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 Stories

12/03/2020

OFAC sanctions associate of major fugitive drug lord

The Treasury Department has announced that OFAC has designated Mexican national Lucio Rodriguez Serrano as a Specially Designated Narcotics Trafficker in accordance with the Foreign Narcotics Kingpin Designation Act. Rodriguez Serrano engages in various activities on behalf of Rafael Caro Quintero, a major Mexican narcotics trafficker and the mastermind behind the murder of Drug Enforcement Administration Special Agent Enrique “Kiki” Camarena in 1985. Caro Quintero remains a fugitive from U.S. justice.

As a result of today’s action, all property and interests in property of the designated individual that are in the United States or in the possession or control of U.S. persons must be blocked and reported to OFAC. OFAC’s regulations generally prohibit all transactions by U.S. persons or persons within (or transiting) the United States that involve any property or interests in property of designated or otherwise blocked persons.

For further identification information on Rodriguez Serrano and several other OFAC changes, see BankersOnline's OFAC Update.

12/02/2020

OFAC targets network aiding Colombian DTO

The Treasury Department has announced OFAC has designated Jhon Fredy Zapata Garzon (Zapata Garzon) under authority of the Foreign Narcotics Kingpin Designation Act (Kingpin Act) for materially assisting the international narcotics trafficking activities of the Clan del Golfo drug trafficking organization (DTO). Three of his family members and associates are also being designated along with four businesses they own or control.

Since June 2000, more than 2,100 entities and individuals have been named pursuant to the Kingpin Act for their role in international narcotics trafficking. Penalties for violations of the Kingpin Act range from civil penalties of up to $1,503,470 per violation to more severe criminal penalties. Criminal penalties for corporate officers may include up to 30 years in prison and fines of up to $5 million. Criminal fines for corporations may reach $10 million. Other individuals could face up to 10 years in prison and fines pursuant to Title 18 of the United States Code for criminal violations of the Kingpin Act.

For identification information on all of the individuals and entities affected in OFAC's action, see BankersOnline's OFAC Update.

12/02/2020

Interim rule mitigating COVID-19-related transition costs published

The OCC, Federal Reserve Board, and FDIC have published [85 FR 77345] in today's Federal Register their interim final rule to mitigate temporary transition costs on banking organizations related to the coronavirus disease 2019 (COVID event). See the November 23, 2020, BankersOnline Top Story for details.

12/02/2020

Discount rate meeting minutes Oct. 5 – Nov. 5

The Federal Reserve Board has released the minutes of its interest rate meetings from October 5 through November 5, 2020.

12/02/2020

OCC reduces 2021 assessments

The OCC has announced it is reducing the rates in all Fee Schedules by three percent for the 2021 calendar year.

The 2021 reduction is in addition to the ten percent reduction to all Fee Schedules in 2020 and to the General Assessment Fee Schedule in 2019. The reduction reflects increased operating efficiencies that the agency has achieved over the last several years. The reduced assessments go into effect January 1, 2021, and will be reflected in assessments paid on March 31, 2021, and September 30, 2021.

12/02/2020

OCC reports 14 outstanding CRA evaluations

The OCC has released a list of Community Reinvestment Act performance evaluations that became public during November. Of the 39 evaluations made public last month, 25 are rated Satisfactory, and these 14 institutions' evaluations are rated Outstanding (links are to the banks’ evaluations):

12/02/2020

CFPB files lawsuit for TSR violations

The Bureau has filed a complaint against DMB Financial, LLC (DMB), headquartered in Beverly, Massachusetts, that alleges DMB violated the Telemarketing Sales Rule (TSR) and the Consumer Financial Protection Act of 2010 (CFPA) in connection with its debt-settlement and debt-relief services by requesting and receiving fees before it performed its promised services and before consumers started payments under any debt settlement. The Bureau also alleges that, after settling individual debts, DMB collected fees based on increased debt amounts after enrollment rather than the amount of each debt at the time of enrollment.

The Bureau's complaint requests that the court permanently enjoin DMB from future violations, provide additional injunctive relief, order DMB to pay redress to harmed consumers and to disgorge ill-gotten gains, and impose civil money penalties on DMB.

12/01/2020

Debt parking scheme halted

The Federal Trade Commission has filed an action in U.S. District Court and received a stipulated Order for Permanent Injunction and Monetary Judgment against a debt collection company that allegedly placed bogus or highly questionable debts on consumers’ credit reports to coerce them to pay the debts. The FTC alleged that the company and its owners, Brandon M. Tumber, Kenny W. Conway, and Joseph H. Smith, had collected more than $24 million from consumers. Under a settlement with the FTC, the company, Midwest Recovery Systems (Midwest Recovery), is prohibited from the practice, known as “debt parking,” and required to delete the debts it previously reported to credit reporting agencies.

The settlement includes a monetary judgment of $24.3 million, which is partially suspended based on an inability to pay. Tumber and the company will be required to pay $56,748, and Tumber will also be required to sell his stake in another debt collection company and provide the proceeds from that sale to the FTC. In addition, Midwest Recovery will be required to surrender all of its remaining assets. If the defendants are found to have misrepresented their ability to pay, the full amount of the judgment would become immediately payable.

12/01/2020

NCUA prohibition notices issued

The NCUA issued two prohibition notices in November 2020, to individuals who are now prohibited from participating in the affairs of any federally insured financial institution.

  • A former employee of Groton Municipal Employees Federal Credit Union in Groton, Connecticut, who had entered into a pretrial diversion or similar program resulting from a charge of third degree larceny in connection with her employment.
  • A former employee of Beacon Credit Union in Lynchburg, Virginia, who had been sentenced on a charge of embezzlement in connection with her employment.

12/01/2020

Webinar on use of artificial intelligence

FDIC FIL-109-2020 has announced the FDIC, Fed, OCC, and CFPB will conduct an Ask the Regulators webinar event for their supervised institutions on the use of artificial intelligence (AI), including machine learning (ML) on Wednesday, December 16, 2020, at 1:00 p.m. EST.

During the “Ask the Regulators: Banks’ Use of Artificial Intelligence, including Machine Learning” webinar, the agencies will discuss issues and common questions raised about banks’ use of AI/ML, including risk management and controls, data usage, explainability and transparency, independent review, and consumer protection considerations. The agencies will also highlight several existing laws, regulations, supervisory guidance, and other resources that may be relevant to AI/ML usage.

Pregistration is required.

12/01/2020

Powell discusses CARES Act with Senate Committee

Yesterday, Federal Reserve Board Chair Jerome H. Powell updated the Senate Committee on Banking, Housing, and Urban Affairs on the actions of the Federal Reserve to use its policies to help alleviate the economic burden resulting from the pandemic.

He noted economic activity has continued to recover from its depressed second-quarter level. The reopening of the economy led to a rapid rebound in activity, and real gross domestic product, or GDP, rose at an annual rate of 33 percent in the third quarter. In recent months, however, the pace of improvement has moderated. Household spending on goods, especially durable goods, has been strong and has moved above its pre-pandemic level. In contrast, spending on services remains low largely because of ongoing weakness in sectors that typically require people to gather closely, including travel and hospitality.

Powell said the Federal Reserve's response has been guided by its mandate to promote maximum employment and stable prices for the American people, along with its responsibilities to promote the stability of the financial system. The CARES Act assigns sole authority over its funds to the Treasury Secretary, subject to the statute's specified limits. The Secretary has indicated that these limits do not permit the CARES Act-funded facilities to make new loans or purchase new assets after December 31 of this year. Accordingly, the Federal Reserve will return the unused portion of funds allocated to the lending programs that are backstopped by the CARES Act in connection with their termination at the end of this year. As the Secretary noted in his letter, non-CARES Act funds in the Exchange Stabilization Fund are available to support emergency lending facilities if they are needed.

12/01/2020

Fed releases senior financial officer survey data

The Federal Reserve Board has released results of a survey of senior financial officers at banks about their strategies and practices for managing reserve balances. The Senior Financial Officer Survey (SFOS) is used by the Board to obtain information about deposit pricing and behavior, bank liability management, the provision of financial services, and reserve management strategies and practices. The most recent survey was conducted in collaboration with the Federal Reserve Bank of New York between September 18, 2020, and October 2, 2020, and includes responses from banks that held approximately three quarters of total banking system's reserve balances at the time of the survey.

12/01/2020

Bureau adds to executive team

The CFPB has announced additions to its executive team:

  • Matthew R. Bettenhausen serves as Senior Advisor and Counselor to the Director
  • Chris Chilbert is the Chief Information Officer in the Bureau’s Operations Division
  • Janis K. Pappalardo is the Associate Director for Research, Markets and Regulations
  • Donna Roy is the Bureau’s Chief Operating Officer
  • Deborah Royster is the Assistant Director, Office for Older Americans

12/01/2020

Bureau no-action letter issued

The Consumer Financial Protection Bureau has announced it has granted a no-action letter to Upstart Network, Inc., regarding its automated model for underwriting and pricing applications for unsecured closed-end loans.

12/01/2020

Bureau issues Advisory Opinions Policy and two opinions

On Monday, November 30, 2020, the Consumer Financial Protection Bureau issued its final Advisory Opinions Policy. The policy is meant to provide a way to clarify ambiguities in the Bureau's regulations or in statutory requirements. The Bureau has said that the program "provides a mechanism through which the Bureau can more effectively carry out its statutory purposes and objectives by better enabling compliance in the face of regulatory and statutory uncertainty." Information about the Advisory Opinions program is available on the Bureau's website.

The Bureau also released its first two Advisory Opinion Letters on these topics:

The two Advisory Opinion Letters will be effective upon publication in the Federal Register.

12/01/2020

FDIC and OCC list CRA exam schedules

The FDIC and the OCC have issued their respective schedules for CRA examinations during the first and second quarters of 2021.

12/01/2020

Revisions to small business size standards proposed

The SBA is requesting public comments on a proposed rule that would revise the small business size standards for businesses in five North American Industrial Classification System (NAICS) sectors to increase small business eligibility for SBA’s loan and contracting programs. The NAICS sectors reviewed in the proposed rule are: Education Services; Health Care and Social Assistance; Arts, Entertainment and Recreation; Accommodation and Food Services; and Other Services. SBA proposes to increase size standards for 70 industries in those sectors.

Comments on the proposal will be accepted through January 26, 2021.

12/01/2020

HUD awards $54.7M in new rental grants for low-income persons

HUD has announced the awarding of over $54.7 million in capital advance and project rental assistance grants to 15 organizations, to expand the supply of affordable rental housing for extremely low-income persons with disabilities. The capital advance awards will support integrated affordable housing by providing funding for the development of permanent supportive rental housing through it’s Section 811 Supportive Housing for Persons with Disabilities program.

12/01/2020

OFAC sanctions Chinese tech company for Maduro support

The Treasury Department has announced that OFAC has designated China National Electronic Import-Export Company (CEIEC) for supporting the illegitimate Maduro regime’s efforts to undermine democracy in Venezuela, including its efforts to restrict internet service and conduct digital surveillance and cyber operations against political opponents.

CEIEC has over 200 subsidiaries and offices around the world. Concurrent with this action, OFAC is issuing a general license that, for 45 days, authorizes all transactions and activities prohibited by E.O. 13692, as amended, that are ordinarily incident and necessary to the wind-down of transactions involving CEIEC.

See BankersOnline's OFAC Update for CEIEC identification details and links to the general license and a related FAQ.

12/01/2020

Fed lending programs extended through first quarter

Treasury and the Federal Reserve Board have announced an extension of four of the Fed's credit facilities through March 31, 2021:

  • Commercial Paper Funding Facility
  • Money Market Mutual Fund Liquidity Facility
  • Primary Dealer Credit Facility
  • Paycheck Protection Program Liquidity Facility

12/01/2020

LIBOR transition statement issued

The Federal Reserve Board, FDIC, and the OCC have issued a statement encouraging banks to cease entering into new contracts that use USD LIBOR as a reference rate as soon as practicable and in any event by December 31, 2021, in order to facilitate an orderly—and safe and sound— LIBOR transition.

12/01/2020

Fed CRA ratings for October and November

Our review of the Federal Reserve Board's archive of CRA evaluation ratings indicates that in the months of October and November, 2020, the Federal Reserve Banks made public 21 ratings. Of the Federal Reserve member banks listed, one received a "Needs to Improve" rating, 17 were rated "Satisfactory," and these three banks received ratings of "Outstanding" (links are to the banks' evaluations):

Training View All

Penalties View All

Search Top Stories