Skip to content

How to gain more from operational risk management practices.
Modern risk management technology solutions improve efficiency and provide greater visibility into risks. Today’s tools provide real-time visibility, action plans, enhanced reporting and business intelligence, and proactive notifications for operational risk. Real-time data empowers banks and financial services organizations to proactively manage risks and instantly detect and mitigate emerging issues. Click here to learn more.


Top Stories

02/26/2020

FTC 2019 privacy and data security update

The Federal Trade Commission has released its 2019 annual privacy and data security update, which highlights a record year for enforcement actions aimed at protecting consumer privacy and data security. The Commission levied a $5 billion penalty -- the largest consumer privacy penalty ever -- against Facebook for violating its 2012 FTC privacy order and imposed new restrictions on the social network’s business operations. The FTC also obtained a record $170 million penalty against YouTube and Google for alleged violations of the Children’s Online Privacy Protection Act (COPPA).

02/26/2020

NCUA Financial Inclusion webinar

The NCUA has announced it will host a webinar, "Financial Inclusion: Pathways to Serving the Underserved," scheduled for 2:00 - 3:00 p.m. EDT on March 11. Representatives from the NCUA and the CFPB will discuss:

  • The current landscape of financial inclusion in the U.S.;
  • Barriers and challenges to low-income populations for financial inclusion; and
  • Innovations in financial inclusion.

02/26/2020

Net incomes decline for insured institutions

The FDIC has published its Fourth Quarter 2019 Quarterly Banking Profile, which reports that, for the 5,177 commercial banks and savings institutions insured by the Federal Deposit Insurance Corporation (FDIC), aggregate net income totaled $55.2 billion in fourth quarter 2019, a decline of $4.1 billion (6.9 percent) from a year ago. The decline in net income was led by lower net interest income and higher expenses. However, quarterly net income of community banks improved 4.4 percent over a year ago.

02/26/2020

US house prices continue to rise

U.S. house prices rose in the fourth quarter of 2019, up 1.3 percent according to the Federal Housing Finance Agency (FHFA) House Price Index (HPI). House prices rose 5.1percent from the fourth quarter of 2018 to the fourth quarter of 2019. FHFA's seasonally adjusted monthly index for December was up 0.6 percent from November 2019.

U.S. house prices have risen for 34 consecutive quarters, since September 2011.

02/26/2020

Fed primary credit rate unchanged

The Federal Reserve Board has released the minutes of its interest rate meetings on January 21 and January 29, 2020. The directors of the twelve Federal Reserve Banks favored maintaining the current primary credit rate at the existing level (2.25 percent). Those directors judged that it would be appropriate for the FOMC to closely monitor the implications of incoming information for the economic outlook and act as appropriate to sustain the expansion, with a strong labor market and inflation near its symmetric 2 percent objective.

02/25/2020

Bureau announces Council and Advisory Board meetings

The CFPB has posted Federal Register notices of March 11–12 meetings of its Academic Research Council, Community Bank Advisory Council, Consumer Advisory Board, and Credit Union Advisory Council. Each of the meetings will be held at the Bureau's offices in Washington, and each group will discuss board policy matters related to the Bureau's Unified Regulatory Agenda and general scope of authority.

02/25/2020

FDIC recognizes four institutions for expanding financial literacy

The Federal Deposit Insurance Corporation has recognized four institutions for their use of the agency's Money Smart curriculum in their work to expand financial education and support healthy banking relationships:

  • University of Wyoming Extension
  • First Commonwealth Bank of Indiana, Pennsylvania
  • Haven Neighborhood Services of Los Angeles
  • JPMorgan Chase Bank, N.A.

02/25/2020

FDITech guide to help fintechs connect with banks

The Federal Deposit Insurance Corporation's technology lab (FDiTech) has released Conducting Business with Banks: A Guide for Third Parties, a new guide to help financial technology companies and others partner with banks. The guide is designed to help third parties understand the environment in which banks operate and navigate the requirements unique to banking.

Conducting Business with Banks is an initial effort to address concerns that FDIC Chairman McWilliams has heard from banks and technology companies across the country related to challenges associated with on-boarding at institutions.

02/25/2020

HUD settles San Diego disability parking discrimination

The U.S. Department of Housing and Urban Development announced yesterday it has reached a Conciliation/Voluntary Compliance Agreement with Wakeland Atmosphere, L.P., and FPI Management, Inc., the owner and management company for a HUD-subsidized apartment complex in San Diego, California, to settle allegations that they violated the Fair Housing Act when they refused to allow a tenant with disabilities to have a designated parking space.

02/25/2020

IRS to update business expense deductions rules

The Internal Revenue Service announced yesterday it has issued proposed regulations on the business expense deduction for meals and entertainment in accordance with changes to the Internal Revenue Code made by the 2017 Tax Cuts and Jobs Act.

Comments will be accepted for 47 days following the expected February 26 publication of the proposed rules (through April 13, 2020).

02/25/2020

Revised publication on tax benefits for military members

The IRS has released its newly-revised Armed Forces' Tax Guide (Publication 3), designed to help members of the military understand the many special tax benefits available to them under the law. The guide contains useful filing tips for any member of the military, including reservists and the National Guard, regardless of whether they are stationed in the U.S. or abroad. A PDF version of Publication 3 is also available.

02/24/2020

Wells Fargo to pay $3 Billion for sales conduct

On February 21, the U.S. Department of Justice announced that Wells Fargo & Company (San Francisco, CA) and its subsidiary, Wells Fargo Bank, N.A. (Sioux Falls, SD) have agreed to pay $3 billion to resolve their potential criminal and civil liability stemming from a practice between 2002 and 2016 of pressuring employees to meet unrealistic sales goals that led thousands of employees to provide millions of accounts or products to customers under false pretenses or without consent, often by creating false records or misusing customers’ identities.

As part of the agreements with the United States Attorney’s Offices for the Central District of California and the Western District of North Carolina, the Commercial Litigation Branch of the Civil Division, and the Securities and Exchange Commission, Wells Fargo admitted that it collected millions of dollars in fees and interest to which the Company was not entitled, harmed the credit ratings of certain customers, and unlawfully misused customers’ sensitive personal information, including customers’ means of identification.

The criminal investigation into false bank records and identity theft is being resolved with a deferred prosecution agreement in which Wells Fargo will not be prosecuted during the three-year term of the agreement if it abides by certain conditions, including continuing to cooperate with further government investigations. Wells Fargo also entered a civil settlement agreement under the Financial Institutions Reform, Recovery and Enforcement Act of 1989 (FIRREA) based on Wells Fargo’s creation of false bank records. FIRREA authorizes the federal government to seek civil penalties against financial institutions that violate various predicate criminal offenses, including false bank records. Wells Fargo also agreed to the SEC instituting a cease-and-desist proceeding finding violations of Section 10(b) of the Exchange Act and SEC Rule 10b-5, which make it illegal for anybody to directly or indirectly use any measure to defraud, make false statements, omit relevant information, or otherwise conduct business operations that would deceive another person in the process of conducting transactions involving stock and other securities. The $3 billion payment resolves all three matters, and includes a $500 million civil penalty to be distributed by the SEC to investors.

02/24/2020

Treasury reports on FATF Plenary

Treasury has announced that the Financial Action Task Force has released guidance on digital identity for customer identification and verification, and evaluated Treasury’s Customer Due Diligence rule for compliance with the FATF standards. The FATF also called on all jurisdictions to impose effective countermeasures on Iran, such as requiring financial institutions to review, amend, or if necessary terminate correspondent relationships with Iranian banks or limiting business relationships or financial transactions with Iran. The countermeasures should be developed and implemented to protect the international financial system from the ongoing money laundering, terrorist financing, and proliferation financing (ML/TF/PF) risks emanating from Iran.

02/24/2020

Interagency Community Reinvestment Conference

The Federal Reserve Board, FDIC, and OCC will host the 2020 National Interagency Community Reinvestment Conference in Denver from March 9 to 12. This biennial conference offers participants from around the country the opportunity to learn about the Community Reinvestment Act and to discuss best practices and emerging challenges in community development. The 2020 program will feature discussions regarding innovations in community development policies and practice, CRA examination training, and community development tours of Denver.

02/24/2020

New FinCEN deputy director

FinCEN has announced that Michael Mosier has been named its new deputy director and digital innovation officer. As deputy director, Mr. Mosier oversees FinCEN’s wide-ranging work to protect the financial integrity and national security of the United States. As FinCEN’s first digital innovation officer, Mr. Mosier will advance FinCEN’s engagement with emerging technology and financial innovation. Mr. Mosier returns to FinCEN from the cryptocurrency analytics, compliance, and investigations firm Chainalysis, where he was chief technical counsel. Previously, he served as FinCEN’s chief of strategic advancement.

02/24/2020

FTC issues ECOA report

The Federal Trade Commission has announced it has provided the Consumer Financial Protection Bureau (CFPB) with its annual summary of its efforts in enforcing the Equal Credit Opportunity Act (ECOA).

The Commission is responsible for ECOA enforcement and education regarding most non-bank financial service providers. In its summary, FTC staff describes the Commission’s work on ECOA-related issues, including activities addressed in research and policy development.

02/24/2020

Proposed rule on collection of time-barred debt

The CFPB has issued a supplemental notice of proposed rulemaking on the collection of time-barred debt. The Bureau proposes to prohibit collectors from using non-litigation means (such as calls) to collect on time-barred debt unless collectors disclose to consumers during the initial contact and on any required validation notice that the debt is time-barred. Consumer research conducted by the Bureau found that a time-barred debt disclosure helps consumers understand that they cannot be sued if they do not pay. That can help consumers make better informed decisions whether to pay the debt or not.

The new NPRM supplements the Bureau's May 2019 proposal to implement the Fair Debt Collection Practices Act.

02/21/2020

Symposium on consumer access to financial records

The it will hold a symposium on Consumer Access to Financial Records and Section 1033 of the Dodd-Frank Act on February 26, 2020, starting at 9:30 a.m. The event will be webcast on the Bureau’s website. Section 1033 addresses consumers’ rights to access information about their financial accounts. The Bureau’s data access symposium is intended to elicit a variety of perspectives on the current and future state of the market for services based on consumer-authorized use of financial data.

02/21/2020

Large commercial banks list

The Federal Reserve Board has posted the ranking of insured U.S. large commercial banks with consolidated assets of $300 million or more as of December 31, 2019.

02/21/2020

Data on borrowers' experiences in getting a mortgage

The Federal Housing Finance Agency and the Consumer Financial Protection Bureau have released for public use additional loan-level data collected through the National Survey of Mortgage Originations (NSMO). The data, which are from loans originated in 2017, provide insights into borrowers' experiences in getting a residential mortgage. Data from 2018 originations are expected to be released by the end of 2020.

02/21/2020

California landlords settle housing discrimination claim

HUD reports it has approved a conciliation agreement between Inland Fair Housing and Mediation Board and a group of Upland, California, property owners and managers resolving allegations that they discriminated against families with children by refusing to rent to them and by imposing different occupancy terms and conditions to families with children.

02/21/2020

Updated interactive URLA published

Fannie Mae and Freddie Mac have announced their publication of the interactive (fillable) PDF versions of the redesigned Uniform Residential Loan Application (URLA) with an effective date of “09/2020,” along with corresponding supporting documents. These interactive forms comprise the final version of the loan application and are to be supported by the industry in system development and preparation of the redesigned URLA and updated GSE-specific automated underwriting system (AUS) specifications for the November 1, 2020, mandate.

The announcement also lists a number of supporting documents, including an FAQ with new questions and updates in support of the changes made to the redesigned URLA and the GSEs' AUS specs.

02/21/2020

OCC releases enforcement actions

The OCC has released a list of new enforcement actions taken against national banks, federal savings associations, and individuals currently and formerly affiliated with such institutions. The actions listed are dated from late December 2019 to early February 2020.

In addition to actions separately reported previously, the OCC listed removal/prohibition orders against a former teller at CIT Bank, N.A., Pasadena, California (misappropriation of cash from her teller drawer); a former head teller supervisor at Midland Federal Savings and Loan Association, Bridgeview, Illinois (misappropriation of vault cash and making false entries); a former teller at U.S. Bank, N.A., Cincinnati, Ohio (misappropriation of cash from her teller drawer and making false cash total entries); and a former teller at JPMorgan Chase Bank, N.A., Columbus, Ohio (misappropriation of cash from ATMs for which she was the custodian).

Also listed were three notices of charges that may result in orders of prohibition, orders for reimbursement, orders for civil money penalties and/or other actions, one of which notices was directed to five former officials of Wells Fargo Bank, N.A., Sioux Falls, South Dakota, in connection with charges that the former officials participated in or were responsible for "sales practices misconduct" at Wells Fargo Bank. The notice states the Comptroller's intention to assess civil money penalties of between $500,000 and $25,000,000 against the five former officials and to issue orders of prohibition to two of them.

02/21/2020

CFPB and two states sue loan brokers

The Consumer Financial Protection Bureau has announced that the Bureau, the South Carolina Department of Consumer Affairs, and Arkansas Attorney General Leslie Rutledge have filed a lawsuit in federal district court in the District of South Carolina against Candy Kern-Fuller, Howard Sutter III, and Upstate Law Group LLC. The Bureau alleges that the defendants worked with a series of companies that brokered contracts offering high-interest credit to consumers, primarily disabled veterans, and violated the Consumer Financial Protection Act’s prohibition against deceptive acts or practices and against providing substantial assistance to deceptive and unfair acts or practices of others.

02/21/2020

OFAC designates senior Iranian officials

OFAC has taken action against five members of Iran’s Guardian Council and its Elections Supervision Committee, which are appointed by Iran’s Supreme Leader or his appointees. The Supreme Leader uses his appointees to deprive the Iranian people of free and fair elections by blocking candidates that do not mirror his radical views. For identification information, see BankersOnline's OFAC Update.

02/21/2020

Office Depot customers receive $34M in refunds

The Federal Trade Commission is sending refund checks totaling more than $34 million to consumers who allegedly were tricked by Office Depot, Inc. and a software provider into buying computer repair products and services. Office Depot paid $25 million while its software supplier, Support.com, Inc., paid $10 million as part of a 2019 settlement with the Commission. The FTC alleged that Office Depot and Support.com configured a virus scanning program to report that it found symptoms of malware or infections—even when that was not true—whenever consumers answered yes to at least one of four “diagnostic” questions. The false scan results were then used to persuade consumers to purchase computer repair and technical services that could cost hundreds of dollars. Over 541,000 checks averaging $63.35 will be sent.

02/20/2020

U.S. - EU Financial Regulatory Forum meeting

A meeting of the U.S. and EU participants in the U.S. – EU Financial Regulatory Forum was held on February 11-12, 2020, in Washington to exchange views on financial regulatory developments as part of their ongoing regulatory dialogue. In the area of banking, participants discussed the process and timeline for implementing the final Basel III reforms, as well as resolution issues. Participants considered U.S. developments regarding prudential requirements for foreign banks, including tailoring prudential standards based on risk; the single counterparty credit limits; and proposed amendments to the Volcker rule. Participants also discussed EU work on the Banking Union arrangements for deposit insurance and backstop resolution funding. In the area of insurance, participants discussed ongoing multilateral and bilateral cooperation.

02/20/2020

CFPB Winter 2020 Supervisory Highlights

The CFPB has published issue 21 (Winter 2020) of its Supervisory Highlights, reporting examination findings in the areas of debt collection, mortgage servicing, payday lending, and student loan servicing that were completed between April 2019 and August 2019. These observations were reported:

  • Debt collection
    • Failure to disclose in subsequent communications that communication is from a debt collector
    • Failure to send notice of debt
  • Mortgage servicing
    • Loss mitigation notice violations
  • Payday lending
    • Failing to apply borrowers’ payments to their loans
    • Inaccurate disclosure of annual percentage rate
    • Failure to include a fee in calculation of finance charge and annual percentage rate
    • Failure to retain evidence of compliance with Regulation Z
    • Adverse action notices that failed to disclose the principal reason(s) for the adverse action
    • Unfair imposition of unauthorized and undisclosed fee
  • Student loan servicing
    • Inaccurate monthly payment amounts after servicing transfer

As for the loss mitigation notice violations found in exams of mortgage servicers, the Bureau noted that several such problems followed on the heels of major natural disasters that prompted much larger volumes of assistance requests, and no "matters requiring attention" were issued.

02/20/2020

Parts of Florida county suspended from flood program

The Federal Emergency Management Agency has published a notice [85 FR 9675] in this morning's Federal Register that unincorporated areas of Saint Lucie County, Florida were suspended yesterday (February 19, 2020) from the National Flood Insurance Program due to noncompliance with the floodplain management requirements of the program. FEMA's notice was dated February 4, 2020.

02/20/2020

OFAC TSRA report and SDN List update

A report of licensing activities for the second quarter of Fiscal Year 2019 has been released by OFAC, as required by the Trade Sanctions Reform and Export Enhancement Act of 2000 (TSRA).

OFAC also updated an SDN list entry for an entity designated under the Kingpin Act. See BankersOnline's OFAC Update for details.

02/20/2020

FDIC Advisory Committee of State Regulators announced

The FDIC has announced the selection of 15 members for its recently established Advisory Committee of State Regulators. The FDIC Board of Directors approved the formation of the new Advisory Committee on November 19, 2019, as another mechanism for state regulators and the FDIC to discuss a variety of current and emerging issues that have potential implications for the regulation and supervision of state-chartered financial institutions. The Advisory Committee members include the following regulators of state-chartered financial institutions from across the United States as well as other individuals with expertise in the regulation of state-chartered financial institutions:

  • Bret Afdahl, Director, Division of Banking, State of South Dakota
  • Kevin R. Allard, Superintendent, Division of Financial Institutions, State of Ohio
  • Charles G. Cooper, Commissioner, Department of Banking, State of Texas
  • Thomas C. Fite, Director, Department of Financial Institutions, State of Indiana
  • Mary L. Gallagher, Commissioner of Banks, Commonwealth of Massachusetts
  • Greg Gonzales, Commissioner, Department of Financial Institutions, State of Tennessee
  • Ray Grace, Commissioner of Banks, State of North Carolina
  • Kevin B. Hagler, Commissioner, Department of Banking and Finance, State of Georgia
  • Melanie G. Hall, Commissioner, Division of Banking and Financial Institutions, State of Montana
  • Dawn E. Holstein, Commissioner of Banking, Division of Financial Institutions, State of West Virginia
  • Lise Kruse, Commissioner, Department of Financial Institutions, State of North Dakota
  • G. Edward Leary, Commissioner, Department of Financial Institutions, State of Utah
  • John Ryan, President and Chief Executive Officer, Conference of State Bank Supervisors
  • Antonio P. Salazar, Commissioner, Office of the Commissioner of Financial Regulation, State of Maryland
  • Mick Thompson, Commissioner, Banking Department, State of Oklahoma

02/20/2020

CSBS to launch state exam system

The Conference of State Bank Supervisors (CSBS) has announced the nationwide roll-out of the State Examination System (SES), the first nationwide platform to bring state regulators and companies into the same technology space for supervision, fostering greater transparency and collaboration. Through SES, state regulators will be able to enhance supervisory oversight of fintechs and other nonbanks while making the process more efficient for regulators and companies alike.

SES is developed and operated by the State Regulatory Register (SRR), a SCBS subsidiary that also operates the Nationwide Multistate Licensing System (NMLS). SES is designed to:

  • Support networked supervision among state regulators
  • Standardize workflow, business rules and technology across states
  • Facilitate secure collaboration between licensees and their regulators
  • Help examiners focus more attention on higher-risk cases
  • Move state supervision towards more multistate exams and fewer single-state efforts

    02/20/2020

    FDIC requests input on modernizing signage and ad requirements

    The FDIC has announced that it is seeking the public's input on potential modernization of its signage and advertising requirements to better reflect how banks and savings associations currently operate and how consumers use banking services. Banks are transforming their business models to take deposits via physical branches, digital, and mobile banking channels.

    Given the changes in the marketplace since the FDIC last significantly updated these rules in 2006, the FDIC is gathering public input from a broad range of stakeholders about how it might revise and clarify its official sign and advertising rules to reflect the changes and support the industry's efforts to understand, apply, and comply with the FDIC's rules.

    Comments on the FDIC's Request for Information must be received by March 19, 2020.

    02/20/2020

    FOMC minutes released

    The Federal Reserve Board and the Federal Open Market Committee (FOMC) have released the minutes of the FOMC meeting held on January 28-29, 2020. The minutes for each regularly scheduled meeting of the Committee ordinarily are made available three weeks after the day of the policy decision and subsequently are published in the Board's Annual Report. The descriptions of economic and financial conditions contained in these minutes are based solely on the information that was available to the Committee at the time of the meeting.

    02/20/2020

    OCC Miami workshop for bank directors and management

    The OCC will host a workshop in Miami, Florida, at the Even Hotel – Miami Airport, March 31 – April 1, for directors, senior management team members, and other key executives of national community banks and federal savings associations supervised by the OCC.

    The Building Blocks: Keys to Success for Directors and Senior Management workshop provides practical information on the roles and responsibilities of board participation. Taught by seasoned OCC supervision staff, the workshop focuses on duties and core responsibilities of directors and management, discusses major laws and regulations, and increases familiarity with the examination process. The workshop fee is $99. Admission is limited to the first 35 registrants.

    02/20/2020

    Comment period extended on CRA proposal

    The FDIC and OCC have announced they have extended the public comment period for proposed changes to the rules implementing the Community Reinvestment Act (CRA) through April 8, 2020. On December 12, 2019, the FDIC and OCC announced a proposal to modernize the regulations under the CRA and provided for a 60-day comment period following formal publication on January 9, 2020. The FDIC and OCC have now determined that a 30-day extension of the comment period is appropriate.

    02/20/2020

    International financial intelligence units discuss virtual assets

    On February 16, 2020, fifty senior officials and experts of Financial Intelligence Units (FIUs) from FATF countries and the Egmont Group1 Secretariat met in Paris to discuss the international ramifications of virtual assets from FIUs’ perspectives. Ms. Lucie Castets, Head of International Affairs Department of France’s FIU, the Traitement du renseignement et action contre les circuits financiers clandestins (Tracfin), hosted the meeting. Mr. Kenneth A. Blanco, Director of the U.S. Treasury Department’s Financial Crimes Enforcement Network (FinCEN), the FIU of the United States, Mr. Marko Stolle, Deputy Director of the Financial Intelligence Unit Germany, and Ms. Lucie Castets co-chaired the meeting. Virtual asset experts from the FIUs of France, the United States, and Israel offered detailed presentations. Among other topics, attendees discussed cryptocurrency business models, money laundering and terrorist finance risks, illicit typologies, and the role of FIUs in tracing virtual assets.

    02/20/2020

    OFAC posts Iran-related designations

    OFAC has posted a sanctions program action notice announcing its designation of five individuals under Iran-related Executive Order 13876.

    The following individuals have been added to OFAC's SDN List:

    JANNATI, Ahmad, Iran; DOB 22 Feb 1927; POB Ladan, Isfahan, Iran; nationality Iran; Additional Sanctions Information - Subject to Secondary Sanctions; Gender Male (individual) [IRAN-EO13876].

    KADKHODAEI, Abbas Ali (a.k.a. KADKHODAEE, Abbas Ali; a.k.a. KADKHODAEI ELYADERANI, Abbas Ali; a.k.a. KADKHODAEI, Abbasali; a.k.a. KADKHODAI, Abbas Ali; a.k.a. KADKHODA'I, Abbas Ali), Iran; DOB 1961; alt. DOB 1962; POB Isfahan, Iran; nationality Iran; Additional Sanctions Information - Subject to Secondary Sanctions; Gender Male (individual) [IRAN-EO13876].

    RAHPEYK, Siamak (a.k.a. RAHPEYK, Siyamak; a.k.a. RAH-PEYK, Siyamak; a.k.a. RAHPIEK, Siamak), Iran; DOB 1963; alt. DOB 1964; POB Tehran, Iran; nationality Iran; Additional Sanctions Information - Subject to Secondary Sanctions; Gender Male (individual) [IRAN-EO13876].

    SADEGHI MOGHADAM, Mohammad Hasan (a.k.a. SADEGHI MOGHADAM, Mohammad Hassan; a.k.a. SADEGHI MOGHADDAM, Mohammad Hasan; a.k.a. SADEGHI MOHAMMAD, Mohammad; a.k.a. SADEQI-MOQADAM, Mohammad Hassan; a.k.a. SADEQI-MOQADDAM, Mohammad Hasan), Iran; DOB 1958; alt. DOB 1959; POB Jahrom, Iran; nationality Iran; Additional Sanctions Information - Subject to Secondary Sanctions; Gender Male (individual) [IRAN-EO13876].

    YAZDI, Mohammad, Iran; DOB 02 Jul 1931; alt. DOB 1931; alt. DOB 1932; POB Isfahan, Iran; nationality Iran; Additional Sanctions Information - Subject to Secondary Sanctions; Gender Male (individual) [IRAN-EO13876].

    02/19/2020

    Bureau blogs on Social Security scams

    The CFPB has posted a blog article, "Five ways to recognize a Social Security scam." These scams are the most commonly reported type of fraud, according to the Federal Trade Commission. The Office of the Inspector General at the Social Security Administration is warning the public about scammers making phone calls and following up with emails with falsified documents in attempts to get people to pay for fictitious government claims or fees to reinstate or increase benefits. The Bureau lists five symptoms of scams that can help protect people from becoming victims:

    1. Threats of arrest or legal action
    2. Emails or texts with personally identifiable information
    3. Misspellings and grammar mistakes
    4. Requests for payment by gift or pre-paid card, cash, or wire transfer
    5. Offers to increase benefits in exchange for payment

    Anyone who believes they have been victimized by a Social Security scam should report it to the Federal Trade Commission at ftc.gov/complaint and to the SSA Office of Inspector General Fraud at oig.ssa.gov.

    02/19/2020

    FinCEN adjusts penalty caps

    FinCEN is publishing [85 FR 9370] in the February 19, 2020, Federal Register, a final rule to make inflation adjustments to its civil monetary penalties (“CMPs”) as mandated by the Federal Civil Penalties Inflation Adjustment Act of 1990, as amended. The amendments update Table 1 in §1010.821 of FinCEN regulations at 31 CFR Part 1010, effective on publication. BankersOnline's Regulations page for §1010.821 has been updated.

    02/19/2020

    Russian oil brokerage targeted for support of Maduro regime

    The Treasury Department has announced that OFAC has designated Rosneft Trading S.A., the Swiss-incorporated, Russian-controlled oil brokerage firm under the authority of Executive Order (E.O.) 13850, as amended, for operating in the oil sector of the Venezuelan economy. OFAC also designated the chairman of the board of directors and president of Rosneft Trading S.A., Didier Casimiro, for purporting to act for or on behalf of, directly or indirectly, Rosneft Trading S.A.

    OFAC also issued a general license authorizing certain transactions and activities that are ordinarily incident and necessary to the wind down of transactions involving Rosneft Trading S.A.

    For identification of the designated individual and entity, and information on the general license, see BankersOnline's OFAC Update.

    02/19/2020

    $655M for Indian housing grants announced

    HUD Secretary Carson has announced more than $655 million in Indian Housing Block Grants (IHBG) to Native American tribes in 38 states. Funding is distributed to eligible tribes and their tribally designated housing entities to carry out a range of affordable housing activities in their communities.

    02/19/2020

    December 2019 TIC data released

    Treasury has released Treasury International Capital (TIC) data for December 2019. The sum total in December of all net foreign acquisitions of long-term securities, short-term U.S. securities, and banking flows was a net TIC inflow of $78.2 billion. Of this, net foreign private inflows were $134.2 billion, and net foreign official outflows were $56.0 billion. Foreign residents increased their holdings of long-term U.S. securities in December; net purchases were $60.7 billion. Net purchases by private foreign investors were $66.8 billion, while net sales by foreign official institutions were $6.1 billion. U.S. residents decreased their holdings of long-term foreign securities, with net sales of $24.9 billion.

    02/19/2020

    NMLS annual report released

    The 12th annual report on NMLS operations, performance and development efforts has been released in conjunction with the start of the NMLS Annual Conference & Training. The report, “Building a Foundation for the Future,” highlights the State Examination System, Temporary Authority to Operate and more.

    02/19/2020

    Fannie and Freddie joint credit score model solicitation

    The Federal Housing Finance Agency (FHFA) has announced that Fannie Mae and Freddie Mac (the Enterprises) have published a Joint Credit Score Solicitation, which describes the process for credit score model developers to submit applications to the Enterprises. The Enterprises will accept applications for 120 days, from May 18 – September 15, 2020.

    02/19/2020

    SEC files TRO and asset freeze against Florida RE firm

    The Securities and Exchange Commission has announced an emergency enforcement action and a temporary restraining order and asset freeze against Florida-based private real estate firm EquiAlt LLC, its CEO Brian Davison, and its Managing Director Barry Rybicki, in connection with an allegedly fraudulent unregistered securities offering that raised more than $170 million from at least 1,100 investors, a number of whom invested their retirement funds.

    According to a complaint filed by the Commission, EquiAlt, Davison, Rybicki, and the entities they control, fraudulently raised millions of dollars by making material misrepresentations to investors about EquiAlt’s investment strategy, the financial condition of the investments, and the uses of investor proceeds. The defendants allegedly told investors they would pool investor funds and use approximately 90% of the money to purchase undervalued real estate, rent or flip the properties, and pay investors 8-10% annual interest generated from the real estate investments. In reality, the complaint alleges, a large portion of investor money went to support Davison’s and Rybicki’s lavish personal spending, and less than 50% of the funds raised were used to invest in properties. In addition, money from one investment fund controlled by EquiAlt was allegedly used to make Ponzi-like payments to investors in another fund.

    02/18/2020

    Report on 'credit invisibility' problem

    A joint study by HUD and the Policy and Economic Research Council (PERC) examined how reporting rent payments made by thousands of HUD-assisted households to nationwide consumer reporting agencies would impact the credit ratings of these families. The study also sought to determine whether reporting rent payments to consumer credit reporting companies would overcome the problem of "credit invisibility."

    The results of this preliminary research show that including rental history in credit reports could increase the proportions of tenant with scoreable credit histories and with good credit scores, but the change could be detrimental to credit scores for a subset of tenants.

    02/18/2020

    Industrial production declines

    The Federal Reserve Board has released January G.17 Industrial Production and Capacity Utilization data, which indicate industrial production declined 0.3 percent in January, as unseasonably warm weather held down the output of utilities and as a major manufacturer significantly slowed production of civilian aircraft. The index for manufacturing edged down 0.1 percent in January; however, excluding the production of aircraft and parts, factory output advanced 0.3 percent. The index for mining rose 1.2 percent. At 109.2 percent of its 2012 average, total industrial production was 0.8 percent lower in January than it was a year earlier. Capacity utilization for the industrial sector fell 0.3 percentage point in January to 76.8 percent, a rate that is 3.0 percentage points below its long-run (1972–2019) average.

    02/18/2020

    Nebraska bank closed

    The FDIC has announced that Ericson State Bank in Ericson, Nebraska, was closed Friday by the Nebraska Department of Banking and Finance, which appointed the Federal Deposit Insurance Corporation (FDIC) as receiver. To protect depositors, the FDIC entered into a purchase and assumption agreement with Farmers and Merchants Bank in Milford, Nebraska, to assume all of the deposits of Ericson State Bank.

    As of December 31, 2019, Ericson State Bank had approximately $100.9 million in total assets and $95.2 million in total deposits. In addition to assuming all of the deposits, Farmers and Merchants agreed to purchase approximately $9.6 million of Ericson State Bank’s assets. The FDIC will retain the remaining assets for later disposition.

    02/18/2020

    2020 stress test scenarios

    The FDIC has announced its release of the hypothetical economic scenarios for use in the upcoming stress tests for covered institutions with total consolidated assets of more than $250 billion. The supervisory scenarios include baseline and severely adverse scenarios. The baseline scenario is in line with a survey of private sector economic forecasters. The severely adverse scenario is not a forecast, rather, it is a hypothetical scenario designed to assess the strength and resilience of financial institutions. Each scenario includes 28 variables—such as gross domestic product, the unemployment rate, stock market prices, and interest rates—covering domestic and international economic activity.

    Pages

    Training View All

    Penalties View All

    Search Top Stories