursuant to OFAC’s authorities, including persons on OFAC’s List of Specially Designated Nationals and Blocked Persons (SDN List). Such transactions may play a role in blocked persons accessing the U.S. market and financial system in violation of OFAC regulations.

The advisory describes characteristics of the market for high-value artwork that pose sanctions risks; emphasizes to art galleries, museums, private art collectors, auction companies, agents, brokers, and other participants in the art market the importance of maintaining a risk-based compliance program to mitigate such risks; and highlights that what is commonly described as the "Berman Amendment" to the International Emergency Economic Powers Act (IEEPA) and the Trading with the Enemy Act (TWEA) does not categorically exempt all dealings in artwork from OFAC regulation and enforcement.

11/02/2020

FDIC September enforcement orders

The FDIC has issued a list of enforcement orders issued in September, 2020.

  • Banks in Sauk City ($18,500) and Berlin ($15,375), Wisconsin, paid civil money penalties for flood insurance violations
  • The former president of Enloe State Bank, Cooper, Texas (now in receivership) was issued a prohibition order, after an FDIC finding that she originated a significant number of fictitious loans from which she benefited and that led to the bank's financial losses.
  • A former branch manager for First Community Bank, Batesville, Arkansas, was issued a prohibition order after an FDIC finding that she had made unauthorized and fraudulent withdrawals from bank customers' certificate of deposit accounts, from which she received financial gain or other benefit.
  • A former commercial lender for Synovus Bank, Columbus, Georgia, was issued a prohibition order for misappropriation of funds through the creation of a fictitious line of credit, and unauthorized draws from a customer's line of credit and from another customer's account.

11/02/2020

Bureau issues FDCPA rule

The CFPB has issued a final rule [653-page PDF] to restate and clarify prohibitions on harassment and abuse, false or misleading representations, and unfair practices by debt collectors when collecting consumer debt. The rule focuses on debt collection communications and gives consumers more control over how often and through what means debt collectors can communicate with them regarding their debts. The rule also clarifies how the protections of the Fair Debt Collection Practices Act apply to newer communication technologies, such as email and text messages.

The rule—

  • establishes a presumption on the number of calls debt collectors may place to reach consumers on a weekly basis. A debt collector is presumed to violate federal law if the debt collector places telephone calls to a particular person in connection with the collection of a particular debt more than seven times within seven consecutive days or within seven consecutive days of having had a telephone conversation about the debt.
  • clarifies how consumers may set limits on debt collection communications to reflect their preferences and the limits on communicating with third parties about a consumer’s debt
  • requires debt collectors who communicate electronically to offer the consumer a reasonable and simple method to opt out of such communications at a specific email address or telephone number
  • provides that consumers may, if the debt collector communicates through a medium of electronic communications, use that medium of electronic communications to place a cease communication request or notify the debt collector that they refuse to pay the debt
  • clarifies that the FDCPA’s general prohibition on harassing, oppressive, or abusive conduct applies to telephone calls as well as other communication media, such as email and text messages
  • provides examples demonstrating how the prohibition restricts emails and text messages
  • generally restates the FDCPA’s prohibitions regarding false, deceptive, or misleading representations or means and unfair or unconscionable means

The final rule does contain provisions on disputes, and record retention, among other topics. It does not include a proposed safe harbor for debt collectors against claims that an attorney falsely represented the attorney’s involvement in the preparation of a litigation submission. The Bureau intends to issue a second debt collection final rule focused on consumer disclosures and collection of time-barred debts in December 2020.

The rule, which is a complete revision and restatement of Bureau Regulation F (12 CFR Part 1006), will become effective one year after it is published in the Federal Register.

10/30/2020

Proposal to codify regulatory guidance statement

In a joint press release, the OCC, Federal Reserve Board, FDIC, NCUA, and CFPB have invited public comment on a proposed rule outlining and confirming the agencies' use of supervisory guidance for regulated institutions. The proposal would codify the statement, as amended, that was issued in September 2018 by the agencies to clarify the differences between regulations and guidance.

Comments on the proposal will be accepted for 60 days following its publication in the Federal Register.

PUBLICATION AND COMMENT PERIOD UPDATE: Published at 85 FR 70512 on November 5, 2020, with comments due by January 4, 2021.

10/30/2020

OFAC targets companies involved in Iranian petrochemical sector

OFAC has designated eight entities and related officials for their involvement in the sale and purchase of Iranian petrochemical products brokered by Triliance Petrochemical Co. Ltd. (Triliance), an entity designated by Treasury in January 2020. These entities, based in Iran, China, and Singapore, engaged in transactions facilitated by Triliance or otherwise assisted Triliance’s efforts to process and move funds generated by the sale of those petrochemical products.

OFAC also updated the SDN listing of the Iraq-based Al Bilad Islamic Bank with additional aliases including al Atta Islamic Bank for Investment and Finance. Al Bilad Islamic Bank was designated pursuant to E.O. 13224, a counterterrorism authority, on May 15, 2018 for being owned or controlled by Aras Habib who was involved in the exploitation of Iraq’s banking sector to move funds from Tehran to Hizballah. Al-Bilad Islamic Bank was used by Iran’s Central Bank Governor to covertly funnel millions of dollars on behalf of the IRGC-QF to support Hizballah.

For identification information on the designated entities and individuals designated, see this BankersOnline OFAC Update.

10/28/2020

2020 National DNC Registry Data Book

The Federal Trade Commission has issued the National Do Not Call Registry Data Book for Fiscal Year 2020. The Do Not Call (DNC) Registry lets consumers choose not to receive most legal telemarketing calls. The data show that the number of active registrations on the DNC Registry increased by two million over the past year, while the total number of consumer complaints decreased for the third year in a row.

10/28/2020

OCC finalizes True Lender Rule

The OCC has issued a final rule that determines when a bank (national bank or federal savings association) makes a loan and is the “true lender,” including in the context of a partnership between a bank and a third party. The rule specifies that a bank makes a loan and is the true lender if, as of the date of origination, it (1) is named as the lender in the loan agreement or (2) funds the loan. The rule also specifies that if, as of the date of origination, one bank is named as the lender in the loan agreement for a loan and another bank funds that loan, the bank that is named as the lender in the loan agreement makes the loan. The rule also clarifies that as the true lender of a loan, the bank retains the compliance obligations associated with the origination of that loan, thus negating concern regarding harmful rent-a-charter arrangements.

The OCC specifies in the prefatory text to the final rule in the Federal Register filing that the bank would not be considered the true lender in certain traditional lending or finance arrangements such as mortgage warehouse lending, indirect automobile finance, loan syndication and other structured finance. The OCC also clarified that the rule “does not affect the applicability” of the Home Mortgage Disclosure Act, the Equal Credit Opportunity Act, the Fair Credit Reporting Act or their implementing regulations. The final rule will take effect 60 days after publication in the Federal Register.

PUBLICATION AND EFFECTIVE DATE INFO: Published at 85 FR 68742 on October 30, 2020, with an effective date of December 29, 2020.

10/28/2020

9th mortgage company settles with CFPB over deceptive ads

The CFPB has issued a consent order against Low VA Rates LLC, a Utah-based mortgage lender and broker incorporated in Colorado and licensed in 48 states and the District of Columbia. The order addresses the Bureau’s finding that Low VA Rates sent consumers mailers for mortgage loans guaranteed by the U.S. Department of Veterans Affairs (VA) that contained false, misleading, and inaccurate statements, which violated the Consumer Financial Protection Act’s (CFPA) prohibition against deceptive acts and practices, the Mortgage Acts and Practices – Advertising Rule (MAP Rule, Regulation N), and Regulation Z. The order requires Low VA Rates to pay a civil money penalty of $1,800,000 to the Bureau and imposes requirements to prevent future violations.

This CFPB action is the ninth and last case stemming from a Bureau sweep of investigations of multiple mortgage companies that used deceptive mailers to advertise VA-guaranteed mortgages. The Bureau began the sweep in response to concerns raised by the VA about potentially unlawful advertising in the mortgage lending market. The Bureau has obtained more than $4.4 million in civil money penalties as a result of this sweep.

To prevent future violations, the consent order requires Low VA Rates to designate an advertising compliance official who must review its mortgage advertisements for compliance with mortgage advertising laws prior to use. Low VA Rates must also refrain from making misrepresentations like those identified by the Bureau through its investigation, and comply with certain enhanced disclosure requirements.

For additional information, see "Low VA Rates LLC settles with Bureau over deceptive VA loan ads," in BankersOnline's Penalty Pages.

Pages

Training View All

Penalties View All

Search Top Stories