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The Conference of State Bank Supervisors has posted an NMLS Blog article reporting the results of a November 2023 survey of over 1,400 NMLS users to measure their satisfaction with the system. The survey consisted of two parts: customer satisfaction and system usability. Survey results suggested that, on average, 85% of users are satisfied with their NMLS experience. However, survey comments indicated there are aspects of the system where the user experience can be improved. This feedback is driving upcoming NMLS enhancements, according to the article.

The overall Customer Satisfaction (“CSAT”) score was 85% for the NMLS experience survey. This suggests that, on average, 85% of customers surveyed expressed satisfaction with NMLS. The highest CSAT scores were from mortgage loan originators (MLOs), and the lowest were from company users. This is expected since MLOs generally spend less time completing tasks and activities in NMLS than company users. An analysis of qualitative feedback revealed users feel NMLS is not user friendly or intuitive, difficult to navigate, and the password process is frustrating.

After completing the CSAT survey, respondents were given the option to complete the System Usability Scale (“SUS”) Survey, a 10-question survey for measuring NMLS usability. There were 981 respondents who completed this section. The total SUS score for the surveyed group was 61.64. This score falls within the “OK to Good” range, suggesting that on average, users find the system to be reasonably usable, but there is room for improvement. The highest scores were recorded for federal MLOs, whose score of 71.71 is slightly above the industry average. There were several ratings below a 20, which, along with the average score itself, should be a key metric to improve in the new system.

The NCUA has announced that low-income-designated credit unions can apply for 2024 Community Development Revolving Loan Fund grants between May 1 and July 1, 2024.

The 2024 CDRLF grant round is open to credit unions with a low-income designation. Minority depository institution credit unions are not eligible for funding in this year’s grant round if they do not have the low-income designation. Credit unions with questions about the low-income designation should contact the NCUA’s Office of Credit Union Resources and Expansion.

The NCUA will host a webinar in May to explain the grants process. The 2024 Notice of Funding Opportunity has been published in the Federal Register.

The Federal Housing Finance Agency yesterday provided an update on its implementation of the recommendations of the Federal Home Loan Bank (FHLBank) System at 100: Focusing on the Future report​​, which was published in November 2023 and followed the first comprehensive evaluation of the FHLBank System in decades. ​

A significant finding of the report is that the FHLBanks must appropriately support housing and community development in their districts, in addition to providing liquidity to members.

The FHFA has published a regulatory interpretation that clarifies how cooperativas in Puerto Rico can pursue membership in the FHLBank System. Cooperativas are a critical part of the financial system in Puerto Rico, and many are Treasury-certified Community Development Financial Institutions (CDFIs). To date, no cooperativa has become a member of the FHLBank System.

The FDIC has released its April 2024 list of FDIC-supervised banks whose latest CRA evaluations have recently been made public. Of the 50 banks listed, two — in Moulton, Texas, and Parker, Colorado — were rated "Needs to Improve," 45 were rated "Satisfactory," and these three received "Outstanding" ratings:

• The Bank of New Glarus, New Glarus, Wisconsin
• First General Bank, Rowland Heights, California
• Rockland Trust Company, Rockland, Massachusetts

The OCC has announced its support of National Financial Capability Month in April, and encouraged national banks and federal savings associations to support this annual commemoration by recommitting their focus on improving the financial capability and financial health of their customers.

Banks and FSAs can promote financial capability through high-quality financial literacy education, as well as through improved access to financial services for all consumers, especially those who are underserved.

The OCC is dedicated to making resources available to help banks deliver top-tier financial literacy education and services. The OCC’s Community Affairs office issues publications and provides resources to banks on financial capability and financial literacy topics including the recently updated Community Developments Fact Sheet on Financial Capability, the quarterly Financial Literacy Update and the Financial Literacy Resource Directory.

The U.S. Department of Housing and Urban Development yesterday announced the award of over $30 million to fair housing organizations across the country under its Fair Housing Initiatives Program (FHIP). The grants will support the efforts of national, state, and local fair housing entities working to address violations of the Fair Housing Act and to end discrimination in housing.

The grant funding will allow the grantees to provide fair housing enforcement by conducting investigations, testing to identify discrimination in the rental and sales markets, and filing fair housing complaints with HUD or substantially equivalent state and local agencies. In addition, grantees will conduct education and outreach activities to inform the public, housing providers, and local governments about rights and responsibilities that exist under the Fair Housing Act.

Our monthly review of the Federal Reserve Board's archive of Community Reinvestment Act evaluations has revealed that the Reserve Banks released 23 evaluations in March 2024. Of those evaluations, 21 received "Satisfactory" ratings. Two banks — First State Bank Southwest, Pipestone, Minnesota; and FirstBank, Lakewood, Colorado — received "Outstanding" ratings.

The OCC has released a list of 19 Community Reinvestment Act performance evaluations that became public during the month of March 2024. Two of the listed evaluations are rated "Needs to Improve," 13 are rated "Satisfactory," and the following four are rate "Outstanding":

• The Clinton National Bank, Clinton, IA
• Native American Bank, National Association, Denver, CO
• Rosedale FS & LA, Baltimore, MD
• TD Bank USA, National Association, Wilmington, DE

The NCUA has announced it issued two prohibition notices and one consent order in March 2024, permanently prohibiting individuals from participating in the affairs of any federally insured depository institution.

• Sarah C. Conley, a former employee of Summit Federal Credit Union, Rochester, New York, received a notice of prohibition, having been convicted of grand larceny in connection with illegal activities at the credit union
• Carlene Bartley, formerly employed by Municipal Credit Union, New York, New York, was issued a notice of prohibition, having pleaded guilty to, and having been convicted on, charges of grand larceny
• Esther A. Olson, a former assistant branch manager of Educational Employees Credit Union, Fresno, California, received a consent order of prohibition, after a finding that she had embezzled funds from member accounts, including the withdrawal of over $60,000 from four different members' share accounts

Bloomberg Law has reported that a federal judge in Texas has blocked banking regulators’ rewrite of their Community Reinvestment Act rules, giving banks a reprieve from new regulations that had been set to take effect today.

The Federal Reserve, the Federal Deposit Insurance Corp., and the Office of the Comptroller of the Currency went beyond the bounds of the 1977 Community Reinvestment Act in their final rules issued last October, Judge Matthew J. Kacsmaryk of the U.S. District Court for the Northern District of Texas said in a ruling on Friday.

The court enjoined the agencies from enforcing the regulations pending the resolution of a lawsuit brought in February by the ABA, the U.S. Chamber of Commerce and five national and state associations, and pushed back the April 1, 2024, effective date, along with all other implementation dates, day for day, for each day the court's injunction remains in place.

The FDIC has updated the following sections of its Consumer Compliance Examination Manual (CEM):

• Communicating Findings (II-6.1): Updated to clarify when the self-identification of violations is considered a strength of a bank’s Compliance Management System
• Expedited Funds Availability Act (VI-1.1): Updated with technical changes related to regulatory dollar-amount thresholds and large deposit hold times
• FTC Rule - Preservation of Claims and Defenses (VII-2.1): Removed an invalid exception in a chart

The CFPB has released its 2023 Consumer Response Annual Report. The report indicates that during 2023, the Bureau sent more than 1.3 million complaints to over 3,400 companies for review and response.

The report shows a continued increase in credit or consumer reporting complaints, with more than one million of them sent to the three nationwide consumer reporting companies — Equifax, Experian, and TransUnion.

Consumers also raised issues about fraudulent activity in nearly every product category, including credit or consumer reporting, debt collection, checking or savings accounts, and credit cards.

The FDIC has released a list of enforcement actions it took in February 2024.

• Guaranty Bank and Trust Company, Belzoni, Mississippi, was assessed an $80,500 civil money penalty for a pattern or practice of flood insurance-related violations
• Robert Christopher Rodgers, former president of The Citizens Bank, Hickman, Kentucky, received a Removal/Prohibition Order with assessment of a $7,000 civil money penalty after a finding that he exceeded his lending authority by originating unsecured loans and approving overdrafts for a customer of the bank; continuing to approve overdrafts despite the customer's failure to pay loans and existing overdrafts, and failing to inform the bank's board of the extent of the overdrafts, resulting in a loss to the bank of over $800,000.
• Rhenae K. Risher, a former employee of Bank of Morton, Morton, Mississippi, was issued a Removal/Prohibition order after a finding that she manipulated the bank's general ledger accounts to cash and pay checks of her son's trucking company to avoid overdrawing his business checking account, causing a loss to the bank of over $255,000.